Three developers have submitted proposals to build hundreds of housing units atop city-owned downtown parking lots in Menlo Park, moving forward with redevelopment plans even as opponents push a ballot measure aimed at stopping the projects over concerns about impacts on local businesses.
The proposals – submitted by Alliant Communities, Presidio Bay Ventures, and Related California and Alta Housing – come amid an escalating political fight over the future of downtown.
Earlier this month, the Menlo Park City Council decided to place a ballot measure before voters in the November 2026 general election, asking residents whether the city should be required to get voter approval before redeveloping downtown parking lots.
The decision came after opponents of the housing plans successfully gathered enough signatures to force the council to either adopt the measure, call a special election, or put it on the general election ballot. If approved, the city would then need voter permission each time it seeks to redevelop the lots.
Despite the ballot measure, city officials said the redevelopment process is continuing – at least for now. The City Council is expected to review the proposals in early 2026, though it is still unclear whether later stages of planning would be put on hold until voters weigh in.
The three developers submitted plans that varied in scale and the target market they intend to serve.
Alliant Communities proposes 345 units of fully affordable housing aimed primarily at low-income residents, including some of the city’s lowest earners. The homes would be affordable to individuals earning roughly $41,000 to $110,000 a year, with average rents geared toward someone making about $74,000 annually. One of the downtown sites would be reserved for affordable senior housing.
Presidio Bay Ventures proposes a similarly sized project — 347 units — but targets mainly middle- and upper-middle-income residents. Its “workforce housing” would be affordable to individuals earning about $110,000 to $157,000 a year, a range the developer says reflects the salaries of teachers, nurses, police officers and other essential workers increasingly priced out of Menlo Park.
Related California and Alta Housing propose the largest development, with 500 total apartments. About 346 units, a majority of its apartments, would be for affordable housing, specifically for very low- and low-income residents, or individuals earning roughly $41,000 to $69,000 a year, including both family and senior housing. The remaining 154 units would be rented at market rates.
Actual income limits would vary depending on household size.
After the city released the proposals, supporters and opponents of the downtown housing plans sharply disagreed over what’s at stake.
Critics have argued that removing parking, even during the construction phase, would hurt longtime businesses and discourage visitors. Housing advocates counter that redevelopment is essential to addressing Menlo Park’s housing shortage in San Mateo County, one of the most expensive housing markets in the nation, and would provide consistent foot traffic for downtown businesses.
“Three developers have submitted proposals to redevelop parking plazas 1, 2, and 3,” Save Downtown Menlo, the group that led the signature drive for the ballot initiative and opposes the housing projects, said in a statement. “The proposals show that the apartment buildings would be massive in scale and have a significant impact on downtown. It’s hard to read them and not conclude that a decision of this magnitude should require voter approval.”
The group has argued that other sites would be better suited for high-density development, pointing to other locations such as the Bohannon Industrial Park and the SRI/Parkline Corporation Yard as alternative sites.
While the developers’ proposals include plans to replace public parking, Save Downtown Menlo argues they fall short for future residents, saying, “they propose barely any parking for the residents themselves.”
Housing advocates dispute that claim, saying the proposals strike a balance between new housing and downtown access.
Jenny Michel, a housing advocate and commercial real estate professional, said she was particularly impressed with Presidio Bay’s plan, which she said includes ample parking and green space.
“Presidio has demonstrated that it can manage construction in a way that minimizes impacts to businesses and access,” Michel said. “It’s a quadruple win.”
While Menlo Park is currently in compliance with state housing laws, some City Council members have previously expressed reluctance to delay the project because of those obligations.
Nearby Portola Valley had its housing plan decertified last year after state officials said the town was stalling on new construction. Under its state-mandated plan, Menlo Park is required to approve nearly 3,000 new homes by 2031, including more than 1,600 affordable units.
“These are win-win proposals,” said Jeremy Levine, policy manager for the Housing Leadership Council of San Mateo County. “All three try to deliver on the housing needs the city has identified, while also replacing parking and supporting downtown businesses.”
Levine said he is hopeful the developments will help Menlo Park’s downtown thrive, citing neighboring cities as positive examples.
“In every other city that has seen more development – Redwood City, Palo Alto, Mountain View – they’ve built parking structures and created vibrant, thriving downtowns,” Levine said. “Menlo Park can do the same.”