Redco Development and Mollie Stone's owner Mike Stone proposed redeveloping the Mollie Stone's grocery site at 156 California Avenue, plus a small lot at Park Boulevard and Cambridge Avenue, in Palo Alto (city file 24PLN-00100). The SB 330 preliminary application, filed November 8, 2023 by Midar Investment Co. through Holland & Knight, invoked the builder's remedy: 382 units, 77 of them income-restricted at 80 percent of area median income, in buildings of 17, 11 and 7 stories (177, 120 and 77 feet) on land with a 50-foot height limit. The city said on November 21, 2023 that the builder's remedy did not apply because it had an adopted housing element it believed was compliant. HCD certified that element on August 20, 2024. The city began an environmental impact report in December 2024 and on August 20, 2025 rejected the developer's request for a CEQA exemption under AB 130; the developer answered with an AB 1633 notice and accused the city of slow-walking the project. The city later found the project exempt (date not confirmed). A council ad hoc committee then negotiated an alternative: 390 units, 50 of them affordable, in towers of 14, 12 and 12 stories with a two-level grocery store. On May 18, 2026 the council voted 4-2 to pursue it, with Pat Burt and Keith Reckdahl opposed and Mayor Vicki Veenker absent. The alternative still needs an Architectural Review Board courtesy review and a later council vote, and the original application remains on file with its deadlines paused. Unit and floor figures above are for the original application.
| Date | Event | What the record shows |
|---|---|---|
| November 8, 2023 | Developer Files Builder's Remedy Application for 382 Units | Holland & Knight, for Midar Investment Co., files an SB 330 preliminary application arguing that Palo Alto's May 2023 housing element did not comply with state law. Holland & Knight letter: https://www.paloalto.gov/files/assets/public/v/1/planning-amp-development-services/new-development-projects/156-california/sb-330-preliminary-application_156-california.pdf |
| November 21, 2023 | City Says Builder's Remedy Does Not Apply | The city says it has an adopted housing element "which it believes is compliant." City of Palo Alto: https://www.paloalto.gov/News-Articles/City-Manager/Prescreening-Development-Application-Under-SB330-Submitted-156-California-Avenue |
| March 12, 2024 | Alternative Pre-Application Filed | The developer files a pre-application for an alternative design without withdrawing the original. City of Palo Alto: https://www.paloalto.gov/Departments/Planning-Development-Services/Current-Planning/Projects/156-California-Avenue |
| August 20, 2024 | State Certifies Palo Alto Housing Element | HCD finds the adopted housing element in substantial compliance, nine months after the city said it already complied. HCD: https://www.paloalto.gov/files/assets/public/v/1/city-manager/slo-palo-alto-adopt-in-082024.pdf |
| December 17, 2024 | City Begins Environmental Impact Report | The city posts a notice of preparation for an EIR, with comments open until Jan. 16, 2025. CEQAnet: https://ceqanet.lci.ca.gov/2024120754 |
| August 6, 2025 | Developer Seeks CEQA Exemption Under AB 130 | The city rejects the request on Aug. 20. The Daily Post reports that the developer's letter raised the possibility of a lawsuit. Palo Alto Daily Post: https://padailypost.com/2025/08/18/developer-behind-mollie-stones-towers-accuses-city-of-slow-walking-proposal/ |
| September 23, 2025 | Developer Serves AB 1633 Notice | The notice follows the city's Aug. 20 ruling that the exemption does not apply. Holland & Knight letter: https://www.paloalto.gov/files/assets/public/v/1/planning-amp-development-services/new-development-projects/156-california/midar-156-california-ab-1633-notice-9-23-2025-1.pdf |
| May 7, 2026 | Negotiated Deal Cuts Top Tower to 14 Stories | A council ad hoc committee led by Ed Lauing and the developer announce an alternative: 390 units, 50 affordable, in towers of 14, 12 and 12 stories. City of Palo Alto: https://www.paloalto.gov/News-Articles/City-Manager/Two-156-California-Avenue-Housing-Development-Options-Now-Available-For-Council-Review |
| May 18, 2026 | Split Council Backs 14-Story Alternative, 4-2 | Pat Burt and Keith Reckdahl vote no; Mayor Vicki Veenker is absent. The alternative still needs an Architectural Review Board review and a final council vote. Palo Alto Daily Post: https://padailypost.com/2026/05/18/split-council-ok-with-14-story-towers-at-mollie-stones/ |
Rating 3 of 5. Multiple sources, including at least one primary record. Corrections: https://whokilledthebuilding.com/corrections.