A Positive Step Forward

The Menlo Gateway team is pleased to report that on November 17, 2009, the Menlo Park City Council unanimously agreed to move forward with the project as proposed with certain conditions. The Council's unanimous decision to proceed with the next step is a major step forward and moves Menlo Gateway closer to delivering on its benefits to the community.

With the Council's go-ahead, the Bohannon Development Company and the City of Menlo Park are now negotiating the terms of the Development Agreement (DA). A DA is a contractual agreement executed by the City and the developer that allows the project to move forward in exchange for assurances that the City will receive specified benefits in return. A draft of the agreement is expected to be circulated for public review in February, 2010.

Menlo Gateway offers numerous benefits to the City and to the region in the areas of sustainability, revenue, and job creation. The project is designed to be a "green" landmark in Menlo Park upon its completion. Bohannon will seek LEED Gold certification for office buildings on the site and LEED Silver certification for the hotel. Menlo Gateway will also deliver state-of-the-art, significant environmental improvements over the aging buildings currently on the site.

The project is expected to contribute roughly $1.6 million in revenue per year, as determined by two independent fiscal impact analyses. In addition, the project is paying $13.2 million in impact fees that cover sewer, water, schools, and traffic improvements, and one-time capital improvements. Benefits would also extend to San Mateo and Santa Clara counties. The project's direct construction costs of $265 million are expected to generate $131 million in additional economic activity, and its ongoing operations would generate $217 million in additional economic stimulus for the local economy.

The Menlo Gateway project will create approximately 2300 permanent jobs for the office, hotel and fitness club. The project also is expected to create 1900 construction jobs on the site itself and indirectly create 1560 additional new jobs across the region from project operations.

We welcome the upcoming discussions and look forward to returning to the Planning Commission and City Council in 2010.