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Who Killed the Building? · Case brief · October 22, 2026

156 California Avenue Towers (Mollie Stone's Site)

Palo Alto · Santa Clara County · California · https://whokilledthebuilding.com/projects/palo-alto-156-california-2023

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.

Project facts

JurisdictionPalo Alto, Santa Clara County
StatusIn Review
Project typeMixed-Use
Address156 California Avenue, Palo Alto, CA 94306
Units proposed382
Affordable units77
Floors17
Date filedNovember 8, 2023
Delay35 months
Housing elementIn compliance (HCD)

Mechanism and what it did

Decision-making bodies

No deciding body has been recorded for this case yet.

Timeline

DateEventWhat the record shows
November 8, 2023Developer Files Builder's Remedy Application for 382 UnitsHolland & 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, 2023City Says Builder's Remedy Does Not ApplyThe 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, 2024Alternative Pre-Application FiledThe 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, 2024State Certifies Palo Alto Housing ElementHCD 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, 2024City Begins Environmental Impact ReportThe 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, 2025Developer Seeks CEQA Exemption Under AB 130The 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, 2025Developer Serves AB 1633 NoticeThe 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, 2026Negotiated Deal Cuts Top Tower to 14 StoriesA 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, 2026Split Council Backs 14-Story Alternative, 4-2Pat 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/

Decisions

No decision records yet. Decision records are added from minutes, agenda packets, video, or rulings.

Sources

  1. SB 330 preliminary application cover letter, 156 California Avenue, City of Palo Alto, November 8, 2023 [Planning Document]. 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
  2. Prescreening Development Application Under SB330 Submitted: 156 California Avenue, City of Palo Alto, November 21, 2023 [Planning Document]. https://www.paloalto.gov/News-Articles/City-Manager/Prescreening-Development-Application-Under-SB330-Submitted-156-California-Avenue
  3. HCD review of Palo Alto adopted housing element, California Department of Housing and Community Development (Melinda Coy), August 20, 2024 [Planning Document]. https://www.paloalto.gov/files/assets/public/v/1/city-manager/slo-palo-alto-adopt-in-082024.pdf
  4. Notice of preparation, 156 California Avenue EIR, CEQAnet, December 17, 2024 [Planning Document]. https://ceqanet.lci.ca.gov/2024120754
  5. Developer behind Mollie Stone's towers accuses city of slow-walking proposal, Palo Alto Daily Post (Braden Cartwright), August 18, 2025 [News Article]. https://padailypost.com/2025/08/18/developer-behind-mollie-stones-towers-accuses-city-of-slow-walking-proposal/
  6. AB 1633 notice for 156 California Avenue (Holland & Knight for Midar), City of Palo Alto, September 23, 2025 [Planning Document]. 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
  7. Two 156 Cal Ave. Development Options Now Available For Council Review, City of Palo Alto, May 7, 2026 [Planning Document]. https://www.paloalto.gov/News-Articles/City-Manager/Two-156-California-Avenue-Housing-Development-Options-Now-Available-For-Council-Review
  8. Split council OK with 14-story towers at Mollie Stone's, Palo Alto Daily Post (Braden Cartwright), May 18, 2026 [News Article]. https://padailypost.com/2026/05/18/split-council-ok-with-14-story-towers-at-mollie-stones/
  9. 156 - 164 California Avenue project page, City of Palo Alto [Planning Document]. https://www.paloalto.gov/Departments/Planning-Development-Services/Current-Planning/Projects/156-California-Avenue

Data quality

Rating 3 of 5. Multiple sources, including at least one primary record. Corrections: https://whokilledthebuilding.com/corrections.