City of Menlo Park responds to Attorney General’s notice regarding 80 Willow Road; developer sues

Update on Friday, October 2: According to the San Francisco Chronicle, the developer of the proposed project is suing the City of Menlo Park, “setting up high-stakes showdown over California housing law.” Read the full article (may be protected by paywall).

———–

On Oct. 1, 2026, the City of Menlo Park responded to the California Attorney General’s written notice that asserted it had violated state housing laws in its processing of the 80 Willow Road project.

In its response letter, the City refutes the Attorney General’s assertions that the City violated State housing laws. The City explained that the Project remains ineligible for processing under the Affordable Housing and High Road Jobs Act of 2022 (AB 2011). The City also reaffirmed its position that the Project is not entitled to approval under the Builder’s Remedy and explained that the Attorney General’s conclusions are based on an incomplete and incorrect assessment of the Project’s application history and applicable law. Finally, the City explained that its recovery of costs incurred in reviewing the Project from the applicant is lawful and does not constitute a violation of State housing law.

The following is excerpted from the City’s response letter:

“The City was extremely surprised that the Notice was issued without your office having discussed the Project and the Application history in any detail with representatives of the City. Just the day before the Notice was issued, representatives of your office met with City staff and attorneys from the City Attorney’s office for the first time for just one hour, asked no questions about the attributes of the Project itself, and did not ask to review any documents. The next day, the Notice, which unlocks potentially catastrophic financial penalties against the City, was issued. Had the City been afforded the opportunity to provide critical factual information to you, which directly and materially impacts the analyses contained in the Notice, we have no doubt that your office would have reached different conclusions about this Project’s eligibility for AB 2011 and the City’s compliance with state law.

“Additionally, and crucially, the City takes very seriously the concerns raised by Congressmember Sam T. Liccardo is his September 23, 2026, letter to U.S. Treasury Secretary Bessent regarding the Project. That letter is provided as Attachment A. Representative Liccardo has requested that the United States Government’s Office of Foreign Assets Control immediately review the source of funding for this Project, given that the property owner, a Russian citizen, has documented ties to the Russian government and to individuals linked to organized crime. . .

“The property’s ownership raises alarms on the City’s part. Further, this information has been in the public record for some time, ever since the 2019 purchase of the property by the current owner. The City would like to know whether your office was aware of, and had investigated, these concerns prior to issuing the Notice.

“The Notice couches its conclusions as support for a Project that meets California’s housing needs. But with the exception of the 100 required units of affordable housing, it is primarily a commercial project with luxury housing. As described in the attached feasibility study, buildings as high as proposed have the highest construction costs. To even approach feasibility, the projected rents and condominium prices for the market-rate housing units must exceed any recent Menlo Park sales or comparables, with rents averaging $9,592 per month for two-bedroom apartments and condominium prices averaging $2,422,000.”

To read the full response to the Attorney General and for additional details about the project, please visit menlopark.gov/80willow.