Report Outlines Steep Funding Gaps for Downtown Menlo Park Housing Sites

A financial assessment conducted by consulting firm Strategic Economics shows that three separate affordable housing concepts proposed for downtown Menlo Park parking plazas carry funding deficits between $19 million and $45 million. The findings were delivered to city officials to inform an upcoming City Council study session.

The city originally invited developers to construct affordable apartments across downtown parking plazas 1, 2, and 3 with the condition that all 556 existing public parking spaces would be replaced without direct municipal cash assistance. However, the consultant determined that the cost of building underground or multi-level replacement garages severely impacts the economic viability of each concept.

To bridge the gaps, the report outlines options including reducing replacement parking requirements, adding paid parking meters downtown to raise revenue, or placing a local sales tax increase before voters to help finance dedicated public garages.