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<br />
<br />Redwood City Community Development Department
<br />1017 Middlefield Road
<br />Redwood City, CA 94063
<br />planning@redwoodcity.org
<br />(650) 780-7234
<br />
<br />October 22, 2025
<br />
<br />RE: Request for Modification to the Elco Yards Conditions of Approvals
<br />
<br />Dear Redwood City Community Development Department:
<br />
<br />This letter outlines a request for modifications to the approved plans for the Elco Yards Project (“Project”), formerly
<br />known as the South Main Mixed-Use Project. The Project was originally entitled for a comprehensive mixed-use
<br />development encompassing approximately 421,000 square feet of R&D space, 109,000 square feet of office space, 540
<br />residential units, 28,000 square feet of retail, 8,400 square feet of child care, and 40,000 square feet of publicly
<br />accessible open space. IQHQ Elco Yards LP (“IQHQ”), the current developer and owner, is nearing completion on the
<br />commercial portion of the Elco Yards master plan, including four modern office buildings, that are attracting top-tier
<br />tenants. Furthermore, numerous community benefits have been completed, including Parcel F located at 1304 El Camino
<br />Real (“Miramontes) which features 38 affordable units and 1 mangers unit, the child care center, Main Street Dog Agility
<br />Park expansion, the public plaza facing the Shed, a 3,300 SF purpose-built restaurant space, protected bike lanes along
<br />El Camino Real, pedestrian walkways, street reconfigurations, traffic calming on Redwood Avenue, and many of the
<br />required offsite infrastructure improvements including off-site sewer upgrades in Bradford and Walnut, a recycled water
<br />extension to and through the project frontages, and utility main upgrades surrounding the project site.
<br />
<br />Despite these recent successes, the residential components of the Elco Yards Project (Parcels A and D) have faced
<br />significant headwinds and stalled since their entitlement in 2020. The multi-family residential sector has been
<br />particularly challenged by an uncertain economic environment that has persisted since the pandemic, including rising
<br />interest rates, increased construction costs, volatility regarding tariffs, and elevated investor return expectations. The
<br />resulting scarcity of new construction starts in the Peninsula further exacerbates the severe housing shortage impacting
<br />this community.
<br />
<br />IQHQ remains fully committed to completing the Elco Yards master plan, recognizing that Parcels A and D are at the
<br />critical nucleus of the campus and essential for the future success of the commercial components. To that end, IQHQ
<br />identified High Street Residential (“HSR”), a wholly-owned subsidiary of Trammell Crow Company (“TCC”), as a partner
<br />in 2024 to develop the residential parcels. HSR specializes in high-quality, urban, infill mixed-use residential projects
<br />and has developed over 18,000 units across the country. HSR is expected to become the new owner of Parcels A and D
<br />in early 2026, with the goal of commencing construction in the first half of that year.
<br />
<br />To overcome the challenges of securing financing for residential ground-up development in the current environment,
<br />IQHQ and HSR have been closely coordinating with City Staff to identify opportunities to modify project entitlements to
<br />improve financial viability and achieve necessary returns to begin construction next year. This letter summarizes our
<br />request for these proposed modifications. Importantly, through close collaboration, this team has identified
<br />modifications that will achieve the following community goals, as supported by the Planning Commission and City
<br />Council in the original entitlements:
<br />• Continue to deliver the same total number of units (501 units – 252 units on Parcel A and 249 units on Parcel
<br />D)
<br />• Maintain compliance with the City’s Affordable Housing Ordinance and State Density Bonus Laws
<br />• Maintain original design intent, including building size, height, layout, and architectural massing
<br />• Delivery of all community benefits and offsite improvements, as originally entitled
<br />• Payment of all original impact fees, without a reduction of rates, as entitled
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