Within 30 days of this notice, *WE THE PEOPLE* *require* the City Council
provide c*omplete* estimates of the *fiscal impact* for *each of the RFPs*
referred to below and in the attachment including but not limited to
answers to the questions listed below and in the attachment as Sections A-J.
Your full cooperation and transparency in this matter will be much
appreciated.
Rubye
December 19, 2025
*Subject: Fiscal impact of Dec. 15, 2025 responses from 1) Alliant
Communities, 2) Presidio Bay, and 3) Related California to the Request for
Proposals (RFP) for development on Parking Plazas 1, 2 and/or 3 to both the
City of Menlo Park as well as its residents.*
Dear Menlo Park City Manager, Justin Murphy, City Council Members and
Housing Committee:
Before getting into the question of fiscal impact of the above referenced
RFPs it is important to emphasize the fact that the City of Menlo Park
Parking Plazas are *not *available for development. The City Council has
been requested to select alternative housing locations on numerous
occasions by a multitude of residents (which the Council is supposed to
represent). The City Council members are thereby putting the City of Menlo
Park at risk with the Housing Authority unnecessarily.
That being stated, the public has a *right to full transparency* regarding *the
fiscal impact* associated with each of these RFPs. Without the fiscal
impact being explicit, we have to make certain assumptions and have our
City representatives respond to my assumptions and questions.
The designation of whether or not each of the above referenced developers
is a *for profit or non-profit* organization has in impact on tax
exemptions including property tax. The following provides a brief
description of my understanding of that designation:
*1) **Alliant Communities is a for-profit organization*, specifically
a limited liability company (LLC). Alliant Communities is a real estate
development and investment firm that focuses on developing affordable and
workforce housing in supply-constrained markets, primarily in
California. While it is *a for-profit entity*, it often *partners with
non-profit* organizations on specific projects. For example:
a. It operates as the administrative general partner in a limited
partnership alongside the *Community Revitalization & Development
Corporation (CRDC)*, which is a California *nonprofit public benefit
corporation* and serves as the managing general partner for certain
projects.
b. It leverages tax credits, such as Low-Income Housing Tax Credits
(LIHTC), and collaborates with government bodies, philanthropies, and
private foundations to finance its affordable housing projects.
*2) **Presidio Bay Ventures*, is a *for-profit *real estate firm, but
they established the *Presidio Bay Foundation*
,
which *is* a registered 501(c)(3)* nonprofit* dedicated to empowering
underserved youth in real estate through education and mentorship in
California. So, while the developer is not a nonprofit, they run a
significant nonprofit arm for community impact, notes Presidio Bay
and Presidio Bay Foundation, as
confirmed by their GuideStar profile. *Key Distinction:*
a. *Presidio Bay Ventures:* The for-profit developer/investment firm.
b. *Presidio Bay Foundation:* The connected 501(c)(3) nonprofit for
charitable work.
They work together to build community and provide opportunities, with the
Foundation running programs like the Presidio Scholars
program, says Presidio Bay.
*3) **Related California* itself is a *for-profit real estate
developer* that *partners extensively with nonprofit* organizations to
build affordable housing in California, rather than being a nonprofit
entity. They form strong public-private partnerships with groups like EBALDC
and
Mercy Housing, leveraging their resources with nonprofit expertise to
create mixed-income and affordable communities across the state. So, while
they partner with nonprofits and focus on community impact, Related
California operates as a for-profit entity. *Key points about Related
California:*
a. *For-Profit Developer:* They are a subsidiary of the large,
privately owned Related Companies
, known for major
developments like New Yorks Hudson Yards.
b. *Collaborative Approach:* They work with numerous nonprofits (over
30) and municipalities (over 40) to finance and develop projects.
c. *Focus on Affordable Housing:* A significant portion of their work
involves creating affordable and mixed-income housing, often alongside
mission-driven partners.
*QUESTIONS: *
*A. **Since all three of the above referenced developers are “for
profit” entities operating under “nonprofits” entities are the units then
tax exempt?*
*B. **What about cost of additional services needed such as school,
fire, police, traffic management, etc? For example, stanford housing is tax
exempt and the city negotiates payment for schools, fire, police, traffic
management, etc. *
*C. **Will each developer pay for the replacement parking? The current
RFPs do not seem to provide enough parking, so how will that be addressed?*
*D. **it isn’t clear that the developers would be paying for the
replacement public parking? Will the residents that don’t have their own
parking be taking up the public parking? If down the road the developer
argues that they cannot pay for the replacement parking, what would the
City do?*
*E. **How long will the parking lots be disrupted? Most businesses
cant go very long without the parking that they and their customers were
relying on.*
*F. **For the businesses that are disrupted or pushed out, how will
they be compensated and for those who file lawsuits, who pays the
compensation and/or lawsuit? *
*G. **is there any option other than the developer receiving the rents?
And Can the developer sell units if they are not buying the land?*
*H. **california is facing a significant budget deficit for 2026-2027,
will housing funds be affecting and how will that impact the city of menlo
park? *
*I. **who receives rental payments if the units are rental? or if
sold units, which entity recieves the revenue from the sale price? who
manages the units and/or hoa?*
*J. **what are the specifics of a "Performance bond" in case the
developer gets in trouble and leaves the city with an incomplete project?*
*overall, what is the fiscal impact to the city of menlo park and its
residents in each of the rfp proposals by 1) alliant communities, 2)
presidio bay, and 3) related california.*
