Mayor Nash and City Council members:
Please confirm the attached answer to this question: Can the City of Menlo Park afford to underwrite the affordable housing projects proposed by any of the three developers?
Is this the true answer:
No, the City of Menlo Park cannot afford to underwrite any of the three proposals. The specific reasons stack up this way:
The citys five-year structural forecast (Attachment F of the June 9 staff report, sourced via ) shows deficits widening — not shrinking — from $2.5M today to $5.8M by FY2030. The Emergency Contingency Reserve hits zero in FY2029-30. That is the exact same window in which any construction subsidy would need to be disbursed. menloparkbudget.com (https://linkprotect.cudasvc.com/url?a=https%3a%2f%2fmenloparkbudget.com&c=E,1,uFgUTMei4vtxLlas_pLsxrR0J3QndjpinKVQ8dAzwPC4Os5ptuJAb8WKOKwmtoIYd73qfDpZOFAwkxKSZb9E-pXC8g6IleELA-cFzUWjf4x8HHk,&typo=1&ancr_add=1)
The parking subsidy requirement dwarfs what the city could plausibly fund. Related-Alta needs $53–58M from the city for its $63M garage — more than twice the citys total remaining reserve balance of $24.3M. The councils stated $10–30M range covers neither the actual cost nor the compound service-cost burden that follows.
The nonprofit tax-exemption seals the fiscal mismatch permanently. Alliant and Alta Housing are exempt from property taxes on the affordable units under Cal. Rev. & Tax. Code § 214. The city would provide police, public works, parks, and library services to 700–1,200 new residents with no offsetting tax stream — an estimated $770K–$1.23M annual gap that grows with inflation indefinitely.
Conclusion: Abandon the "Plaza Parking vs Apartments" plan
Sources: menloparkbudget.com — The Deficit · (https://linkprotect.cudasvc.com/url?a=https%3a%2f%2fwww.menloparkbudget.com%2fthe-deficit&c=E,1,E2mh08b6gvPFp-oI_wUItNtbtc4Nyy-bhqGGvh1z9r6Z7Tvta70EIAQWS1iHb2KoSd5c_ie0KE8FnnR0Ccp6-fx574L_Kiiby09a58AdFz_jjw,,&typo=1) Almanac: Budget Cuts · (https://linkprotect.cudasvc.com/url?a=https%3a%2f%2fwww.almanacnews.com%2fmenlo-park%2f2026%2f06%2f08%2flights-out-for-holiday-trees-menlo-park-weighs-budget-cuts%2f&c=E,1,cYgdVk-A2C3qsn414T6sppZSQArcCAd-p7MaGMa1jlM3Ot3HbCQeVMDxP1WqQ0CFgGEwXhOhJpFObTA7rVee8Fu0fWYkm4qUxR32CKbRKPvV1Us,&typo=1) Almanac: Proposals Doomed · (https://linkprotect.cudasvc.com/url?a=https%3a%2f%2fwww.almanacnews.com%2fblogs%2fcreating-a-more-vibrant-menlo-park%2f2026%2f02%2f09%2fthe-proposals-for-downtown-affordable-housing-confirm-this-project-is-doomed%2f&c=E,1,BRaWtFjJ9lSlJJkL3_9TnqxIADoGmYcE_l3xZjAyetRW0DKBkN_x1IB7_ssgXBCriSf6Lu3N9ls_ME9uGe2cJs9NdTfO4R9eWc233yIGDTKi&typo=1) Almanac: Housing Proposals vs. Ballot Measure · (https://linkprotect.cudasvc.com/url?a=https%3a%2f%2fwww.almanacnews.com%2fhousing%2f2026%2f01%2f07%2fhousing-proposals-arrive-as-menlo-park-parking-lot-plan-faces-ballot-measure%2f&c=E,1,yfUuakx1R7E0l_IFcH1UKp7m_GBL_gD9Y0yVXjtOFaKsaew5WsK_VVQaSd6Iz_5fYsiy2yYDSQ13lgg_lYjpmJpf2aWcbnYiYSHfmCgNPIIQQI8LHzrf&typo=1) City RFP · (https://www.menlopark.gov/files/sharedassets/public/v/1/community-development/documents/development-downtown-parking/downtown-parking-plazas-rfp_0925.pdf) BAE Fiscal Impact Analysis (https://www.menlopark.gov/files/sharedassets/public/v/1/community-development/documents/projects/housing-element-update/20230105-housing-element-update-fiscal-impact-analysis-report.pdf) Mayor Nash and Council members: Abandon the Parking Plaza Plans and STOP spending on Consultants and Studies relating to the FAILED "Apartments vs Parking" plan.
Please respond in writing. Michael DeMoss Resident Attorney
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