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With two steps forward and one step back, Mountain View made strides in 2024, approving numerous major projects and getting a revenue measure across the finish line.
But the city also encountered some setbacks, as Google terminated a mega office development, while projects that looked like they were about to get off the ground faced huge funding shortfalls.
The year kicked off with a big win for Mountain View, which earned a coveted “Prohousing” designation by the state, the first city in the county to be recognized through the program. The designation gives Mountain View a leg up when applying for state housing, transportation and infrastructure grants.
Mountain View also made inroads with its housing goals, approving new developments to help reach its target of more than 11,000 new homes by 2031. Still, there is a long way to go, as the demand for affordable housing far exceeds availability – a situation that does not look like it will abate anytime soon.
While housing largely stayed on track, Mountain View struggled with commercial developments. In January, Google – one of the city’s biggest employers and investors – announced the layoff of hundreds of employees and the closure of two child care centers. Soon after, it came to light that the tech behemoth planned to terminate a massive office development in the North Bayshore, putting $40 million in community benefits in limbo.
Still, Mountain View held onto its reputation as an incubator for startups and novel technologies. In 2024, companies launched weather satellites into orbit, package-delivery drones in the skies and new iterations of self-driving delivery vehicles on the streets.
But the road wasn’t always clear for small businesses owners, especially those trying to establish brick-and-mortar stores. Many struggled to get the necessary permits to open traditional storefronts, a process that the city says it is looking to fast track.
These issues, and more, took center stage in local politics, as it was an election year with a lot riding on the future of Mountain View. Early on, officials highlighted the need for more funding going into the city’s coffers. In November, voters stepped up and overwhelmingly supported a property transfer tax, despite a lot of public debate about how the money should be spent.
While voters banked on the future, they also indicated a preference for continuity. The City Council race shaped up to be one of the most crowded in years, with nine contenders competing for the chance to fill four seats. Ultimately, the majority of votes went to two incumbents and two former council members – suggesting that for every step forward, residents also are looking for guidance from the past.
More housing and some tradeoffs
In 2024, Mountain View flexed its weight as the region’s Prohousing city, approving numerous developments and pushing several projects closer to completion, including several all-affordable housing complexes.
In February, an affordable housing developer broke ground on a five-story, apartment complex at the corner of Shoreline Boulevard and Montecito Avenue. A few months later, the city chipped away at a $36 million shortfall to close the funding gap for an affordable housing project at 444 Bryant St., which currently is used as a municipal parking lot.
Closing out the year, local officials celebrated the opening of the former Crestview Hotel, now dubbed the Heartland Apartments, a housing community that serves people at risk of homelessness.
All three projects tapped into county funding from Measure A, an affordable housing bond that voters passed in 2016. The money is now fully allocated, although it has not stopped Mountain View from clearing the path to get more affordable homes built – with some tradeoffs.
In December, the City Council approved an eight-story apartment building at 334 San Antonio Road for lower-income households. The developer is not applying for any city funding, making it the first affordable housing development to go this route. But to help the project pencil out, the developer plans to provide only 16 parking spots, far less than what is typically expected for 100 apartment units.
At the same time, the council approved a massive housing and office development at 675 and 685 E. Middlefield Road. The developer is proposing to build more than 800 residential units, across three buildings. One building is slated entirely for lower-income tenants, a situation that has caused some concern, as the residents will not have access to the market-rate amenities provided in other buildings on the same property.
Builder’s remedy comes home to roost
Two builder’s remedy projects – one at 2645 and 2655 Fayette Drive and another at 294 and 296 Tyrella Ave. – also stirred plenty of debate in 2024, with the developers threatening legal action against the city of Mountain View if not allowed to proceed.
The applications were submitted at a time when Mountain View did not have a compliant housing element and qualify as builder’s remedy because 20% of the units are designated for lower-income households.
Both projects exceed local development standards and residents have pushed back, expressing concerns about the height of the buildings and traffic and parking impacts.
But under state law, the city’s hands are tied and it approved the Fayette Drive project in November, after reaching a negotiated settlement with the developer.
Shortly afterwards, the city postponed a public hearing for the Tyrella project upon receiving a letter from the developer’s attorney contesting the conditions of approval. The city has yet to announce a new date for the hearing.
Adding to the public’s consternation, a four-story condominium development is being planned just down the road at 266 and 272 Tyrella Ave. It is not a builder’s remedy project, although residents often confuse the two developments because of their proximity to each other.
Commercial development downturns and upswings
While Mountain View is planning for significant housing growth, more office and commercial developments are in the pipeline too. After a five-year hiatus, the city reopened its “gatekeeper” process in September, allowing developers to submit applications for projects that don’t conform to regular guidelines.
Right out of the gate, the City Council approved a mixed-use community of housing, office and retail at Charleston Plaza, a site that was known for its big-box retail. The council also backed a U-Haul development that plans to build a five-story self-storage facility on El Camino Real.
The recent upswing in office and commercial real estate provides a counterbalance to some of the downturns experienced earlier in the year. Google was the focal point of this downturn, but there were other unexpected exits from Mountain View as well.
In July, the ShowPlace Icon theater, a luxury movie cinema, abruptly closed down at San Antonio Center, a commercial hub for the city. But there are suggestions of a possible rebound, as new businesses are signing leases, including Alamo Drafthouse Cinema, a high-end movie chain that announced plans to open this summer.
Smaller franchises also expanded their operations in Mountain View, including an iconic car wash that was in business for 67 years before rebranding as Kaady Car Wash on El Camino Real.
Closing out 2024, the city approved Magnussen Toyota of Palo Alto’s plans to relocate and redevelop a new auto center less than half a mile down the road in Mountain View. However, it is facing a lot of opposition from residents who say the auto center would severely impact the quality of life in their neighborhood.
The community had until Jan. 2 to appeal the decision to the City Council, and it remains to be seen whether the project will undergo modifications in 2025. But what is certain is that Mountain View will continue to support future developments and growth, even if it has to take one step back to move two steps forward.
