News

SyWest proposes 2K homes in Mountain View's North Bayshore, but will they get built?

Owner of 16 acres of Gateway site eliminates new office buildings in its new plan

A new proposal would place 15-story housing at the gateway into North Bayshore, radically changing the tech park. Image courtesy SyWest.

In a surprise proposal that replaces offices with housing, real estate developer SyWest has unveiled a new vision for North Bayshore that calls for more than 2,000 homes near Highway 101 and Shoreline Boulevard in Mountain View.

The redesign stands in stark contrast to the company's earlier plans for the so-called Gateway site into North Bayshore, a critical part of the city's planned transformation for the tech park. SyWest previously called for 880,000 square feet of offices alongside 740 residential units on its nearly 16-acre property.

The new proposal instead goes all-out on housing, with several 15-story residential buildings that would stand 160 feet tall -- towering over Mountain View's largest buildings. The sheer size of the project would put a dent in the city's chronic jobs-housing imbalance, SyWest representatives said in a statement last week.

But whether the ambitious plans will ever come to fruition remains uncertain. Residential development in North Bayshore has largely been infeasible without more lucrative office development to pay for steep city fees and building costs. SyWest had previously described its office component for the site as necessary, and representatives have not made clear how the updated proposal would pencil out.

North Bayshore's Gateway project has a long and storied history. Previously, the 25-acre property had split ownership between SyWest and LinkedIn, and the pair were ready to redevelop the property with nearly 1.5 million square feet of offices. But LinkedIn and Google agreed to a massive land swap in 2016 that put Google in charge of roughly 8 acres of the Gateway site.

Help sustain the local news you depend on.

Your contribution matters. Become a member today.

Join

SyWest and Google couldn't agree on what to do with the property, each putting forth competing visions that the City Council ultimately rejected in 2019. After a last-ditch effort to get the two companies to work together, the city has since scrapped both and started work on its own master plan for the site.

Very little has happened in the two years since, said Bill Vierra, SyWest's president and chief operating officer, and the wait has been uncomfortable. While the city has been cooking up its own plan for the Gateway site, Vierra said SyWest has been developing a revised vision that he hopes will win the city's favor.

"We got a little impatient and wanted to launch out on our own because the (master plan) hasn't been delivered," Vierra said. "So we designed a plan with what fits very well with the Gateway vision."

SyWest is seeking to build 2,019 homes in Mountain View, just north of Highway 101. Image courtesy SyWest.

Much of the residential development planned in North Bayshore is spearheaded by Google, which is seeking to develop 7,000 homes across 122 acres of the city's northern tech park. Vierra said he believes there should be some diversity in who develops homes in the area, and that SyWest will be able to move faster than Google's 20-year development timeframe.

"We would be able to start right now," he said. "We own the real estate, we can operate and finance it."

Stay informed

Get the latest local news and information sent straight to your inbox.

Stay informed

Get the latest local news and information sent straight to your inbox.

But SyWest's announcement also comes with a warning, suggesting that the city could be on the cusp of killing its residential vision for the Gateway site.

Mountain View City Council members are scheduled to vote March 23 on whether to grant Google 1.3 million square feet in office development rights in North Bayshore outside of the Gateway project. Doing so would leave only 250,000 square feet of office space to be allocated to other developers in the area, including SyWest. In a statement March 15, SyWest officials said giving so much of the office development rights to Google would render development of the Gateway property infeasible for decades.

Office development can be seen as the vehicle through which residential development, open space, schools and other amenities are financed in North Bayshore, Vierra said. Yet the city could allocate the lion's share of office space to Google and leave the Gateway project behind, which he claims would ice out all the other development plans in the area.

"Everyone has acknowledged that office is the 'currency.' Office is able to pay for the mitigations that are necessary to pay for everything else to come to fruition," Vierra said. "No one can build residential in North Bayshore without some of the impacts or mitigation being paid for by the office."

It's unclear how awarding Google with office space would close the door on SyWest's latest proposal -- which does not include any offices. When asked, Vierra said the city's fees and required traffic mitigation should be placed on development in a "holistic" way, such that office construction in North Bayshore pays for housing in the Gateway area.

Complicating matters further, SyWest already has an earmarked allocation of 250,000 square feet of office development rights from the city on the Gateway property, but has yet to submit an application to actually use it. City officials are now weighing whether to to take that allocation back and give it to another interested developer.

Councilman Lucas Ramirez said SyWest shared its revised, housing-heavy Gateway plans to him and other council members last month, and that he could only speculate what the developer ultimately plans to do with the property. With no offices included in the revamp, it's not clear how awarding Google with office development rights would kill the Gateway proposal.

"If SyWest is changing their minds and they want to incorporate offices, that is their prerogative," Ramirez said. "But it would be different from the concept that they shared with the council."

Though SyWest is now requesting a holistic approach, Mountain View city staff suggest that the developer has declined a collaborative approach in the past. When city officials suggested that Google and SyWest's competing vision for the Gateway property be resolved in a mediated process, SyWest declined to participate. Ramirez pushed back on the idea that the council's upcoming vote could scuttle what could have been a strong partnership in building out North Bayshore.

"SyWest did not work with Google on a master plan that is mutual," Ramirez said. "It's disingenuous to say the city isn't being a good player here, we went out of our way to make it work."

Craving a new voice in Peninsula dining?

Sign up for the Peninsula Foodist newsletter.

Sign up now
Kevin Forestieri
Kevin Forestieri is an assistant editor with the Mountain View Voice and The Almanac. He joined the Voice in 2014 and has reported on schools, housing, crime and health. Read more >>

Follow Mountain View Voice Online on Twitter @mvvoice, Facebook and on Instagram @mvvoice for breaking news, local events, photos, videos and more.

Your support is vital to us continuing to bring you city government news. Become a member today.

SyWest proposes 2K homes in Mountain View's North Bayshore, but will they get built?

Owner of 16 acres of Gateway site eliminates new office buildings in its new plan

by / Mountain View Voice

Uploaded: Mon, Mar 22, 2021, 1:33 pm

In a surprise proposal that replaces offices with housing, real estate developer SyWest has unveiled a new vision for North Bayshore that calls for more than 2,000 homes near Highway 101 and Shoreline Boulevard in Mountain View.

The redesign stands in stark contrast to the company's earlier plans for the so-called Gateway site into North Bayshore, a critical part of the city's planned transformation for the tech park. SyWest previously called for 880,000 square feet of offices alongside 740 residential units on its nearly 16-acre property.

The new proposal instead goes all-out on housing, with several 15-story residential buildings that would stand 160 feet tall -- towering over Mountain View's largest buildings. The sheer size of the project would put a dent in the city's chronic jobs-housing imbalance, SyWest representatives said in a statement last week.

But whether the ambitious plans will ever come to fruition remains uncertain. Residential development in North Bayshore has largely been infeasible without more lucrative office development to pay for steep city fees and building costs. SyWest had previously described its office component for the site as necessary, and representatives have not made clear how the updated proposal would pencil out.

North Bayshore's Gateway project has a long and storied history. Previously, the 25-acre property had split ownership between SyWest and LinkedIn, and the pair were ready to redevelop the property with nearly 1.5 million square feet of offices. But LinkedIn and Google agreed to a massive land swap in 2016 that put Google in charge of roughly 8 acres of the Gateway site.

SyWest and Google couldn't agree on what to do with the property, each putting forth competing visions that the City Council ultimately rejected in 2019. After a last-ditch effort to get the two companies to work together, the city has since scrapped both and started work on its own master plan for the site.

Very little has happened in the two years since, said Bill Vierra, SyWest's president and chief operating officer, and the wait has been uncomfortable. While the city has been cooking up its own plan for the Gateway site, Vierra said SyWest has been developing a revised vision that he hopes will win the city's favor.

"We got a little impatient and wanted to launch out on our own because the (master plan) hasn't been delivered," Vierra said. "So we designed a plan with what fits very well with the Gateway vision."

Much of the residential development planned in North Bayshore is spearheaded by Google, which is seeking to develop 7,000 homes across 122 acres of the city's northern tech park. Vierra said he believes there should be some diversity in who develops homes in the area, and that SyWest will be able to move faster than Google's 20-year development timeframe.

"We would be able to start right now," he said. "We own the real estate, we can operate and finance it."

But SyWest's announcement also comes with a warning, suggesting that the city could be on the cusp of killing its residential vision for the Gateway site.

Mountain View City Council members are scheduled to vote March 23 on whether to grant Google 1.3 million square feet in office development rights in North Bayshore outside of the Gateway project. Doing so would leave only 250,000 square feet of office space to be allocated to other developers in the area, including SyWest. In a statement March 15, SyWest officials said giving so much of the office development rights to Google would render development of the Gateway property infeasible for decades.

Office development can be seen as the vehicle through which residential development, open space, schools and other amenities are financed in North Bayshore, Vierra said. Yet the city could allocate the lion's share of office space to Google and leave the Gateway project behind, which he claims would ice out all the other development plans in the area.

"Everyone has acknowledged that office is the 'currency.' Office is able to pay for the mitigations that are necessary to pay for everything else to come to fruition," Vierra said. "No one can build residential in North Bayshore without some of the impacts or mitigation being paid for by the office."

It's unclear how awarding Google with office space would close the door on SyWest's latest proposal -- which does not include any offices. When asked, Vierra said the city's fees and required traffic mitigation should be placed on development in a "holistic" way, such that office construction in North Bayshore pays for housing in the Gateway area.

Complicating matters further, SyWest already has an earmarked allocation of 250,000 square feet of office development rights from the city on the Gateway property, but has yet to submit an application to actually use it. City officials are now weighing whether to to take that allocation back and give it to another interested developer.

Councilman Lucas Ramirez said SyWest shared its revised, housing-heavy Gateway plans to him and other council members last month, and that he could only speculate what the developer ultimately plans to do with the property. With no offices included in the revamp, it's not clear how awarding Google with office development rights would kill the Gateway proposal.

"If SyWest is changing their minds and they want to incorporate offices, that is their prerogative," Ramirez said. "But it would be different from the concept that they shared with the council."

Though SyWest is now requesting a holistic approach, Mountain View city staff suggest that the developer has declined a collaborative approach in the past. When city officials suggested that Google and SyWest's competing vision for the Gateway property be resolved in a mediated process, SyWest declined to participate. Ramirez pushed back on the idea that the council's upcoming vote could scuttle what could have been a strong partnership in building out North Bayshore.

"SyWest did not work with Google on a master plan that is mutual," Ramirez said. "It's disingenuous to say the city isn't being a good player here, we went out of our way to make it work."

Comments

LongResident
Registered user
another community
on Mar 22, 2021 at 6:23 pm
LongResident, another community
Registered user
on Mar 22, 2021 at 6:23 pm

The market for office space is bound to decline after the pandemic. Residences might still work because of the extreme amount of existing office space. One would hope that rents in such a large project could be much lower than what has been the case with new market units over the past 5 years. You can bet SyWest has taken it all into account before making the expense of planning this proposal.


Steven Nelson
Registered user
Cuesta Park
on Mar 23, 2021 at 9:29 am
Steven Nelson, Cuesta Park
Registered user
on Mar 23, 2021 at 9:29 am

@reporter, thanks for another in-depth report about our City


Seth Neumann
Registered user
Waverly Park
on Mar 23, 2021 at 3:08 pm
Seth Neumann, Waverly Park
Registered user
on Mar 23, 2021 at 3:08 pm

This is certainly a move in the right direction but I don;t hold out much hope for affordability. Seems like this publication quoted a cost per apartment in a previous North Bayshore proposal as something like $6000K per unit plus another $150K per unit in fees, offsets etc. That may not be quite right but I think it's within 10% (good enough for a sound bite). So assuming the developer is to make any kind of profit, we're looking at ~$1M per.


LongResident
Registered user
another community
on Mar 24, 2021 at 12:03 am
LongResident, another community
Registered user
on Mar 24, 2021 at 12:03 am

There is some hope for affordability beyond the required, monitored units designated as such. Things are changing. SyWest has owned the land for a long time,. They have drastically changed their plans for the land. They must have had some reason. I would imagine they take into account a probably increase in vacancy rates for the luxury housing developments that have been the norm over the past 5 years. I then figure by induction that they are adding more units on the same land BECAUSE they project a lower rent per unit. They would just be positioning it as a non-luxury development, which until now has been all that have been being built.

Something had to give. I don't see their being sufficient demand for more of the $4K-$6K luxury units. There will be growing vacancy rates in the recent projects, but they could manage to compete with the pre existing older stock which has rented for something under $3K even though they are typically larger. So for example we might see smaller units renting for just over $3K/month, which ironically is quite an improvement in affordability.


Geezer
Registered user
Rex Manor
on Mar 27, 2021 at 11:22 am
Geezer, Rex Manor
Registered user
on Mar 27, 2021 at 11:22 am

I wish this article had a map with street names so I could tell exactly what part of North Bayshore this proposed site is talking about.


Don't miss out on the discussion!
Sign up to be notified of new comments on this topic.

Post a comment

Sorry, but further commenting on this topic has been closed.