City Council - August 17, 2026

Palo Alto City Council on Aug. 17 approved an eight-story, 228-unit apartment project at 762 San Antonio Road, including 30 deed-restricted units for lower-income tenants, and voted to raise the city’s maximum size for detached accessory dwelling units to 1,200 square feet.

The San Antonio Road project will replace a truck-rental use and three existing commercial buildings on two parcels that will be merged. It includes 284 above-ground parking spaces, 228 long-term bicycle spaces and outdoor resident amenities on the fourth, seventh and eighth floors. The council approved the project unanimously after considering an addendum to a previously certified environmental impact report.

San Antonio project approved under builder’s remedy

The development is being processed under the state builder’s remedy, which limits the city’s ability to apply standards beyond objective rules that would accommodate the proposed density. The project includes 30 below-market-rate units, meeting the applicable 30% affordable-housing requirement for the builder’s remedy application.

Council approved requested waivers from certain development standards, including an upper-floor setback beginning at 65 feet rather than 55 feet. The council also modified a condition governing utility upgrades to specify that the developer’s obligation for utility-main and service upgrades beyond the project’s impacts is limited to a fair-share contribution determined by the city, and that the developer is not responsible for marginal costs associated with excess capacity requested by the city.

Residents raised concerns about existing traffic congestion on San Antonio Road, the future design and timing of bicycle facilities, emergency access, water use and the project’s effect on the corridor. In response to those broader transportation concerns, the council directed staff to evaluate accelerating the San Antonio Road bike-lane initiative and return to the council before the end of the year.

Council increases ADU size limit, seeks conveyance rules

In a 4-3 vote, the council approved an update to the city’s accessory dwelling unit ordinance that raises the maximum size of detached ADUs from 1,000 to 1,200 square feet, reflecting a state-law limit for locally regulated detached units.

The council did not immediately authorize separate sales of ADUs. Instead, it directed staff to return to the Planning and Transportation Commission with an ordinance for streamlined separate conveyance of ADUs, then bring the commission’s recommendation back to the council before the end of 2026.

Separate conveyance could allow an ADU to be sold as a distinct real-property interest, similar to a condominium arrangement, rather than only rented or retained under the ownership of the primary home. Council members supporting further work said it could create a lower-cost path to homeownership. Others said the policy needs additional review of issues including small-property governance, privacy, parking and other potential neighborhood impacts.

Staff said a broader review of development impact fees, including fees affecting ADUs, is already underway and is expected to return to the council before year’s end.

Primary sources

Watch the meeting on YouTube · Read the official meeting packet