Elco Yards tries to cross finish line

The site of the mixed-use development project is located on 8.3 acres, spanning five blocks between El Camino Real and Maple, Cedar and Main streets. Six structures with office, retail and residential spaces make up the project, which was approved in 2021. Four of the six structures are already built. 

“The biggest benefit of this project is the housing itself,” Councilmember Isabella Chu said. “What we’ve really seen is when you fill your city with people, it becomes vibrant and dynamic.” 

The amount of housing units in total will still remain the same, but fewer of those 540 units will be deed-restricted affordable in exchange for a $5.8 million affordable housing impact fee. This impact fee will be paid by developers to the city once building permits are pulled, likely early 2026, staff said. 

“Thank you for sticking with us and your commitment to providing essential housing at all income levels,” Councilmember Chris Sturken said to the developers. 

The impact fee is estimated to potentially support anywhere from 29 to 116 affordable units, considering Redwood City has historically invested between $50,000 and $200,000 per unit. This could help move other housing developments forward, according to a staff report. 

The project previously proposed 147 affordable units, and the updated proposal shrinks that to 119. In addition to the reduction in overall units, how those units are spread across affordability levels also changed. 

Of those 119 units, 49 will be restricted for moderate-income households, eight for low-income households, 47 for very low-income households and 15 for extremely low-income households. 

A major shift in the updated spread shows a significant increase in the amount of units to be designated for very low-income households. This update actually reflects the demand the city sees from individuals seeking affordable housing, Housing Leadership Manager Alin Lancaster said. 

“The increase of 23 very low-income units is a benefit to the community,” Lancaster said.

An additional adjustment will shrink the affordable units, by less than 100 square feet each compared to the same market-rate units. While Redwood City policy tries to make sure new developed units are comparable regardless of resident income levels, the concession allows the project applicant to save money and move forward. 

“I have to commend the companies involved. ... You’re coming to us because you want to solve the problem and you want to move forward,” Councilmember Diane Howard said. “We’re not going to build anything if we don’t make concessions along the way with the changing times.” 

The proposed changes include a local preference, which means all housing units will be prioritized for former or current Redwood City residents, or those who work in the city.