Hillsdale North Block office use cleared

The discussion and zoning approval allow the site’s owner, Bohannon Development Company, to consider allowing 37,611 square feet of office use within the mall’s existing North Block commercial building. It was previously approved for retail uses, according to the city. Office use is currently permitted, but the total floor office area in the change is greater than what was approved in 2016, requiring modification.

The North Block is 12.2 acres and zoned for regional community commercial at 60 31st Ave. The existing uses at the project site include retail, office, restaurant, cinema and public open space areas and feature several new restaurants, retail and entertainment options following its 2020 redevelopment, including Pinstripes bowling and bocce, Red Door Escape Room, Philz Coffee and The Refuge. The office use would be on the first floor of the North Block. David Bohannon of Bohannon Development Company said he has spoken to numerous retailers over the years who have turned down renting in the space, which he put down to the pandemic and difficult economics. He said the first floor has sat vacant since 2019.

“This request merely adds flexibility to our permits so we can pursue both retail and office tenants to get the building leased up,” Bohannon said at the Planning Commission meeting. “We don’t have an office tenant lined up. We simply are asking for optionality to help solve the vacancy problem.”

The owners of Hillsdale Shopping Center in San Mateo are exploring a potential redevelopment of the main mall area and south block of Trader Joe’s and Barnes and Noble into a combination of commercial and residential units. Bohannon is working on Reimagine Hillsdale, a plan for reconsidering the mall’s future use that involves housing and more office space.

“The North Block has been very popular with residents and will remain a vital component of anything we do in the future,” Bohannon said.

Several planning commissioners argued the change would increase the jobs to housing imbalance. Vice Chair John Ebneter, who voted against project approval, said the commission needed to look closely at the jobs to housing imbalance to ensure housing for all in the city.

“With this small change to the site of only 37,000 square feet, it seems like an insignificant request, and it does make some economic sense. Yet, it does exasperate the initial problem I had been concerned with is the housing and jobs imbalance is going to be exacerbated,” Ebneter said.

Commissioner Seema Patel said while the project change seemed straightforward, she worried that several small decisions like the one proposed could lead to imbalance and a shift in the use of the site not originally anticipated.

“When we create a new office, what is the resulting impact on the housing market and so if we are talking about 36,00 square feet of office, that’s probably around 275 to 375 jobs,” Patel said.

Some, like Commissioner Adam Nugent, acknowledged an imbalance between office space and housing but noted the site is already limited to retail and office, making it an unrealistic site to bring about change. He and others argued vacancies described by the owners were an overall detriment for the city.

“I don’t see this as a spot to make a stand to prevent this option because leaving it vacant is a greater detriment,” Nugent said.

The commission approved the site plan and architecture review modification at its May 23 meeting by a vote of 4-1, with Ebneter voting against it.

curtis@smdailyjournal.com

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