New hotel OK’d in San Carlos 

Chao Wu with Holly Hotel Group LLC, the developer behind the proposal, is planning to build a 188-room, 136,000-square-foot hotel at 501 Industrial Road. The hotel will stand six stories tall with a separate three-story, 148-stall parking structure onsite. The 2-acre site, formally home to Bayshore Supply, will also include about 11,400 square feet of landscaped area including a central courtyard and a row of trees meant to disguise the view of the parking structure from residents living across the street on Industrial Road. 

As part of the development agreement, the hotel operator would also waive rental fees for local nonprofits and organizations looking to use the sites meeting rooms. The developer will also pay a total of $4.4 million in impact fees for traffic and sewage system impacts, child care and affordable housing. 

Commissioners had shared some concern about how people would commute to and from the site. Commissioner Ellen Garvey noted ride-hailing services have become more popular and questioned whether city parking policies have been right sized to fit demand. 

Roof also questioned whether the city should be looking into a shuttle service given the growing number of developments in the area. 

“I gather a shuttle is sort of a hot potato and no one wants to deal with it but it just makes so much sense from a practical point of view if there could be such a thing,” Roof said. “It can’t be a requirement for just this hotel. It’s got to be an integrated plan and so it’s not an easy thing to achieve but a shuttle would be useful.” 

The developer has agreed to participate in a new Transportation Management Association being led by another developer in the area, Alexandria Real Estate, Principal Planner Lisa Costa Sanders. Garvey noted the site is within a 10 minute walking distance from a Caltrain station and four bus stops. The new project will also bring with it street improvements including an improved bike lane. 

Commissioners ultimately approved the project, sharing their appreciation for its design and consideration of the nearby neighborhood. The project was intentionally designed to place lower building heights near the single-family homes and taller heights closer to Highway 101. 

“The design elements and the way the height is staggered, the way the buildings are positioned is going to make a nice gateway entry to the city,” Commissioner Janet Castaneda said.