San Bruno development stalls

“The community voted to raise the height in certain areas by a certain amount. The big question is, in 2024, are those amounts enough?” he said. 

The city is conducting a financial feasibility assessment for the Transit Corridor Plan to understand the specific economic factors making developers hesitate on moving forward with San Bruno projects. 

When those findings are complete, the City Council can move forward with a new plan, Gilli said. If that plan requires going back to the voters to extend height limitations or change other zoning rules, an environmental assessment will be required, a process that in totality could easily take up to four years. 

“If we’re right about Transit Corridor Plan rules not allowing enough, then [in the] next four years, we’re not going to see anything,” he said. “If we do go down the path of doing [a ballot] to do more, or we don't, either way, the next four years, none of these projects are feasible. We won't see anything.” 

Anecdotal evidence does point to height limitations as a potential building barrier — next door, Millbrae, with far fewer restrictions on building height, finds itself in California’s top 10 cities for percentage growth in new multi-family housing in 2023, according to City Manager Tom Williams.

There are two housing developments taking shape in San Bruno on El Camino Real, both using state laws that incentivize affordable housing, allowing developers to bypass local regulations like height and density. 

One at 732 El Camino Real, a six-story affordable housing development, is six to nine months from being opened and took advantage of Senate Bill 35 to bypass the city’s discretionary review process. Another planned 10-story development at 840 San Bruno Ave. W. will use state density bonus laws to skirt height requirements. 

Other stagnated housing projects have been approved by the city but aren’t moving forward, Councilmember Tom Hamilton said, positing it could be for economic reasons. 

“They can build it whenever they want, it’s just not moving forward,” he said. “All we can do is what we can do — there’s been no projects denied. Everything that's been brought to us goes through the process and gets approved.” 

Mayor Rico Medina had a similar sentiment, suggesting interest rates and return-on-investment concerns could be slowing approved development, although he said ultimately it was a question for developers.

Lot sizes along El Camino Real could be another reason San Bruno development is less engaging to developers, Hamilton said, pointing to small lots that remain shallow even when grouped together because of proximity to residential neighborhoods nearby. 

San Bruno is still hoping to get its housing element certified by August, Gilli said, with an emphasis on preserving existing housing and committing to expanding housing opportunities for home owners like accessory dwelling units and lot splits. 

The city has identified sites that will eventually allow them to meet Regional Housing Needs Allocation numbers identified by the state — although “if the economy is in a bad position, no one is going to meet RHNA,” Gilli said — but said the conversation stretches beyond housing into general economic development concerns. 

“Discussion of height limits isn't just about housing. It’s office and hotel uses as well,” he said. 

holly@smdailyjournal.com

(650) 344-5200 ext. 105