YouTube HQ view northeast from Cherry Avenue and Grundy Lane toward Cherry Plaza.
The first phase of a massive development to house new YouTube offices in the Bayhill area is under construction, and city officials are now seeking an additional set of fees to address its impact.
The fees are estimated to raise approximately $13 million, 29% of the city’s infrastructure needs such as road improvements, water and sewer pipes, and traffic lights.
In September 2021, the City Council adopted the Bayhill Specific Plan, which is a long-range planning document that establishes private and public development over the next 20 years, within the Bayhill area that comprises approximately 92.2 acres. The area borders Interstate 280 to the west, Interstate 380 to the north, El Camino Real to the east and San Bruno Avenue West to its south.
The majority of the development in the area will be done by YouTube because it owns 10 of the 13 parcels within the Bayhill Office Park comprising 83% of the land in the office park.
The plan area contains a total of about 1.6 million square feet of office space, not including the space under construction. YouTube anticipates long-term employment growth and is planning for phased development.
The city approved YouTube’s Phase 1 Development in September 2021. It includes the construction of two new office buildings totaling approximately 440,000 square feet. The project includes realignment of Grundy Lane, the construction of an off-street multi-modal transportation hub and the demolition of the Lake buildings on Bayhill Drive to provide construction staging and a parking area during the construction of Phase 1. The development was charged $7 per square foot for an impact fee and will be reimbursed, according to a city staff report.
The city reached its prices for the new fees based on the impact the specific land uses would have on the city and area. The pricing for types of land uses are: Offices $6.17 per square foot, retail $32.46 per square foot, hotel $5,739 per square foot, multi-family residential units equal to or less than 407 square feet is $3,524 per unit, units between 407 and 2,034 square feet is $8.66 per square foot and units greater than 2,034 is $17,618 per unit.
The Bayhill impact fee will go in effect in 60 days and will not replace other city fees but be an additional fee.
YouTube is an online video sharing and social media platform headquartered in San Bruno. It was launched in February 2005 and is owned by Alphabet Inc.
(650)344-5200 ext. 105
(650)344-5200, ext. 105
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