San Mateo breaks ground on Kiku Crossing

The 100% affordable housing development will be seven stories at 480 E. Fourth Ave. The apartment complex and public parking garage project is called Kiku Crossing. Of the 225 housing units, MidPen Housing added 61 units to the original concept by leveraging Assembly Bill 1763. The state law allows buildings with more density and height on transit-oriented properties when all units are below market rates. The development will also have a pedestrian bridge connecting to the residential building. Nonprofit project developer MidPen Housing will construct a public five-story parking garage holding 525 public spaces and 164 private spaces. MidPen expects to complete the parking garage in 2023 and the apartments in spring 2024. The site was previously two public parking lots. The property for the lots was purchased for $5 million through the city’s now defunct redevelopment agency for parking while the downtown movie theater and new garage was constructed on the site of the former Main Street garage. In 2012, the city negotiated with the state to retain the properties for public benefit.

“The low-income people who will be living here have had such a hard time finding the ability to live in a nice, modern, dry and respectable setting where they feel truly welcomed into our downtown,” Bonilla said.

MidPen Housing CEO Matthew Franklin praised San Mateo for using an incredibly valuable piece of land to invest in 225 homes for new families. He noted few cities are coming to developers looking to increase units and densities and be active partners in redeveloping, which was critical in the development’s success. The development is the largest single community in MidPen’s history and is in a valuable downtown in a growing city.

“This is one of the most job-rich cities in America. So there’s access to great jobs. We are a quarter mile or less from an express Caltrain stop; there’s a 16-acre park within walking distance, schools within walking distance,” Franklin said.

The property will cater to low-income people and people with a range of incomes, which could be public employees to those formerly homeless.

“We want to reach down to low-wage workers, and we know that the housing crisis is pinching middle-income households as well,” Franklin said.

MidPen garnered financing from several sources, including San Mateo, Bank of America, the San Mateo County Department of Housing and the state. The city contributed land for leasing and $12.5 million toward construction, which began in January. According to Franklin, Bank of America financed around $74 million for the project. San Mateo County Supervisor David Canepa said the county had put about $5.5 million into the project and would continue to prioritize funding for housing.

“Let’s continue to move forward. In the state of California, 160,000 people go unhoused,” Canepa said.

Rose Cade, deputy director of the San Mateo County Department of Housing, said 80 households that move into the development would get project-based vouchers that will help subsidize their rent and allow those who have even lower-income to live at the development. With the vouchers, the project financing could leverage more debt and require less public subsidy. Cade said the vouchers could be used to house people who are homeless, a county priority.

“The fact that such a large percentage of the vouchers will be set aside for people who are homeless is really part of the solution to the homelessness problem here in San Mateo County,” Cade said.

The project architect is BAR Architects, with Devcon Construction serving as a contractor. A rooftop deck will be named for Sandy Council, who recently retired as the city’s housing manager.

curtis@smdailyjournal.com

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