Block 21 developer Windy Hill has received a two-year extension to obtain building permits as it works to satisfy lender agreements for the 74-foot, 268,938-square-foot project.
Windy Hill has said its extension request to the city until June 2026 for planning application approvals is to satisfy lender requirements to prevent entitlement expirations during the term of its loan and will see no changes to the project or overall construction timeline. Up to three two-year extensions are allowed by the city.
At a July 11 Planning Commission meeting, Mike Field of Windy Hill said lenders are more nervous than in previous years due to the current economic climate and high-interest rates, noting there are more stringent requirements banks are asking for to move forward on projects. Field said he had been told that he would not be able to get a construction loan without the extension.
The site previously had eight residential homes and several restaurants and retail businesses like the Arco station and Wing Fat Restaurant that have been demolished. It is now flattened dirt, with a chain-link fence surrounding it. The sidewalk trees were cut to the stump and covered by warning tape and orange netting.
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The Planning Commission unanimously voted to accept the extension, with several members noting that, while the appearance of the bare site was not ideal, an extension was in the best interest of the neighborhood and developers to see the project continue, given the current economic conditions.
“I don’t want to delay the project any further, and this extension allows the developer to proceed,” Commissioner Margaret Williams said.
Field has said the company is fully engaged and excited to start Block 21, something the Planning Commission was heartened to hear and pointed to as a positive. Staff received public comments expressing concern about the vacant appearance of the site due to the demolition of the buildings. Demolition activities occurred in February and concluded in April to conduct soil testing for the new building. Field said there is a lot of work behind the scenes despite its appearance.
The site was approved for a six-story mixed-use residential building on the block of East Third Avenue, South Delaware Street, East Fourth Avenue and South Claremont Street. The development calls for 180,000 square feet of offices and 111 housing units. The proposal exceeds San Mateo Measure Y building height restrictions of 55 feet because it meets state housing density laws. No changes are requested in the extension request for the parcel map and city-approved planning application.
Windy Hill is also building another block development at 500 E. Fourth Ave., called Block 20. The proposal would build a 75-foot mixed-use building at 216,000 square feet with 143,000 square feet of office space and 86 residential units.
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