Talbot’s redevelopment approved in San Mateo

Adjacent to it will be a second building comprising 149,000 square feet of office and 14,000 square feet of retail space. It would also include a 128-space underground parking garage.

Because the project will receive public funds, it is subject to prevailing wage requirements, which stipulates that those involved in the construction of housing developments are paid based on the average rate for their occupation and often in their geographic location. During the meeting, many labor union representatives advocated for the developer to use union labor for all trades involved in construction.  

“I would definitely encourage the developers to keep talking with the unions who want to keep talking and try and find a way to get to yes and also to keep the jobs local and to have as many apprentices on the project as possible,” Councilmember Lisa Diaz Nash said during the City Council meeting. 

Councilmember Rob Newsom echoed Nash’s comments, adding that there is “plenty of skilled workforce here.”

Early planning discussions kicked off in 2021, and the project’s uniquely wide scope necessitated several development partnerships, including Prometheus, Harvest Properties and nonprofit developer Alta Housing. The complex agreement also involved lengthy plan revisions and discussions over the last several years, further exacerbated by an unfavorable lending market that’s led to the delay of countless projects in the area.

Some of the commercial aspects of the project, including the parking garage, will have to be constructed before the affordable housing units to qualify for critical affordable housing tax credits, according to a presentation at the commission meeting April 28. The commercial developers plan to make a nearly $3 million contribution to the affordable housing portion and a $6.5 million deposit, held until it is under construction.

Mayor Adam Loraine said the project’s advancement signifies “a historic milestone for our city” and another opportunity to “add to the affordable housing downtown and to our overall downtown environment.”

The 71 affordable units will make a dent in the city’s state-mandated housing goals, which stipulate the city must build 7,015 units between 2023-31, a certain percentage of which must be for low-income households. While many of the projects are still awaiting full entitlements, the city’s development pipeline has soared since the passage of Measure T, which increased height and density limits in certain parts of San Mateo, including downtown. As of the end of March, nearly 6,800 units sat in the city’s pipeline, from those in the preliminary application stage to those under construction.

The development has a target completion date of 2035.

alyse@smdailyjournal.com

(650) 344-5200 ext. 102