California’s top lawyer said Menlo Park broke housing law, and the developer just took the city to court over a 39-story project the council still refuses to approve.
Story Snapshot
- The California Attorney General said Menlo Park mishandled the 80 Willow Road application under state housing law.
- The developer sued after warning litigation would follow if the project was not approved on a set timeline.
- The city says the project is ineligible under the 2022 housing statute and not protected by Builder’s Remedy.
- The 6.7-acre plan includes 665 homes, a hotel, offices, retail, and towers up to 39 stories.
What Triggered the Lawsuit
On July 29, 2026, the California Attorney General’s office told Menlo Park it violated the Affordable Housing and High Road Jobs Act of 2022, known as AB 2011, and mishandled the 80 Willow Road proposal. After that notice, the developer, N17, warned the city that a lawsuit would come if the council did not act by a deadline. The city did not grant approval, and N17 filed suit, asking a judge to force approval and to refund about $303,000 in legal fees.
The developer also argued the city missed required housing-plan deadlines in the past. That miss can trigger California’s “Builder’s Remedy,” which limits local power to deny certain housing projects even if they clash with local zoning. News reports say N17 invoked that remedy as part of its case for approval at 80 Willow Road near the former Sunset Magazine campus. State guidance explains how the remedy works when a city lacks a compliant housing plan.
What the City Says It Did Right
Menlo Park publicly pushed back on the Attorney General’s claims. City leaders said the state relied on an incomplete and incorrect view of the file and the law. City documents say the project is ineligible for streamlined AB 2011 processing because the plan includes a hotel, which the city says disqualifies it under that statute’s criteria. The city also says the project is not entitled to approval under the Builder’s Remedy and that it is still processing the application under standard rules.
City leaders also raised safety and infrastructure concerns. They argued the large, mixed-use plan would strain roads and water lines, slow emergency responses, and worsen the jobs-to-housing imbalance. They said the plan does not deliver the kind of housing the community most needs. Those objections do not end the legal question by themselves. But they show why local officials resisted state pressure and chose to stand by their reading of the law as the dispute moved to court.
Why This Fight Matters Statewide
This case is a test of how far California can push cities to allow more housing when local plans fall short. The Attorney General has warned cities that missing state housing deadlines can limit their power to deny certain projects, which is why disputes like this often turn on timing, eligibility, and the paper trail, not just zoning preferences. A court ruling here could guide other cities and developers locked in similar standoffs across the state.
Putin-aligned Russian oligarch sues after skyscraper project is shut down in Menlo Park https://t.co/hzc1rV181V
— MedicalQuack (@MedicalQuack) October 3, 2026
The project’s scale raises the stakes. Reports describe 665 homes, 100 of them affordable, plus a 130-room hotel, offices, and retail on 6.7 acres, with towers up to 39 stories and 461 feet. Supporters point to the housing shortage and state law. Opponents point to traffic, services, and who profits. Ties reported between the owner and Russian political figures color the debate, but the courtroom fight will center on state housing statutes and the city’s record, not geopolitics.
Sources:
nypost.com, sfchronicle.com, padailypost.com, ground.news, almanacnews.com
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