Two Developers Lead Applicants for Depot Circle Space

The council was very clear Monday night that the city should not enter exclusive negotiations with any specific developer, but that discussions could continue with two applicants.

The consists of the 2-acre “Block 2” bordered by Jefferson, Middlefield and the Caltrain tracks, and the 0.3-acre Winslow parking lot. Whichever design is chosen will drastically change the landscape of downtown Redwood City for years to come.

“This is the second biggest development in the last 15 years in Theatre Way,” said Mayor Alicia Aguirre. “We have to go at this carefully.”

The council said it hopes to have a selection around March.

Cupertino-based Hunter Storm proposed 261,000 square feet of office space and 3,000 square feet of retail space on Block B only, according to Community Development Coordinator Bill Ekern.

Ekern recommended ways the city can incorporate Block 2 as well.

The company has already purchased an adjacent, privately-owned parcel at the corner of Jefferson and Middlefield to accommodate the size of the proposed building and intends to purchase a second parcel at that corner in the future, the San Jose Mercury News reported.

Los Angeles-based Lowe Enterprises, in contrast, said it wants to build a 150-room hotel on Winslow and a mixed-use development on Block 2 with 160 apartments, 232,000 square feet of office space, and 20,000 square feet of retail space.

Because the city isn’t entering exclusive negotiations with either developer, the city could technically go with a hypothetical third party developer, clarified city attorney Pamela Thompson.

“This is a catalyst process,” said Vice Mayor Jeff Gee. “We’re standing at the precipice of something great for our downtown.”

Checking Out the Applicants

City staff will also look beyond the designs, and check each developer’s history. Staff members will examine what other projects the developers have completed in the area, if they have the “financial wherewithal," Councilmember Rosanne Foust said.

Mayor Aguirre also added that during construction, the developers need to have a track record of being “good neighbors and good stewards to the city.”

She used Kaiser hospital as an example, which has been mindful of neighbors and other businesses during construction.  

Both developers will have to submit a deposit of $500,000 before moving forward, according to Ekern.

Moving the Culvert

Both developers will also have to pay an estimated $2 million to move a culvert—a device used to channel water, typically underneath a road, railway or embankment—from the property.

Ekern said the culvert would be tricky to design around because it cuts through the site.

“It would be difficult to put parking or start construction of any meaningful scale,” Ekern said.

Though the lot is a sizeable two acres, it is narrow and the culvert cuts the site in a premiere space.