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Small retailers in limbo at Hotel California building

Original post made on Aug 16, 2019

Only two retailers that remain in the Hotel California building in Palo Alto's California Avenue shopping district may need to find new homes if their landlord goes through with a plan to gut the first floor.

Read the full story here Web Link posted Friday, August 16, 2019, 6:56 AM

Comments (13)

Posted by PB
a resident of Midtown
on Aug 16, 2019 at 9:36 am

So sad. Alexanders is a great local service provider.

Posted by resident
a resident of Midtown
on Aug 16, 2019 at 10:15 am

Has there ever been any good news in this city about Sand Hill Property Company?

Posted by Cal Ave
a resident of College Terrace
on Aug 16, 2019 at 10:35 am

Sand Hill voluntarily converted the hotel into housing for extremely low income residents, which it privately subsidizes out of its own pockets. More developers should be doing this. What do you care more about? Housing less fortunate residents with nowhere else to go? Or a specific businesses being there... typical Palo Alto.

Posted by Clueless
a resident of Downtown North
on Aug 16, 2019 at 10:51 am

"Under city ordinance, the property is currently zoned regional/community commercial, which includes uses such as department stores, bookstores, furniture stores, toy stores, apparel shops, restaurants and non-retail services such as offices and banks, according to Palo Alto's Comprehensive Plan."

Does the city seriously think any of the above businesses will open there. Get a clue city council.

Posted by Mark Weiss
a resident of Downtown North
on Aug 16, 2019 at 11:48 am

Mark Weiss is a registered user.

SHP / Peter Pau manages a billion dollars worth of office ground leases Stanford land. It does, if you read these pages, push us for the greatest possible advantage.
They bought the building on Cali to preserve low income housing. They bought The Fox Theatre so the founder’s church could meet.
If the story is local business vs chain, that’s one thing. Doesn’t sound like they’d turn a corner ground floor into office — they’d likely want a mix, overall. Maybe the trend is they are going upscale, another French Laundry (food) spinoff.
But it sounds like Premier is managing it, or has a ground lease.

Palo Alto Sport and Toy went the opposite direction —looks like they are now 3 separate spaces.
Tamarine Restaurant in 500 block of Uni was 3 separate spaces.

Posted by Online Name
a resident of Embarcadero Oaks/Leland
on Aug 16, 2019 at 12:07 pm

Why is the city letting Sand Hill develop anything in Palo Alto when all they do is mess with resident-serving businesses! Shame on Sand Hill and shame on the city council for perpetuating this farce.

Posted by Clueless
a resident of Downtown North
on Aug 16, 2019 at 1:18 pm

Sand hill is within their rights to redo that building. [Portion removed.]

Posted by steve french
a resident of College Terrace
on Aug 16, 2019 at 1:35 pm

steve french is a registered user.

Noooo! We can’t lose Alexander’s Grooming, Maybe they could move the dry cleaners ( which I also frequent) to the old sandwich shop and allow both businesses to remain. These are the services our neighborhood needs!

Posted by margaret heath
a resident of Evergreen Park
on Aug 16, 2019 at 1:41 pm

margaret heath is a registered user.

"Sand Hill intends to renovate the first floor so it will be a larger, contiguous space, Larson said."

Perfect for another fitness studio. When the city council decided what businesses could occupy property zoned as retail there was a reluctance to include fitness studios until Councilmember Kniss pushed to add fitness studios to the list of allowable uses. It seems fitness studios will pay commercial property owners a higher rent than is sustainable for an existing retail business, retail that can only survive if not competing with non-retail uses like fitness studios.

Perhaps it is time for the council to revisit what are allowable uses in the "core" retail districts, such as California Avenue, so there is a sufficient concentration of adjacent retail to attract shoppers.

Posted by Mark Weiss
a resident of Downtown North
on Aug 16, 2019 at 10:14 pm

Mark Weiss is a registered user.

Maybe the space could be a combination bakery and Pilates.

Posted by Coral
a resident of Professorville
on Aug 17, 2019 at 2:36 pm

[Post removed.]

Posted by steve french
a resident of College Terrace
on Aug 17, 2019 at 2:51 pm

steve french is a registered user.

[Post removed due to deletion of referenced comment.]

Posted by Edgewiid
a resident of College Terrace
on Aug 18, 2019 at 11:01 pm

Is this the same company trying to renege on their offer to have a grocery at Edgewood?

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