HomeMy WebLinkAboutStaff Report 2506-4859CITY OF PALO ALTO
CITY COUNCIL
Tuesday, June 17, 2025
Council Chambers & Hybrid
5:30 PM
Agenda Item
8.Approval of and Authorization for the City Manager or Designee to Negotiate and Execute
a Purchase and Sale Agreement with C H LLC to Acquire the Industrial Property Located at
2575 East Bayshore Road (Assessor’s Parcel Number 008-03-015) for $8.5 million, with
Six-Month Leaseback to Insulation Sources, Inc. (dba Ico Rally) for $12,600/Month; CEQA
Status – Exempt Under CEQA Guidelines Section 15301 Title Updated, Late Packet Report
Added, Supplemental Report Added, Public Comment
Item No. 8. Page 1 of 2
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City Council
Supplemental Report
From: Lauren Lai, Administrative Services Director
Meeting Date: June 17, 2025
Item Number: 8
Report #:2506-4859
TITLE
Approval of and Authorization for the City Manager or Designee to Negotiate and Execute a
Purchase and Sale Agreement with C H LLC to Acquire the Industrial Property Located at 2575
East Bayshore Road (Assessor’s Parcel Number 008-03-015) for $8.5 million, with Leaseback to
Insulation Sources, Inc. (dba Ico Rally) for $12,600/Month; CEQA Status – Exempt Under CEQA
Guidelines Section 15301
BACKGROUND
This supplemental report is in response to an email from a Palo Alto resident as it relates to
Report #2506-4764, Item #8. The resident is the owner of a property located at 1020 O’Brien
Drive, in Menlo Park, and suggests that property is available for $7,000,000.
ANALYSIS
Staff have reviewed the information provided and recommends no change. As noted in the staff
report, the 2575 East Bayshore property is attractive because of its location, lot size, indoor
warehouse capacity, and office space.
While the 1020 O’Brien property is slightly larger, the building covers a higher percentage of the
site (nearly 42% building to land area coverage ratio compared to just under 34% of the Palo
Alto property). Staff previously evaluated 1020 O’Brien and deemed this property not feasible
due to building access and vehicle maneuverability constraints, posing a turning radius
challenge for large commercial vehicles.
Utilities staff has verified the turning radius at 2575 East Bayshore is sufficient for large
commercial vehicles carrying utility poles. The 1020 O’Brien property also has only one rollup
door in the building, so City staff and contractors would have to reverse their vehicles out of
the building or dedicate space in the warehouse for a turning radius. The 2575 East Bayshore
Item No. 8. Page 2 of 2
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property has four rollup doors with a clear height of 23’8”, compared to 16’6” at 1020 O’Brien,
allowing for more storage space and maneuverability. Other potential complications with the
1020 O’Brien property is its location in another city and county, which can lead to less certainty
in permitting, zoning, or other local requirements when compared to a property within the city
of Palo Alto. The location would also increase inefficiencies, with extra commute of city staff
(Utilities, Stores Warehouse) for regular receipt, testing and delivery of materials.
APPROVED BY:
Lauren Lai, Administrative Services Director