Silicon Valley REALTORS® keep abreast with developments in the communities where they live and work. On the Peninsula and in the South Bay, the market has heated up due to economic growth. Menlo Park is one of the communities that has been impacted by this growth. This week, Menlo Park Mayor Raymond Mueller, a guest at the Silicon Valley Association of REALTORS® Menlo Park/Atherton District meeting, updated REALTORS® on the city's development plans.
"There is tremendous economic activity happening right now in Menlo Park," announced Mueller.
Mueller told REALTORS® the biggest change that has occurred since the economic downturn is in home values. Home values in Menlo Park are up 40 percent, largely due to Facebook's presence. The median home price of a single-family home at $1.2 million in 2011 jumped to $1.5 in 2013. The city's unemployment rate has greatly improved, as well, dropping from 7-8 percent to 3.9 percent in 2013.
Mueller expects Facebook's presence will continue to have an impact on the city, with the addition of a second campus, about 3,000 more jobs, and the projection of an additional 10,000 employees in the next 10 years.
"The question is, where are we going to house them?" Mueller wondered aloud.
While Facebook plans on building some apartments to house its employees by its campus, Mueller said from a public policy perspective he would like to try to get the employees out of the campus and have them "cross-pollinate" with the community. He believes cross pollination spurs greater economic activity.
Mueller is optimistic about the Greenheart Land plan, which joins another mixed-use project from developer John Arrillaga and Stanford University proposed for El Camino Real. The Greenheart downtown project calls for a mix of housing, restaurants and office space by the Menlo Park Caltrain station. Mueller said the city has been sorely lacking in Class A office space and the plan would fill this need, along with more retail and housing.
The mayor said the city complied with its first Housing Element requirement last year, adding 1,800 housing units. Into the second phase, which will take the city from 2014 through 2022, the city is required to add 655 more units. Mueller said placing these housing units along the transportation corridor would have the least impact on the city, makes more sense environmentally, and will liven downtown.
Mueller noted the Association of Bay Area Governments (ABAG) projects Menlo Park, which has a current population of 32,000, will experience a 19 percent growth rate adding 6,000 more people by 2040. "We can responsibly respond to what we've been asked to do by the state," said Mueller.
A challenge is balancing economic development with public safety. Mueller disclosed plans for a new police substation in Belle Haven will now push through, thanks to funding from Facebook.
There are plans to install four cameras at entry points to the community in the eastern neighborhood of Belle Haven, where police are concerned about a rise in crime. Some police cars will also be equipped with license plate scanners to identify vehicles.
"This is all about creating a safer environment for our residents," said Mueller. "We have to focus on safety to give prosperity a foothold."
The mayor said the city has spent close to a million dollars on infrastructure and long overdue maintenance. The city invested on events during the holidays and may even consider providing outdoor seating this summer.
Mueller wants "to create an environment that is conducive to what residents want, to create that cross-pollination sector in the area that will keep our economy growing."
Acknowledging there has been concern from residents about too much growth too fast, Mueller said he believes the city needs to adjust to growth and find a balance, so development enhances the quality of life of its residents and "capture trends as best we can." It has no choice but to do so.
"You can't stop growth," said Mueller.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
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