A proposal for a new four-story mixed-use building at 385 Sherman Ave. is on hold after the Palo Alto Architectural Review Board Thursday morning listed several conditions to be met before further review after several nearby residents reiterated concerns about the project.

The board was reviewing a request by Palo Alto developer Jim Baer on behalf of the limited partnership MF Sherman, LLC, for a 55,556 square-foot building at Sherman Avenue and Ash Street.

The proposed development, which would replace a one-story office building, would consist of three floors of offices, a partial fourth floor with two residential units and a two-level underground garage with 94 parking spots.

Board members said the project meets city zoning and is in accordance with the Comprehensive Plan, but asked the applicant to meet several minor conditions before another architectural review.

The applicant would have to complete a shade study of the nearby Sarah Wallis Park, find ways to mitigate casting a shadow on neighboring homes, widen its canopy and alter its facade on Sherman to make a more appealing sidewalk.

A half dozen residents told the board they oppose the proposed development, some saying its large size would change the character of the area. They also said the building would cast shadows on surrounding residences and Wallis Park.

"To have a 0.3-acre park in the shade for the entire summer evening is truly unacceptable," resident Mary Ryan said. She also said the garage entrance on Ash would cause traffic congestion on Sherman.

"That building is too big for the neighborhood. It will dwarf the other buildings," resident Millie Chethik said. "It's not fair to people living there now to build such a massive building."

Other residents living in the Birch Court condominium complex expressed concerns about privacy and how the fourth-story units might obscure their view of the foothills.

Baer said architects calculate that the development would not cast a shadow over Wallis Park. The project has been reduced by 15 percent from an initial 65,290 square feet in response to neighbor concerns at an ARB meeting in March.

Other adjustments made since March include setting the building back from property lines, reducing third- and fourth-floor areas and moving the fourth-floor residences away from residential neighbors.

Board member Clare Malone Prichard said she was happy with the project, which is "heading in the right direction."

Board member Judith Wasserman wanted the applicant to improve the pedestrian experience on Sherman and Ash by changing the building's facade. The present design was too flat and not lively enough, she said.

She also said the project, with only two residential units, did not seem like a true mixed-use building.

"In general, it looks like developers have met all requirements and exceeded them in a number of areas," board member Heather Young said.

The board will review the project again at an unspecified date when developers have fulfilled the conditions.