Publication Date: Friday, August 27, 2004
BUSINESS
Caffeine and capital
Caffeine and capital
(August 27, 2004) Former Caffe Verona site likely to become VC headquarters and restaurant
by Jocelyn Dong
High-powered coffee klatches may return to the old Caffe Verona site in downtown Palo Alto.
Plans for a new 4-story building on Hamilton Avenue are poised to turn the former "it" spot into the headquarters of a multi-million-dollar venture-capital firm -- and include space for a coffee shop or other restaurant on the ground floor.
Vacant since last fall, the building was sold in May to the Banatao Heritage Trust by the previous owner, Gatley Properties. Diosdado Banatao is a Silicon Valley entrepreneur and the managing partner of Tallwood Venture Capital in Palo Alto. Project plans indicate that Tallwood, located on Waverley Street, will move into the new space.
Last summer, Richard Gatley was the subject of ire from supporters of the popular cafe when he put the business on a month-to-month lease. Verona owners opted to move to another location, but eventually closed the restaurant in December.
The Caffe Verona site is Banatao's first development downtown, according to the project architect, Tony Carrasco.
Carrasco indicated that Banatao frequented the venerable café, which counted Stanford students and power brokers alike among its regulars.
"He used to hang out there and liked the place," Carrasco said.
Banatao is "looking at something like Caffe Verona" for his restaurant space, Carrasco added, but an operator hasn't been selected.
Architectural renderings show the building's well-known façade will be preserved, but the soaring ceilings that made Caffe Verona a distinctive space will not.
Set behind the façade, a new 50-foot-tall building will rise, made of stone, glass and steel. The height would be comparable to the building next door at 200 Hamilton.
To make way for the 11,400-square-foot structure, the rear of the building will be demolished.
Carrasco is adding 4,600 square feet to the present building, in part with the help of historic properties downtown. The properties sold or are selling their extra square footage rights to Carasco so he can build beyond the limit.
Energy efficient techniques will be used in the new structure, including solar panels and movable shades, Carrasco said.
The 200 block of Hamilton -- southwest of City Hall -- is undergoing a rebirth in a domino-like manner. At the corner of Hamilton Avenue and Emerson Street, a new three-story building was erected three years ago that today houses A.G. Ferrari Foods and McRoskey Airflex, among other businesses. Now, the Banatao Trust is launching its plans mid-block. Soon the final parcels will be redeveloped at the corner of Hamilton and Ramona Street, according to Jim Baer, who manages the corner property.
Baer said he expected to raise the tall, one-story building to three or four stories and construct apartments above the ground floor.
The city's Architectural Review Board is scheduled to hold a preliminary review of the Banatao Trust's plans next Thursday.
Senior staff writer Jocelyn Dong can be reached at jdong@paweekly.com.
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