A new 'Opportunity' or a new fight? A new 'Opportunity' or a new fight? (October 13, 2004)

Community Working Group bids on land to replace housing lost when Craig Hotel closed, but there could be competition from PAMF and Westin

by Bill D'Agostino

A bidding war could erupt between homeless advocates, the Palo Alto Medical Foundation and the Westin Hotel over a Palo Alto property.

The Community Working Group -- the nonprofit responsible for the Opportunity Center -- announced last week it had placed a bid on a 17,000-square-foot property at 41 Wells Ave. to construct affordable housing. The land, which is next to the Palo Alto Medical Foundation and behind the Westin Hotel, is in foreclosure and bankruptcy proceedings.

The Community Working Group's leaders hope to build new low-income apartments to replace housing lost when the 63-unit Craig Hotel closed in June.

But there could be competition for the new Wells Avenue site. Both the medical foundation and the Westin have shown interest in the land in the past, acknowledged Dr. Don Barr, the president of the Community Working Group.

"I sure hope we can approach this collaboratively ... the need for affordable housing is so critical," Barr said.

Dr. David Druker, the medical foundation's CEO and president, refused to comment on the matter. Barr, who doubted the Community Working Group could compete in a bidding war, said he hoped to hear about the offer this week.

The Community Working Group's Opportunity Center -- a combination housing/service center for the homeless -- is currently under construction on Encina Avenue, on the other side of the medical foundation's campus.

Citing safety concerns, the medical foundation's leaders originally opposed the Opportunity Center but later withdrew their complaints. The medical foundation and the Community Working Group are now "working closely together" on plans to provide medical care for residents and users of the Opportunity Center, Barr said.

The Wells Avenue property could probably fit 100 small units, according to Marlene Prendergast, executive director of the Palo Alto Housing Corporation. Instead of the tiny cinderblock-walled units in the Craig Hotel, the new apartments would be modest-sized studio- and one-bedroom units with their own bathrooms and kitchenettes, Barr said. Most of the Craig Hotel's rooms shared a bathroom on each floor.

"We felt quite strongly that we should do everything we can to replace those rooms and get more rooms," Barr said of the Craig Hotel's closure.

The Community Working Group offered approximately $2.5 million for the Wells Avenue land, an estimated 25 percent above market value, according to Barr. However, he noted the offer was less than what the owner originally desired.

There is a messy warehouse with a small, silver minaret-shaped dome at one corner currently on the land. The property may need to be rezoned by the City Council if the Community Working Group acquires it, since the nonprofit's leaders would likely want to construct a larger residential building than the current zoning allows.

"I don't think we'd have any problem with that," Vice Mayor Jim Burch said.

Staff Writer Bill D'Agostino can be e-mailed at bdagostino@paweekly.com

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