California SB9 has established a new floor for the potential value of homes in California. Any homeowner can split a lot, build up to two homes on each lot, and gain financially. Any City actions without homeowner approval that would prevent the homeowner from doing so might require the City to provide just compensation for that lost potential gain.
In Palo Alto, a back-of-the-envelope calculation would show that the lost potential value could be at least $1M and $2M per property. For 148 homes, the City compensation required by our U.S. Constitution could be at least $148M, and likely higher.
The City should investigate this potential financial risk thoroughly before proceeding.