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Google says Bay Area projects will move forward, despite ending agreement with Lendlease

Questions remain about what this means for housing development in Mountain View
A Google employee checks his phone outside of the Starbuck's located in North Bayshore on July 11, 2016. Photo by Michelle Le.

Google and Lendlease, an Australian-based real estate developer, recently ended a partnership to develop four massive development projects in the Bay Area, including two in Mountain View.

But while the two have parted ways, the projects will continue to move forward, according to a Google spokesperson.

In 2019, Google announced a $1 billion commitment to address housing shortages in the Bay Area, with the goal of building 20,000 homes at a range of income levels, according to the company website.

Google also said it planned to repurpose $750 million worth of Google-owned land, that was primarily zoned for office and commercial, into residential housing over the next 10 years.

A large portion of this housing production is based in Mountain View, where the city recently approved two mixed-use developments, one in North Bayshore and the other in Middlefield Park.

In June, Google proposed to add 7,000 housing units in North Bayshore, with 15% slated as affordable units. The project included 3 million square feet of office space, retail and restaurants, as well as 26 acres of publicly accessible parks and open space that would be built over the next 30 years.

A year ago, the city also approved Google’s plan to build 1,900 homes in East Whisman as part of its Middlefield Park project, of which about 380 units would as affordable. The project proposed 1.3 million square feet of office space and 50,000 square feet of commercial space, as well as public parks.

The announcement of the split between Google and Lendlease means that Lendlease is no longer the exclusive developer, a Google spokesperson said. But the company will continue to develop its Bay Area projects, that, in addition to Mountain View, includes a transit village in downtown San Jose and a project in the Moffett Park area of Sunnyvale.

“As we've shared before, we've been optimizing our real estate investments in the Bay Area, and part of that work is looking at a variety of options to move our development projects forward and deliver on our housing commitment,” said Alexa Arena, senior director of development at Google.

“We appreciate Lendlease and the work the team has done to get us to this point,” she added in the statement.

The Google and Lendlease partnership paved the way for up to 12,900 housing units to be built in Mountain View and San Jose, the Google spokesperson said, adding that the company is broadening its relationships with developers and other capital partners to continue moving the Bay Area projects forward.

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