A shopping center is threatening to sue the city of Palo Alto over its natural gas ban, arguing that the prohibition on new natural gas hookups will prevent world-famous chef José Andrés from opening his first Zaytinya location in the Bay Area.
The Stanford Shopping Center in Palo Alto was set to be the site for a new location of Zaytinya, a Mediterranean restaurant owned by Andrés. Developers demolished the Macy’s Men’s Store and were planning to erect three new buildings in its place — one of which would contain the new Zaytinya. But lawyers for the shopping center say the city has told them that the restaurant may not be able to connect to a natural gas hookup that was specifically installed for the new buildings.
The dispute between the city and the Stanford Shopping Center was first reported by Palo Alto Online. An attorney representing Simon Property Group, which owns the shopping center, wrote a letter to the city on April 28 that said Andrés will pull out of the venture if his new restaurant isn’t able to connect to the gas line.
“Zaytinya relies on traditional cooking methods that require gas appliances to achieve its signature, complex flavors,” the lawyer, Anna Shimko, wrote in her letter to the city. “Some of its more conventional cooking equipment can be made electric, but other unique pieces of gas-fired equipment critical for Zaytinya’s success do not have electrically powered equivalents. Without a gas connection and appliances, Zaytinya would be forced to alter its signature five-star menu, which it is unwilling to do.”
Shimko and representatives for the Stanford Shopping Center did not reply to SFGATE’s requests for comment in time for publication.
The Palo Alto City Council adopted a building code late last year that requires new buildings to be all-electric, and prevents gas infrastructure from being extended into appliances such as fireplaces and grills. The code is meant to help the city achieve its target to become completely carbon neutral by 2030. But in her letter, Shimko argues that the building code adopted in 2022 shouldn’t apply to the structure that will house Zaytinya, since — according to her — plans for the projects were approved in 2020. She said depriving the building of use of the natural gas line, without compensation and despite prior approvals, would represent “an unconstitutional taking.”
In response, the city has argued that its new building code applies to the building that will house Zaytinya because the city has yet to issue a building permit for it.
“In general, vested rights are not established until building permits are issued,” Patrick Burt, a Palo Alto city councilmember, told SFGATE.
Shimko wrote in her letter that Simon Property Group originally intended to secure that permit this month. The city discussed Shimko’s letter in a closed-door session on May 8, but took no reportable actions during that session. Burt said he was unable to discuss the particulars of that meeting, but did say the council was taking Shimko’s arguments into consideration.
Hanging over this dispute is a recent decision from the 9th U.S. Circuit Court of Appeals, which struck down a natural gas ban in Berkeley last month. The court ruled that federal law preempted the city’s ordinance, meaning the local law conflicted with federal regulations on energy use. In her letter, Shimko mentioned that decision, noting that “the overturned Berkeley code is remarkably similar to the subject Palo Alto code change.”
Burt, however, said the two codes are different, and said he wasn’t worried about the court’s ruling as a result.
“The city has maintained that we believe our electrification code is compliant legally,” he said. “… Palo Alto’s code is not identical Berkeley’s, it has some important differences.”
