Menlo Sued Over Exorbitant Fee

Menlo Park was recently sued by a Palo Alto developer over a $127,000 fee to split one property. The developer purchased 12 Maywood Lane in 2024 with a single-family home on it and subsequently split it into two parcels under the requirements of SB 9. However, Menlo Park requires a recreation in-lieu fee, which in this case is calculated to be $127,000. SB 9 generally limits the ways cities can prohibit lot splits and, in some cases, limits exorbitant fees. Additionally, several lawsuits have been filed in similar cases treating high fees as violations of state housing law.

Menlo Park asserts under the Quimby Act that it has the right to collect fees and is only applying the standards as its fee schedule requires. However, the California Housing and Community Development Office has already notified Menlo Park that it believes the city’s application of such fees is illegal. The developer is now represented by Pacific Legal Foundation and is challenging the fee in court. Notably, the developer was also the first to use the SB 9 process in Atherton, but Atherton does not charge such fees.

More Details: https://www.almanacnews.com/menlo-park/2026/07/21/palo-alto-developer-sues-menlo-park-over-127k-subdivision-fee/

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