Mountain View Revives Deal to Replace Downtown Parking Lot with Hotel

City Council approves amended lease and development agreement with RGC Mountain View to build hotel and office complex.

Apr. 9, 2026 at 9:08pm

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A photorealistic studio still-life photograph featuring polished, geometric metal models of a hotel building and an office building, arranged elegantly on a clean, monochromatic background to symbolize the abstract concepts of urban redevelopment and public-private partnerships.A conceptual illustration of the proposed hotel and office development that will transform downtown Mountain View's public parking lots into a new mixed-use complex.Mountain View Today

After years of financial uncertainty, the Mountain View City Council has unanimously voted to authorize city staff to execute an amended lease and development agreement with RGC Mountain View, a commercial real estate company, to turn two public parking lots in downtown Mountain View into a hotel and office development. The project, which was originally approved in 2018, struggled to move forward due to the pandemic's impact on the hotel industry and construction loan costs. The new agreement includes changes to the project timeline, parking plans, and the city's financial commitment.

Why it matters

The proposed hotel and office development could add over $433 million to the city's coffers over a 55-year period, providing significant economic benefits through increased foot traffic and job creation for downtown businesses. However, the city had to make concessions, such as reducing its upfront capital funding and offering a reduced rent structure, in order to get the stalled project back on track.

The details

Under the amended agreement, RGC will first develop the hotel on Lot 4, followed by the office building on Lot 8, instead of constructing them concurrently as originally proposed. The hotel could open as early as mid-2029 but no later than spring 2031, and RGC must submit a permit application for the office building no later than mid-2029. RGC also plans to eliminate the hotel's underground parking and rely on shared parking agreements with nearby properties using a valet system, reducing the project's cost by $35 million and shortening the construction timeline by at least six months. The city is no longer providing capital funding but will offer a reduced rent structure and transient occupancy tax rebates for up to 15 years.

  • The City Council approved the planning permits for the project in 2018.
  • The City Council has held three closed-door meetings over the past year to discuss how to get the project back on track.
  • The City Council unanimously voted to authorize city staff to execute the amended lease and development agreement in March 2026.
  • The hotel could open as early as mid-2029 but no later than spring 2031.
  • RGC must submit a permit application for the office building no later than mid-2029.

The players

RGC Mountain View

A commercial real estate company that has been planning to develop a hotel and office building on two municipal parking lots in downtown Mountain View.

Dawn Cameron

The Assistant City Manager who presented the amended lease and development agreement to the City Council.

Pat Showalter

A City Council member who expressed a strong desire to see the project move forward as quickly as possible.

Alison Hicks

A City Council member who viewed the terms of the amended agreement favorably, describing the valet-parking as a good use of existing resources.

Ellen Kamei

A City Council member who acknowledged that the city needs to make some sacrifices now in order to recoup and gain financial benefits in the long run.

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What they’re saying

“This is a conservative estimate. In addition to revenue for the city, a hotel will also provide some net significant economic benefits, with more foot traffic for downtown restaurants, shops and entertainment as well as job creation.”

— Dawn Cameron, Assistant City Manager

“The economics of hotels are very difficult. Currently, this developer thinks that the economics are a 'go' so we need to take advantage of that now while we have this opportunity.”

— Pat Showalter, City Council member

“We actually have a tremendous amount of parking downtown. It's just underneath the offices and is not used a lot. So, I like the idea of the hotel using it.”

— Alison Hicks, City Council member

“There's some sacrifices we need to make now, but we'll be able to... recoup and hopefully gain some financial benefits on the other end for some of the things we need to do now.”

— Ellen Kamei, City Council member

What’s next

The specific project plans will come back for approval at a later date, according to city staff.

The takeaway

This deal highlights the challenges cities face in balancing the financial risks and rewards of large-scale development projects, especially in the aftermath of the pandemic. While the hotel and office complex could generate significant revenue for Mountain View, the city had to make concessions to get the stalled project back on track, underscoring the delicate balance between economic development and fiscal responsibility.