Planning Commission Extends Controversial Space Bank Project Through 2026

The Pasadena Planning Commission voted unanimously Wednesday to grant a second two-year extension for the Space Bank mixed-use development project at 3200 East Foothill Boulevard, allowing developers until August 2026 to begin construction on the controversial 550-unit residential complex. The extension comes after the original buyer, Pasadena Gateway LLC, terminated escrow due to financing difficulties, leaving property owner S&O Properties LLC searching for a new developer. 

“We have three offers that are interested in moving forward with the project as known and fully disclosed to them in terms of all the requirements that the city imposed as we went through the process,” said attorney Richard McDonald, representing the applicant. 

The development, first approved by the City Council in July 2018, would transform the former United States Naval Ordnance Testing Station site into a mixed-use complex featuring 550 apartments, including 69 affordable units, along with 9,800 square feet of retail and restaurant space. The project includes 839 parking spaces and approximately 86,000 square feet of open space, featuring a 20,000 square-foot central park, courtyards, a paseo, and a dog park. 

Several speakers voiced environmental concerns about the site. During public comment, John Wong noted the property’s history as a weapons testing facility, saying “buried under 10 plus feet of concrete is lots of spent rocket fuel, flame retardants, and other weapons grade waste.” 

City staff explained that the Department of Toxic Substances Control has approved remediation plans requiring excavation of contaminated soil and the installation of vapor mitigation systems in new buildings. The Department of Toxic Substances Control issued a March 2023 memorandum addressing contamination concerns and approved mitigation measures. 

“If we’re here two years from now, that means between now and then the economy hit the skids in certain ways that would not be good for any of us,” McDonald told Commissioners, addressing concerns about potential future extensions. 

The project faces significant financial hurdles in the current market. McDonald noted that construction financing now typically requires developers to provide 50-60% equity compared to previous 20% requirements. With estimated costs exceeding $150 million and plan check processes potentially costing up to $1.5 million, securing financing has proven challenging. 

If the extension had not been granted, the property could have reverted to its underlying zoning, potentially allowing up to 87 dwelling units per acre — significantly denser than the current plan. With state density bonus laws, density could increase to  120-130 units per acre without the public benefits currently planned, including historical preservation elements like the Variable Atmospheric tank, reconstructed concrete torpedo monument, retained flagpole, and anchor seal. 

The project has already received design review approval and had its initial extension during COVID-19, which moved the deadline to August 2022, followed by a first regular extension to August 2024.