California homeowners are pushing federal authorities to sanction the Russian developer behind a planned 39-story tower they call a looming “monstrosity.”
Vitaly Yusufov, the property owner, already faces sanctions in Ukraine. His father Igor Yusufov, 71, a former Russian energy minister worth an estimated $1.1 billion according to Forbes, faces sanctions in both Ukraine and Canada as founder of the investment vehicle Fund Energy. The Department of Treasury’s Office of Foreign Assets Control notes that sanctions can block trade and financial transactions and freeze assets.
Some residents now plan to raise concerns about Yusufov with the Committee on Foreign Investment in the United States, the Palo Alto Daily Post reported. The planned development at 80 Willow Road would transform a seven-acre site Yusufov purchased for $72 million in 2019 into 665 apartments, a hotel, office space and a preschool spread across three towers. The tallest would rise 461 feet, making it the tallest building between San Francisco and Los Angeles.
Resident Maria Kleczewska spoke out at a previous meeting about the risks of fighting the project.
“I urge you to fight the 80 Willow project despite the risk of massive legal fees,” she said. “This project will be the ruin of our beautiful city.”
Kleczewska pressed the council on the development’s neighborhood impact.
“How many residents will be looking at that monstrosity from their streets and yards instead of the open sky and trees that we love to see?” she asked. “How many houses will be in shadow? How many streets will experience a dramatic increase in traffic?”
Another resident delivered a blunt message about the developer’s pressure tactics.
“Argue back at the Attorney General. He ain’t the only lawyer in town,” the resident said. “Reject the developer’s deadline. Who died and made him God?”
Menlo Park Councilmember Drew Combs told the Palo Alto Daily Post that council officials have not contacted the Treasury Department’s Office of Foreign Assets Control or Rep. Sam Liccardo’s office about seeking sanctions against Vitaly Yusufov.
The project has also drawn scrutiny from California Attorney General Rob Bonta’s office. In a July 27 letter, Bonta’s office said Menlo Park improperly changed its justification for rejecting the proposal.
Developer Oisín Heneghan, who is behind the 80 Willow Road project, then sent the council a letter on Aug. 3 arguing that the project must be approved by Oct. 27. Both Heneghan and the Attorney General’s Office cited Assembly Bill 712, a state law aimed at strengthening enforcement against local governments that fail to comply with California housing laws.
The dispute unfolds amid continued scrutiny in Washington over the financial and political activities of wealthy Russians with ties to President Vladimir Putin.
The council faces an Oct. 27 deadline from the developer to approve the project.