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Tangled in Red Tape

Yelp preleased an under-development 38,000-square-foot office space in Palo Alto earlier this fall, but the project faced a major setback this week when Palo Alto's city council rejected a grocery deal that is required for the project to move forward. The building's site used to house the now-closed JJ&F market, and part of the requirements for its redevelopment mandate the inclusion of a new grocery tenant. Two proposed grocers have been rejected already, and developers now have until March to find another grocery tenant. [SF Business Times]