Congressman Sam Liccardo is urging an immediate federal investigation into the Russian owner of the proposed Willow Park megatower project, citing national security concerns.
Liccardo sent a letter treasury Secretary Scott Bessent requesting an investigation into the source of funding for the Menlo Park project and called for consideration of sanctions against owner Vitaly Yusufov on Wednesday, Sept. 23.
Yusufov is the son of Igor Yusufov, a Russian billionaire, Russia’s former energy minister, and the founder of a U.S.-sanctioned energy fund. Igor is also alleged to have ties to the FSB, Russia’s equivalent to the CIA, and the pair have both been sanctioned by Ukraine for their alleged roles as financial proxies for the Russian government.
In the letter, Liccardo expressed concerns about Vitaly Yusufov’s reported role as a business agent for former Russian president Dmitry Medvedev and his business dealings connected to organized crime figures, including alleged contract killers.
Yusufov’s alleged ties to Medvedev are especially notable given the Russian politician is under U.S. sanctions. Some analysts have characterized Yusufov and his father as “wallets” for Medvedev’s wealth, potentially helping him evade U.S. sanctions.
In his letter, Liccardo also raised concerns that the project’s proximity to Silicon Valley’s AI research and defense technology companies could give the Russian government access to sensitive information.
Yusufov’s proposed development is the highly contested Willow Park development at the former Sunset magazine headquarters. It would span 1.7 million square feet—the equivalent of 30 NFL football fields—and would include the tallest building between San Francisco and Los Angeles. Plans include 665 housing units, 100 of which are affordable, office space, a preschool, and a five-star hotel.
Liccardo’s call for an investigation follows years of legal disputes between the developer and Menlo Park. The developer is pursuing approval through builder’s remedy, a state housing law which allows developers to bypass city zoning regulations if the city is falling short of its state-mandated housing quotas.
The developer of the proposed project, San Francisco-based N17 Development, dismissed Liccardo’s accusations. “[They are] based on false reporting and what can only be described as a NIMBY fan fiction,” N17 wrote, referencing the ‘not in my backyard’ movement, which is opposed to local rapid housing development. “[The calls accusations show that the NIMBY lobby] is creating more and more sensational, desperate narratives to try to block these new homes.”
However, some residents reject N17’s characterization of opposition to the Willow Park megatower project as anti-housing. While the project does contain 665 housing units, it’s projected to create over 2,000 jobs, leading to a need for 722 off-site units to accommodate the complex’s employees, Menlo Park Housing Commission member Kevin Kranen said. Kranen argued that the project would create more demand for housing than it would meet.
Menlo Park Mayor Betsy Nash welcomed the call for scrutiny into Yusufov’s finances. “I am very glad that Rep. Liccardo has called on Secretary Bessent to sanction the Russian oligarch who owns the Sunset Magazine campus and prevent it from being turned into a massive commercial development that will compound housing and infrastructure challenges in Menlo Park,” Nash wrote in a statement to KQED. “We need affordable housing. We do not need a massive commercial development that will only make things worse.”
