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                    "An aerial view of a residential neighborhood in Menlo Park, Calif.MattGush/Getty ImagesA Silicon Valley congressman is calling for a federal investigation into a controversial Menlo Park development, saying a Russian oligarch with alleged ties to organized crime is behind the project.U.S. Rep Sam Liccardo, a Democrat whose district covers the city, asserted in a letter Wednesday\u00a0to Department of the Treasury Secretary Scott Bessent\u00a0that the development\u2019s land is owned by\u00a0Vitaly Yusufov, a Russian whom Liccardo says has been sanctioned by Ukraine and has acted on behalf of former Russian President\u00a0Dmitry Medvedev. He said the project\u2019s location near tech companies raises national security concerns.Article continues below this adOisin Heneghan, the founder of N17 Development, the San Francisco-based developer behind the project, said in an email to SFGATE Friday that Liccardo\u2019s allegations are \u201cbased on false reporting and what can only be described as NIMBY fan fiction.\u201d\u201cPredictably, the same voices that have spent decades fighting new housing are fighting this too,\u201d Heneghan said. \u201cJust as the project is being approved, the NIMBY lobby is creating more and more sensational, desperate narratives to try to block these new homes.\u201dHeneghan did not comment on whether Yusufov owns the land, or\u00a0Liccardo\u2019s allegations that Yusufov has \u201cties to ... individuals linked to organized crime.\u201dN17, the real estate developer, first proposed the project in 2023 but was immediately met with pushback from city residents and officials who said the apartment complex\u2019s proposed three towers, with hundreds of housing units, a hotel and office space, did not match the character of the city.Article continues below this adRep. Sam\u00a0Liccardo, D-Calif., talks with a reporter outside the U.S. Capitol after the last vote of the week on Thursday, April 23, 2026.Tom Williams/CQ-Roll Call, Inc/Getty ImagesThe proposed building is located on the former headquarters of Sunset Magazine, built in 1951. The project\u2019s opponents have argued the building should be protected as a historic site.Liccardo said in a statement Thursday that he supports more housing in Menlo Park, which is still trying to meet state housing requirements for the city to build about 3,000 new homes between 2023 and 2031, but expressed concern about the development\u2019s ownership.\u00a0\u201cI want more housing in our community, but Russian oligarchs with ties to the Kremlin and criminal networks should not control assets in our country,\u201d he said in the statement.\u00a0Article continues below this adLiccardo\u2019s letter to\u00a0Bessent described the project as being \u201cin the heart of Silicon Valley\u201d and called for federal review given its proximity to a \u201cvery high concentration of defense tech, artificial intelligence, and quantum computing companies and research centers in the region.\u201d\u00a0Menlo Park Planning via Flickr Public DomainDeutsche Bank sold its stake in the project in 2019 to a company it believed was owned by Yusufov, which set off alarms at the bank for potential suspicious activity,\u00a0according to reporting by the New York Times.Despite concerns from the community, California Attorney General Rob\u00a0Bonta sided with the developer in July, pushing back on city officials by citing concerns with the way Menlo Park has handled the development in an effort to drop the project. Bonta said the city violated state law by improperly denying the developer and wrongly imposing fees. Bonta did not require the project to move forward, but the letter was a rejection of the city\u2019s attempt to punt the project.\u00a0Article continues below this adBonta\u2019s office said Friday that it cannot comment on Licardo\u2019s letter or say if it had its own investigation into the alleged ties to Russia.Sep 25, 2026Senior California politics reporterAnabel Sosa is the senior California politics reporter at SFGATE. She previously covered the statehouse and elections for the Los Angeles Times. She has a masters degree in investigative journalism from UC Berkeley. You can reach her at anabel.sosa@sfgate.com."
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