Palo Alto admits mistakes in negotiations with developer

City agrees it followed a 'flawed' process in 2012 talks with John Arrillaga over property sale, proposed development

Faced with a stinging audit from the Santa Clara County Grand Jury, Palo Alto officials this week acknowledged that they followed a "flawed" process when they privately negotiated with billionaire John Arrillaga in 2012 over a parcel of public parkland while at the same time considering his ambitious and ill-fated plan to build four office towers and a theater downtown.

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