Nearly two years after first approving a plan for an affordable housing development for older farmworkers, the Half Moon Bay City Council on Tuesday introduced an ordinance to approve a lease agreement with the developer.
The special meeting to evaluate the proposed lease agreement lasted five hours as members of the public shared their thoughts and council members went back and forth with the developer on amending the language in the agreement.
The council eventually settled on a $1 annual lease for 99 years with Mercy Housing, the developer of a five-story, 40-unit affordable housing complex proposed to be located on city property at 535 and 555 Kelly Ave.
The project, which includes 100% affordable housing for older farmworkers and their families, has been in the works for more than four years. Community opposition and hesitation from some council members have factored into the project being stalled.
“The delays need to stop,” said Noreen Cooper Heavlin, a member of Faith in Action Bay Area, during public comment. Faith in Action is a network of congregation leaders that advocates for civil rights and justice for underserved communities.
“By approving this lease, you ensure that those who have fed us for generations are not displaced,” she said.
In January 2023, a mass shooting shook Half Moon Bay when Chunli Zhao, a Chinese migrant farmworker who was 66 years old at the time, allegedly shot and killed seven fellow migrant farmworkers at two mushroom farms. The shooting exposed the poor living conditions of the farmworkers and sparked greater pressure to establish quality affordable housing for this population.
‘This is what housing looks like right now’
Tony Serrano is a lead case manager at Society of St. Vincent de Paul of San Mateo County, an organization that provides resources like food and clothing for people in need. He described how he works with farmworkers living in “overcrowded conditions” and sometimes sharing “entire apartments with multiple families,” he said at the meeting.
“This is not rare,” Serrano said. “This is what housing looks like right now for many of the farmworkers who sustain Half Moon Bay. That is why 555 Kelly matters.”
Those opposing the project often bring up concerns over the size of the building and potential parking disruptions. The location at 555 Kelly Ave. is situated in downtown Half Moon Bay, and the tallest building nearby is about 10 feet shorter than the proposed development.
“It’s always been about building a building that’s way too big for the city of Half Moon Bay in the wrong spot,” said resident Sandy Vela during public comment.
Mayor Debbie Ruddock and Councilmember Paul Nagengast pressed Mercy Housing on aspects in the lease agreement like the financing timeline, earthquake insurance coverage, and liability protections for the city in case there are any legal challenges against the project.
Some members of the public have expressed support for taking the project to the voters. If voters place an ordinance on the ballot through a public referendum and the ordinance is defeated, the city could face potential liability if a third party sues.
“I’m trying to get in as much protection as I can for the city,” Nagengast said.
A deadline to obtain funding
The council and Mercy Housing were able to come to the table and make changes to the agreement, including adding a provision that sets a Dec. 31, 2028, deadline for Mercy to secure enough funding for the project with the ability to extend the deadline.
Mercy has secured nearly $20 million in funding so far, but additional agreements with the city are needed to be able to secure the rest of the financing.
“Mercy has obtained all the financing that they’re going to be able to obtain until these agreements are in place,” said City Manager Matthew Chidester.
The City Council and Mercy could not reach agreements on two aspects — requiring Mercy to secure earthquake insurance and adding in language that protects the city from legal challenges in case the project fails through a public referendum.
Nevertheless, the council decided to introduce the revised lease agreement in an ordinance. It will return to the council on May 5 for a final vote.
“I think we ought to introduce it tonight, given that we have had a long discussion, we’ve made a bunch of revisions,” said Vice Mayor Deborah Penrose. “The revisions seem to satisfy council.”
All council members except for Nagengast voted to introduce the lease agreement.
Nagengast has previously opposed the project before he was elected to the council. Nearly two years ago, he filed an appeal against the Planning Commission’s approval of the plan for 555 Kelly Ave.
“I hope the agreements are solid and I will continue to promote safety, but I can’t get there,” he said after voting no.
