Half Moon Bay Planning Commission Remote Meeting – July 27, 2022

The Half Moon Bay Planning Commission met remotely on the date indicated above. The agenda and transcript call the meeting Tuesday, July 26, 2022, at 7:00 PM PT; the timestamp supplied for this summary is 2022-07-27 09:00 UTC. Commissioners considered a General Plan conformance determination for a city property acquisition and received an extensive housing element update, including the 555 Kelly Avenue affordable housing proposal. Acting Chair Rick Hernandez led the meeting in the absence of Chair David Gorn, with Commissioners James Benjamin, Margaret Gossett, and Steve Ruddock participating.

Approval of Minutes

• The commission approved the draft minutes from the July 12, 2022, meeting. Acting Chair Hernandez recused himself after stating he was not present at that meeting. The vote was 3-0-1, with Commissioners Gossett, Ruddock, and Benjamin voting yes and Hernandez abstaining.

Public Comments & Testimony

• Dave Shore spoke in opposition to the proposed Hyatt hotel and draft EIR, saying the applicant had ignored feedback from 2017, a July 2020 Architectural Advisory Committee meeting, and a September 2021 joint study session. He argued the project violates numerous city code and LCLUP provisions, including protections for visual resources, and requested robust discussion at the August 9 study session.
• David Pasternak, a 45-year coastside resident, raised infrastructure concerns and argued that limited water, traffic, and hospital access should take priority over a hotel. He urged the commission to redirect priorities toward housing for children and workers.
• Catherine Murdoch, a 50-year resident, opposed the hotel proposal, citing inadequate water supply, congested traffic, loss of open space and views, and the creation of low-paying jobs.
• Rick Sutherland opposed the Hyatt proposal as drafted, stating it was not harmonious with Half Moon Bay's small-town character and would be an irreversible "albatross."
• During the housing element item, Dave Shore spoke again, expressing support for affordable housing and suggesting the Hyatt parcel could be used for very-low-income housing. He also voiced concerns about the 555 Kelly proposal's four-story height, parking, and the need to change downtown height limits.

Discussion Items

1.A General Plan Conformance Determination – West of Railroad Parcel (APN 064-022-120)

• Staff requested a resolution finding that the city's acquisition of an undeveloped, unaddressed parcel in the West of Railroad Planned Development area conforms to the General Plan and Local Coastal Land Use Plan.
• The intended use is to leave the parcel natural or incorporate it into planning efforts such as the Poplar Gateways project, green infrastructure planning, coastal trail retreat planning, and natural-resource protection.
• Commissioner Ruddock recused himself because his residence is close to the West of Railroad PD. No public comment was offered.
• Commissioners Benjamin and Gossett both expressed support for the staff report and resolution.

1.B Housing Element Public Outreach, Site Inventory, and 555 Kelly Avenue

• Staff from the Community Development Department, including new Housing Coordinator Mike Noche, presented an informational update.
• Outreach statistics: approximately 163 participants attended five meetings; focus groups with seniors and ALAS each had eight attendees; staff also consulted stakeholders and service agencies.
• Key outreach themes: farm workers cannot afford stable housing; overcrowding and substandard conditions are common; illegal subleases and price gouging affect tenants without formal leases; teachers and essential workers struggle to remain in Half Moon Bay; affordable-housing developers need larger projects for financing feasibility.
• The city's existing deed-restricted affordable inventory totals 424 units over roughly 50 years.
• Income limits were highlighted: for a family of four, the low-income (80% AMI) maximum is $149,000 per year; the single-person AMI in San Mateo County is $116,000. Farm-worker incomes average about $20,000 per year.
• The current RHNA cycle requires 480 units, up from 240; the state has shifted a larger share toward very low- and low-income categories.
• The site inventory was narrowed from roughly 1,000 potential units to the highest-quality sites with at least a 20% buffer over the RHNA. It includes pipeline projects, about 100 ADUs based on a three-year average, and key vacant/non-vacant sites. Update highlights included workforce housing overlay sites, mobile home parks, Hatch school district property, and 880 Stone Pine, where about 120 affordable units are now considered feasible on at least four acres. A previously considered Wavecrest post-office site was ruled out after wetland damage.
• 555 Kelly Avenue: the city-owned site purchased in 2017 is about 20,000 square feet. An RFQ/P released February 15, 2022, with a May 23, 2022, extended deadline, drew one proposal from Mercy Housing and ALAS. The proposal is a four-story, 40-unit affordable farm-worker housing development with studios and one-bedrooms, a resource center managed by ALAS, and management by Mercy Housing. City Council on July 19, 2022, authorized staff to prepare an exclusive negotiating agreement for pre-development activities; the vote was reported as 4-0 with one recusal/abstention. Affordable rent for an acutely low-income single person earning about $17,000 per year would be $436 per month, against average studio/one-bedroom rents around $2,000 per month.
• Commissioner discussion included questions about zoning, Measure D allocations, HCD review standards, coastal resource consistency, ADU counting methodology, safeguards for mobile home park affordability, and the definition of downtown. Staff said a ballot measure would be required to change downtown boundaries, but the Measure D rating system could be amended to favor town-center sites.

Director's Report & Commission Communications

• Upcoming meetings: August 9 will include a study session on the Hyatt draft EIR and two mural proposals; August 23 will return the Caltrans variable message sign item to a date certain.
• The short-term rental ordinance scheduled for a Coastal Commission certification hearing was delayed for one to two months at city staff's request. Coastal Commission staff have concerns about the primary-residence requirement, the 60-night cap on unhosted rentals (the commission had recommended 90 nights), and the eight-guest occupancy cap. Public comment is still being accepted.
• Commissioner Benjamin announced he would be absent from the September 13 meeting and noted the passing of Harpo Marks, owner of Cafe Society. Commissioner Ruddock also reported he would be absent on September 13.
• The commission unanimously voted to adjourn in memory of Harpo Marks.

Key Outcomes

• Approved the July 12, 2022, meeting minutes by a 3-0-1 vote.
• Approved Resolution for General Plan Conformance for the West of Railroad parcel on a 3-0 vote, with Commissioner Ruddock recused.
• Took no action on the housing element item; it was informational and will return with a firm schedule after consultant analysis.
• Received notice that City Council authorized staff to prepare an exclusive negotiating agreement with Mercy Housing/ALAS for 555 Kelly Avenue.
• Adjourned in memory of Harpo Marks by unanimous vote.