Council approves CMFA membership, delays TEFRA vote and approves up to $855,874 in utility reimbursement for 1301 Broadway affordable housing project

The Millbrae City Council voted unanimously to authorize the city’s membership in the California Municipal Finance Authority (CMFA), paused final local action on tax‑exempt bonds for a 97‑unit affordable housing project at 1301 Broadway to allow additional dialogue with labor representatives, and approved a reimbursement agreement of up to $855,874.21 to underground utility lines adjacent to the same project.

On the CMFA membership (City agenda item 11), the council adopted a resolution authorizing the city to join the CMFA joint exercise of powers agreement. City staff explained membership carries no financial obligation or liability for Millbrae; instead, it enables the CMFA to issue bonds in the city’s jurisdiction and provides the city a portion of issuance fees to offset administrative costs. Vice Mayor Holiver moved approval; Councilmember Nguyen seconded. The roll call vote was 5–0 in favor.

The council then opened a TEFRA (Tax Equity and Fiscal Responsibility Act) public hearing on the proposed CMFA issuance to support the 97‑unit affordable housing project at 1301 Broadway. City staff and CMFA representatives said the project received state bond allocation and that TEFRA public hearings are required to allow tax‑exempt treatment for the bonds. Representatives of Carpenters Local 217 urged the council to delay action and seek labor assurances and stronger local hiring and prevailing‑wage protections before bonds are approved. The City Attorney’s Office advised the council that the TEFRA public hearing is discretionary and that prevailing‑wage rules apply in limited circumstances tied to public funding; the attorney noted the developer agreed to prevailing‑wage obligations for certain underground work above the statutory threshold.

After discussion the council voted 5–0 to continue the TEFRA hearing to the Feb. 25 City Council meeting to allow the developer, construction trades and city staff time for additional engagement. Mayor Fung moved the continuance and Councilmember Rinaldi seconded.

Separately, on item 9 the council considered a utility‑reimbursement agreement with AMG and Associates LLC to underground overhead utilities on Ludeman Lane adjacent to the 1301 Broadway site. Community Development staff explained state density‑bonus law allows the applicant to seek a concession from the city’s usual undergrounding requirement; staff recommended reimbursing the developer from the city’s affordable‑housing fund to advance the project and public safety. Staff reviewed cost estimates and third‑party verification and explained California prevailing‑wage rules would be triggered for public‑funded work above statutory thresholds; the draft agreement requires the developer to provide invoices and supporting documentation before reimbursement and to comply with prevailing‑wage obligations if triggered. Councilmember Rinaldi moved approval; the motion passed 5–0.

Representatives of the Carpenters union said they support building affordable housing but asked the city to require stronger labor protections and to delay final approvals to secure commitments on worker protections. The applicant, Jean Broussard of AMG and Associates, said unions frequently perform on large projects and that many subcontractors on similar past projects used union wages; she also said the project must meet quick financing deadlines tied to a tax‑credit award and urged continued progress.

The council directed staff and the developer to continue outreach to labor representatives before the Feb. 25 hearing while moving forward with the utility reimbursement agreement and CMFA membership.

Ending: Councilmembers emphasized the city’s interest in both advancing a nearly 100‑percent affordable project — and in encouraging discussion between the developer and local trades to address labor concerns prior to final bond approval.