Half Moon Bay council introduces 99‑year lease for 40‑unit senior farmworker housing after hours of debate

Half Moon Bay’s City Council voted 4–1 on April 28 to introduce an ordinance that would approve the agreements underpinning the 40‑unit 555 Kelly senior farmworker housing project, including an Affordable Housing Property and Disposition Agreement (AHPDA), a 99‑year ground lease and a regulatory agreement. Vice Mayor Penrose moved the ordinance introduction; the motion was seconded and carried on a roll call vote with Council member Nagengast opposed.

The ordinance introduction follows a staff presentation from interim City Attorney Denise Pisano and the city manager outlining the AHPDA’s conditions precedent — a financing plan, a construction contract, final construction documents, a building permit and a property management agreement — and the structure of a 99‑year ground lease under which Mercy Housing would be the tenant and the city would remain landlord. Pisano said the AHPDA would govern the predevelopment period and terminate when a memorandum of ground lease is recorded.

The package staff presented would require the development to be 100% affordable and target seniors and retired agricultural workers; tenant preferences are written to prioritize Half Moon Bay senior farmworkers first, then co‑site seniors, then seniors from across San Mateo County. Pisano summarized key contract terms: affordability covenants that run long term, a $1 annual lease rent, maintenance and indemnity obligations for the developer, insurance and builder‑risk coverage during construction, and restrictions on access to certain tenant…