Half Moon Bay moves forward with farmworker housing project logistics

The updated agreement includes language that Mercy and the city are working toward a proposed 65-year lease term agreement, which will make the project more appealing for the Joe Serna Jr. farmworker housing grant because of its long-term implications, said Kelly Hollywood, Mercy Housing associate director. 

While the update to agreement language passed 3-1, with Councilmember Paul Nagengast voting no and Councilmember Deborah Penrose absent, multiple councilmembers expressed concerns that they felt boxed into a corner with the grant deadline fast approaching April 15. 

“As you’re well aware, of the language in the [exclusive negotiating agreement], the cornerstone is being able to negotiate in good faith. Good faith means not blindsiding people on information, so that we can be accountable to the public,” Vice Mayor Debbie Ruddock said. 

The language of the update doesn’t lock the city into a 65-year lease and only promises to continue negotiations with Mercy Housing, city attorneys assured councilmembers. 

Because of that qualification, Ruddock voted yes on the amendment, but pushed for negotiations on the project — which has drawn community ire for its five-story height and was unanimously approved by the City Council in June 2024 after they rejected three separate appeals against it — to continue expediently. 

“We need to move on negotiations, don’t let them drag out. Be clear with each other about where we’re at, so we can bring something to the public,” she said. “To be accountable, we also need to be prompt in our negotiations and transparent in the outcomes.” 

Coastside residents came out in force at the April 1 meeting both for and against the affordable housing development and amending the negotiating agreement. 

Those who opposed it expressed concerns that the City Council could be stymying residents’ right to a referendum against the project. Last year, the city clerk rejected a referendum petition against 555 Kelly Ave., saying it wasn’t legal. 

“I’d like to make sure we retain a public right of referendum,” coastside resident Sandy Vela said. “The public needs to have a voice. We need to make sure we don't inadvertently sign our rights away.” 

Those in favor said the city needed to stick to its word and promote affordable housing, particularly for vulnerable populations like farmworkers, on the coast.