Millbrae council negotiates on county housing

The county submitted a memorandum of understanding that outlines how it plans to compensate the city and run the supportive housing development, which the city reviewed and revised during a meeting on Tuesday, Oct. 10, meeting. In the proposed MOU, the county stated the financial compensation would depend on the county receiving money from the state for the Homekey Program. Community Development Director Andrew Mogensen said the stipulation is unfair.

“As you may recall, the county said they could fund the project with or without homekey funding. As this quote shows, it says that if they don’t get the homekey funding, they would have no obligation to pay us, and that’s not right,” Mogensen said. “Regardless of the funding source, the county’s impact still remains.”

The county offered to pay the city the average hotel tax from the last three years. However, Mogensen argues those years were all down due to the pandemic, and the city wants to average from 2018-19 and the projected hotel tax for 2023. The difference is $262,802, according to a staff presentation.

Mogensen said the county proposed the city would receive either two sheriff deputies and a mental health clinician or an annual $500,000 credit, whichever is less. However, the city is looking for the county to pay up front for the three positions. The clinician would be a county employee, which concerns Councilmember Anders Fung. He said he wants to ensure the clinician is a citywide resource, rather than taking direction from the county.

The county proposed a quarterly ad-hoc committee comprised of two county board members, two county staff members, and representatives of the property manager, Episcopal Community Services. However, the city wants to weigh in on the advisory committee and suggests adding four members representing the city’s residents and businesses. The city believes the committee would discuss the status and progress of the project and any community concerns and issues, according to the presentation.

Councilmember Gina Papan suggested adding two residents from the supportive housing to join the ad-hoc committee.

During the public comments, resident Karen Lobo suggested the county should provide performance metrics to the city quarterly. Those metrics could include occupancy rates per unit, the tenant’s ages, turnover rates, maintenance request logs and emergency response calls to the property.

It’s a suggestion that Vice Mayor Maurice Goodman echoed. He said the information should be available to inform the potential ad-hoc committee overseeing the project. Goodman said it is essential for the city and the county to collaborate and use the data to ensure the supportive positions the county offers to supply will be sufficient.

“This is an opportunity for two entities in the county to work together,” Goodman said. “Let’s not lose sight of that partnership and trust and this tremendous opportunity to work together.”

Goodman said that a good MOU starts with trust, and the document’s language should state that the county and city are both committed to the residents of Millbrae and the county as a guiding principle for the agreement. It’s a sentiment that Councilmember Angelina Cahalan echoed.

“Just so we understand what our charge is,” Goodman said.

However, Mayor Ann Schneider said she has yet to trust the county. One of her concerns is the fiscal impact of the hotel’s loss.

The Millwood Hotel owners said the loss of La Quinta Inn means the shuttle system that it shared with the Millwood and Fairfield Inn will be lost because it took the quantity of all three hotels to run, Schneider said.

The loss of the shuttle could mean businesses could struggle because those hotels will need to compete with the hotels in Burlingame that do have shuttles, Schneider said, adding she worries that it could have a domino effect on the city’s restaurants and businesses.

“So there is this additional trickle-down impact from the closure of La Quinta,” Schneider said.

However, Schneiders’ lack of trust may come from the county’s lack of communication this summer and its intent to buy the 99-room hotel at 1390 El Camino Real for about $30 million. It launched a series of community meetings that featured huge crowds, booing and disruptive behavior by residents, with a host of concerns from tax revenue loss to safety.

Through this program, the county has converted three hotels in Half Moon Bay, Redwood City, and San Mateo into interim housing and created two permanent housing locations at former hotels in Redwood City.

While Schneider focuses on protecting the city’s assets and residents, Cahalan and Goodman seem to have bought into the county’s plans to turn the inn into permanent supportive housing.

“Try to look at this through the lens of someone charged with trying to do with best for the entire community,” Goodman said. “And trying to do the least amount of harm to our residents.”