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Ordinance and Resolution
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ADJOURN SPECIAL MEETING 3
Half Moon Bay Meetings
Half Moon Bay City Council
Half Moon Bay • 2026-04-28 • TBD
RecentLast updated: Jun 15, 2026, 3:01 PM
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Date
Tuesday, April 28
Time
TBD
Location
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Meeting summary
What's Scheduled
City Council Special Meeting - 555 Kelly Ave's 2026-04-28 agenda is scheduled to cover Environmental Inquiries, Review of Title of Site, Anti-Discrimination, and Taxes and Assessments. This is an agenda-derived preview, so it describes scheduled topics and proposed actions rather than confirmed outcomes.
Key Topics
- Environmental Inquiries: the agenda included this context: Section: LAND USE ENTITLEMENTS Developer, when it has received any notices of violation, notices to comply, citations, inquiries, clean-up or abatement orders, or cease and desist orders related to Hazardous Materials or Hazardous...
- Review of Title of Site: scheduled topic: Review of Title of Site.
- Anti-Discrimination: proposed contract or agreement that could commit public funds or shape implementation.
- Taxes and Assessments: the agenda included this context: Section: DEVELOPMENT OF THE PROJECT After the Property Closing, Developer shall pay prior to delinquency all real estate taxes and assessments on the Property so long as Developer retains any interest therein. Notwithstanding the above,...
- Right of City to Satisfy Other Liens on the Property(s): proposed contract or agreement that could commit public funds or shape implementation.
Why It Matters
- Environmental Inquiries may affect residents because it is one of the meeting's substantive scheduled items.
- Review of Title of Site may affect residents because it is one of the meeting's substantive scheduled items.
- Anti-Discrimination may affect public spending, project delivery, or vendor accountability.
- Taxes and Assessments may affect residents because it is one of the meeting's substantive scheduled items.
- Right of City to Satisfy Other Liens on the Property(s) may affect public spending, project delivery, or vendor accountability.
What Residents Should Watch
- Watch the staff presentation and council questions on Environmental Inquiries for future policy or budget direction.
- Watch how council frames next steps for Review of Title of Site.
- Watch whether council approves, amends, continues, or rejects Anti-Discrimination.
- Watch how council frames next steps for Taxes and Assessments.
- Watch whether council approves, amends, continues, or rejects Right of City to Satisfy Other Liens on the Property(s).
Trust But Verify
- This summary is based on agenda materials only; actions have not yet been confirmed by minutes, transcript, or vote records.
- Review the official agenda packet and source materials for exact item language, attachments, public-comment instructions, and final staff recommendations.
- After the meeting, check official minutes or vote records before treating any proposed action as approved.
Agenda
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Reconstructed agenda items • Rebuilt from agenda text because source-provided agenda items were unavailable.
1
The foregoing Recitals are true and correct and are an integral part of the Council’s decision and are hereinafter incorporated as findings.
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PUBLICATION AND POSTING 17
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Conduct a public hearing and introduce the first reading of an ordinance of the City of Half Moon Bay approving the Affordable Housing and Property Disposition Agreement, Ground Lease of Real Property for a Term of 99 Years, Memorandum of
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ADJOURN SPECIAL MEETING 3: Ground Lease, Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants (Regulatory Agreement) and Other Ancillary Agreements between the City of Half Moon Bay and Mercy Housing California 110, L.P., for the Se...
1
Capitalized terms used in an attachment attached hereto and not defined therein shall also have the meanings set forth in this Section 1. “ Adjusted AMI ” has the meaning given to it in Section 11. “ Affiliate ” means any Person, directly
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DEFINITIONS: or indirectly, Controlling or Controlled by or under common Control with such Person, whether by direct or indirect ownership of equity interests, by contract or otherwise, where “ Person ” means any association, corporation, governmental entity o...
Public comment item
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10
Estimated Costs and Financing Plan
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ADJOURN SPECIAL MEETING 3
10
For development to move forward on the Project, the City and Mercy’s affiliate, Mercy Housing California 110, L.P.
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ADJOURN SPECIAL MEETING 3: (Mercy Housing) need to enter into an Affordable Housing and Property Dis- position Agreement (AHPDA), Ground Lease, and Regulatory Agreement, authorizing Mercy Housing’s long-term use of the City-owned land on which the building wou...
10.12
Right of City to Satisfy Other Liens on the Property(s).
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DEVELOPMENT OF THE PROJECT: If Developer obtains written notice or actual knowledge of any lien or encumbrance on the Property which is not permitted under this Agreement, and Developer has failed after a reasonable time (but not less than forty-five (45) days...
10.2
Additional Governmental Permits and Approvals.
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DEVELOPMENT OF THE PROJECT: (a) Before commencement of construction or development of any buildings, structures or other works of improvement upon the Property by Developer, Developer shall, at its own expense, secure or cause to be secured any and all permits...
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10.3
Cost of Development.
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DEVELOPMENT OF THE PROJECT: Developer acknowledges and agrees that all Project Costs shall be borne exclusively by Developer. Developer shall also bear all costs related to discharging the duties of Developer set forth in this Agreement. Developer shall also b...
10.6
Remedies for Defaults Regarding Insurance.
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DEVELOPMENT OF THE PROJECT: In addition to any other remedies City may have, if Developer commits a default hereunder by failing to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may ob...
10.7
Obligation to Repair and Restore Damage Due to Casualty Covered by Insurance.
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DEVELOPMENT OF THE PROJECT: If the Project shall be totally or partially destroyed or rendered uninhabitable by fire or other casualty required to be insured against by Developer, Developer shall, subject to the rights of the Construction Lender, promptly proc...
10.9
Compliance with Laws; Compliance with Prevailing Wage Laws.
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DEVELOPMENT OF THE PROJECT: (a) Compliance with Laws. Developer shall carry out the construction, development and operation of the Project in conformity with all Governmental Requirements, including without limitation, all applicable state labor standards, Cit...
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11
Property Management Agreement Draft and Preliminary Services Plan
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ADJOURN SPECIAL MEETING 3
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Letter of Intent draft for ALAS Sub-Lease
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ADJOURN SPECIAL MEETING 3
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Parking Diagrams and Maps 13
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ADJOURN SPECIAL MEETING 3: ORDINANCE NO. 2026-XX AN ORDINANCE OF THE CITY OF HALF MOON BAY APPROVING THE AFFORDABLE HOUSING AND PROPERTY DISPOSITION AGREEMENT, GROUND LEASE OF REAL PROPERTY FOR A TERM OF 99 YEARS, MEMORANDUM OF GROUND LEASE, AFFORDABLE HOUSING...
2
Affordable Housing and Property Disposition Agreement (AHPDA)
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ADJOURN SPECIAL MEETING 3
2
The Planning Commission and City Council has already determined that the Project (PDP-23- 034) was exempt from CEQA in accordance with Guidelines Section 15332 (Class 32 categorical exemption for In-Fill Development Projects) and no legal
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PUBLICATION AND POSTING 17: challenge to that determination, timely 20 4925-2473-9236 v1 or otherwise, has been filed to date. Mercy has not proposed any substantial changes to the Project since then and thus the approval of the Grant Agreement would simply im...
Public comment item
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2
Adopt a resolution approving a Grant Agreement Between the City of Half Moon Bay and Mercy Housing California for Two Million Dollars ($2,000,000) in Funding Procured in Fiscal Year 2023 by Senator Josh Becker; Authorizing the City Manager
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ADJOURN SPECIAL MEETING 3: to Execute the Agreement; and finding approval of the Grant Agreement Exempt from Review under the California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines section 15332 (Infill Projects). FISCAL IMPACT: There is no di...
2.A
INTRODUCTION OF AN ORDINANCE FOR THE 555 KELLY AFFORDABLE HOUSING PROJECT, APPROVING THE AFFORDABLE HOUSING AND PROPERTY DISPOSITION AGREEMENT AND GROUND LEASE AND OTHER AGREEMENTS AND ADOPTING A RESOLUTION APPROVING A GRANT AGREEMENT
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Recommendation: 1) Conduct a public hearing and introduce the first reading of an ordinance of the City of Half Moon Bay approving the Affordable Housing and Property Disposition Agreement, Ground Lease of Real Property for a Term of 99...
CONVENE SPECIAL MEETING / ROLL CALL 2. 555 KELLY AFFORDABLE HOUSING PROJECT: Staff
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Regulatory Agreement
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ADJOURN SPECIAL MEETING 3
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RIGHT TO ENTER PROPERTY; AS-IS; PHYSICAL AND ENVIRONMENTAL CONDITION
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LAND USE ENTITLEMENTS
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The draft Grant Agreement is the document pursuant to which the City sets out the obligations imposed on Mercy with respect to the $2 Million from the State that the City will pass through to Mercy, if Mercy adheres to the obligations
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ADJOURN SPECIAL MEETING 3: contained in the Grant Agreement. The Grant Agreement provides a process for the disbursement of funds whereby a request for reimbursement is submitted to the City Manager, who will review the request and confirm that the reimburseme...
5
Following that meeting, Mercy would continue planning for the project by finalizing the construction documents, pursuing the remaining funding, and addressing other Project requirements such as easement and encroachment agreements, as
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ADJOURN SPECIAL MEETING 3: necessary. The City would also need to prepare an ordinance to establish preferences for affordable housing. ATTACHMENTS:
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Grant Agreement
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ADJOURN SPECIAL MEETING 3
5
Except for obligations assumed by Developer in this Article 5, Developer shall have no indemnity obligation to any of the Indemnitees for any Liabilities arising from or related to Hazardous Materials Contamination of the Property that
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LAND USE ENTITLEMENTS: existed prior to the Property Closing, except to the extent such contamination is exacerbated by Developer or any of its Affiliates, agents, contractors, consultants or employees.
5.1
Right to Enter Property.
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LAND USE ENTITLEMENTS: Developer acknowledges and agrees that Developer has had ample opportunity to examine, inspect, and investigate the physical and environmental condition of the Property, and has approved the physical and environmental condition of the Pr...
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5.4
Duty to Prevent Hazardous Materials Contamination.
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LAND USE ENTITLEMENTS: Developer shall take commercially reasonable actions to prevent the exacerbation of an existing release of any Hazardous Materials located on the Property and the release of new Hazardous Materials to the Property after the Property Clos...
5.5
Obligation to Remediate Premises.
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LAND USE ENTITLEMENTS: Developer acknowledges that, as of the Property Closing, City shall have no obligation to undertake any action to address or respond to Hazardous Materials present on, under, or about the Property regardless of when the Hazardous Materia...
5.6
Environmental Inquiries.
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LAND USE ENTITLEMENTS: Developer, when it has received any notices of violation, notices to comply, citations, inquiries, clean-up or abatement orders, or cease and desist orders related to Hazardous Materials or Hazardous Materials Contamination from any gove...
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5.8
Review of Title of Site.
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LAND USE ENTITLEMENTS: Developer acknowledges and agrees that City provided Developer preliminary title reports prepared by the Title Company on November 10, 2025, as its Order Nos. 111703064 and 1117030644 (“ Preliminary Title Report ”) with respect to the ti...
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6.2
Tax Credits; Applications to TCAC.
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FINANCING PLAN FOR THE PROJECT: Developer shall, at the times described in the Schedule of Performance, prepare and submit a complete application to TCAC for an allocation of Tax Credits, and apply to reputable institutional investors and syndicators qualified...
6.3
Preliminary Project Budget; Final Project Budget.
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FINANCING PLAN FOR THE PROJECT: The Preliminary Project Budget includes a Sources and Uses of Funds Statement; the “ Final Project Budget ” will include all of the following: (i) a Sources and Uses of Funds Statement; (iii) a Cash Flow Projection; and (iv) a F...
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7
Presentation from March 18, 2026
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ADJOURN SPECIAL MEETING 3
7.2
Conditions for City’s Benefit.
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GROUND LEASE OF PROPERTY: City’s obligation to ground lease the Property to Developer shall be subject to (i) satisfaction of all of the following conditions precedent; or (ii) City’s written waiver of such conditions precedent: (a) Organizational Documents. C...
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7.3
Conditions for Developer’s Benefit.
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GROUND LEASE OF PROPERTY: Developer’s obligation to ground lease the Property from City shall be subject to satisfaction of all of the following conditions precedent or Developer’s written waiver of such conditions precedent in its sole and absolute discretion...
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7.4
Developer Right to Terminate.
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GROUND LEASE OF PROPERTY: If, by the Outside Closing Date, any of the conditions set forth in Section 7.3 have not been satisfied, or waived by Developer, then Developer, provided that it is not then in material default under this Agreement (subject to the not...
7.5
City Right to Terminate.
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GROUND LEASE OF PROPERTY: If, by the Outside Closing Date, any of the conditions set forth in Section 7.2 have not been satisfied, or waived by City, then City, provided that it is not then in material default under this Agreement (subject to the notice and cu...
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PROPERTY CLOSING; ESCROW EXPENSES
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GROUND LEASE OF PROPERTY
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SEVERABILITY I f any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by decision of any court of competent jurisdiction, such decision shall not affect the validity
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RECORDING: of the remaining sections, subsections, sentences, clauses or phrases of the Ordinance. SECTION
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8.3
Instruction to Escrow Holder Regarding Waiver of Transfer Taxes and Recording Fees.
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GROUND LEASE OF PROPERTY: The Escrow Holder is hereby instructed to seek such waivers and exemptions from transfer taxes and recording fees as are available pursuant to Revenue and Taxation Code Section 11922 and Government Code Sections 6103 and 27383, respec...
C
Through the RFQ process, Mercy Housing California, a California nonprofit public benefit corporation (“ Mercy ”), was selected to potentially develop, pending subsequent negotiations, the proposed development on the Property. Mercy was
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PUBLICATION AND POSTING 17: established to develop and operate safe, decent affordable housing in California.
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D
Developer is a California limited partnership, the general partner of which is Mercy Housing California 110 LLC, a California limited liability company, of which Mercy Housing California, a California nonprofit public benefit corporation,
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PUBLICATION AND POSTING 17: is its sole member/manager. E. On May 14, 2024, the City’s Planning Commission conditionally approved a Coastal Development Permit (“ CDP ”) for the Project (PDP-23-034). Following the Planning Commission action, three separate appe...
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