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City Council Special Meeting - 555 Kelly Ave's 2026-03-18 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.
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: scheduled topic: Taxes and Assessments.
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 how council frames next steps for Environmental Inquiries.
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.
Tip: public comments are usually connected to a specific agenda item. Choose the item first, then prepare your comment.
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Reconstructed agenda items • Rebuilt from agenda text because source-provided agenda items were unavailable.
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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10.12
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...
Public comment item
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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: ATTACHMENT 1 32 -23- 4901-6868-4182 v1 4904-5992-7940 v10 485.254/693277485.254/693277485.254/693277 (a) Compliance with Laws. Developer shall carry out the construction, development and operation of the Project in conformity with a...
Public comment item
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12.3
City. City represents and warrants that (a) it is validly existing and in good standing under the laws of the State of California, (b) it has all requisite authority to conduct its business and own and lease its properties, (c) it has all
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GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS: requisite authority to execute and perform its obligations under this Agreement, (d) this Agreement is binding upon City in accordance with its terms, and (e) the individuals executing this Agreement on behalf...
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13.4
Rights and Remedies are Cumulative.
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DEFAULTS AND REMEDIES: Except as otherwise expressly stated in this Agreement, the rights and remedies of the Parties are cumulative, and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same...
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17.10
Warranty Against Payment of Consideration.
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MISCELLANEOUS: Developer warrants that it has not paid or given, and will not pay or give, any third person any money or other consideration for obtaining this Agreement.
17.11
Non-liability of City Officials and Employees.
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MISCELLANEOUS: No member, director, officer, employee, or volunteer of City shall be personally liable to Developer, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Developer or successor, o...
17.4
Acceptance of Service of Process.
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MISCELLANEOUS: In the event that any legal action is commenced by Developer against City, service of process on City shall be made by personal service upon the Director or in such other manner as may be provided by law. In the event that any legal action is co...
17.9
Time of the Essence.
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MISCELLANEOUS: Time is of the essence of this Agreement.
2
STUDY SESSION
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CONVENE SPECIAL MEETING / ROLL CALL
2
Draft Lease Agreement
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ADJOURN SPECIAL MEETING 2
2.A
555 KELLY AFFORDABLE HOUSING PROJECT STUDY SESSION
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Recommendation: Receive a presentation and provide feedback and direction on the following: 1) Draft Affordable Housing and Property Disposition Agreement between the City of Half Moon Bay and Mercy Housing California 110, L.P.; 2) Draf...
For development to move forward, the City and Mercy need to enter into an Affordable Housing and Property Disposition Agreement (AHPDA) and ground lease (Lease) authorizing Mercy’s long-term use of the City-owned land on which the building
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ADJOURN SPECIAL MEETING 2: would be constructed. Following the Council’s decision to uphold the Planning Commission’s approval in June 2024, the Council designated an Ad-Hoc Committee to work with Mercy on outstanding issues related to the pro- posed lease and...
555 KELLY AVENUE AFFORDABLE HOUSING DEVELOPMENT - AMENDMENT TO EXTEND THE EXCLUSIVE NEGOTIATIONS AGREEMENT BETWEEN THE CITY AND MERCY HOUSING
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Recommendation: Adopt a Resolution authorizing the City Manager to execute an amendment to the Second Exclusive Negotiations Agreement (ENA) between the City of Half Moon Bay and Mercy Housing California dated January 30, 2025, by exten...
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4
Parking Diagrams and Maps 9
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ADJOURN SPECIAL MEETING 2: 882/034767-0002 15208733.2 a03/10/26 4901-6868-4182 v1 485.254/693277 485.254/693277 485.254/693277 485.254/698719 AFFORDABLE HOUSING AND PROPERTY DISPOSITION AGREEMENT By and Between CITY OF HALF MOON BAY and MERCY HOUSING CALIFORNI...
4
The maps indicate nearly a thousand public parking spaces currently within a quarter-mile walk of the Project, which although not ideal could help alleviate some of the concerns about parking beyond the Project site itself. The Council
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ADJOURN SPECIAL MEETING 2: will also be discussing downtown parking challenges and options at an upcoming Council Meeting, to develop solutions to growing parking demands. As far as parking that would be committed to the Project, the Project garage would inclu...
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
RIGHT TO ENTER PROPERTY; AS-IS; PHYSICAL AND ENVIRONMENTAL CONDITION
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LAND USE ENTITLEMENTS
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...
Public comment item
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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 First...
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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 satisfaction of all of the following conditions precedent or City’s written waiver of such conditions precedent in its sole and absolute discretion: (a) O...
Public comment item
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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...
Public comment item
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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 no...
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 c...
8
PROPERTY CLOSING; ESCROW EXPENSES
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GROUND LEASE OF PROPERTY
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...
92
The study is investigating current traffic and travel patterns, identifying bottlenecks, and evaluating potential solutions to improve traffic flow and safe access for bicyclists and pedestrians.
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ADJOURN SPECIAL MEETING 2: The project is investigating all highway crossings, with particular emphasis on the East/West connections at key intersections, including Highway 1 and Kelly Avenue. • Safe Streets for All Road Safety Action Plan – primarily funded b...
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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ADJOURN SPECIAL MEETING 2: established to develop and operate safe, decent affordable housing in California.
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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ADJOURN SPECIAL MEETING 2: 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 appeals t...
