Affordable Housing Debate Intensifies as MidPen Unveils 52-Unit Project

Half Moon Bay's council adopted its annual budget, heard a sprawling and polarized public hearing on a new affordable housing development that would use state streamlining to bypass much of local review, and unanimously endorsed forging a sister city bond with the big-wave surf town of Nazaré, Portugal — all during a marathon June 16 session that underscored the tension between the coast's housing crisis and the community's desire for local control.

• 52-unit affordable housing project at Main and Metzgar streets draws sharp debate over parking, traffic, density, and design as MidPen Housing invokes SB35 streamlining

• Referendum group submits 1,085 signatures on the 555 Kelly senior housing project; a supporter alleges deceptive petition-gathering tactics

• FY 2026-27 budget adopted unanimously with $24M in revenue, $25M in spending, and $12M in fully funded reserves

• Sister city partnership with Nazaré, Portugal, advances with unanimous council enthusiasm, including a proposed Portuguese stone mosaic in downtown

• Healthcare district feasibility study elevated as the council's No. 1 new priority for the next two years

• COPS grant accepted, but council defers decision on extending Flock license plate reader cameras to September

Neighbors and Advocates Clash Over 52-Unit SB35 Housing Project on Metzgar Street

The basics: MidPen Housing presented plans for a 52-unit, 100% affordable development on the western portion of the 940 Main Street parcel, at the dead-end of Metzgar Street. The three-story, walk-up design by Herman Colliver Locus Architects includes one- to three-bedroom units, 64 parking spaces, three courtyard gardens, and a community room. At least 13 units are reserved for farmworker households and three units for households earning up to 15% of area median income. MidPen plans to use SB35, the state's ministerial streamlining law, along with a coastal development permit and state density bonus. No vote was taken — the hearing was informational, and the formal application has not yet been submitted.

Why it matters: The project would deliver 18% of Half Moon Bay's lower-income Regional Housing Needs Allocation (RHNA) requirement in a single development. But SB35 sharply limits the city's ability to shape the project — the council's main leverage is enforcing its objective design standards, a point every council member emphasized. With the 555 Kelly Avenue project already facing a voter referendum, this hearing surfaced the broader anxiety over how much say the community will have as state law pushes housing production forward.

Where things stand: Allison Vogt, MidPen Housing development director, walked the council through project details and a timeline targeting entitlement approval by late 2026 or early 2027, construction starting in late 2027, and completion by mid-2029. Community Development Director Leslie Lacko clarified that only a notice of intent has been filed — no formal application.

Public comment was extensive and deeply divided. Neighbors on Metzgar Street raised alarms about traffic on the narrow dead-end road, parking ratios that could leave dozens of cars without spaces, three-story building height blocking sunlight, and the lack of proactive outreach to adjacent residents. Ellie Carniglia, a Metzgar Street resident, said she was not opposed to the project but questioned its density — 35 units per acre compared with 14.9 at the nearby Main Street Park development — and its parking math.

Chad Hooker, Architectural Advisory Committee member, warned that the renderings appeared to ignore the city's own design rules:

"From the renderings I see tonight, it's like they've never been looked at. There are requirements in there about offsets to walls, roof overhangs, quite a number of things."

James Carnelia, a Metzgar Street resident, supported building on the lot but argued 52 units with only 64 parking spaces could mean more than 100 cars competing for those spots in a car-dependent community. James Harvey, representing a neighbor at 950 Main, urged the city to mandate a secondary access via Poplar Street to reduce traffic on Metzgar by half, citing safety for seniors, students, and disabled residents.

The other side: Supporters pushed back, framing the project as essential and warning that delay carries its own risks. Planning Commissioner Rick Hernandez said the city is behind schedule on its housing targets:

"We have 480 units of housing that we need to plan for and we are not meeting that. If we don't meet our standards, we're going to lose control."

He warned that blocking projects could trigger the state's Builder's Remedy, which would allow even denser five-story developments with fewer affordability requirements.

Ken Chan, Housing Leadership Council of San Mateo County organizing manager, spoke in support, emphasizing the need for affordable housing for teachers, service workers, and farmworkers. Carolina Carbajal delivered a passionate appeal on behalf of the Latino community, saying many workers fear speaking up and challenging the opposition to housing projects.

Decisions: No vote was taken. Council feedback centered on several themes: enforcing objective design standards, requiring a secondary emergency access through Poplar Street, revisiting the red barn-style paint scheme, improving Metzgar Street itself, and exploring local preference policies for residents.

Mayor Debbie Ruddock emphasized the one area where the city retains authority:

"As far as the objective design standards, that's the one area where we can exercise control. We have them. They're relatively detailed. The project needs to follow the objective design standards."

Councilmember Patric Bo Jonsson urged a distinctive look:

"We want something that looks different than a MidPen housing, than San Mateo. They all look the same. So looking unique would be cool."

What's next: MidPen has not yet filed a formal application. A joint Planning Commission and Architectural Advisory Committee design review hearing is expected before entitlement decisions. The project will return for further public input as it moves through the SB35 ministerial review process.

555 Kelly Referendum: 1,085 Signatures Submitted as Tactics Come Under Fire

The public forum turned into a proxy fight over the 555 Kelly Avenue affordable senior housing project — the council-approved development now facing a referendum challenge.

Hal Bogner, speaking on behalf of Let Half Moon Bay Voters Decide, announced the group submitted 1,085 petition signatures for county verification:

"This afternoon, we turned in 1,085 signatures for verification by the county to the newly titled city clerk."

That represents roughly one in eight registered city voters. Bogner emphasized voters' constitutional right to petition and said the group wants voters to fully understand the project's pros and cons.

Harvey Warbach, a project supporter, alleged that referendum petition gatherers had violated state election laws by covering the ordinance text on petition forms, claiming neutrality to deceive signers, and personally intimidating him.

The dueling comments underscored a deepening divide. If the signatures are verified, the council must either repeal its approval or place the project on the ballot — potentially delaying the affordable senior housing development significantly.

Council Adopts $25M Budget With Strong Reserves

Why it matters: Half Moon Bay's FY 2026-27 budget holds the line on one of the state's strongest reserve policies — 50% of operating expenditures — despite an ongoing structural gap between what the city takes in and what it spends.

Where things stand: Administrative services staff presented the final budget for adoption. Revenue totals approximately $24M, down $1M (5%) due to the loss of golf facility fees and fewer one-time funds. Expenditures total approximately $25M, up about $400,000 (1.5%). Reserves are fully funded at $12M, split between a $7.5M catastrophic reserve and a $5M economic uncertainty reserve.

The structural deficit of roughly $1.5M is offset by prior-year salary savings from a vacancy rate of approximately 30%, which is expected to yield a $2M surplus to carry forward. The total capital improvement program budget is $25M, leveraging grants and gas tax funds, with only $600,000 drawn from the general fund.

Pending revenue items include potential restoration of golf facility fees (approximately $650,000) and vehicle license fee backpayments (approximately $500,000) from the state. City Manager Matthew Chidester explained that the VLF issue is the subject of an active multi-city lawsuit:

"San Mateo County is actually punished because our school districts are doing better than other communities. It's kind of a bizarre formula."

Decisions: Council approved the budget, GANN appropriation limit, and investment policy unanimously, 5-0 (For: Ruddock, Penrose, Jonsson, Nagengast, Brownstone).

A Portuguese Compass Rose for Main Street: Council Backs Nazaré Sister City

Why it matters: The partnership would formalize a cultural and economic connection stretching back 150 years to Half Moon Bay's Azorean settlers, linking two small coastal towns united by fishing, farming, and world-famous big-wave surfing.

Where things stand: Fernando Oliveira and Jonathan Oliveira presented a detailed proposal connecting Half Moon Bay and Nazaré, Portugal — home to Mavericks and Praia do Norte, respectively. The presentation traced Portuguese immigrant heritage through traditions like the Holy Ghost Festival that continue today. A centerpiece proposal is a traditional calçada compass rose — a hand-laid mosaic of black basalt and white limestone — to be installed at the intersection of Main and Correa streets. Jonathan Oliveira noted his family's company, Fairlong Company, helped build a similar installation in Sausalito.

The Portuguese Consul General in San Francisco, the Secretary of State for the Economy of Portugal, and the Mayor of Nazaré have all expressed support.

Public comment was unanimously enthusiastic. Naomi Patridge, a former Kariwa sister city committee member, voiced strong support. Jason Stark, a sixth-generation local of Azorean descent and Mavericks surfer who has also surfed Nazaré, endorsed the partnership. Kerry Burke of the Portuguese Cultural Center also spoke in favor.

Vice Mayor Deborah Penrose noted a prior attempt in 2018 that never materialized:

"Of all the sister cities that we need to have, Portugal is the most important. The Portuguese community in our town is well represented."

Mayor Debbie Ruddock placed the partnership in a broader cultural context:

"So much of the richness and the enjoyment that we derive from living in Half Moon Bay. Not just the ocean and the environment, but the richness of our traditions and the Portuguese traditions, the Italian traditions."

Decisions: All five council members enthusiastically endorsed the effort. City Manager Matthew Chidester confirmed no city funding is being requested at this stage and directed staff to continue working toward an MOU and resolution.

What's next: Staff will draft a formal MOU and resolution for council adoption. The proposed five-step process includes establishing a sister city committee, initiating formal outreach to Nazaré officials, and planning an inaugural exchange event.

Healthcare District Tops Council's Two-Year Priority List

Why it matters: With no urgent care, lab, or radiology services on the coast, exploring a special taxing district modeled on Mendocino County's life services district could transform local healthcare access — but would likely require state legislation.

Where things stand: City Manager Matthew Chidester presented a refined list of potential new priorities for the FY 2026-28 work plan. Council members quickly coalesced around a coastside healthcare or life services district feasibility study as the top priority.

Vice Mayor Deborah Penrose was the most emphatic:

"I think that study of a health care district is critical. Coastside emergency care, lab, radiology care are critical. And to me, that's a number one priority."

Mayor Debbie Ruddock offered to share her research on the Mendocino County model:

"It's a taxing district, but the way they do it, and it's created in state law, you can use the funding generated to do almost anything. You can do urgent care, you can do emergency services."

Other priorities elevated by council members included coastal trail repairs between Ocean Colony and Redondo Beach Road, where tree roots have created ADA and safety hazards; continuation of the Poplar Beach fire pits pilot (with the city manager hoping for deployment by July 4); and downtown wayfinding signage and a directory kiosk at MacDutra Park as quick wins for local businesses. Penrose suggested deferring larger items like streetscape master plans and parking garage studies.

What's next: The formal work plan will return in July for adoption.

COPS Grant Accepted, but ALPR Camera Debate Deferred

Mayor Debbie Ruddock pulled the $100,000 state COPS (Citizens' Option for Public Safety) grant from the consent calendar to flag a concern: the resolution lists the Flock automatic license plate reader program as a potential use of the funds.

City Manager Matthew Chidester clarified that the grant resolution simply identifies eligible expenditures — no decision on extending the ALPR pilot is being made. The current Flock contract expires in October, and council will hold a dedicated discussion in September.

"We would come back to council for a discussion before we would ever extend the contract out further. This is just lining up the funding for a potential decision down the road."

Councilmember Patric Bo Jonsson agreed the discussion should happen before spending additional money on the cameras. The grant was approved unanimously by voice vote (For: 5, Against: 0).

Minor Items

• Consent calendar approved 5-0, covering warrants, contract renewals, meeting minutes, and conversion of the city attorney position to permanent.

• SAM wastewater plant easement permanently extended, 4-0 (Jonsson recused due to proximity to the property), resolving a lapsed 2022 agreement that ensures continued legal basis for the treatment plant.

• SAM Landstra parcel drainage easement continued to a future date, pending agreement revisions requested by the SAM board.

• SB 707 remote meeting disruption policy adopted unanimously before the July 1 state deadline, establishing procedures for handling telephonic or internet service failures during public meetings.

• Midcoast Community Council reported that San Mateo County's proposal to increase annual Midcoast permit approvals from 40 to 75 has been put on hold by the county supervisor after community pushback. Public commenter Sid Young noted the county had allocated 71 of the 40 annual permits to MidPen Housing at the end of 2025, effectively freezing all other permits through 2028.

• Youth Parks and Recreation Commissioner Frankie Derosa was honored for service as the inaugural youth member of the commission.

• Joaquin Jimenez promoted Vaquero Days, a celebration of coastside equestrian heritage, scheduled for Aug. 15-16.