Special Notice / Hearing: Publication (3 weeks)__
Vote Required: 4/5ths
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Purchase and Sale Agreement & Memorandum of Understanding for the Acquisition and Maintenance & Operation of 830 Stone Pine Road, Half Moon Bay, a 6.87-acre portion of 880 Stone Pine Road
RECOMMENDATION:
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Adopt a resolution:
A) Declaring the Board of Supervisors’ intent to purchase the real property and improvements described as 830 Stone Pine Road (“Property”), a 6.87-acre portion of Assessor’s Parcel Number 056-260-180, located at 880 Stone Pine Road (“the Site”), Half Moon Bay, San Mateo County, for a total purchase price of $1,234,000; and
B) Authorizing the President of the Board of Supervisors to execute a Real Estate Purchase and Sale Agreement and Escrow Instructions (“Agreement”) with the City of Half Moon Bay (“City”), for the County’s acquisition of the Property; and
C) Authorizing the County Executive or their designee to execute a Maintenance and Operation Memorandum of Understanding (“MOU”) with the City, affirming City maintenance commitments and the payment by the County for such work; and
D) Authorizing the County Executive, or their designee, to execute a Certificate of Acceptance upon satisfaction of certain conditions in escrow, to be recorded with the Grant Deed transferring title to the Property to County, as well as any and all notices, escrow instructions, and documents required to facilitate the purposes of the Agreement; and
E) Authorizing and directing the County Executive, or their designee, to execute, on behalf of the County of San Mateo, all amendments, extensions, notices, options, consents, approvals, terminations, and documents associated with the MOU, and the taking of all necessary actions in connection therewith.
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BACKGROUND:
There is a critical lack of affordable housing for low-income residents throughout San Mateo County, including the Coastside, such that the County has an interest in, and serves a public purpose by, supporting the development of affordable housing for San Mateo County residents, especially our most vulnerable low-income families.
San Mateo County’s Regional Housing Needs Assessment (RHNA) requires the development of nearly 20,000 “Very Low Income” and “Low Income” units for the 2023-2031 cycle. Thus, the County has an interest in, and serves a public purpose by, supporting the development of affordable housing for San Mateo County residents, especially our most vulnerable low-income families.
According to Housing and Community Development (HCD), California farmworkers earn, on average, approximately $20,000 a year, which is less than 20% of San Mateo County’s area median income, making farmworkers and their families among the most economically vulnerable members of our community. This vulnerability has been exacerbated by the COVID-19 pandemic, which caused significant negative economic and health impacts for farmworkers and their families.
In furtherance of this public interest, the County and the City of Half Moon Bay have been engaged in discussions to develop an affordable housing project that would assist individuals and families on the Coastside, including farmworkers and their families displaced by tragic deaths of seven people that occurred in Half Moon Bay in January 2023.
The County and the City have identified a City-owned property located at 880 Stone Pine Road, Half Moon Bay, CA 94019, as a location for an affordable housing project (the “Site”).
On July 25th, 2023, the Board of Supervisors, by Resolution No. 079826, approved a Memorandum of Understanding by which the City and County jointly developed plans for an affordable housing project at the Site.
On March 4, 2025, the City authorized the sale to the County of 830 Stone Pine Road, Parcel 1 of Stone Pine Cove (“Project”) Final Parcel Map and approved a Purchase and Sale Agreement to be executed by the parties providing for the County’s purchase of 830 Stone Pine Road from the City together with entering into a five-year MOU with the City affirming maintenance commitments of certain Project improvements by the City and authorizing the one-time payment of $500,000 by the County for such work.
DISCUSSION:
The County has been actively collaborating with the City to jointly develop an affordable housing project and finds that the purchase of the Property and development as a farmworkers affordable housing project is in the public interest.
The City and County have agreed upon a Sale Price of $1,234,000, meeting near the middle of the valuations of the appraisals independently completed by each.
The City and County have agreed that there are certain improvements which either jointly benefit the City and County or are best maintained by the City within the Property. Therefore, staff further recommends that Board authorize the County Executive or their designee to enter into an MOU with the City, effective for a five-year period and includes a one-time payment of $500,000 from the County to support maintenance services provided by the City during that time.
The County will have a Due Diligence Period to complete all due diligence, including completing appropriate environmental review under the California Environmental Quality Act; property inspections, testing and evaluations.
Closing shall occur on June 28, 2025.
Sea Level Rise Impact evaluation has been conducted in accordance with the 2019 San Mateo County Sea Level Rise Policy for County-Owned Assets that requires evaluation of sea level rise risk at least 50 years beyond the date of acquisition. Based on a review of inundation and erosion maps, this property is not vulnerable to 3.3 feet of sea level rise or to 6.6 feet of sea level rise and a 100-year storm event.
Notices pursuant to California Government Code section 25350 of the intention of the Board of Supervisors to make this purchase was published in compliance with Government Code section 6063, including a description of the property to be purchased, the price, the vendor, and a statement of the time this Board would meet to adopt this Resolution and consummate the purchase, and inviting interested persons to attend and be heard on the subject.
The County Attorney’s Office has reviewed and approved the Agreement, MOU and resolution as to form.
EQUITY IMPACT:
The County is dedicated to ensuring safe affordable housing options for all San Mateo County residents, especially our most vulnerable low-income families. Approval of the Purchase and Sale and MOU Agreements will create an opportunity for development of an affordable housing project that would assist Coastside individuals and families in need of stable housing, including farmworkers, who all contribute immensely to our communities and often face significant barriers to accessing quality housing.
FISCAL IMPACT:
The purchase price of the property, related costs, and escrow fees in an amount up to $1,234,000 will be funded by the General Fund. There are sufficient appropriations in the current year budget in Non-Departmental Services to cover this acquisition.