LIVE HARBOR SAMCAM

Carnoustie development represents more than 'temporary inconvenience'

By George Muteff
Published/Last Modified on Thursday, Nov 29, 2007 - 11:26:13 am PST

On Sept. 11, I filed an appeal to the California Coastal Commission opposing the unanimous Half Moon Bay City Council approval of a three-year, 32-home project called Carnoustie, which abuts my family's property. The houses are to be part of Ocean Colony. Although I've never opposed the project, I do oppose construction access to the project, which is to be entirely on Redondo Beach Road - a non-conforming, substandard, secondary beach access road, less than 15 feet in width from the Infant/Toddler Center at Highway 1 to the construction site. I feel strongly that it is a public safety and public access issue. The commission called it "a temporary inconvenience."

Although the project offers benefits, it has other serious flaws that impact all of us. One I'd like to identify is the "affordable housing" element, which is required for the development. Plans are to have 11 apartments - six two-bedroom and five one-bedroom units, built on Bert Silva's property on Church Street. Silva (an incumbent) just ran again, unsuccessfully, for Half Moon Bay Fire Protection District board.

Carnoustie started taking shape when the Plumbers & Steamfitters Union hired Bruce Russell, CEO of Kenmark Real Estate Group, almost three years ago to get this project done. They hired the right guy; he knows what he's doing. The council members, at that time, were Toni Taylor, David Gorn, Marina Fraser, Mike Ferreira and Jim Grady (who was mayor). Russell supported Ferreira and Grady in the 2005 election to keep the incumbents in office because they had worked to support his $60 million project; in fact, they were the lead city negotiators for Carnoustie.

As a required element, "affordable housing" either needs to be constructed as a part of the Carnoustie project, or it needs to be mitigated. If built, it will be a new part of our downtown. If not, the developer is required to give the city $2.1 million. That money then goes into our budget. Based on our spending habits over the last five years, we need it ... that's where the rub comes in.

Those 11 units will be rented, generating an annual income of roughly $140,000 per year for Silva - from housing built with public money. Why? Why are those units being built with public money, on private property, instead of city property? If the law requires the "affordable housing" element of a project either be completed for, or compensated to the city, isn't the compensation public monies? Why, then, is the current plan to build the units on private property? Is the developer obligation for the financial benefit of the city or an individual? How does benefiting Silva fit into public benefit?

Additionally, this gift keeps on giving. Besides the $140,000 per year in rent collected, the property appreciates annually, while allowing depreciation on Silva's taxes. Further, what happens some years down the road if Silva decides he doesn't want the aggravation of being a landlord anymore and decides to sell the apartments? Is that city money?

Our fiscal woes continue to plague us. A partial list would include:

- The pending verdict on the $30 million Beachwood lawsuit against us;

- The Ailanto project off Terrace Avenue (I wonder what's holding that up? See above!)

- Myers Nave taking in excess of 20 percent of our 2006-07 budget for land-use litigation;

- A 2 percent increase in our Transient Occupancy Tax on the February ballot;

- Our mayor firmly stating we can't afford to give the Peninsula Open Space Trust any money from our budget for the park, then 10 weeks later committing $500,000 from said budget;

- This council supports the prior council's conservation easement on 144 Kelly Ave. We paid $500,000 for that lot.

Our finance director has warned this council of overspending and pending deficits - short and long term. I wonder why?

I've been asked why Ferreria didn't run for council this time. Why should he? This council is finishing everything he started. Politics in Half Moon Bay has been a nasty affair for decades. "Temporary Inconvenience?"

George Muteff is a resident of Half Moon Bay.

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