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HomeMy WebLinkAboutCity of SLO Comment - Cal Poly Corp Purchase of Harvest Lofts - Sept 2024City of San Luis Obispo, Office of the City Council, 990 Palm Street, San Luis Obispo, CA, 93401-3249, 805.781.7114, slocity.org September 23, 2024 Committee on Finance CSU Board of Trustees 401 Golden Shore Long Beach, CA 90802 Re: Agenda Item 2: California Polytechnic State University (Cal Poly), San Luis Obispo: Approval to Issue Debt for an Auxiliary Acquisition of a Housing Project - Harvest Lofts Dear Members of the CSU Board of Trustees, Cal Poly is a valued and long-standing partner of the City of San Luis Obispo (City) and source of immense pride for the entire San Luis Obispo community. The University’s commitment to increasing its supply of on-campus housing, including housing to meet its increasing enrollment, is crucial to our community’s ability to meet the increasing pressures on the availability and affordability of our housing stock. I am writing on behalf of the City regarding the recent proposal by Cal Poly Partners to purchase 120 residential housing units in the City for use by faculty and staff. We greatly appreciate Cal Poly’s efforts to provide housing opportunities for its faculty and staff, including any efforts to build additional housing on land currently owned by Cal Poly consistent with its Master Plan. Importantly, we are also grateful for the commitment expressed by Cal Poly Partners and President Armstrong to address the potential impact this acquisition could have on the City’s fiscal health and ability to serve our community members. Once purchased by Cal Poly Partners, these properties will be exempt from the property tax base for the City as well as other public agencies such as the County of San Luis Obispo and San Luis Coastal Unified School District. Additionally, rentals of the units that would have been subject to the City’s business tax will also become exempt, removing this additional revenue stream from the City. Because these exemptions will reduce the funding needed to provide essential services such as public safety, infrastructure maintenance, schools and other vital programs to our community members, including the current and future tenants of the proposed units for purchase, the commitment expressed by Cal Poly Partners and by President Armstrong to work with the City to ensure that these fiscal impacts to the City and other public agencies are addressed is crucial to our collective ongoing success. Fiscal sustainability is a top priority for the City and we have carefully planned for development to ensure adequate ongoing resources are available to provide essential services to the community. Additionally, Cal Poly Partners’ commitment to work closely with the current tenants of the Harvest Lofts units to provide continued housing security is also greatly appreciated so as to not further exacerbate the housing challenges faced by our community members. We understand and appreciate the growing need for housing across our community and are committed to finding solutions that address both Cal Poly’s expansion and the well-being of our community. We also believe that a strong partnership between Cal Poly and the City is essential for our continued shared prosperity, and we look forward to engaging in further dialogue and exploring solutions that benefit both the Cal Poly and the community members of San Luis Obispo. Thank you for your consideration. Sincerely, Erica A. Stewart Mayor City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 CC: Jeffrey D. Armstrong, President, Cal Poly Courtney Kienow, Director of Community Relations and Economic Development, Cal Poly Cody VanDorn, CEO, Cal Poly Partners