Jeff Is Concerned That Harvest Lofts May Get Pulled If You All Comment
Public Interest File No. 4
Overview
How do housing and development issues reach the City’s elected leadership while they are still under consideration?
This set of public records concerns Cal Poly’s proposed acquisition of Harvest Lofts, a 120-unit phase of the San Luis Ranch development in San Luis Obispo. Courtney Kienow of Cal Poly’s Office of the President communicated directly with both Mayor Erica Stewart and City Manager Whitney McDonald to shape the City’s actions before the California State University Board of Trustees meeting where approval of the purchase was on the agenda.
The property was presented as future faculty and staff housing and was to be acquired by Cal Poly Partners, a nonprofit auxiliary organization affiliated with the university.
What the Documents Show
On September 24, 2024, the California State University Board of Trustees considered Cal Poly’s proposal to acquire the 120-unit Harvest Lofts phase of the San Luis Ranch development. The property was presented as future faculty and staff housing and was to be acquired by Cal Poly Partners, a nonprofit auxiliary organization affiliated with the university.
City officials were evaluating the fiscal implications of transferring residential housing into tax-exempt state ownership. City records reflect concerns that, because state-owned property is exempt from local property taxation, the transfer would eliminate property tax revenue and other ongoing local revenues associated with those properties.
Public records show that, in the days leading up to the Board of Trustees meeting, Courtney Kienow communicated directly with both Mayor Erica Stewart and City Manager Whitney McDonald regarding the City’s position on the proposed acquisition.
September 20, 2024
On September 20, 2024, Mayor Stewart advised Courtney Kienow that she was attempting to return her call regarding Harvest Lofts. Kienow replied that she hoped to speak with the mayor that weekend. The communications continued over the following days as the September 24 Board of Trustees meeting approached.
City officials were separately evaluating the fiscal implications of the proposed transfer. Because state-owned property is exempt from local property taxation, City records reflect concerns that the transfer would eliminate property tax revenue and other ongoing local revenues associated with the property.
September 23, 2024
Kienow was communicating directly with City Manager McDonald regarding the City’s concerns. McDonald explained that although development impact fees had already been paid, the City remained concerned about the long-term fiscal impact of losing tax revenue and business taxes generated from rental income.
Kienow advised McDonald that Cal Poly President Jeff Armstrong was concerned that Cal Poly’s purchase of Harvest Lofts might be compromised if City officials commented publicly on it. Kienow said if the deal is delayed and Cal Poly did not close escrow by its deadline, the developer could cancel the deal and would likely do so.
Later that morning, Kienow advised both Stewart and McDonald that Cal Poly Partners would provide a letter to the City. In a text message to Stewart, Kienow relayed the language of the letter: a commitment that if tenants could not find housing in the community, Cal Poly Partners would extend their leases in Harvest Lofts up to twelve months to give them time to find housing. Kienow added that Cal Poly would also reinforce its “commitment to its relationship with the community.”
Kienow told Mayor Stewart that Cal Poly would prepare the letter for the City to submit to the CSU Board of Trustees by 11 a.m.: “We’re getting you the letter by 11 to make sure you have time to edit before deadline to submit.”
September 24, 2024
As the Board of Trustees meeting approached, Kienow asked Mayor Stewart why she was not on the speaker list for the meeting and whether she had decided not to speak during public comment. Stewart confirmed she would not to speak, noting she had just sent the letter instead. Kienow responded with a thumbs-up emoji.
The California State University Board of Trustees considered and acted on Cal Poly’s proposal to acquire Harvest Lofts.
The records do not establish whether these communications affected the City’s position or the outcome of the Board of Trustees’ proceedings.
They do show that, while the City was developing its position on a significant housing transaction involving the loss of tax revenue for the City of San Luis Obispo, Courtney Kienow communicated directly with both the Mayor and the City Manager regarding the matter, voiced concern about their anticipated public testimony during the CSU Board of Trustees meeting, and provided a letter for the City to provide to the Trustees to potentially shape the outcome.
Why This File Exists
The purpose of this Public Interest File is to preserve and organize the documentary records so that members of the public can review them for themselves.
Most residents experience local government through public meetings, public comment, City departments, and formal administrative processes. The records published in this file document a housing and development matter, with implications for the City’s tax revenue, discussed directly with the Mayor and City Manager while it remained under active consideration.
The documents published in this file allow readers to review the underlying records and draw their own conclusions.