TOWN OF HILLSBOROUGH San Mateo County Sophie Cole, Mayor 1600 Floribunda Avenue Leslie Marden Ragsdale, Vice Mayor Hillsborough, CA 94010 Laurie Davies Adams, Councilmember www.hilsboroughnet Marie Chuang, Councilmember Phone 650-375-7400 Christine Krolik, Councilmember MINUTES MONDAY, APRIL 28, 2025 SPECIAL CITY COUNCIL MEETING: STUDY SESSION 6:00 PM Hillsborough Town Hall This special meeting was held in-person at Town Hall. As a courtesy, and in compliance with applicable state law, staff and members of the public participated in the meeting in person at Town Hall or virtually via Zoom Video Conference. I. CALL TO ORDER Mayor Cole called the meeting to order at 6:00 p.m. Mayor Cole and City Manager Doug Davis provided introductory comments regarding the format of the meeting. II. ROLL CALL Present: Adams, Chuang, Krolik, Ragsdale, Cole III. STUDY SESSION: 40 Baywood Avenue Property Donation Proposal Discussion and Direction, Under CEQA Guideline 15378 City Manager Davis provided the staff report. Lauren Presley-Hollie, caregiver of Terri Lilienthal for 10 years, provided comments regarding Mrs. Lilienthal's character and her wish for the community to enjoy her property. Anne Lassahn, Trustee, Lilienthal Family Trust, stated Mrs. Lilienthal's wishes for the property to be preserved and used for the community and that since Mrs. Lilienthal's passing, the home has been restored with permits, and a 501(c)(3) charitable organization was created to receive and steward the estate. Ms. Lassahn provided comments regarding prior City Council discussions regarding the donation, AB 721, and Mrs. Lilienthal's wishes expressed in Section 5.2 of the trust document. Ms. Lassahn offered a new proposal to the Town of a 10-year lease for $1 per year, with the Town paying for maintenance, insurance, capital repair and other daily costs to run the estate in exchange for full use and access to the entire property and allowing Friends of 40 Baywood Avenue 501(c)(3) to actively fundraise to supplement the estate costs by hosting an agreed upon number of events each year as well as opening the estate to the public for occasional picnics. Ms. Lassahn stated that development and parceling of the property requested that if the Town chooses not to lease the property, it be allowed to operate as a 501(c)(3). Assistant City Attorney Mark Hudak provided information regarding AB 721 and responded to City Council questions. Ken Horowitz confirmed that the IRS determination letter regarding the 501(c)(3) is available on the IRS website. Anne Lassahn responded to City Council questions. Ms. Lassahn stated that the current maintenance costs for the property, including homeowner's insurance are approximately $15,000-$16,000 per month and provided comments regarding property taxes, the status of the renovations, and the balance left in the trust, her vision for the 501(c)(3)'s involvement should the Town pursue the lease, and the status of renovations that still need to be completed. Mayor Cole opened public comment. Minutes Hillsborough City Council Monday, April 28, 2025 Page 2 Elaina Meredith, 23 Belford, providing comments regarding a tour she received of 40 Baywood and spoke in support of preserving the estate and Mrs. Lilienthal's wishes, and provided comments regarding AB 721. Peter, attorney representing Anne Lassahn and Lassahn Fiduciary Services, provided comments regarding his interpretation of AB 721 and in support of fulfilling Mrs. Lilienthal's wishes. Ted and Angela Koros provided comments regarding AB 721 and in support of preserving the estate and Mrs. Lilienthal's wishes. Jennifer Hawkins expressed concerns regarding a lack of clarity as to what the City Council wants to do with the property. Tammy Fabbri, 27 Belford Way, spoke in support of preserving the estate and Mrs. Lilienthal's wishes and in opposition to using the property for housing. Kathleen McCrea, family friend of the Lilienthals, provided comments regarding Mrs. Lilienthal's vision for the property to be protected and preserved after her death to be used for the community. Deborah Marcus, Mrs. Lilienthal's Pilates teacher for 15 years, provided comments regarding Mrs. Lilienthal's vision for use of the property related to education, writing, art and music and requested the City Council honor Mrs. Lilienthal's memory and legacy. Diane Marcus provided comments regarding Mrs. Lilienthal's vision for use of the property and spoke in support of community access to the property for educational programming. Susan Bardet, 69 De Sabla Road, inquired about the potential for a private agreement between Friends of 40 Baywood Avenue and the Town to retain the current zoning and if it was a gift to the Town and the Town wanted to sell it, that it could revert to the Friends of 40 Baywood Avenue. Ms. Bardet inquired about the balance of funds in Mrs. Lilienthal's estate. Bob Guglielmi, 38 Baywood, spoke in support of a compromise in support of Mrs. Lilienthal's wishes and suggested use of the property for housing for police officers and firefighters or for Town meeting space. Mr. Guglielmi provided comments regarding the poor condition of the house prior to the renovations. Jordan Jurow provided comments in support of Anne Lassahn's efforts related to the property and of preserving the estate for use by the community to honor Mrs. Lilienthal's wishes. Natalie Kao provided comments regarding the ability to fundraise to support the property and the need for additional event venues in the Town. Orlena Shek, 800 Chateau, spoke in support of preserving the estate for the community. Josh Cooperman, 15 Creekwood Way, spoke in support of a compromise sO that the community can benefit from the property. Tom Pantazis, 301 Brentwood Road, provided comments regarding the benefits of the property to the community and suggested it could be used as a resource for seniors. Mary Ellen Benninger, 101 and 99 Baywood, expressed concerns regarding the potential fiduciary responsibility to be placed on the Town and regarding how much money could be raised to maintain the property given competing charitable causes, but expressed support for finding a compromise to accept the donation. Mayor Cole closed public comment. Mr. Horowitz and Ms. Lassahn responded to questions regarding the 501(c)(3) and regarding small structures on the property. Following discussion, Assistant City Attorney Hudak stated that further research would be done by staff on how AB 721 applies to a property owner that is a municipality. Minutes - Hillsborough City Council Monday, April 28, 2025 Page 3 Following further discussion, by consensus, Mayor Cole summarized City Council direction to reject the 10-year lease proposal presented by Ms. Lassahn and requested legal feedback on a 99-year lease versus a gift, clarification on whether a new foundation, a 501(c)(3), is needed related to property tax obligations for the San Mateo parcel, and directed to staff to prepare a counterproposal which includes an agreement in which the Town commits to not build multifamily housing on the site with the exception of potential workforce housing for firefighters or police officers, and includes the dissolution of Friends of 40 Baywood Avenue and the Trust. Mayor Cole re-opened public comment. Gordon Bardet, 69 De Sabla Road, inquired about the concept of a 99-year lease as it pertains to AB 721 and provided comments regarding the traffic impacts of multiunit housing. Mayor Cole closed public comment. Assistant City Attorney Hudak confirmed a 60 to 90-day timeframe to work through the legal issues and report back to the City Council. Ms. Lassahn clarified that it is $15,000-$16,000 per month to maintain the property which includes pond maintenance but not property tax. IV. ADJOURNMENT Mayor Cole adjourned the meeting at 9:03 p.m. Submitted by: AAR Mawn Lisa Natusch, City Clerk