REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
PHILIP SKEI, Assistant Director
Planning and Development Department
BY: JENNIFER DAVIS, Sr. Management Analyst
Housing Finance Division
SUBJECT
Title
*** RESOLUTION - Declaring a 0.91-acre parcel of land identified as Assessor’s Parcel Number 436-260-22 to be exempt surplus land and directing staff to comply with the open and competitive request for proposals (RFP) process for the disposition of this property for an affordable housing development as required by Fresno Municipal Code Section 4-204 (Council District 4) (Subject to Mayor’s Veto)
Body
RECOMMENDATION
Staff recommends the City Council adopt a Resolution declaring a 0.91-acre parcel of land identified as Assessor’s Parcel Number (APN) 436-260-22 to be exempt surplus land pursuant to Government Code section 54221(f)(1)(A) of the California Surplus Land Act for the purpose of developing affordable housing pursuant to Government Code section 37364; and initiating the open and competitive request for proposals (RFP) process for the development of this parcel into affordable housing pursuant to Fresno Municipal Code (FMC) 4-204 and return to Council for approval of an Agreement for disposition.
EXECUTIVE SUMMARY
In accordance with the Surplus Land Act (California Government Code sections 54220 through 54236), the Council shall take formal action in a public meeting to declare this City-owned property as exempt surplus land. The attached “Resolution Exempt Surplus” declares a 0.91-acre parcel of land identified as APN 436-260-22 and addressed as 3876 North Blackstone Avenue (Property) as exempt surplus real property pursuant to Government Code section 37364 and section 54221(f)(1)(A) and shall comply with all development conditions as required under this exemption.
On November 6, 2023, the California Department of Housing and Community Development (HCD) concurred that a development of this type meets the requirements of exempt surplus land pursuant to Government Code section 37364.
Staff recommends Council initiate an open and competitive request for proposals (RFP) process for an affordable housing development as required pursuant to FMC Section 4-204, unless an exception applies or Council votes to vary from the process upon making findings of good cause and clear and convincing benefits to the public, and by a supermajority approval of at least five votes. This action will allow staff to initiate a competitive request for proposals (RFP) process for affordable housing development at this site.
BACKGROUND
On April 20, 2023, City Council voted to purchase the property located at 3876 North Blackstone Avenue, APN 436-260-22 (Property) for future conversion to permanent affordable housing. At that time, additional analysis was being performed to determine the suitability of the site to include the rehabilitation of the existing Travelodge located at the Property into an affordable housing development. On September 28, 2023, City Council voted to adopt a finding of Categorical Exemption based on the findings of the CEQA analysis that was performed. As a result, it has been determined that the Property is indeed a suitable site for the development of permanent affordable housing. Further, staff has concluded that the property is exempt surplus land, as it was purchased by the City on September 29, 2023, and will be utilized for the exclusive purpose of developing permanent affordable housing.
The proposed development and affordability restrictions support the findings that the property qualifies as exempt from the California Surplus Land Act as stated in Government Code Section 37364(a): “…whenever the legislative body of a city determines that any real property or interest therein owned or to be purchased by the city can be used to provide housing affordable to persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code or as defined by the United States Department of Housing and Urban Development or its successors, and that this use is in the city's best interests, the city may sell, lease, exchange, quitclaim, convey, or otherwise dispose of the real property or interest therein at less than fair market value, or purchase an interest in the real property, to provide that affordable housing under whatever terms and conditions the city deems best suited to the provision of such housing.”
On November 6, 2023, the California Department of Housing and Community Development (HCD) concurred that a development of the type described herein is in compliance with the following requirements of Government Code section 37364:
a) Minimum of 80% of the area of any parcel shall be used for development of housing (remaining 20% could be ancillary commercial or park/open space use);
b) Not less than 40% of the total number of housing units developed on any parcel pursuant to this section shall be affordable to households whose incomes are equal to, or less than, 75 percent of the maximum income of lower income households (80% of area median income), and at least half of which (20% of the units) shall be affordable to very low-income households (50% of area median income); and
c) Dwelling units shall be restricted by regulatory agreement to remain continually affordable to those persons and families for the longest feasible time, but not less than 30 years and shall be recorded against the property.
The attached Resolution and findings are a requirement of SLA to designate the property as exempt surplus land. The request for proposals process initiated by this Council action will require any developer to comply with the development parameters outlined above.
The City Attorney’s Office has reviewed and approved the attached Resolution as to form. The exempt surplus land, if approved by the Council, will become effective when the exempt surplus land resolution is recorded in the office of the Fresno County Recorder.
ENVIRONMENTAL FINDINGS
On September 28, 2023, the City Council adopted the finding of Categorical Exemption pursuant to Sections 15301/Class 1 (Existing Facilities) and 15332/Class 32 (In-fill Development) of the California Environmental Quality Act (CEQA) Guidelines. Staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2, apply to this project.
LOCAL PREFERENCE
Adoption of this Resolution to declare real property exempt surplus is not subject to local preference.
FISCAL IMPACT
This project is located in District 4 and there is no fiscal impact to the City at this time.
Attachments:
Resolution Exempt Surplus