REPORT TO THE CITY COUNCIL
FROM: SCOTT L. MOZIER, PE, Director
Public Works Department
JENNIFER CLARK, Director
Planning and Development Department
AARON A. AGUIRRE, Director
Parks, After School, Recreation and Community Services Department
BY: Randall W. Morrison, PE, Assistant Director
Public Works Department, Engineering Division
PHILIP SKEI, Assistant Director
Planning & Development Department
MIKE MOONEYHAM, PE, Professional Engineer
Public Works Department, Site Development
SUBJECT
Title
Actions pertaining to the Senior Activity Center and Affordable Housing Project (Council District 4)
1. Adopt an addendum to the Mitigated Negative Declaration as prepared for Environmental Assessment No. P23-02319, dated April 21, 2023, for the proposed project pursuant to the State of California Environmental Quality Act (CEQA)
2. Approve a 57-Year Ground Lease Agreement with Integrated Community Development, or related legal entity, to develop and operate the Senior Affordable Rental Housing project located at 4323-4333 North Blackstone Avenue
3. Approve an Affordable Housing Agreement with Integrated Community Development, or related legal entity, to develop a Senior Affordable Rental Housing project located at 4323-4333 North Blackstone Avenue
4. Approve Phase 1 of a Progressive Design-Build Contract with Integrated Community Development to provide design services related to the Senior Activity Center Project in an amount not to exceed $634,117
Body
RECOMMENDATIONS
Staff recommends that the City Council (1) adopt the Addendum to a Mitigated Negative Declaration as prepared for Environmental Assessment No. P23-02319, dated April 21, 2023, (2) approve a Ground Lease Agreement with Integrated Community Development (ICD), or related legal entity, in substantially the form attached, to develop and operate the Senior Affordable Rental Housing project and authorize the City Manager to sign all implementing documents, approved as to form by the City Attorney’s Office, (3) approve an Affordable Housing Agreement with ICD, or related legal entity, in substantially the form attached, to develop a Senior Affordable Rental Housing project and authorize the City Manager to sign all implementing documents, approved as to form by the City Attorney’s Office, (4) approve Phase 1 of a Progressive Design-Build Contract (Contract) with ICD, in substantially the form presented, to provide design services related to the Senior Activity Center Project in an amount not to exceed $634,117 and authorize the Public Works Director or designee to execute a final Contract, approved as to form by the City Attorney’s Office.
EXECUTIVE SUMMARY
Staff has completed an assessment of new significant effects, as required for an Addendum to a Mitigated Negative Declaration, for the proposed project due to an increase of the number of proposed housing units to be included in the scope of the project from 70 to 100 units. Staff recommends Council adopt the Addendum to a Mitigated Negative Declaration as prepared for Environmental Assessment No. P23-02319, dated April 21, 2023.
In May 2023, Council approved the use of Design-Build project delivery method for the Senior Activity Center and Affordable Housing project. Staff issued a Request for Qualifications (RFQ) to develop the project and received two responsible and responsive statements of qualifications (SOQ). Based on the evaluation completed by a selection panel, staff recommends approving a Progressive Design-Build agreement, in substantially the form attached, with ICD for the development of the Senior Activity Center and an Affordable Housing Agreement and Ground Lease Agreement with ICD, or related legal entity, in substantially the form presented, for the development and operation of the Senior Affordable Housing Project. Approval of the Ground Lease Agreement and Affordable Housing Agreement is required for the Senior Affordable Housing Project to commence.
The Public Works Department and ICD will work collaboratively along with all stakeholders, to design the Senior Activity Center Project in accordance with the project program and budget. The project delivery method takes advantage of the Design-Builder’s expertise during all stages of design, funding, construction, and property management, and facilitates ownership and commitment by all parties involved and provides a high degree of cost and schedule certainty. Council approval of Phase 1 of a Progressive Design-Build (PDB) Contract is required in order for the design of the Senior Activity Center Project to commence. The final Contract will be reviewed and approved by the City Attorney’s Office prior to execution. The Progressive Design-Build Contract is funded through FY2024 appropriations from Measure P Expenditure Category 2, New Neighborhood Parks; Senior and Youth Recreation Facilities.
BACKGROUND
On July 25, 2022, Council approved three actions pertaining to the development of the Senior Activity Center and Affordable Housing project, including adopting the Mitigated Negative Declaration for Proposed Acquisition for the Senior Center and Housing Project pursuant to the California Environmental Quality Act (CEQA) guidelines, adopting the 2nd amendment of the Annual Appropriation Resolution No. 2022-154 appropriating Community Development Block Grant (CDBG) funds for the acquisition of 4343 North Blackstone Avenue (APN 426-253-17) and 4323-4333 North Blackstone Avenue (APN 426-253-19), and approving the agreement for purchase and sale of two parcels totaling 5.51 acres located at 4343 North Blackstone Avenue (APN 426-253-17) and 4323-4333 North Blackstone Avenue (APN 426-253-19).
The development of the new city-wide Senior Activity Center Project and Senior Affordable Housing Project will allow the City to expand services to the community by connecting seniors to vital resources that have been requested, including but not limited to the senior hot meals program, health and fitness programs, wellness programs, transportation services, volunteer opportunities, educational and arts programs, and technology programs. The proposed 30,000 square foot facility will consist of specific features and amenities that will be determined through a community engagement process and may include features such as community education rooms, aquatic facilities, a commercial kitchen, multi-purpose spaces, and indoor and outdoor recreational and fitness facilities.
The site shall be designed to accommodate the Senior Activity Center and up to 100 units of affordable rental housing for seniors, consisting of studio, one-bedroom, and two-bedroom units. The development will optimize the use of shared spaces (e.g., parking, and other amenities) as much as possible with the Senior Activity Center. All the housing units will be made available to senior households earning between 30% and 60% of Area Median Income (AMI), with the precise unit mix to be determined by the funding source that eventually funds the construction of the development. The City will enter into an Affordable Housing Agreement and a 57-year Ground Lease Agreement with ICD, or related legal entity, for long-term operation and management of the Senior Affordable Housing complex.
On May 25, 2023, Council approved the use of Fresno Municipal Code Section 4-502(d), Design-Build Qualification Method of procurement for this project. Through a competitive PDB procurement process, the Department of Public Works (DPW) advertised a Request for Qualifications (RFQ) on May 26, 2023, via Planet Bids and direct email to prospective design-build teams with the capability and experience necessary to execute a PDB senior center and housing project. Two design-build teams responded to the RFQ. Their qualifications were evaluated and rated by a committee of six in accordance with the provisions of the RFQ, and interviews were conducted with both teams. The evaluation committee consisted of staff representing different City departments, including Public Works, City Manager, Housing and Community Development, PARCS, and City Council District 4. ICD, based in Woodland Hills, CA, and their team was determined to be the most qualified team to collaboratively work with the City and provide the best opportunity to meet the Project goals and required outcome, including long-term management of the Affordable Housing. The ICD team includes Y&M Architects, builder and general contractor BLH Construction, non-profit partner and housing co-developer CBH, and property manager Winn Companies.
The Ground Lease Agreement and Affordable Housing Agreement will be reviewed and approved as to form by the City Attorney’s Office prior to execution. The final agreements will be reviewed and approved by the City Attorney’s Office prior to execution.
The PDB Contract utilizes a modified Design-Build Institute of America (DBIA) standard Progressive Design-Build Agreement which has been reviewed by the City Attorney’s Office. The final Contract will be reviewed and approved by the City Attorney’s Office prior to execution.
Planned future actions associated with the Senior Activity Center Project include executing Phase Two (construction) of the Progressive Design-Build contract.
ENVIRONMENTAL FINDINGS
NEPA
Pursuant to the National Environmental Policy Act (NEPA) guidelines, a Phase I Environmental Site Assessment was completed and summarized in a report dated January 27, 2022. The NEPA review concluded a Finding of No Significant Impact. The Housing and Community Development Division received authorization to use grant funds from the U.S. Department of Housing and Urban Development on May 27, 2022.
CEQA
Council adopted the Mitigated Negative Declaration for the acquisition of the property for the Senior Activity Center and Affordable Housing Project pursuant to the California Environmental Quality Act (CEQA) guidelines on July 25, 2022.
Since the time the original environmental document was approved, the number of housing units proposed to be included in the project has increased from 70 units to 100 units. An assessment of new significant effects was completed in April 2023 and determined that the revised project would not have a significant impact.
It may be determined that: (1) The revised project does not significantly exceed the scope of Environmental Assessment for City of Fresno Proposed Acquisition for Senior Center and Housing Project; (2) No substantial changes are proposed in the revised project which require major revisions to the previous environmental finding due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; (3) No substantial changes will occur with respect to the circumstances under which the project is undertaken; and, (4) No new information, which was not known and could not have been known, at the time the environmental finding for Environmental Assessment City of Fresno Proposed Acquisition for Senior Center and Housing Project was adopted, has become available.
Therefore, the Staff has determined that an addendum to Environmental Assessment No. P 23-02319 for the Proposed Acquisition for Senior Center and Housing Project is appropriate given that none of the conditions described in Section 15162 of the CEQA Guidelines calling for preparation of a subsequent negative declaration have occurred; and, new information added is only for the purposes of providing minor changes or additions, in accordance with Section 15164 of the CEQA Guidelines.
Therefore, staff recommends Council adopt the Addendum to a Mitigated Negative Declaration as prepared for Environmental Assessment No. P 23-02319, dated April 21, 2023, for the Senior Activity Center and Affordable Housing Project.
LOCAL PREFERENCE
Local preference does not apply. The Fresno Municipal Code does not require local preference for design-build and affordable housing projects.
FISCAL IMPACT
All funds contributed to the Senior Activity Center Development may consist of a combination of Federal, State, or local sources. The City will enter into a ground lease and service contract with ICD, or related legal entity, for a period of 57-years for the Senior Affordable Housing Development. ICD, or related legal entity, will be applying for 9% Low Income Housing Tax Credits to finance the development of the Senior Affordable Housing. No funds are being contributed toward the construction of the Senior Affordable Housing at this time.
The Progressive Design-Build Contract is funded through FY2024 appropriations from Measure P Expenditure Category 2, New Neighborhood Parks; Senior and Youth Recreation Facilities.
Attachment(s):
Addendum to a Mitigated Negative Declaration Prepared for Environmental Assessment for City of Fresno Proposed Acquisition for Senior Center and Housing Project
Ground Lease Agreement
Affordable Housing Agreement
Progressive Design-Build Agreement
Vicinity Map
Location Map