REPORT TO THE CITY COUNCIL, THE CITY IN ITS CAPACITY AS HOUSING SUCCESSOR AND THE FRESNO REVITALIZATION CORPORATION
FROM: JENNIFER CLARK, Director
Planning & Development Department
PHIL SKEI, Assistant Director
Planning & Development Department
MARLENE MURPHEY, Executive Director
Housing Successor Agency to the Redevelopment Agency
BY: DANNY TOHME, Housing and Neighborhood Revitalization Manager
Planning & Development Department
SUBJECT
Title
Actions pertaining to the City-owned property located at 815 Fulton Street (APN: 468-28-23T; 0.6 Acres) and Housing Successor Agency to the Redevelopment Agency owned properties located at 829 & 835 Fulton Street (APN(s): 468-282-05T (0.08 Acres) & 468-282-22T (0.09 Acres)), near the West corner of Fulton and Inyo (Council District 3):
1. ***RESOLUTION - Declaring property located at 815 Fulton Street (APN: 468-28-23T) to be exempt surplus land (Subject to Mayor’s Veto) (City Action Only); and
2. ***RESOLUTION - Finding good cause and clear and convincing benefit to the public pursuant to Fresno Municipal Code Section 4-204 relating to the disposition of real property identified as Assessor’s Parcel Number 468-28-23T (815 Fulton Street) for an affordable housing development. (Requires 5 Affirmative Votes) (Subject to Mayor’s Veto) (City Action Only); and
3. ***RESOLUTION - Finding good cause and clear and convincing benefit to the public pursuant to Fresno Municipal Code Section 4-204 relating to the disposition of real property identified as Assessor’s Parcel Number(s) 468-28-05T & 468-28-22T (829 & 835 Fulton Street) for an affordable housing development. (Requires 5 Affirmative Votes) (Subject to Mayor’s Veto); and
4. Approve a Disposition and Development Agreement between the City of Fresno, the City of Fresno in its capacity as Housing Successor, and The Park Partners, LLC.
Body
RECOMMENDATION
Staff recommends that the City Council (1) Adopt the Resolution declaring a 0.6-acre parcel of land identified as Assessor's Parcel Number (APN) 468-282-23T 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; (2) Adopt the Resolution finding good cause and clear and convincing benefit to the public pursuant to Fresno Municipal Code 4-204 for the disposition of the property at 835 Fulton Street for an affordable student housing development; (3) Adopt the Resolution finding good cause and clear and convincing benefit to the public pursuant to Fresno Municipal Code 4-204 for the disposition of the property at 829 and 835 Fulton Street for an affordable student housing development (4) Approve a Disposition and Development Agreement with The Park Partners, LLC, for a 160 Unit Affordable Housing Project.
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 - Declare Exempt Surplus” declares a 0.6-acre parcel of land identified as APN 468-28-23T and addressed as 815 Fulton Avenue 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 October 22, 2025, 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.
Adopting the Resolutions and DDA will allow the City to declare the parcel exempt from the Surplus Land Act for 815 Fulton Street, bypass the competitive Request for Proposals (RFP) process per Fresno Municipal Code Section 4-204 for 815, 829, and 835 Fulton Street, and proceed with the sale of the properties to Developer for an affordable housing development as set forth below.
BACKGROUND
The Housing Successor of the Redevelopment Agency of the City of Fresno (Housing Successor) and the City of Fresno (City) have mutual interest in developing properties in the South Stadium district in downtown Fresno, into the Development known as “The Park @ South Stadium”
On April 3, 2014, a Request for Proposals (RFP) was issued by the Housing Successor for a mixed-use, multi-phase development, that included several properties located in the vicinity of Fulton and Inyo Streets. On October 30, 2014, the Council and Housing Successor selected the Noyan Frazier Capital, LLC, and the parties entered into an Exclusive Negotiating Agreement (ENA) to develop potential financing options and to negotiate the terms and conditions of a Development and Disposition Agreement (DDA).
On March 26, 2015, the City Council approved the Purchase and Sale Agreement (PSA) between the Housing Successor and the City for the sale of this property totaling approximately 0.60 acres near the corner of Inyo Street and Fulton (APN 468-282-23T), for a price of $328,000. The property was required to be sold as part of the dissolution of the former Redevelopment Agency
On February 25, 2016, the City Council approved a PSA between the Housing Successor and the City for property located on 829 Fulton (APN 468-282-05T), 835 Fulton (APN 468-282-22T), and the Parking Lot on 815 Fulton Street (APN 468-282-23T) and the material terms of the DDA between the City and Noyan Frazier Capital, LLC for a proposed development that was generally conceived as a five-phase mixed-use residential, retail, and office development.
On June 22, 2018, the City and the Noyan Frazier Capital, LLC entered a First Amendment Agreement to the DDA to amend certain terms of the DDA.
On August 18, 2022, the City Council rejected a resolution Finding Good Cause and Public Benefit for Extension of the South Fulton Mixed Use Residential Rental Project regarding real property disposition of 815, 829 and 835 Fulton, and approved a consideration request from Noyan Frazier Capital L.P. for a Second Amendment to the Amended and Restated DDA, which extended the date to close of escrow and to meet conditions of the DDA. The terms of the aforementioned DDA have since expired.
The Park Partners, LLC initiated discussions with the City and Housing Successor earlier this year, and the DDA being proposed for approval consists of an eight-story development project spanning three parcels and totaling 0.77 Acres. The development will feature 1,568 square-feet of ground-floor retail space, 5,000 square-feet of ground-floor community space, conference rooms, and a fitness center and 160 apartments providing up to 615 beds for student housing, all accessible via an elevator. The unit mix consists of thirteen (13) studio units (approximately 360-394 square feet), one hundred forty (140) two-bedroom units (approximately 689-736 square feet), and six (6) three-bedroom units (approximately 1,200 square feet), with one three-bedroom unit designated for an on-site manager.
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 October 22, 2025, 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); and
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 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
This Project is subject to a zone clearance review under Chapter 15, Article 51 of the Fresno Municipal Code (FMC). FMC Section 15-4907 deems zone clearances to be ministerial actions. Therefore, this project is exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15268 of the CEQA Guidelines as a ministerial project.
LOCAL PREFERENCE
Local preference is not applicable, as this action does not involve a bid or award for construction or services contracts.
FISCAL IMPACT
There is no impact on the City’s General Fund as a result of this action. State and/or Federal funding may be utilized.
Attachments:
Resolution Declaring Property to be Exempt Surplus Land
Resolution - FMC 4-204 Resolution for 815 Fulton Street
Resolution - FMC 4-204 Resolution for 829 and 835 Fulton Street
Disposition and Development Agreement