REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, AICP, Director
Planning & Development Department
BY: DAVID DENSLEY, Projects Administrator
Planning & Development Department
SUBJECT
Title
Approve a Brownfields Cleanup Revolving Loan Fund discounted loan agreement between the City of Fresno and the Fresno Area Hispanic Foundation in the amount of $1,194,000 for asbestos, lead-based paint, and mold abatement at the Former Berkeley Building, 887 Fulton Street, Fresno, CA 93721 parcel number 468-282-21T. (District 3)
Body
RECOMMENDATION
Staff recommends that the City Council approve a Brownfields Cleanup Revolving Loan Fund (BCRLF) discounted loan agreement between the City of Fresno and the Fresno Area Hispanic Foundation (FAHF) in the amount of $1,194,000 to complete environmental contaminant abatement at the Former Berkeley Building.
EXECUTIVE SUMMARY
The Fresno Area Hispanic Foundation (FAHF) is requesting a Brownfields Cleanup Revolving Loan Fund (BCRLF) discounted loan to complete asbestos, lead-based paint, and mold abatement at the Former Berkeley Building located at 887 Fulton Street. An Analysis of Brownfield Cleanup Alternatives (ABCA) prepared by Stantec Consulting Services in October 2025 identified extensive hazardous building materials throughout the structure. The recommended cleanup alternative is complete abatement with roof repair and replacement, which provides long-term effectiveness and enables redevelopment of the vacant building into a food destination, office, and community-serving space.
The proposed loan provides $1,194,000 in United States Environmental Protection Agency (EPA) Brownfields RLF funding, structured as a discounted loan with 50 percent forgivable upon successful completion of abatement activities. The FAHF has reviewed the draft loan documents issued in November 2024, and confirmed acceptance of the term in January 2026, including providing an organizational guarantee in lieu of collateral.
BACKGROUND
On December 3, 2009, the City Council adopted the Taxpayer Protection Act, amended on February 10, 2010, requiring a loan agreement for borrowing between City funds.
Funding for this loan will be provided through two EPA Cooperative Agreements:
• Cooperative Agreement 4B-98T50501- Open Revolving Loan Fund
o $500,000 standard loan
o $500,000 forgivable loan (contingent on successful abatement)
• Cooperative Agreement BF-98T08001- Post Closeout Program Income
o $194,000 in post-closeout program income
o $97,000 forgivable under the same abatement conditions
Together, these sources provide the full $1,194,000 discounted loan amount.
The loan carries a 2.7% simple annual interest rate, consistent with the City’s pooled investment rate and previous BCRLF loans. Repayment will begin one year after the effective date, with equal annual installments over five years beginning April 23, 2027, or one year after cleanup is complete, and concluding April 7, 2031, or five years after cleanup is completed. There is no penalty for early repayment. A total of $597,000 will be forgiven upon successful completion of abatement and repayable per the schedule.
The EPA has reviewed FAHF’s eligibility under CERCLA and confirmed that the nonprofit is not a potentially responsible party regarding contamination. The loan also supports the Disposition and Development Agreement between the Successor Agency and FAHF, enabling the Foundation to obtain fee title upon meeting cleanup and redevelopment obligations.
The ABCA identified asbestos-containing materials in texture coatings, floor tiles and mastic, roof core and mastic, and pipe elbows; lead-based paint in wall and partition samples; and significant mold throughout the building interior. Three cleanup alternatives were evaluated: no action, encapsulation/enclosure, and complete abatement with roof repair or replacement. The recommended alternative, complete abatement with roof repair, provides the most protective and redevelopment-ready outcome. Complete abatement with roof repair was selected by the FAHF.
The EPA and City Attorney’s Office have reviewed and approved this Brownfields boilerplate in 2025 and the Administrative Record for this project can be found at: <https://fresno-brownfields-cityoffresno.hub.arcgis.com/pages/54c723e576da4a34b83505581f4cea86>.
ENVIRONMENTAL FINDINGS
The loan provides funding solely for hazardous materials abatement, and issuance of abatement permits for asbestos, lead-based paint, and mold removal.
A Development Permit application was submitted for the subsequent rehabilitation and reuse of the Former Berkeley Building and was conditionally approved on April 20, 2026. A Class 31 Historic Resource Restoration/Rehabilitation exemption has been applied to the entirety of the project to comply with the California Environmental Quality Act (CEQA). A Notice for Exemption was filed with the county clerk and LCI on April 20, 2026.
Because the project is utilizing federal EPA Brownfields Revolving Loan Fund dollars, it is subject to Section 106 of the National Historic Preservation Act. In compliance with these requirements, the EPA conducted tribal consultation and contacted the State Historic Preservation Officer (SHPO) to request concurrence that the property is neither listed nor eligible for the National Register of Historic Places. The EPA also sought confirmation that the proposed abatement activities will result in no adverse effect on historic or cultural resources. The SHPO has been engaged for concurrence, and EPA has completed the required tribal outreach.
LOCAL PREFERENCE
Local preference was not used based on conditions of federal funding.
FISCAL IMPACT
There is no impact to the City’s General Fund. All funding is provided through EPA Brownfields Cooperative Agreements and RLF post-closeout program income.
Attachments:
Brownfields Cleanup Revolving Loan Fund Discounted Loan Agreement
Analysis of Brownfields Cleanup Alternatives
EPA Cooperative Agreement
City of Fresno - FAHF Project Approval RLF Supplemental
Section 106 Inventory, Evaluation, and Report
Signed Board Resolution - RLF - City of Fresno
Notice of Exemption - Class 31 Historical Resource Restoration-Rehabilitation