REPORT TO THE CITY COUNCIL
FROM: GEORGEANNE A. WHITE, City Manager
Office of Mayor & City Manager
BY: LUPE PEREZ, Director
Economic Development Department
SUBJECT
Title
Actions pertaining to the San Joaquin Valley Air Pollution Control District (SJVAPCD) (Council District 1):
1. ***RESOLUTION - Authorizing the City of Fresno to accept a grant in the amount of $1,843,572 from the SJVAPCD for the development of 88 multifamily residential units and commercial/ retail space at 1501 N. Blackstone Avenue TOD project (Subject to Mayor’s Veto)
2. ***RESOLUTION - adopting the Amendment to the Annual Appropriation Resolution (AAR) No. 2022-appropirating $1,843,572 in grant funds from the San Joaquin Valley Air Pollution Control District (SJVAPD) Public Benefit Grants Program (Program) for the development of 88 multifamily residential units and commercial/retail space at 1501 N. Blackstone Avenue Transit Oriented Development (TOD) project (Requires 5 Affirmative Votes) (Subject to Mayor’s Veto)
Body
RECOMMENDATION
City Council approval is sought to authorize the acceptance of a grant award in the amount of $1,843,572 from the Program and appropriate the funding for the development of 88 multifamily residential units and commercial/retail space at 1501 N. Blackstone Avenue Transit Oriented Development (TOD) project.
EXECUTIVE SUMMARY
During the last quarter of 2021, the developer successfully redeveloped a full city block by replacing dilapidated old industrial buildings with a new vibrant mixed use residential development that is now known as “The Link” at Blackstone and McKinley avenues. A Certificate of Occupancy was issued on December 28, 2021.
This $1,843,572 in funding, combined with a myriad of financial resources, was utilized to finance the development of this project.
BACKGROUND
In January 2016, the City, as Housing Successor, approved an Owner Participation Agreement with 1501 N. Blackstone Ave L.P. The agreement would lead to the development of 88 multifamily residential units, 7,500 square feet of commercial space that is now leased to Clinica Sierra with the remaining 2,000 square feet leased by the City of Fresno for a senior community center. The site consists of approximately three acres and is located on the Bus Rapid Transit Corridor on the west side of Blackstone between McKinley Avenue on the north and Home Avenue on the south.
The mixed use residential TOD project is a catalyst development in the transformation of the Blackstone corridor and will drive investment into this section of Fresno. Long term leases with Clinica Sierra Vista and the City of Fresno provide needed clinical and social support services to the surrounding community where these services are not readily available.
Project Financing
On October 29, 2019, a loan agreement was executed between the City of Fresno and 1501 N. Blackstone Ave., L.P. Pursuant to the loan agreement, the City of Fresno shall provide the developer with funding in the form of two loans in the amounts of $500,000 and $1,843,572. The loans are for a term of 55 years, with an annual percentage rate of three percent (3%). Funding for the $500,000 is from the FY 2022 General Fund and funding for the $1,843,572 is from the SJVAPCD Program proceeds.
In addition to the funding referenced above, the project received a loan in the amount of $12,600,000 from the Affordable Housing Sustainable Communities (AHSC); a $3,305,000 permanent loan through Cal HFA; a $1,760,000 soft loan from CALHFA Earned Surplus: City of Fresno impact fee exemptions valued at $406,260; $478,000 from the City of Fresno in off-site improvements; a $2,200,000 loan from the City of Fresno’s Housing Successor Agency; $13,687,172 from tax credit equity from the low income housing 4% tax credit program; and a $2,101,177 deferred developer fee.
The developer has delivered on its promise to meet and promote the goals of the SJVAPCD Program by constructing a high-density, efficient and affordable housing development on an in-fill site located along a transit corridor in a Disadvantaged Community. It is located 0.01 miles from a BRT line and 0.30 miles from a transit stop. The project provides mobility options and access to affordable housing, a medical clinic and a senior center via low-carbon transportation options (i.e. BRT, walking and biking).
ENVIRONMENTAL FINDINGS
This approval is not a project for the purposes of CEQA Guidelines section 15178(b)(5) as it is an administrative activity that will not result in direct or indirect physical changes to the environment.
LOCAL PREFERENCE
Local preference was not considered as this item does not include an award of services or construction contract.
FISCAL IMPACT
The loan proceeds in the amount of $1,843,572 are from the SJVAPCD Program and therefore the General Fund is not impacted by this transaction.
Attachments: Resolution Authorizing the Acceptance of SJVAPCD Grant
Resolution Adopting 58th Amendment to AAR 2021-178 for SJVAPCD Grant