REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
PHIL SKEI, Assistant Director
Planning and Development
BY: KRISTINE LONGORIA, Project Manager
Housing and Community Development Division
SUBJECT
Title
Actions related to the acquisition of 930-934 F St and 931-937 China Alley, APN 467-071-15 (Council District 3)
1. *** RESOLUTION - Declaring an urgent necessity for the preservation of life, health, property; and authorizing the Planning and Development Director or designee to enter into and administer contracts for the demolition of dangerous structures, and removal of hazardous materials without advertised competitive bidding; and approve the following contracts: David Knott Incorporated for Demolition Services in an amount not to exceed $490,000 and JSA Environmental Consulting for the Removal of Hazardous Materials in an amount not to exceed $40,100; and authorize the Planning and Development Director to sign such contracts (Requires 5 affirmative votes) (Subject to Mayor’s Veto)
2. Adopt a finding of an In-fill exemption in accordance with Section 15332 of the California Environmental Quality Act (CEQA).
3. Approve an Agreement for Purchase and Sale of Real Property and Escrow Instructions with Central California Land Trust to acquire a fee interest in the real property situated at 930-934 F Street and 931-937 China Alley, Fresno, California, identified as Assessor’s Parcel Number 467-071-15 in the amount of $51,055.73.
Body
RECOMMENDATION
Staff recommends the City Council approve the Resolution of Necessity; and authorize the Planning and Development Director to sign contracts for demolition and removal of hazardous materials for the dangerous structures located at 930-934 F St and 931-937 China Alley, Fresno, California, identified as Assessor’s Parcel Number 467-071-15 (Subject Property); adopt the finding of an in-fill exemption in accordance with Section 15332 of the California Environmental Quality Act (CEQA); approve the Purchase and Sale Agreement with Central California Land Trust to acquire a fee interest in the Subject Property in the amount of $51,055.73; and authorize the City Manager, or designee, to sign all implementing agreements and necessary documents to complete the Subject Property acquisition on behalf of the City.
EXECUTIVE SUMMARY
The City of Fresno (City) is seeking to purchase parcel 467-071-15 also known as the Bow On Tong Building located at 930-934 F St and 931-937 China Alley. The building has been deemed dangerous and is subject to active code enforcement action. The owners have been negotiating an opportunity sale of the property to the City at a price consistent with its appraised value. The City plans to purchase and demolish the severely damaged unsafe structure and procure a developer to build affordable housing at this site.
BACKGROUND
The Subject Property consists of two dilapidated buildings on APN 467-071-15. The building facing F St was built in 1920 and is a two-story structure with two commercial spaces on the ground floor and housing on the second floor with the addresses 930-934 F St. A separate one-story structure faces China Alley, labeled as 3 dwellings in 1950, with addresses 931-937 China Alley. The parcel is zoned DTC, Downtown Core, and described as mixed use.
On March 4, 2022, a fire caused significant damage to the vacant building located at 930-934 F St also known as the Bow On Tong Building. The site was vacant for about 30 years before the fire, which caused the roof of the primary structure to collapse onto the 2nd level and destroy the property. Although the building was previously considered a historic resource, after the fire, a Workshop was held at the Historic Preservation Commission meeting on August 22, 2022, where the City’s Planning & Development Director discussed the recent partial demolition of this building, the remains do not possess enough integrity to convey its significance, and the building no longer eligible for designation on the Local Registry.
There have been documented code violations involving this property, resulting in multiple code enforcement cases over the years, the most current case deeming the building dangerous, citing the current conditions posing an imminent danger to the public due to the compromised structural integrity of the building and an attractive nuisance for unsafe entry by transients. As noted in Code enforcement inspections, the owner has made no visible attempts to abate the public nuisance by rehab or demolition. City of Fresno Code Enforcement has recorded documents with the County recorder’s Office to include:
1. Certificate of Existence of a Public Nuisance, Document 2022-0050355, Recorded on April 19, 2022, Owner - Chinatown Revitalization, Inc of Fresno.
2. Notice of Public Nuisance or Housing Violation Abatement Action (Notice of Costs), Document 2022-0054405, Recorded on April 26, 2022, Owner-Chinatown Revitalization Inc of Fresno.
3. Notice of Special Assessment, Document 2022-007395, Recorded on June 07, 2022.
4. Notice of Special Assessment, Document 2023-0013144, Recorded on February 14, 2023.
Additionally, a Demand for Payoff was also sent to sellers by City of Fresno code enforcement dated February 23,2024.
The City of Fresno has been in active negotiations to purchase the parcel from the owners with the intent to demolish the unsafe structures and procure a developer to build affordable housing. The current owners, Chinatown Revitalization Corporation (CRI), was administratively dissolved by the California Franchise Tax Board and Secretary of State due to their inactivity, prior to disposing of and transferring this asset. Due to this, CRI will now complete the windup of their corporation by transferring title of the subject property to local non-profit Central California Land Trust (CCLT) in accordance with corporate windup provisions and CRI’s Articles of Incorporation. In turn and instantaneously through the attached Purchase and Sale Agreement and through escrow, the City will be the final owner of the Subject Property as the grant deeds will be recorded consecutively.
The Purchase and Sale Agreement considered the code enforcement liens and appraisal for the property to determine the value. The City will use GO-Biz Infrastructure Grant funds to purchase the parcel and both American Rescue Plan Act (ARPA) and GO-Biz Infrastructure Grant funds for the demolition of the structures. The project would be limited to the acquisition of the parcel and demolition of the structures.
Based on the damage from the fire that caused the second story to collapse along with the evaluation by building staff and Code Enforcement determinations, noted in the inspections, the building has been deemed a danger to the public and should be demolished as soon as possible.
ENVIRONMENTAL FINDINGS
In accordance with Section 15332 of the California Environmental Quality Act (CEQA) Guidelines, the project has been determined to be exempt from CEQA under the general rule of in-fill development. CEQA Guidelines identify exemption criteria for agricultural housing, affordable housing, and residential infill projects, and applicable projects that fulfill these criteria have been determined to have no significant effect on the environment and shall be exempt from the provisions of CEQA.
LOCAL PREFERENCE
Local preference is not applicable because of the use of State funds.
FISCAL IMPACT
The agreement will be funded through the City’s ARPA (Demo and Hazard Analysis) and GO-Biz Infrastructure Grant (Purchase & Demo) Funding allocations.
Attachments:
1. Location map
2. CEQA In-Fill Exemption
3. Purchase and Sale of Real Property and Escrow Instruction Agreement
4. Resolution of Urgent Necessity for Demolition with contract & agreement attached