REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
PHIL SKEI, Assistant Director
Planning and Development
BY: KENG LEE, Project Manager
Housing and Community Development Division
SUBJECT
Title
Actions pertaining to the acquisition, demolition, and future construction of up to 100 new mixed-use affordable housing units at 937- 945 F St and 942 Fagan Alley, APN 467-074-02, a 12,568 square foot mixed-use commercial and residential building (Project). (City Council District 3)
1. Adopt the Mitigated Negative Declaration prepared by SWCA Environmental Consultants dated July 9, 2025 for the Project pursuant to California Environmental Quality Act (CEQA) Guidelines.
2. Approve the Purchase and Sale Agreement with Wilson Wong, Yolanda Wong, and Stephanie Wong for an amount of $503,000.
Body
RECOMMENDATION
Staff recommends the City Council 1) adopt an affirmative finding on the Initial Study Mitigated Negative Declaration (IS/MND) prepared by SWCA Environmental Consultants, and 2) approve the Purchase and Sale Agreement with Wilson Wong, Yolanda Wong and Stephanie Wong in the amount of $503,000 and authorize the City Manager, or designee, to sign all implementing agreements and necessary documents to complete the property acquisition on behalf of the City of Fresno.
EXECUTIVE SUMMARY
The City of Fresno (City) is seeking to purchase parcel APN 467-074-02 also known as the “Peacock Building” located at 937-945 F St and 942 Fagan Alley. The subject parcel contains a two-story mixed use commercial building with a second dwelling in the rear of the property. Both structures are in poor condition and have 221 documented code enforcement violations by the City’s Anti-Slum Enforcement Team (ASET). The owners have been in willful negotiations to sell the property to the City as an opportunity sale. The City plans to purchase and demolish the structures in order to facilitate the construction of up to 100 new affordable housing units. An appraisal of the parcel was conducted by Joshua J. Palmer of James G. Palmer Appraisals, Inc. on September 20, 2023 valuing the property at $503,000.
BACKGROUND
The subject property is located in the downtown central business district of the City of Fresno in an area known as Chinatown and consists of a .33-acre lot with a multi-story mixed use commercial building along F Street and a single story residential/dwelling structure in the rear of the parcel. The property is located along the west side of F Street, south of Tulare Street with the addresses 937-945 F St and 942 Fagan Alley, APN 467-074-02, also known as the Peacock Building. The main building consists of a two-story structure built in 1910 with the first floor previously being used as commercial retail space while the second floor was used as apartment rooms. There is an additional single story apartment building built around 1940 with an additional 5 units. The buildings range from fair to poor condition.
The subject property, 937-945 F St and 942 Fagan Alley, has been severely neglected and altered over the years without permits. As such, the building is non-compliant with current health and safety codes, making its continued use or occupancy unsafe and posing health and safety risks to nearby residents and the general public’s safety. Since 2022 this property has been the subject of significant code enforcement issues accumulating a total of 221 code violations documented by the City’s Anti-Slum Enforcement Team (ASET). The property owner chose to vacate the structurally compromised building and begin negotiations to sell the property to the City. An appraisal of the parcel was conducted by Joshua J. Palmer of James G. Palmer Appraisals, Inc. on September 20, 2023 valuing the property at $503,000.
On April 28, 2025, City Staff presented the proposed project to the Historic Preservation Commission for discussion and comment. The Commission highlighted the importance of ensuring that the acquisition and demolition of the Peacock Building align with preserving integrity of the Proposed Chinatown Historic District and its potential for historic registration. They encouraged City staff to clearly define the historic district boundaries and to update the DPR 523 (Dept. of Parks and Recreation) form to reflect the current building conditions and any potential archaeological resources.
The Chinatown neighborhood is a long-established multicultural downtown district with a rich history, though it has seen several decades of neglect and disinvestment, the City and community partners have proposed a series of projects to revitalize the area through California’s Transformative Climate Communities initiative. In keeping with the revitalization of the area and the affordable housing objectives and goals of the Housing Element of the 2035 General Plan and five-year Consolidated Plan, the City plans to purchase, demolish and develop the site with affordable housing.
This project includes the acquisition and demolition of the existing building and the proposed plan to construct a new mixed-use affordable housing building for up to 100 units.
The City Attorney’s office has reviewed and approved the Purchase and Sale agreement as to form.
ENVIRONMENTAL FINDINGS
In accordance with the requirements of the California Environmental Quality Act (CEQA), an Initial Study (IS) was prepared to assess the potential environmental impacts of the project. The IS evaluated a range of environmental topics, including but not limited to, aesthetics, agricultural and forestry resources, air quality, biological resources cultural resources, energy, geology/soils, greenhouse gas emissions, hazards and hazardous materials, hydrology/water quality, land use/planning, mineral resources noise, population/housing, public services, recreation, transportation, tribal cultural resources, utilities/service systems, wildfire, and mandatory findings of significance.
Based on the findings of the IS, a Mitigated Negative Declaration (MND) was prepared. The MND documents the IS findings and identifies the specific mitigation measures that will be implemented to reduce potential impacts to less than significant in accordance with the provisions of CEQA Section 21157.5(a)(2).
Based on the attached IS and Mitigation Monitoring and Reporting Plan (MMRP), staff has determined that there is no evidence in the record that the project would have a significant impact on the environment and has prepared an MND for this project.
LOCAL PREFERENCE
Local preference does not apply because the City acquisition of real property does not involve a bid award of a construction or service contract.
Local preference is not applicable because of the use of state/federal funds.
FISCAL IMPACT
There is no impact to the General Fund. The agreement will be funded through the Infill Infrastructure Grant - Catalytic Qualifying Infill Area (IIGC) Program Funds.
Attachments:
Initial Study - Mitigated Negative Declaration
Mitigation Monitoring and Reporting Plan
Purchase and Sale Agreement
Location Map