REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning & Development Department]
BY: PHIL SKEI, Assistant Director
Planning & Development Department
SUBJECT
Title
Actions related to the acquisition of Clarion Pointe Motel, located at 4061 North Blackstone Avenue (434-143-06) to facilitate an Interim Homeless Shelter (District 4):
1. Adopt a finding of Categorical Exemption pursuant to Sections 15301/Class 1 and 15332/Class 32 of the California Environmental Quality Act (CEQA) Guidelines
2. Approve the Purchase and Sale Agreement with Kush Hospitality Inc., a California Corporation for $11,800,000
Body
RECOMMENDATION
Staff recommends City Council adopt a finding of Categorical Exemption pursuant to Sections
15301/Class 1 and 15332/Class 32 of the California Environmental Quality Act (CEQA) Guidelines, approve the Purchase and Sale Agreement in the amount of $11,800,000, with Kush Hospitality Inc. and authorize the City Manager, or her designee, to sign all necessary documents to complete the transaction.
EXECUTIVE SUMMARY
Approval of the recommended actions will facilitate the acquisition of the 118-room Clarion Pointe Motel for use as a homeless shelter and bridge housing site.
BACKGROUND
As part of the implementation of Phase 2 of Mayor Dyer’s Project Off-Ramp, an effort to end chronic street homelessness, staff have negotiated the purchase of the Clarion Pointe Motel for use as a homeless shelter and bridge housing site. This motel has been recently renovated and does not require any rehabilitation prior to operation. As the community’s shelter bed capacity continues to be fully utilized, and with an estimated 1,700 people still unsheltered, the need to expand shelter offerings is clear. Further, plans are currently being developed to redevelop areas where City-owned shelters are located which has the potential to reduce the community’s shelter bed capacity, making it more urgent for the City to act now to have replacement shelter beds in place, and to provide these beds in locations distributed throughout the city to best serve the community’s unsheltered residents. An operator for this site will be identified from the City’s list of qualified operators and an agreement will be brought to Council for consideration at a later date.
As of the writing of this Report, an appraisal of the Subject Property has been ordered from Jacob I. Howard, MAI, of J. Hower and Associates. The completed appraisal of the Subject Property is expected to be available for the April 20, 2023, Council Meeting.
The City Attorney has reviewed and approved the Purchase and Sale Agreements to form.
ENVIRONMENTAL FINDINGS
Staff has performed a preliminary environmental assessment of this Project and has determined it falls within the Categorical Exemption set forth in CEQA Guidelines Sections 15301/Class 1 (existing facilities) and 15332/Class 32 (in-fill development) which exempt projects involving a negligible or no expansion of an existing facility, or are located in an area considered in-fill development. These exemptions apply because this project involves the purchase of Clarion Pointe Motel without expansion of the facility and it is located in an in-fill area. Staff determined under the CEQA Guidelines this project fits within the definition of existing facilities in Section 15301/Class 1 and in-fill in Section 15332/Class 32, as Categorically Exempt from further CEQA review. Staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to 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.
FISCAL IMPACT
The State and Local Fiscal Recovery Funds for the acquisition were appropriated to the Planning and Development Department as part of its fiscal year 2023 Budget.
Attachments:
-Categorical Exemption (Clarion Pointe)
-Agreement for Purchase and Sale (Clarion Pointe)