REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
PHIL SKEI, Assistant Director
Planning and Development Department
BY: JENNIFER DAVIS, Senior Management Analyst
Housing Finance Division
SUBJECT
Title
Actions pertaining to the Travel Inn Affordable Rental Housing Development located at 1444 West White Avenue, Fresno, California (Council District 3):
1. Adopt a Categorical Exemption per staff determination pursuant to Section 15332/Class 32 of the California Environmental Quality Act (CEQA) Guidelines
2. ***RESOLUTION - Adopt a Resolution in support of a contribution of City-owned property located at 1444 West White Avenue, Fresno, California 93728 to Cesar Chavez Foundation for the development of affordable rental housing, and authorize the City Manager, or designee, to execute all contract/lease related documents on behalf of the City (Subject to Mayor’s Veto)
Body
RECOMMENDATIONS
Staff recommends City Council: 1) adopt a Categorical Exemption pursuant to Section 15332/Class 32 of the CEQA Guidelines; and 2) adopt a Resolution in support of a contribution of City-owned property located at 1444 West White Avenue, Fresno, California 93728 to Cesar Chavez Foundation effective upon execution, and authorize the City Manager, or designee, to execute all contract/lease related documents on behalf of the City.
EXECUTIVE SUMMARY
On January 11, 2021, the City of Fresno purchased the former Travel Inn motel located along the Parkway Drive Corridor at 1444 West White Avenue, Fresno, California 93728 Assessor’s Parcel Number 449-343-07 (Property). The City acquired the motel for the purpose of providing a low barrier emergency homeless shelter and triage center to meet the immediate needs of the City’s unhoused community members for an interim period until such time that the property can be converted to permanent affordable housing. On June 20, 2024, City Council adopted Resolution Number 2024-133 supporting a City contribution of funds in the amount of $6,000,000 for rehabilitation expenses associated with the Travel Inn Affordable Housing Development.
Adopting the Resolution today will provide City-owned property located at 1444 West White Avenue, Fresno, California 93728 to the Cesar Chavez Foundation in support of the conversion and rehabilitation of the former Travel Inn motel to the Travel Inn Affordable Housing Development consisting of 118 units of permanent affordable housing.
BACKGROUND
The former Travel Inn motel is located at 1444 West White Avenue, Fresno, California 93728 (APN 449-343-07) and consists of a 1.55-acre site situated along the Parkway Drive Corridor. The Property was acquired by the City in 2021 for the express intent of providing safe low-barrier emergency shelter rooms to support the City’s Project Off Ramp program, which relocates unhoused individuals from the freeway right-of-way to low-barrier emergency shelters. The facility has been operating at full capacity since opening in September 2021 with 60 rooms and 150 shelter beds. The City has significant interest in facilitating the transition of unhoused individuals to permanent housing and recognizes the importance of developing permanent affordable housing to address the City’s homelessness and housing crisis.
On February 1, 2024, City Council adopted Resolution Number 2024-023 declaring the property surplus land. Pursuant to the Surplus Land Act, Gov. Code sections 54220 et seq., surplus land means land owned in fee simple for which a local agency’s governing body takes formal action at a regular public meeting declaring land to be surplus and not necessary for the local agency’s use. The Surplus Land Act (SLA) requires local agencies to make surplus land available for affordable housing prior to selling or leasing the land for another purpose.
Cesar Chavez Foundation (Developer) is proposing to develop the Travel Inn Affordable Housing Development, which will consist of a 118-unit affordable rental housing complex (Project). On June 20, 2024, City Council adopted Resolution Number 2024-133 in support of a conditional commitment of City funds in the amount of $6,000,000 to the Project for rehabilitation expenses associated with the conversion of the existing motel into affordable housing.
To further assist with the Project, the City owns and intends to contribute the Property to the Developer through a long-term ground lease of $1 per year for a term of 57 years. The City is also supportive of the Developer’s funding application to the State of California Tax Credit Allocation Committee (CTCAC) for the Low-Income Housing Tax Credit Program. The City’s commitment of the Property is contingent upon the Developer’s receipt of a full award from CTCAC for its funding application, sufficient evidence that the Project is fully funded, and approval of the disposition terms by the California Department of Housing and Community Development (HCD) and the City Council. Once approval from HCD and City Council has been obtained, and full funding for the Project has been secured, the City and Cesar Chavez Foundation will execute a ground lease of $1 per year for a term of 57 years. The Resolution will expire on December 31, 2024.
Cesar Chavez Foundation is a multipurpose organization invested in the economic development of underserved communities and dedicated to providing high-quality affordable housing for low-income households throughout California and the Southwest Region. Together with the City’s efforts to reduce homelessness and increase affordable housing, the Travel Inn Affordable Housing Development will encourage neighborhood revitalization, promote sustainable and equitable development, and improve the overall well-being of the city’s vulnerable and under-resourced community. The City’s contribution of the Property will assist in promoting the path for unhoused individuals into permanent homes, as well as promote the reuse of existing City-owned property. In partnership with Cesar Chavez Foundation, the Travel Inn Affordable Housing Development provides the City with a unique opportunity to provide affordable quality housing, increases the City’s housing stock and brings the City closer to meeting its affordable housing goals and objectives as outlined in the One Fresno Housing Strategy, 2020-2024 Consolidated Plan, and the Housing Element of the 2035 General Plan.
The City Attorney’s Office has reviewed and approved as to form the attached Resolution.
ENVIRONMENTAL FINDINGS
Staff has determined that this project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Class 32, Section 15332 (Infill Development) of CEQA Guidelines.
LOCAL PREFERENCE
Local preference is not applicable because the action today does not include a bid or an award of a construction or services contract.
FISCAL IMPACT
The City anticipates receiving nominal income as a result of this action.
Attachments:
CEQA Categorical Exemption Environmental Assessment for 1444 W. White Avenue
Resolution Approving Contribution of City-Owned Property to Cesar Chavez Foundation