REPORT TO THE CITY IN ITS CAPACITY AS HOUSING SUCCESSOR TO THE REDEVELOPMENT AGENCY OF THE CITY OF FRESNO AND FRESNO REVITALIZATION CORPORATION
FROM: MARLENE MURPHEY, Executive Director
SUBJECT
Title
Actions pertaining to the disposition of the 8-acre property located at the southeast corner of East Florence and South Plumas Avenues (APN 477-060-04T) (District 3).
1. ***Resolution - Declaring property at the southeast corner of East Florence and South Plumas Avenues to be exempt surplus land and directing staff to comply with the Surplus Land Act (Subject to Mayor’s Veto)
2. Resolution - Finding good cause and clear and convincing benefit to the public to vary from the Request for Proposals process pursuant to FMC Section 4-204 (Requires 5 Affirmative Votes)
Body
RECOMMENDATION
The City in its capacity as Housing Successor Agency to the Redevelopment Agency of the City of Fresno (Agency) recommends adoption of the attached Resolution declaring property located at the southeast corner of E. Florence Avenue and S. Plumas Avenue (APN: 477-060-04T) in southwest Fresno to be exempt surplus land. Further, to adopt the attached resolution finding good cause and public benefit to vary from the RFP process pursuant to FMC Section 4-204 relating to the disposition of real property. (District 3)
EXECUTIVE SUMMARY
The Agency purchased the vacant 8-acre parcel at the southeast corner of E. Florence Avenue and S. Plumas Avenue, Fresno, CA 93706 (APN: 477-060-04T) for the purpose of developing the site into affordable housing. The Agency has concluded that the property is exempt surplus land pursuant to California Government Code section 54221(f)(1)(A) because the property will be transferred for the development of affordable housing pursuant to Government Code section 37364. Further pursuant to government code section 37364 (b) (c) and (d) the land will be transferred with restrictions. The Housing and Community Development Department (HCD) staff has confirmed that the disposition of the property qualifies as exempt surplus land pursuant to the above cited code sections.
The Agency plans to negotiate with the Fresno Housing Authority (FHA) an experienced affordable housing developer, for development of approximately 33 owner-occupied single family units on the 8-acre site. The resolution finding good cause and public benefit to exempt the RFP process will enable negotiations to proceed with FHA to a Disposition and Development Agreement for consideration by Council.
BACKGROUND
The vacant 8-acre parcel located at the southeast corner of E. Florence Avenue and S. Plumas Avenue, Fresno, CA 93706 (APN: 477-060-04T) was purchased by the Housing Successor for affordable housing development and is outlined as a site available for development of affordable housing in the in the City’s 2015-2023 Housing Element of the General Plan, adopted by Council on April 13, 2017.
The Surplus Land Act provides for exemptions to transfer property for the development of affordable housing that complies with certain requirements related to household income eligibility levels, minimum percentage of parcel development for affordable units and an affordability period of not less than 30 years. The Agency plans to negotiate with the FHA to develop approximately 33 single family owner-occupied units on the site. The income eligibility level requirement for a 33 lot development would require a total of fourteen affordable units of which seven are affordable to households at 75% of AMI and seven affordable to very low income households. The proposed development and affordability restrictions support the findings that the property qualifies as exempt from the California Surplus Land Act as stated in Government Code Section 37364.
The Agency and FHA have a long history of working together for revitalization of southwest Fresno. Their collaboration produced the Hope VI Master Plan that identified this and other nearby sites for much needed single family development. In more recent years the Agency, FHA and private sector partners developed the 118 unit Legacy multi-family, mixed-income development at the adjacent northeast corner of E. Florence and S Plumas near Edison High School. The FHA brings extensive experience in the southwest area and in the development of affordable housing necessary to address the challenges and requirements presented by the project. A disposition and development agreement with the Fresno Housing Authority, including the required terms set forth by the Surplus Land Act, will be negotiated and presented to the City Council for consideration in the near future pending the declaration of exemption.
The State of California Housing and Community Development (HCD) staff has concurred with the determination that the property qualifies as exempt surplus land.
The Agency is therefore requesting that the City Council adopt the resolutions declaring the property to be surplus exempt, and, finding good cause and benefit to exempt the RFP process enabling negotiations to proceed to a Disposition and Development Agreement for consideration by Council.
ENVIRONMENTAL FINDINGS
Adoption of the Resolution is not a project for the purposes of the California Environmental Quality Act.
LOCAL PREFERENCE
Local preference does not apply because the disposition of the subject real property does not include a bid or award of a construction or services contract.
FISCAL IMPACT
There is no impact to the Housing Successor to the former Redevelopment Agency fiscal year 2022 Budget.
attachments:
Resolution - Florence and Plumas Varying from RFP Process
Resolution - Declaring Exempt with Map