REPORT TO THE CITY COUNCIL
FROM: DENIX D. ANBIAH, PE, Director
Capital Projects Department
BY: ANTONIO M. BUELNA, PE, Assistant Director
Capital Projects Department, Capital Administration Division
NANCY BRUNO, Right of Way Manager
Capital Projects Department, Capital Administration Division
SUBJECT
Title
Actions pertaining to the disposition of two City-owned parcels, identified as Assessor’s Parcel Numbers 510-326-32T and 510-326-33T (Council District 1):
1. Adopt a finding of Categorical Exemption pursuant to Section 15332/Class 32 of the Environmental Quality Act (CEQA) Guidelines;
2. ***RESOLUTION - Finding Good Cause and Clear and Convincing Benefit to the public pursuant to Fresno Municipal Code Section 4-204, relating to the disposition of surplus real property identified as Assessor’s Parcel Numbers 510-326-32T and 510-326-33T (Requires Five Affirmative Votes) (Subject to Mayor’s Veto);
3. Approve the execution of the Agreement for Purchase and Sale of Real Property and Escrow Instructions with MDS Properties LTD, a California corporation, for the sale of two City-owned parcels totaling 0.18-acres (7,840 square feet), for a purchase price of $175,000, including a seller-provided credit of $5,250 (3%), resulting in net proceeds of $169,750.
Body
RECOMMENDATIONS
Staff recommends the City Council 1) adopt a finding of Categorical Exemption pursuant to Section 15332/Class 32 (Infill) of the CEQA Guidelines, 2) adopt the attached Resolution, finding Good Cause and Clear and Convincing Benefit to the public pursuant to Fresno Municipal Code section 4-204, relating to the disposition of surplus real property identified as Assessor’s Parcel Numbers 510-326-32T and 510-326-33T, and 3) approve the execution of the Agreement for Purchase and Sale of Real Property and Escrow Instructions for the sale of two City-owned parcels totaling 0.18-acres (7,840 square feet) for a purchase price of $175,000 plus related escrow costs, including a seller-provided credit of $5,250 (3%), resulting in net proceeds of $169,750, to MDS Properties LTD, a California corporation, and authorize the City Manager or designee to execute all documents related to the transfer of the parcels.
EXECUTIVE SUMMARY
The City of Fresno owns two parcels totaling 0.18-acres (7,840 square feet), identified as Assessor’s Parcel Numbers (APNs) 510-326-32T and 510-326-33T (the Subject Property). The parcels, located at the corner of North Brix and West Swift Avenues west of North Cornelia Avenue, were formerly the site of temporary Fresno Fire Station Number 16. The City Council declared the Subject Property surplus on May 23, 2024, and subsequently authorized staff on August 13, 2025, to list the parcels on the Fresno Multiple Listing Service (MLS). An offer to purchase the Subject Property was later submitted by MDS Properties LTD, a California corporation (the Buyer), and is now being presented to the Council for consideration and approval.
Due to a recent policy change by the California Association of Realtors, listing agents may no longer advertise or publish buyer-side commission offers in the MLS. Commission must now be negotiated directly between the buyer and their agent and may be included as part of the transaction. The Buyer requested a credit equal to three percent (3%) of the purchase price at the close of escrow to compensate their agent, which the City has agreed to. Section 4-204(d)(4) of the Fresno Municipal Code (FMC) requires that real property be sold at fair market value unless the Council, by a supermajority vote of at least five members, finds good and convincing benefits to justify a sale below market value. The offer from MDS Properties LTD is the only offer received, despite two prior Requests for Proposals (RFPs) that generated no responses.
BACKGROUND
On December 21, 1993, the City Council adopted Resolution Number 93-414 authorizing the use of Contingency/Reserve Capital funds to acquire two parcels (APNs 510-326-32T and 510-326-33T) for the construction of temporary Urban Growth Management (UGM) Fire Station Number 16 at the corner of North Brix and West Swift Avenues, west of North Cornelia Avenue. The parcels were utilized by the Fire Department until 2007. From 2010 through 2020, the Police Department utilized the site to house its Background Investigators, who were subsequently relocated to the Police Department Annex. The parcels have remained vacant since May 2020 and are no longer considered necessary for City use.
On May 23, 2024, the Fresno City Council declared the Subject Property surplus land. City Staff issued a Request for Proposals (RFP) to dispose of the parcels on April 30, 2024, and later issued an extension via Addendum Number 1 on May 15, 2025; however, no proposals were received. On August 13, 2025, the Council authorized staff to list the properties on the MLS.
MDS Properties LTD submitted a Letter of Intent (LOI) to purchase the parcels on September 15, 2025. A Purchase and Sale Agreement was prepared based on the terms of the LOI, and the buyer signed the agreement on October 13, 2025. The proposed agreement is now being presented to the Council for consideration and approval.
Due to a policy change enacted by the California Association of Realtors on January 1, 2025, listing agents are no longer permitted to advertise or publish buyer-side commission offers in the MLS. Commissions must now be negotiated directly between the buyer and their agent and may be included as part of the transaction. The Buyer requested a credit equal to three percent (3%) of the purchase price at the close of escrow to compensate their agent, which the City has agreed to provide.
Section 4-204(d)(4) of the Fresno Municipal Code requires that real property be sold at fair market value unless the Council, by a supermajority vote of at least five members, finds good and convincing benefits to justify a sale below market value. The offer from the Buyer is the only offer received, despite two prior RFPs that yielded no responses.
Staff recommends that the Council adopt the Resolution to Vary from FMC 4-204(d)(4), approve the execution of the Agreement for Purchase and Sale of Real Property and Escrow Instructions, and authorize the City Manager or designee to execute all documents related to the transfer of the parcels.
The City Attorney’s Office has reviewed and approved the Resolution and Purchase and Sale Agreement as to form.
ENVIRONMENTAL FINDINGS
Under CEQA Guidelines Section 15332 In-fill Development Projects Exemption, A project is exempt for CEQA if it meets all of the following conditions: (a) The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations, (b) The proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses, (c) The project site has no value as habitat for endangered, rare or threatened species, (d) Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality, (e) The site can be adequately served by all required utilities and public services.
Staff has performed a preliminary environmental assessment of the project and determined the proposed disposition of City-owned surplus property falls under the In-fill Development Exemption because: (a) the sale of the surplus land is contingent upon the buyer’s redevelopment of the existing structure into multi-unit affordable housing, which is consistent with the City of Fresno’s General Plan, Medium Density Residential planned use, and RS-5 zoning, which allows multi-unit residential development, (b) The proposed redevelopment will be within the City limits and is approximately one fifth of an acre, (c) The proposed redevelopment is within a fully developed urban neighborhood, and has no value as habitat for endangered, rare or threatened species, (see attached EA) (d) The proposed redevelopment will have no significant effects relating to traffic, noise, air quality, or water quality, (e) The proposed redevelopment site has all required utilities and public services available.
The proposed disposition and subsequent redevelopment of the subject property is consistent with the City’s planned use for the neighborhood and will provide needed affordable housing with no possibility for significant effect on the environment.
LOCAL PREFERENCE
Local preference was not considered because the action today does not include a bid or award of
of a contract.
FISCAL IMPACT
The disposal of these parcels will have no impact on the General Fund (Council District 1).
Attachments:
Environmental Assessment No. BD00004
Notice of Exemption No. BD00004
Resolution
Purchase and Sale Agreement
Levine Act Disclosure Statement
Location Map
Vicinity Map