REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
BY: PHIL SKEI, Assistant Director
Planning and Development Department
SUBJECT
Title
***RESOLUTION - Adopting the 65th Amendment to the Annual Appropriation Resolution (AAR) No. 2024-122 appropriating $200,000 for the fulfillment of a settlement agreement between the City of Fresno and Kimberly J. Husted, in her capacity as the Chapter 11 trustee for the bankruptcy estate of La Hacienda Mobile Home Estates, LLC (Requires 5 Affirmative Votes) (Subject to Mayor’s Veto)
Body
RECOMMENDATION
It is recommended the City Council adopt the 65th Amendment to AAR No. 2024-122 appropriating $200,000 into the FY 25 budget for the fulfillment of a settlement agreement between the City of Fresno and Kimberly J. Husted, in her capacity as the Chapter 11 trustee for the bankruptcy estate of La Hacienda Mobile Home Estates, LLC
EXECUTIVE SUMMARY
If approved by the City Council, the City of Fresno is entering into a settlement agreement with Kimberly J. Husted, in her capacity as the Chapter 11 trustee for the bankruptcy estate of La Hacienda Mobile Home Estates, LLC to facilitate completion of the sale of La Hacienda Mobile Home Park, located at 104 E. Sierra Avenue, Fresno 93710 (City Council District 6) to Self Help Enterprises. This AAR appropriates $200,000 for the settlement payment which when paid, will resolve all current claims between La Hacienda Mobile Home Estates, LLC and the City of Fresno.
BACKGROUND
On or about May 9, 2024, La Hacienda Mobile Home Estates, LLC commenced a bankruptcy case by filing a voluntary Chapter 11 petition in the state of Delaware. This case was ultimately transferred to the U.S. Bankruptcy Court Eastern District of California, Fresno Division and is known as Case No. 24-11967.
This settlement payment will resolve all current claims between La Hacienda Mobile Home Estates, LLC and the City of Fresno and which are part of this Case.
This AAR appropriates funds to make this payment.
ENVIRONMENTAL FINDINGS
This is not a “project” for the purposes of CEQA, pursuant to CEQA Guidelines Section 15378.
LOCAL PREFERENCE
Local Preference was not considered because accepting the funding award does not include a bid or award of a construction or services contract.
FISCAL IMPACT
Funding for the settlement agreement will come out of the City of Fresno’s General Fund.
Attachment: 65th Annual Appropriation Resolution No. 2024-122