REPORT TO THE CITY COUNCIL
February 25, 2016
FROM: BRUCE RUDD, City Manager
THROUGH: SCOTT MOZIER, Director
Public Works Department
BY: LUPE PEREZ, Project Manager
Development and Resource Management
SUBJECT:
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Actions Pertaining to the Fresno County Measure “C” Transit Oriented Development (TOD) Program:
1. RESOLUTION - Authorizing the City Manager or Designee to Negotiate an Amendment to the Program Eligibility and Funding Agreement, dated December 5, 2012, with The Fresno County Transportation Authority Relating to the Reallocation of Program Funds to the Measure C Transit Oriented Development Program and Authorizing the Execution of Amendment Related Documents by the City Manager Or Designee
2. RESOLUTION - Authorizing the Submission of Applications for Grant Funds from the Fresno County Measure C Transit Oriented Development (TOD) Program and Authorizing the Execution of Application-Related Documents by the City Manager or Designee
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RECOMMENDATION
1. Staff recommends that the City Council adopt the attached resolution authorizing the City Manager or designee to amend the Program Eligibility and Funding Agreement (“Funding Agreement”), dated December 5, 2012, with the Fresno County Transportation Authority, allowing the reallocation of $510,715 in unencumbered Measure C Transit-Oriented Development (TOD) funds to support eligible TOD projects.
2. Staff recommends that the City Council adopt the attached resolution authorizing the City to submit a multi-year application for Measure C Transit-Oriented Development (TOD) funds needed to support seven (7) projects located in Downtown Fresno and along the Bus Rapid Transit Corridors.
EXECUTIVE SUMMARY
It is recommended that the City submit a multi-year grant application for Measure C/Transit Oriented Development (TOD) funds totaling approximately $3.15 million over the next three years. As was done in the past, the application would be used to support a number of TOD related projects currently being pursued by various developers. In addition, staff recommends an amendment to a previous Measure C/TOD Funding Agreement that would allow for the reallocation of $510,715 in previously awarded TOD funds toward the projects referenced below.
There is approximately $851,794 in funding available this year, based on this year’s projected allocation (2016 Grant Cycle); that amount, combined with the reallocation of existing Measure C/TOD funds proposed herein, equals approximately $1,362,509 is total available funding. Allocation of these funds would be sought as follows for the 2016 Grant Cycle:
• Fulton Street Reconstruction Project - $425,897
• South Stadium Project - $711,085
• LEDE/former “Met Block Project” - $225,527
The second year application (2017 Grant Cycle) assumes that approximately $881,000 would be available for allocation and would include the following projects:
• The Fulton Street Reconstruction Project - $31,000
• The “H” Street Project - $250,000
• Blackstone and Clinton Project - $400,000
• The Van Ness and Stanislaus Project - $200,000
The third year application (2018 Grant Cycle) assumes that approximately $900,000 in available funding and would include the following projects:
• The “H” Street Project - $220,000
• Blackstone & Clinton Project - $251,880
• The Van Ness and Stanislaus Project - $151,120
• Fancher Creek Transit Station Project - $277,000
Applications for Measure C/TOD projects are due to the Fresno Council of Governments (COG) by February 26, 2016, with the COG Policy Board scheduled to consider these applications on March 24, 2016. It is anticipated that the Fresno County Transportation Authority (FCTA) Board will then make a final determination during their April meeting.
BACKGROUND
In November 2006, the voters of Fresno County approved a 20-year extension of Measure C, the countywide half-cent sales tax for transportation. Unlike the original initiative, the Measure C Extension included a number of funding categories dedicated to specific purposes such as public transportation, pavement maintenance, sidewalks, etc. Included in the adopted spending plan were funds specifically earmarked to support TOD located near “high capacity” transit services, such as Bus Rapid Transit (BRT), street cars or light rail.
The manner in which these dollars were to be allocated was derived from a Public Transportation Infrastructure Study (PTIS) that was commissioned by the COG shortly after the Measure C extension was approved by the voters. The PTIS and subsequent updates have been used to identify the location of high capacity transit corridors within Fresno County, which were ultimately used to prioritize where these funds would be spent. Based on the PTIS, funding areas in priority order are Downtown Fresno, the Blackstone Ventura/Kings Canyon BRT Corridor and the future Shaw Avenue BRT corridor.
Measure C/TOD funding was made available in 2012, and since that time have been used to help fund successful mixed use development projects in the Cultural Arts District as well as engineering and environmental work associated with the Fulton Street Reconstruction Project. In addition, Council has adopted a new General Plan Update, approved the contract for the Fulton Street Reconstruction Project and tentatively approved the construction of the Blackstone Ventura/Kings Canyon BRT project. Council has also recently adopted the Economically Disadvantaged Neighborhoods Act that excludes infill development from having to pay city wide impact fees. All of these actions have triggered an increased interest in TOD projects, particularly in Downtown Fresno as well as along the Blackstone Ventura/Kings Canyon Corridors.
Therefore, in order to support all of these projects, staff is recommending that the City again pursue a multi-year Measure C/TOD grant application, as well as seek an amendment to an existing Funding Agreement with the FCTA, that would be used to fund the following mixed use/TOD projects:
2016 Grant Cycle
South Stadium Project - $711,085
Noyan Frazier Capital, LLC is proposing a phased multi-story residential mixed-use development bounded by Fulton, Kern, and Inyo Streets. The project would create 50 residential units as well as 15,000 square feet (SF) of ground floor retail space. The funding could be used to offset the costs of design, engineering, construction or associated infrastructure improvements.
LEDE/former “Met Block” project - $225,527
In the 2014 cycle, this project was awarded $229,799 as part of a previous multi-year request. Funding was used to construct curb, gutter, sidewalks, paving of the area bordering the development site, and to underground overhead utilities and relocate electrical vaults located in the alley. The cost to underground the utilities has significantly exceeded the engineer’s original estimate. As a result, $225,527 in additional funds are being requested.
2017 Grant Cycle
Fulton Street Reconstruction Project - $31,000
Over the last three years the Fulton Street Reconstruction Project has received $1.8 million as part of a previous multi-year funded grant application. This new application would be used to fund street furniture (i.e., bike racks, trash receptacles, etc.) that was recently reduced in order to bring the project within existing appropriations.
“H” Street Project - $250,000 (multi-year)
TFS Investments, LLC is proposing a phased multi-story mixed-use development bounded by Inyo, H, and Mono Streets that would include 63 residential units as well as 8,000 SF of ground floor retail space. The funding would be used to support design, engineering, and construction and/or infrastructure related costs. This is a multiyear application with a total funding request of $470,000. The remaining balance of $220,000 is included in the 2018 grant cycle request.
Blackstone and Clinton Project - $400,000 (multi-year)
Granville Homes is proposing a phased mixed-use development on the Blackstone corridor bounded by Blackstone, Clinton, and Vassar Avenues. The project would create 126 residential units proposed to be 100% affordable at a density of 30.88 units/acre plus 17,248 SF of retail space. The capital improvement funding will improve the curbs, gutters, sidewalks, and alleys in the immediate area. This is a multiyear application with a total funding request of $651,880. The remaining balance of $251,880 is included in the 2018 grant cycle request.
Van Ness and Stanislaus Project - $200,000 (multi-year)
Upside Enterprises, LLC is proposing a multi-story mixed-use development bounded by Van Ness, Stanislaus, and L Streets. The project would create 70 residential units plus 20,000 SF of retail/office space. The capital improvement funding request will improve curbs, gutters, sidewalks, and alleys in the immediate area. This is a multiyear application with a total funding request of $351,120. The remaining balance of $151,120 is included in the 2018 grant cycle request.
2018 Grant Cycle
The “H” Street Project - $220,000 (multi-year)
This is a multiyear application for the 2017 and 2018 grant cycles with a total funding request of $470,000. The 2017 grant cycle request is $250,000 with the remaining balance of $220,000 included in the 2018 grant cycle request.
Blackstone and Clinton Project - $251,880 (multi-year)
This is a multiyear application for the 2017 and 2018 grant cycles with a total funding request of $651,880. The 2017 grant cycle request is $400,000 with the remaining balance of $251,880 included in the 2018 grant cycle request.
The Van Ness and Stanislaus Project - $151,120 (multi-year)
This is a multiyear application for the 2017 and 2018 grant cycles with a total funding request of $351,120. The 2017 grant cycle request is $200,000 with the remaining balance of $151,120 included in the 2018 grant cycle request.
Fancher Creek Transit Station Project - $277,000
Fancher Creek Properties, LLC is proposing a phased mixed-use development bounded by Kings Canyon Road, Clovis Avenue, Argyle Street, and Fancher Creek Avenue. The Transit Station will be located next to the Fancher Creek Town Center development that is a component of the Fancher Creek Master Planned Community. The project will create 420 affordable housing units which includes over a million of square feet of commercial/retail, and the transit station. The funding could be used to offset the cost of constructing the transit site, and associated infrastructure improvements.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, this item does not qualify as a “project”; therefore it is exempt from the CEQA requirements.
LOCAL PREFERENCE
Local preference was not considered because this item does not include a bid or award of a construction or service contract.
FISCAL IMPACT
Adoption of the resolution authorizing submission of grant applications for Measure C/TOD funds and authorizing the reallocation of previously awarded Measure C/TOD funds will provide approximately $3.15 million in funding that would be available to support reinvestment and revitalization in Downtown Fresno and along the BRT Corridors.
Attachments:
1. Exhibit A
1. Resolution 1
2. Resolution 2
2. Exhibit B
1. Application 1 - South Stadium Project
2. Application 2 - LEDE/former “Met Block Project”
3. Application 3 - The Fulton Street Reconstruction Project
4. Application 4 - The “H” Street Project
5. Application 5 - Blackstone and Clinton Project
6. Application 6 - The Van Ness and Stanislaus Project
7. Application 7 - Fancher Creek Transit Station Project