REPORT TO THE CITY COUNCIL
December 15, 2016
THROUGH: BRUCE RUDD, City Manager
BY: CLAUDIA RUIZ, Economic Development Coordinator
SUBJECT
Title
Actions pertaining to development at Blackstone and Shaw:
1. ***RESOLUTION - In support of a proposed development by Erganian Family Partnership at Blackstone and Shaw, and Blackstone and Freeway 41.
2.***RESOLUTION - Authorizing the submission of the Blackstone and Shaw streetscape project application for grant funds from the Regional Surface Transportation Program to the Fresno Council of Governments and authorizing the execution of application related documents by the Public Works Director or designee.
Body
RECOMMENDATION
Staff recommends approval of the resolution to support the proposed development by the Erganian Family Partnership LLP., and authorize staff to pursue grant funds for public improvements.
EXECUTIVE SUMMARY
City Council approval is sought to approve a resolution in support of the Erganian Family Partnership LLP., (Developer) project on Shaw and Blackstone. The resolution will demonstrate the Council’s support for the project concept and direct staff to work with the Developer to negotiate in good faith on terms for a forthcoming development agreement. City Council approval is also being sought to support a resolution to authorize staff to pursue grant funding from the Regional Surface Transportation Program (RSTP) for public improvements that would support the 27-acre project and the surrounding commercial district, Midtown.
BACKGROUND
The Developer approached the City in early 2016 after discovering the development opportunities with recent updates to the 2035 General Plan, the Bus Rapid Transit (BRT) Project and the new development code. The Developer is the sole property owner of approximately 27 acres on three corners of Shaw and Blackstone. The majority of the property is vacant land with a few buildings that include a hotel and the Vineyard, a local weekend attraction. The 27 acres are located between two BRT stops and in proximity to two FAX 15 bus stops.
After multiple meetings with staff from various departments, the Developer presented a conceptual project that includes mixed-use housing, office and retail. The project will be catalytic in creating a Midtown District that will include distinctive place-making features such as arbors, 12-foot sidewalks and design features that will help create the urban identity of the district. Such a large project will need particular public improvements to support not only the project but the City wishes to create. The City’s Public Works staff have worked with the Developer to refine the required off-site improvements and to provide estimated costs. Public Works is estimating the cost for these public improvements to range between four and five million dollars for projected phases one through three of the project. With the Council’s support, the City will pursue federal Regional Surface Transportation Program (RSTP) grant funds for these improvements.
The Fresno Council of Governments, acting in its role as a Metropolitan Planning Organization, programs all future federal transportation revenues that will come to the Fresno Region. One source of funding is the RSTP. These funds are reimbursable Federal-aid funds, subject to the requirements of Title 23, United States Code. Eligible uses of the funds include preliminary engineering, capital costs and construction costs associated with an eligible activity. RSTP eligibility generally includes asphalt concrete pavement overlays and reconstruction, capacity enhancing projects, traffic signals and safety projects, transit improvements, landscaping and street lighting projects.
The action taken with the resolution is not a commitment of funds or approval for the project but simply a resolution of support and authorization to pursue grant funds. The Developer and the City will pursue a development agreement in 2017 which would entail the following:
a) The scope of development, including proposed uses and site plan, and allowable density and intensity of uses.
b) Project phasing, including a performance schedule and timeline for commencement and completion of public and private improvements.
c) A list of off-site improvements and estimated costs.
d) Applicable exactions, allocation of fee credits, waivers, and reimbursements.
e) Procedure for processing future submittals; and conditions, terms, and restrictions for subsequent discretionary approvals.
f) Economic incentives available per the Economic Expansion Act that may be provided by the City.
g) Appropriate circulation and comment to affected City departments and external agencies.
ENVIRONMENTAL FINDINGS
This is not a project for purposes of CEQA guidelines section 15378, because the proposed project is still in the conceptual stages and too speculative to environmentally assess. Neither resolution attached hereto is considered a firm commitment to the project on behalf of the City. Future Council action committing the Council to the project will be accompanied by appropriate environmental review.
LOCAL PREFERENCE
Local preference is not applicable because this is not a contract for goods, services, or public work of improvement.
FISCAL IMPACT
There will be no impact on the General Fund. RSTP grant dollars will be pursued to fund the public improvements that will support the Midtown District.
Attachment:
Resolution (1): Resolution in support of a proposed development by Erganian Family Partnership
Resolution (2): Resolution authorizing the submission of the Blackstone and Shaw streetscape project application for grant funds
Photos (4 pages)