REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department BY: CASEY LAUDERDALE, Supervising Planner Planning and Development Department SUBJECT ..Title ***RESOLUTION - Authorizing and directing submission of an application for funding under the State of California Regional Early Action Planning Grants of 2021 (REAP 2.0) Higher Impact Transformative (HIT) Allocation for $10,000,000 for water/wastewater infrastructure improvements near the future High Speed Rail station (Subject to Mayor's veto) ..Body RECOMMENDATION Staff recommends approval of a resolution authorizing and directing the submission of an application for funding under the State of California Regional Early Action Planning Grants of 2021 (REAP 2.0) Higher Impact Transformative (HIT) Allocation for $10,000,000 for water/wastewater infrastructure improvements near the future High Speed Rail station. EXECUTIVE SUMMARY In order to meet the projected housing development called for by the Fulton Corridor Specific Plan (2016) and to establish a vibrant, transit-oriented neighborhood near the future High-Speed Rail (HSR) station, important upgrades are needed to the area's water and wastewater infrastructure. The total cost is estimated at $25,060,000. The REAP 2.0 grant allows the City to apply for up to $10,000,000 to assist with infrastructure upgrades that support housing development and reduced Vehicle Miles Traveled (VMT). BACKGROUND High-Speed Rail Station Area Planning The proposal to use grant funding to upgrade infrastructure near the HSR Station helps to implement multiple Plans: * Fresno General Plan (adopted 2014). Directs the City to capitalize on High-Speed Rail to bring additional vitality to the downtown neighborhoods, with higher density development to be allowed near the Station. * Fresno Station Area Master Plan (completed 2018). Envisions the development of the Station Area to be a vibrant hub of housing, retail, entertainment, and public space with equitable benefits to all neighborhoods around the Station. * Fulton Corridor Specific Plan (adopted 2016). Emphasizes the need for more investment in Chinatown and for more development of residential, office, and retail uses near the HSR Station. The Fulton Corridor Specific Plan estimates that an additional 3,000 housing units will be developed within the environs of the future High Speed Rail Station (see Attachment 1: Map of Station Area with Fulton Corridor Specific Plan Subareas). However, achieving new housing units at a scale needed to support a vibrant, transit-oriented neighborhood will be stymied until the area's water and wastewater infrastructure is upgraded. The cost of making these upgrades (a sum of approximately $25,060,000) is a difficult barrier to overcome on a project-by-project basis. State of California REAP 2.0 HIT Allocation Grant The State of California Department of Housing and Community Development (HCD) released a Notice of Funding Availability (NOFA) on November 9, 2022 for its Regional Early Action Planning Grants of 2021 (REAP 2.0) Higher Impact Transformative (HIT) Allocation program. Up to $10,000,000 may be received via a competitive application process. Grant activities must meet the program goals of A) Accelerating Infill Development that Facilitates Housing Supply, Choice, and Affordability, B) Affirmatively Furthering Fair Housing (AFFH), and C) Reducing VMT. The City is applying to the REAP 2.0 HIT grant to complete the following activities: 1) Conduct a detailed hydraulic analysis of the planned water demands and sewer flows through the area with the planned high-density developments; 2) Design the necessary water and sewer facilities to support planned growth based on the hydraulic analysis; and 3) Upgrade existing water and sewer facilities through a mixture of rehabilitating existing pipelines where appropriate and replacing others with upsized pipelines to provide the necessary capacity. Through these activities, the City will have provided the necessary infrastructure to support new housing growth in a walkable, transit-connected downtown in a manner that furthers both housing and transportation choice. Application Process and Timeline The NOFA for the REAP 2.0 HIT Allocation was released on November 9, 2022. Due to the short turn-around time available to eligible entities, HCD was able to extend the deadline to receive the executed authorizing resolution to February 15, 2023. However, due to statute, HCD was not able to extend the deadline for the application itself. The application was thus due on December 31, 2022. Staff submitted the application on December 30, 2022 prior to the deadline. Although the application was submitted, it will not be considered complete until the City sends an executed authorizing resolution. According to HCD's timeline, the State anticipates sending Award Letters to Selected Applicants by Summer of 2023. ENVIRONMENTAL FINDINGS The adoption of this resolution is not a project pursuant to CEQA Guidelines Section 15378. LOCAL PREFERENCE N/A - this resolution authorizes the submission of a grant application. No procurement is included with this action. FISCAL IMPACT The adoption of the resolution itself does not have any fiscal impacts, however, if awarded the grant, the City will need to source any additional funding required to complete the cost of infrastructure upgrades. If the City is awarded the full amount of $10,000,000, the estimated additional funding needed is $15,060,000. Attachments: 1. Submitted REAP 2.0 HIT Application 2. Map of Station Area with Fulton Corridor Specific Plan Subareas 3. Map of Station Area with Water Systems 4. Map of Station Area with Sewer Systems 5. Map of Station Area with Income 6. Map of Station Area with Pollution Burden 7. Resolution (clean) 8. Resolution (redline)