REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department BY: PHIL SKEI, Assistant Director Planning and Development Department KENG LEE, Project Manager Housing Production Division SUBJECT ..Title Actions pertaining to City-owned Assessor’s Parcel Number 456-030-60T (Formerly 456-030-34T and 456-030-44) (District 7): Adoption of an Initial Study/Mitigated Negative Declaration (IS/MND) (State Clearinghouse No. 2026020455), dated February 11, 2026, for the Affordable Cottage Home Village Development at Belmont and Dewitt, in accordance with the California Environmental Quality Act (CEQA) Approval of a Disposition and Development Agreement (DDA) between the City of Fresno and New Look Investments LLC. ..Body RECOMMENDATION Staff recommends the City Council adopt an affirmative finding on the Initial Study/Mitigated Negative Declaration (IS/MND), dated February 11, 2026, prepared in accordance with the CEQA Guidelines, for the proposed Affordable Cottage Home Village Development at Belmont and Dewitt Project (Project); and approve a Disposition and Development agreement with New Look Investments LLC (Developer), for a mixed-use affordable housing development project comprising of 104 housing units, including 54 prefabricated units on the west parcel and 50 affordable tiny or micro homes on the east parcel, along with a neighborhood-serving commercial space and community amenities. EXECUTIVE SUMMARY The Affordable Cottage Home Village Development represents a major initiative to expand affordable and mixedincome housing opportunities in District 7 using Cityowned land. The proposed actions support the adoption of CEQA environmental documents and approval of a Disposition and Development Agreement with New Look Investments LLC, the developer selected through a competitive Request for Proposals (RFP) process. The project includes 104 housing units, comprised of 54 manufactured homes and 50 pre-fabricated tiny homes or micro homes, along with approximately 12,000 square feet of neighborhood serving commercial space and community amenities. Twenty-six of the tiny homes will be restricted to households earning no more than 30% of the Area Median Income, and 24 additional tiny homes will be restricted to those earning no more than 80% of the Area Median Income. These 50 units will be income-restricted for 30 years. These affordability requirements fully comply with the State Surplus Land Act and align with the City’s strategic goals for affordable housing production and longterm community benefit. Adoption of the IS/MND and Approval of the DDA ensures that development proceeds in compliance with CEQA, state housing regulations, and local policy objectives while meeting the affordability and landuse commitments associated with the site’s Exempt Surplus Land designation. Staff recommend City Council adopt the ISMND for the proposed project in accordance with CEQA and approve a DDA with New Look Investments LLC. BACKGROUND Assessor’s Parcel Number 45603060T consists of two previously separate parcels (456-030-34T and 456-030-44) merged by the City: In 2008, the western parcel (456-030-34T) was acquired with Citywide Police Impact Fee funds for a planned police substation. The substation was never constructed at this location. On June 29, 2022, an adjacent parcel (APN 45603044) was donated to the City specifically for an innovative housing project incorporating multi-family, single family, manufactured, or a mix of housing types. Subsequently, the City merged the two parcels, resulting in the current APN 456-030-60T designation On June 22, 2023, City Council adopted Resolution No. 2023189, declaring the merged parcel as Exempt Surplus Land under the Surplus Land Act. The State Department of Housing and Community Development (HCD) reviewed and concurred with the City’s surplus land designation. The designation requires that at least 80% of the site be used for housing, with 40% of units affordable to lowerincome households and at least half of those affordable to very lowincome households under longterm covenants. On October 30, 2024, the City issued a competitive RFP, receiving four eligible proposals. These were evaluated based on feasibility, affordability, design quality, and alignment with City goals. New Look Investments LLC was selected as the highestranked proposer. The DDA establishes terms for the sale of the property, including a purchase price of $1,024,902.96, a fiveyear payment schedule, a maximum 3% interest rate, and a 10% deposit required prior to title transfer. Sale proceeds will reimburse the Police Impact Fee account, as the site will no longer serve its originally intended publicsafety purpose. The development plan includes 104 units, consisting of 54 threebedroom prefabricated homes and 50 affordable tiny or micro homes, plus approximately 12,000 square feet of commercial space and community amenities. Twenty-six of the tiny homes will be restricted to households earning no more than 30% of the Area Median Income, and 24 of the tiny homes will be restricted to those earning no more than 80% of the Area Median Income. These 50 units will be income-restricted for 30 years. The IS/MND, completed on February 11, 2026, assessed potential environmental impacts and identified mitigation measures necessary to reduce all impacts to lessthansignificant levels. The City Attorney has reviewed and approved the attached agreement to form. ENVIRONMENTAL FINDINGS An Initial Study/Mitigated Negative Declaration (IS/MND) and Mitigation Monitoring and Reporting Program (MMRP) for APN 456-030-60T were prepared for the proposed project in accordance with the California Environmental Quality Act (CEQA). The IS/MND was prepared by SWCA Environmental Consultants and completed on February 11, 2026. A public Notice of Intent to Adopt the attached Mitigated Negative Declaration was filed with the Fresno County Clerk on February 11, 2026.   The Initial Study evaluated the potential environmental impacts of the proposed project pursuant CEQA Guidelines § 15152. The analysis identified potentially significant impacts in certain resource areas and identifies the specific mitigation measures that will be implemented to reduce potential impacts to a less than significant level in accordance with the provisions of CEQA Section 21157.5(a)(2).   Based on the findings of the Initial Study and the mitigation measures identified in the IS/MND and MMRP, staff has determined that there is no substantial evidence in the record that the project will have a significant effect on the environment. Accordingly, staff recommends adoption of the IS/MND. LOCAL PREFERENCE Local preference policies were not applied to this action. The Surplus Land Act mandates an open and competitive RFP process for disposal of Exempt Surplus Land for affordable housing development. Compliance with state law precludes the use of local preference provisions. Selection of New Look Investments LLC was based solely on the criteria outlined in the RFP and applicable legal requirements. FISCAL IMPACT The western portion of the project site, formerly identified as APN 456-030-34T, was acquired in 2008 using Citywide Police Impact Fee (PD Fee) funds in the amount of $733,000, with the intent of constructing a police substation. The substation project did not proceed at this location. Approval of the IS/MND and DDA does not require new or supplemental appropriation authority and does not impact the General Fund. Proceeds from the property sale will reimburse the Citywide Police Impact Fee account, including accrued interest. Attachments: Initial Study/Mitigated Negative Declaration DDA Agreement with New Look Investments LLC