REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, AICP, Director Planning & Development Department BY: DAVID DENSLEY, Projects Administrator Planning & Development Department SUBJECT ..Title Actions pertaining to the environmental abatement of a City owned hangar located at 716 W. Kearney Boulevard, Fresno, CA 93706. (District 3) 1. Adopt findings under California Environmental Quality Act (CEQA) Guidelines Section 15330/Class 30 (Minor Actions to Prevent, Minimize, Stabilize, Mitigate, or Eliminate the Release or Threat of Release of Hazardous Materials) for the abatement activities at 716 W. Kearney Boulevard 2. ***RESOLUTION - Approve an Interfund Loan Agreement between the Planning and Development Department and the Airports Department utilizing EPA Brownfields Revolving Loan Fund dollars in the amount of $385,500 for asbestos abatement, lead based paint abatement, and removal of lead impacted soil at the Fresno Chandler Executive Airport hangar. (Requires Five Affirmative Votes) (Subject to Mayor's Veto) ..Body RECOMMENDATIONS Staff recommends that the City Council approve a Resolution authorizing an Interfund Loan Agreement between the Planning and Development Department and the Airports Department utilizing EPA Brownfields Cleanup Revolving Loan Fund dollars in the amount of $385,500 for asbestos abatement, lead based paint abatement, and removal of lead impacted soil at the Fresno Chandler Executive Airport hangar located at 716 W. Kearney Boulevard. Staff further recommends that the City Council adopt findings under State CEQA Guidelines Section 15330/Class 30 for the proposed abatement activities. EXECUTIVE SUMMARY The Airports Department is requesting a Brownfields Cleanup Revolving Loan Fund interfund loan to complete asbestos abatement, lead-based paint abatement, and removal of lead-impacted soil at a vacant FCH hangar. An Analysis of Brownfield Cleanup Alternatives (ABCA) prepared by Stantec Consulting Services on November 14, 2025, identified extensive regulated building materials (RBMs) throughout the 11,000-square-foot hangar, including: * Asbestos-containing materials (ACM) in roof core, floor tile and mastic, drywall with joint compound, texture coat, acoustic ceiling, and door/window putty. * Lead-based paint (LBP) on exterior and interior beams and structural components. * Lead-impacted soil within the building dripline, with five samples exceeding the DTSC unrestricted-use screening level of 80 mg/kg and an estimated 140 cubic yards requiring remediation. Based on these findings, the ABCA Alternative 4 - Complete abatement of ACM and LBP and excavation/off-site disposal of lead-impacted soil was selected by the Airports Department. This approach removes contaminated building materials and lead-impacted soils, eliminating long-term exposure pathways, and prepares the site for safe reuse. The proposed interfund loan agreement provides $385,500 in EPA Brownfields RLF funding. This is a standard interest-free loan; the full amount is repayable by the Airports Department. BACKGROUND On December 3, 2009, the City Council adopted the Taxpayer Protection Act, amended on February 10, 2010, which requires a formal loan agreement for any borrowing between City funds. The Airports Department is requesting an interfund loan through the City's EPA Brownfields Cleanup Revolving Loan Fund (BCRLF) to complete environmental abatement activities at the FCH hangar located at 716 W. Kearney Boulevard. The hangar, constructed in 1948, contains regulated building materials identified through an Asbestos and Lead-Based Paint Survey completed in December 2024 and a Phase II Environmental Site Assessment completed in May 2025. These investigations documented asbestos-containing materials in multiple building components, lead-based paint on structural beams, and lead-impacted soil around the building perimeter. Soil sampling confirmed that several locations exceeded the California Department of Toxic Substances Control (DTSC) unrestricted-use screening level of 80 mg/kg for lead, with an estimated 140 cubic yards requiring remediation. An Analysis of ABCA prepared by Stantec Consulting Services on November 14, 2025, determined that complete abatement of asbestos and lead-based paint, combined with excavation and off-site disposal of lead-impacted soil, is the appropriate cleanup approach to meet regulatory requirements and support future redevelopment. This cleanup method eliminates exposure pathways, allows for safe demolition of the aging hangar, and prepares the site for safe future reuse. To implement this cleanup, the Airports Department is requesting a $385,500 interfund loan funded entirely through EPA Cooperative Agreement 4B-98T50501 (Brownfields Cleanup Revolving Loan Fund). This loan is interest-free, consistent with EPA requirements and repayment will begin one year after the effective date, with five equal annual installments due between July 30, 2027, and July 30, 2031. There is no penalty for early repayment. ENVIRONMENTAL FINDINGS The loan provides funding solely for hazardous materials abatement and issuance of ministerial abatement permits for asbestos and lead. Staff has determined that this action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15330/Class 30 (Minor Actions to Prevent, Minimize, Stabilize, Mitigate, or Eliminate the Release or Threat of Release of Hazardous Materials). Class 30 applies to small-scale cleanup actions that are designed to remove or reduce hazardous materials. The proposed project is consistent with the Class 30 exemption because the project is proposing asbestos abatement, lead-based paint abatement, and removal of lead-impacted soil, which fall within this exemption. Based on staff analysis, it was determined that no adverse environmental impacts would occur because of the Project and none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines Section 15300.2 apply to this project. Because Federal EPA Brownfields Revolving Loan Fund dollars are being used, the project was also subject to Section 106 of the National Historic Preservation Act. The EPA has obtained concurrence from the State Historic Preservation Officer for a No Historic Properties Affected/No Adverse Effect determination. The project will comply with all applicable federal cross-cutting requirements, including Davis-Bacon prevailing wage, Title VI nondiscrimination, and federal reporting requirements. LOCAL PREFERENCE Local Preference is not applicable because the City is acting as the lender and the project is funded with federal dollars. FISCAL IMPACT There is no impact to the City's General Fund. The Airports Department will repay the loan using Airports enterprise funds, and all repayments will be deposited into the City's Brownfields Revolving Loan Fund trust account as program income in accordance with EPA requirements. Attachments: Resolution- Brownfields Interfund Loan Agreement Analysis of Brownfields Cleanup Alternatives EPA Cooperative Agreement- 4B-98T50501-3 Project Approval RLF Supplemental - 98T50501 (4B) Section 106 Inventory, Evaluation, and Report Categorical Exemption