REPORT TO THE CITY COUNCIL August 17, 2017 FROM: JENNIFER K. CLARK, DIRECTOR Development and Resource Management Department THROUGH: KELLI FURTADO, ASSISTANT DIRECTOR Development and Resource Management Department BY: PHIL SKEI, NEIGHBORHOOD REVITALIZATION MANAGER Development and Resource Management Department SUBJECT ..Title Actions pertaining to the sale of 125 and 129 North Diana Street (APN 459-333-21T): 1. Approve the sale of a .24 acre lot at 125 and 129 North Diana Street (APN 459-333-21T) to Community Regional Medical Center for the appraised value of $32,000 (District 7) 2. ***RESOLUTION - 9th amendment to the Annual Appropriation Resolution (AAR) No. 2017-165 appropriation of $32,000 in proceeds from the sale for property abatement in priority neighborhoods. (Requires 5 affirmative votes) (Subject to Mayor's veto) ..Body RECOMMENDATIONS Staff recommends Council: 1. Approve the sale of a .24 acre vacant lot located at 125 and 129 North Diana Street (APN 459-333-21T) to Community Regional Medical Center for the $32,000 appraised value and authorize the City Manager, or designee, to sign all documents necessary to complete the transaction; and 2. Approve AAR No. 2017-165 appropriating the $32,000 sale proceeds to the General Fund for property abatement in priority neighborhoods identified through Restore Fresno and monitored by the City's Neighborhood Revitalization Team. EXECUTIVE SUMMARY In January 2007, the City of Fresno (City) purchased a .24 acre vacant lot located at 125 North Diana (APN 459-333-21T). The property has been marketed to the City's network of affordable housing developers multiple times over the past ten years but no viable solution has been reached. In addition to being an attractive nuisance, the property requires ongoing abatement by the City that costs approximately $1,850 in maintenance annually. These issues are impeding efforts to revitalize the Yokomi neighborhood. Community Regional Medical Center (CRMC) has expressed interest in purchasing APN 459-333-21T at the appraised value of $32,000. If acquired, CRMC will secure the site, and comply with all applicable federal, state or local codes, regulations or standards. BACKGROUND In January 2007, using General Fund resources, the City of Fresno purchased two vacant lots at 125 North Diana (APN# 459-333-08) and 129 North Diana (APN# 459-333-07) for $118,250 to develop two affordable single family homes. During escrow the two parcels were combined into one (APN# 459-333-21T). Over the course of the next ten years, the City paid approximately $1,850 in abatement/maintenance costs annually. The property was ultimately unsuccessfully marketed for affordable housing developers. During this time the cost and burden of keeping the lot free of rubbish and weeds has increased while the community benefit of the City owning the lot has diminished, as revitalization efforts in the Yokomi neighborhood have progressed. In the interest of securing and maintaining the property, CMRC has committed to purchasing, securing, and maintaining the property for future development. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment of this project and has determined that it falls within the Categorical Exemption set forth in Section 15312 - Class 12 which exempts the sale of government surplus property. Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set forth in CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference was not considered because the sale of land does not include a bid or award of a construction or services contract. FISCAL IMPACT The City's General Fund will save approximately $1,850 per year in maintenance costs and receive $32,000 in proceeds from the sale of this property which will be applied to the General Fund for property abatement in priority neighborhoods identified through Restore Fresno and monitored by the City's Neighborhood Revitalization Team. Attachments: Attachment A - Site Map Attachment B - 9th Amendment to AAR Attachment C - Purchase and Sale Agreement