REPORT TO THE CITY COUNCIL FROM: LUPE PEREZ, Director Economic Development Department SUBJECT ..Title RESOLUTION - Finding good cause and clear and convincing benefit to vary from the Request for Proposals process outlined in the Fresno Municipal Code Section 4-204 relating to the disposition of real surplus property APN 507-030-48ST (Herndon & Brawley) (Council District 2) (Requires 5 Affirmative Votes). ..Body RECOMMENDATION The staff recommends City Council approve the Resolution finding good cause and clear and convincing benefit to vary from the Request for Proposals (RFP) process outlined in Fresno Municipal Code Section 4-204 relating to the disposition of real surplus property located at the southwest corner of West Herndon and North Brawley Avenues (APN 507-030-48ST). EXECUTIVE SUMMARY Staff requests approval of the Resolution, finding of good cause and clear and convincing benefit to vary from the RFP process as outlined in Fresno Municipal Code (FMC) Section 4-204 related to the disposition of city owned real surplus property. The Resolution also authorizes the City Manager and or his/her designee to advance the RFP process, and bypass the selection of a formal committee for the disposition of APN 507-030-48ST. BACKGROUND This specific parcel has been historically undevelopable due to its zoning and the Airport Land Use Compatibility Requirements. Its proximity to Sierra Sky Park Airport severely limits the density and eligible use of the property. The parcel remains vacant, and is not necessary for the City of Fresno's (City) use. In March, 2020 by Resolution No. 2020-056 the parcel was declared surplus land. Proper noticing went out to developers and CA Department of Housing & Community Development (HCD), in compliance with the Surplus Land Act. No letters of interest to build affordable housing were received. The City, prior to passing FMC 4-204 through its broker, listed and advertised the property for sale, and since then has received multiple offers to purchase. These offers consist of office, medical, or storage use. The competitive RFP process applies to the subject parcel. Pursuant to FMC Section 4-204, it states, in part "real property may be sold, encumbered by an option, or leased for a period exceeding five years only after an open and competitive request for proposals (RFP) process is initiated by Council action and in compliance with state law, concerning disposition of surplus land; exclusive negotiating agreements shall not be permitted." FMC 4-204(a)(1) states: "An evaluation committee, to be selected prior to publication of the RFP, shall interview proposers, review and rank all proposals based on a predetermined set of criteria as set forth in the RFP, and make recommendations for selection to present to Council for approval. The committee at a minimum shall consist of two employees from the affected department as well as at least two employees and / or members of the public. The composition of the committee shall be at the discretion of the City Manager. Information provided to and prepared by the committee shall not be deemed a public record until such time as a contract shall be placed on the agenda for Council consideration." To vary from the FMC 4-204 and 4-204(a)(1) Council must approve the Resolution of finding of good cause and, clear and convincing benefits to the public by supermajority of at least 5 votes. The Resolution authorizes the City Manager to work with the Economic Development Department to issue the RFP as detailed below: * Advance the RFP process and allow 14 days for proposal submittals * Bypass the selection of a formal committee * Request all proposers to submit their "Last, Best and Final" offer * Negotiate, and return to Council for approval of a Formal Agreement when terms and conditions have been finalized It is in the City's best interest to sell the vacant surplus land. The development of this property will generate revenue for the City through the tax rolls, conferring further benefit to the public. ENVIRONMENTAL FINDINGS Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15378, this is not a project for the purposes of CEQA. LOCAL PREFERENCE Approval of this resolution is not subject to local preference. FISCAL IMPACT There is no fiscal impact to the City. Attachments: Resolution Exhibit A: Site Map