REPORT TO THE CITY COUNCIL FROM: SCOTT L. MOZIER, PE, Director Public Works Department BY: JILL M. GORMLEY, TE, Assistant Director Public Works Department, Traffic & Engineering Services Division ADRIAN GONZALEZ, Supervising Engineering Technician Public Works Department, Land Planning Section SUBJECT ..Title RESOLUTION - Of Intention to Annex the Territory Known as Assessor's Parcel No. 479-050-20 as Annexation No. 73 to the City of Fresno Community Facilities District Number 9 and to authorize the Levy of Special Taxes; and setting the Public Hearing for Thursday, May 21, 2026, at 9:15 am (southwest corner of South MLK Jr Boulevard and East Church Avenue) (Council District 3). ..Body RECOMMENDATION Adopt Resolution of Intention to Annex the Territory Known as APN 479-050-20 as Annexation No. 73 to the City of Fresno Community Facilities District No. 9 (CFD No. 9) and to authorize the Levy of Special Taxes. EXECUTIVE SUMMARY The landowner, 2500 MLK LLC, has petitioned the City of Fresno (City) to have APN 479-050-20 annexed to CFD No. 9 to provide funding for the Services (as hereinafter defined) pertaining to certain above ground public improvements associated with this commercial development. The cost for these Services for the public improvements totals $3,854.50 per acre annually for Fiscal Year 2026-2027. Annexation No. 73 is located entirely within City limits. The Resolution of Intention begins the process, sets the required public hearing for Thursday, May 21, 2026, at 9:15 am, and defines the steps required to complete the annexation. BACKGROUND New commercial, industrial, and multi-family subdivisions and parcel maps have different needs and standards than those of a standard single-family residential subdivision. Commercial, industrial and multi-family subdivisions are traditionally self-maintained with different proprietary requirements for landscaping, signage, and general designs. CFD No. 9 is designed to accommodate these requirements by providing funding for services for certain required public improvements along the perimeters of these developments. On December 16, 2008, the Council of the City of Fresno adopted Council Resolution No. 2008-351, forming CFD No. 9 to provide funding for the Services for certain public improvements located within and adjacent to public streets on the perimeter of commercial, industrial, and multi-family subdivisions as described and permitted pursuant the Goals and Policies for CFD No. 9 and the City of Fresno Special Tax Financing Law, Chapter 8, Division 1, Article 3 of the Fresno Municipal Code (City Law) and the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5, commencing with Section 53311, of Part 1, Division 2, Title 5 of the California Government Code). The landowner, 2500 MLK LLC, along with the individual(s) representing the interests of the landowner - Stephen Shehadey, James Shehadey, Thomas Shehadey, and Sylvesta Hall - has petitioned the City to have APN 479-050-20 annexed to CFD No. 9 to provide funding for the operation and reserves for maintenance (Services) pertaining to certain above ground public improvements located within City street easements, official City Trails/required public trail easements, and landscaping easements located adjacent to City streets. These improvements may include landscaping, trees, and irrigation systems; concrete curbs and gutters, valley gutters, sidewalks and curb ramps; trail amenities, street name signage, street lighting, and local street paving as associated with this development. (Reference attached Vicinity Map.) APN 479-050-20 is located entirely within City limits. The attached Resolution of Intention initiates the annexation process, sets the public hearing for Thursday, May 21, 2026, at 9:15 am, sets the Maximum Special Tax at a total of $3,854.50 per acre to be apportioned proportionately for each assessor's parcel within Annexation No. 73 annually for fiscal year 2026-2027, and sets the annual adjustment of the Special Tax to be adjusted upward annually by 2% or by the rise of the Construction Cost Index (CCI), if it exceeds 2% for the San Francisco Region. Annexations to existing community facilities districts are permitted under City Law. The legislative body must follow certain prescribed procedures as outlined below: * Adoption of a Resolution of Intention to Annex to CFD No. 9 * Required 7-day minimum Notice of Public Hearing * Public hearing on Annexation and Levy of Special Tax * Call a Special Mailed-Ballot Election on the proposed Special Tax * Declare the Results of the Election * Formal Adoption of Special Tax Levy (if election passes) The attached Resolution has been approved as to form by the City Attorney's Office. ENVIRONMENTAL FINDINGS Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15378 this action does not qualify as a "project" and is therefore exempt from CEQA requirements. LOCAL PREFERENCE Local preference was not considered since this item does not include a bid or award of a construction or services contract. FISCAL IMPACT No City funds will be involved. All costs will be borne by the landowner as set forth in Exhibit D of the Resolution of Intention attached herein. Attachments: Vicinity Map Features Map Levine Act Disclosure Statement Form Resolution of Intention