REPORT TO THE CITY COUNCIL April 9, 2020 FROM: LEE BRAND, Mayor Office of the Mayor & City Manager WILMA QUAN, City Manager Office of the Mayor & City Manager LUIS CHAVEZ, Councilmember City Council District 5 BY: TIM A. ORMAN, Chief of Staff to the Mayor Office of the Mayor & City Manager SUBJECT ..Title Actions pertaining to the Kings Canyon Apartments affordable housing project located at the 5100 block of East Kings Canyon Avenue: 1. Approve a Second Amendment to Amended and Restated Disposition and Development Agreement between the Cesar Chavez Foundation and City of Fresno; and 2. Approve a Grant Agreement between the Cesar Chavez Foundation and the City of Fresno to execute Council's previous budget action to provide a $500,000 grant (District 5) ..Body RECOMMENDATIONS The Mayor, Councilmember Chavez and the City Manager recommend the Council approve the Second Amendment to the Amended and Restated Disposition and Development Agreement (DDA) and the Grant Agreement between the Cesar Chavez Foundation (Developer) and the City of Fresno (City). EXECUTIVE SUMMARY On February 13, 2020, the Council voted to approve the 14th Amendment to the Annual Appropriation Resolution (AAR) No. 2019-133, which included the approval of Budget Motion 31 to provide $500,000 to the Developer in order to receive the necessary long-term financing for the completion of their affordable housing project that includes 89 multi-family units and 46 senior units. The Administration, in consultation with the City Attorney, determined that it would be necessary to amend the DDA and create a Grant Agreement in order to disburse the funds. Approval of both agreements will allow the City to complete the process and provide a check to the Developer. BACKGROUND The first Council action on Developer's Kings Canyon Apartments (Project) took place on March 5, 2015, with an Option Agreement and a DDA between Developer and the City. That agreement was amended on June 20, 2016, and then amended and restated on March 23, 2017, in order to assist Developer with securing the necessary financing to build the Project. The DDA was amended once again on November 2, 2017, to clarify the parties' roles in the construction and maintenance of the Project. What was once vacant, undeveloped property in Southeast Fresno is now a new 135-unit affordable housing complex in Southeast Fresno due to the diligence of Developer and the support of City staff, both past and present. Today's action will allow Developer to finalize their funding and start working on its next project(s) in the City. ENVIRONMENTAL FINDINGS This is not a project for the purposes of CEQA. LOCAL PREFERENCE Not applicable FISCAL IMPACT Not applicable. These funds were appropriated for this purpose by the Council on February 13, 2020, with the approval of the 14th Amendment to the Annual Appropriation Resolution (AAR) No. 2019-133 Attachments: Second Amendment to Amended and Restated Disposition and Development Agreement Grant Agreement