REPORT TO THE CITY COUNCIL, THE CITY IN ITS CAPACITY AS HOUSING SUCCESSOR TO THE REDEVELOPMENT AGENCY OF THE CITY OF FRESNO AND THE FRESNO REVITALIZATION CORPORATION FROM: MARLENE MURPHEY, Executive Director Housing Successor Agency to the Redevelopment Agency JENNIFER CLARK, Director Planning and Development Department THROUGH: PHIL SKEI, Assistant Director Planning and Development Department BY: CORRINA NUNEZ, Project Manager Housing and Community Development Division SUBJECT ..Title *** RESOLUTION - Declaring a .29-acre vacant parcel located at the southeast corner of E. Ventura Street and S. Seventh Street (APN: 470-052-01T), a 2.85-acre vacant parcel located on E. Ventura Street between S. Eighth Street and S. Seventh Street (APN: 470-052-02T), and a .26-acre vacant parcel located at the southeast corner of S. Eighth Street and E. El Monte Way (APN: 470-052-03T), to be exempt surplus land and directing staff to comply with the open and competitive request for proposals process for the disposition of these parcels for a mixed-use mixed-income housing development as required by FMC Section 4-204 (District 5) (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends the City Council adopt a Resolution declaring a .29-acre vacant parcel located at the southeast corner of E. Ventura Street and S. Seventh Street (APN: 470-052-01T) (Exhibit "A" - Housing Successor Resolution), a 2.85-acre vacant parcel located on E. Ventura Street between S. Eighth Street and S. Seventh Street (APN: 470-052-02T), and a .26-acre vacant parcel located at the southeast corner of S. Eighth Street and E. El Monte Way (APN: 470-052-03T) (Exhibit "B" - City Resolution) as exempt surplus real property at this regularly scheduled Council meeting to comply with the open and competitive request for proposals (RFP) process for the disposition of these parcels for a mixed-use mixed-income housing development as required by FMC Section 4-204. (District 5). EXECUTIVE SUMMARY In accordance with the State of California Assembly Bill No. 1486 and 1255, commonly referred to as the Surplus Land Act (SLA), the Council shall take formal action in a public meeting to declare these City-owned parcels as exempt surplus land. Adoption of the attached Resolutions will declare a .29-acre vacant parcel located at the northwest corner of E. Ventura Street and S. Seventh Street (APN: 470-052-01T), a 2.85-acre vacant parcel located on E. Ventura Street between S. Eighth Street and S. Seventh Street (APN: 470-052-02T), and a .26-acre vacant parcel located at the southeast corner of S. Eighth Street and E. El Monte Way (APN: 470-052-03T) to be exempt surplus real property pursuant to Government Code section 37364 and section 54221(f)(1)(A) and shall comply with all development conditions as required under this exemption. The California Department of Housing and Community Development approved this exemption on December 12, 2022. In addition, the City of Fresno in its capacity and the Housing Successor to the Redevelopment Agency of the City of Fresno (Agency) owns the vacant .29-acre parcel located as the southwest corner of E. Ventura and S. Seventh Street and wishes to jointly and simultaneously declare it exempt and include it in the same Planning and Development Department RFP and housing development project anticipated for the block. On April 13, 2017, the City Council adopted the City of Fresno 2015-2023 Housing Element of the General Plan (Site Inventory List) and on July 7, 2017, the State of California determined the City of Fresno Housing Element to be in compliance with State Housing Element requirements. The City Housing Element specifically lists the properties as vacant land suitable for housing to meet the City's Regional Housing Needs Allocation (RHNA) as outlined in the Housing Element. Staff recommends Council initiate an open and competitive request for proposals (RFP) process for the disposition of these properties for a mixed-use mixed-income development as is now required pursuant to FMC Section 4-204, unless an exception applies or Council votes to vary from the process upon making findings of good cause and clear and convincing benefits to the public, and by a supermajority approval of at least five votes. BACKGROUND City staff has concluded that the .29-acre vacant parcel located at the southeast corner of E. Ventura Street and S. Seventh Street (APN: 470-052-01T), a 2.85-acre vacant parcel located on E. Ventura Street between S. Eighth Street and S. Seventh Street (APN: 470-052-02T), and a .26-acre vacant parcel located at the southeast corner of S. Eighth Street and E. El Monte Way (APN: 470-052-03T) are exempt surplus real properties as they were purchased by the Agency and the City in 2007 and 2008, for the exclusive purpose of creating affordable housing. The proposed development and affordability restrictions support the findings that the parcels qualify as exempt from the California Surplus Land Act as stated in Government Code Section 37364(a): "...whenever the legislative body of a city determines that any real property or interest therein owned or to be purchased by the city can be used to provide housing affordable to persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code or as defined by the United States Department of Housing and Urban Development or its successors, and that this use is in the city's best interests, the city may sell, lease, exchange, quitclaim, convey, or otherwise dispose of the real property or interest therein at less than fair market value, or purchase an interest in the real property, to provide that affordable housing under whatever terms and conditions the city deems best suited to the provision of such housing." On November 30, 2022, City staff contacted the State of California Department of Housing and Community Development (HCD) to discuss the history of the property, and request approval for an exemption. HCD concurred that a development of the proposed type described herein is in compliance with the following requirements of Government Code section 37364: a) Minimum of 80% of the area of any parcel shall be used for development of housing (remaining 20% could be ancillary commercial or park/open space use); b) Not less than 40% of the total number of housing units developed on any parcel pursuant to this section shall be affordable to households whose incomes are equal to, or less than, 75 percent of the maximum income of lower income households (80% of AMI), and at least half of which (20% of the units) shall be affordable to very low-income households (50% of AMI). (HCD chart to calculate income limits: https://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-income-limits/docs/income-limits-2021.pdf.); c) Dwelling units shall be restricted by regulatory agreement to remain continually affordable to those persons and families for the longest feasible time, but not less than 30 years and shall be recorded against the property. The attached Resolutions and findings are a requirement of SLA to designate the properties as exempt surplus land. Since the purchase of the properties in 2007 and 2008, it was the intent of the City Housing and Community Development Division to transfer the property to a developer for the development of mixed-use mixed-income housing. This decision was made by the Council at the adoption of the City 2015-2023 Housing Element of the General Plan that requires the City to inventory property within its jurisdiction suitable for housing to meet its share of the RHNA. Once a mixed-use mixed-income housing development is completed at the site, the proposed 50 to 90 multifamily housing units will assist the City in meeting its affordable housing goals as identified in the Housing Element of the 2035 General Plan, 2020-2024 Consolidated Plan. In addition, new multifamily housing at the site is expected to make a positive impact to the neighborhood by offering quality, durable, affordable housing. The request for proposals process initiated by this Council action will require any developer to comply with the development parameters outlined above. ENVIRONMENTAL FINDINGS This is not a project for the purposes of the California Environmental Quality Act. LOCAL PREFERENCE Adoption of this Resolution is not subject to local preference. FISCAL IMPACT There is no fiscal impact to the City at this time. APPENDICES Exhibit A - Housing Successor Resolution Exhibit B - City Resolution