REPORT TO THE CITY COUNCIL FROM: MICHAEL ROGERS, Assistant City Manager Office of Mayor and City Manager BY: KELLY TREVINO, Assistant Director Economic Development Department SUBJECT ..Title Actions pertaining to a grant agreement between the City of Fresno and Cultiva La Salud, a California Non-Profit Corporation: 1. Adopt a finding of Categorial Exemption pursuant to Class 32, Section 15332 (In-Fill Development Project) of the California Environmental Quality Act (CEQA) Guidelines. 2. Approve the Grant Agreement with Cultiva La Salud for $700,000 to support the development of a commercial community kitchen for mobile food vendors. ..Body RECOMMENDATIONS Staff recommends Council approve the following items: (1) Adopt a finding of Categorical Exemption pursuant to Class 32, Section 15332 (In-Fill Development Project) of the California Environmental Quality Act (CEQA) Guidelines; (2) Approve $700,000 grant agreement between the City of Fresno and Cultiva La Salud to support the development of a commercial community kitchen for local mobile food vendors. EXECUTIVE SUMMARY During the Fiscal Year 2025 budget hearings, Council gave direction to provide $700,000 to Cultiva La Salud to support their development of a commercial community kitchen for local food vendors. BACKGROUND It is well recognized that entrepreneurship is one of the most effective ways to establish generational wealth in a family. Mobile food vendors are at the very cusp of initiating their entrepreneurial goals, and a commercial community kitchen provides an opportunity for mobile food vendors to prepare healthy food options for their customers and receive essential training on proper food handling and preparation techniques. The overall project, which will include second floor offices for the non-profit entity, is planned to be located at 620 N. Fresno Street. Initial estimates indicate that the total cost for this project will be approximately $3,000,000. Funding from the City is to support the first-floor kitchen project specifically. ENVIRONMENTAL FINDINGS This project qualifies for a categorical exemption under CEQA section 15332. It is an infill project under 5 acres in size and the development is consistent with the general plan designation. This project is exempt from the provisions of the California Environmental Quality Act pursuant to a Class 32 consists of projects characterized as in-fill development (In-Fill Development Projects) as set forth in CEQA Guidelines section 15332. The Class 32 consists of projects characterized as in-fill development meeting the conditions described in this section. Section 15332/Class 32 (Class 32/ln-Fill Development Projects) of the CEQA Guidelines exempts from the provisions of CEQA, projects characterized as in-fill development, which meet the conditions as outlined in Exhibit A. LOCAL PREFERENCE Local preference was not implemented because this item does not include an award of a service or construction contract. FISCAL IMPACT Funding for this amendment was allocated through the FY 2025 budget in the Economic Development Department's general fund. Attachments: Exhibit A - Categorical Exemption Agreement