959 ਉੱਤਰ ਪਾਰਕਵੇ ਡ੍ਰਾਈਵ (APN: 449-324-11) ਨੂੰ ਖਰੀਦਣ ਦੇ ਵਿਕਲਪ ਲਈ ਫ੍ਰੇਸਨੋ ਸ਼ਹਿਰ ਅਤੇ ਫ੍ਰੇਸਨੋ ਹਾਊਸਿੰਗ ਅਥਾਰਿਟੀ ਵਿਚਕਾਰ ਸੋਧੀ ਅਤੇ ਮੁੜ ਤਿਆਰ ਕੀਤੀ ਗਈ ਸਮਝੌਤੇ ਦੀ ਦੂਜੀ ਸੋਧ ਨੂੰ ਮਨਜ਼ੂਰ ਕਰੋ, ਬੰਦ ਕਰਨ ਦੀ ਮਿਆਦ ਨੂੰ 200 ਦਿਨਾਂ ਤੱਕ ਵਧਾਉਣ ਅਤੇ ਸਮਝੌਤੇ ਦੀ ਸਮੁੱਚੀ ਆਮਦਨ ਨੂੰ ਬਦਲੇ ਬਿਨਾਂ ਸਾਰੀਆਂ ਹੋਮਕੀ ਵਿਵਸਥਾਵਾਂ ਨੂੰ ਸਪੁਰਦ ਕਰਨ ਲਈ (ਕਾউਨਸਿਲ ਜ਼ਿਲ੍ਹਾ 3)

REPORT TO THE CITY COUNCIL FROM: JENNIFER K. CLARK, AICP, Director Planning & Development Department BY: PHILIP SKEI, Assistant Director Planning & Development Department SARAH J. LAMBETH, Project Manager Planning & Development Department SUBJECT ..Title Approve the Second Amendment to the Amended and Restated Agreement for Option to Purchase 959 North Parkway Drive (APN: 449-324-11) between the City of Fresno and Fresno Housing Authority to extend the closing period of 200 days and assign all Homekey provisions without changing the overall compensation of the Agreement (Council District 3) ..Body RECOMMENDATIONS Staff recommends that the City Council approve the Second Amendment to the Amended and Restated Agreement for Option to Purchase 959 North Parkway Drive (APN: 449-324-11) between the City of Fresno and Fresno Housing Authority (FHA) to revise Exhibit B, Agreement for Purchase and Sale of Real Property and Escrow Instructions, to include an extended closing period of 200 days and assignment of all Homekey provisions, with no change to the overall compensation of the Agreement. Staff further recommends that the City Council authorize the City Manager or designee to execute all necessary documents on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The proposed Second Amendment to the Amended and Restated Agreement for Option to Purchase 959 North Parkway Drive modifies the terms governing the future sale of this Cityowned property. Specifically, the Amendment would revise the Agreement for Purchase and Sale of Real Property and Escrow Instructions (Exhibit B) to extend the closing period from 90 days to 200 days and incorporate all Homekey program provisions, while maintaining the original compensation terms. The extended closing period allows FHA sufficient time to complete the transactional steps associated with this complex Surplus Land Act Real Estate transfer, supporting the property’s transition from interim emergency shelter to permanent supportive housing, thereby fulfilling the City’s Homekey obligations to the State of California. This action aligns with the City Council’s prior findings under Fresno Municipal Code Section 4204, which affirm the substantial public benefit of facilitating FHA’s development of affordable housing on Parkway Drive and supports the City’s broader efforts to facilitate the development of permanent affordable and/or mixedincome housing throughout the city. BACKGROUND On February 27, 2021, FHA entered into a Purchase and Sale Agreement for the property located at 959 North Parkway Drive (APN: 449-324-11), formerly known as the Parkway Inn, for a purchase price of $3,234,000. The property was subsequently appraised by Gregg J. Palmer of James G. Palmer Appraisals, Inc. in May 2021, with a total appraised value of $4,000,000. FHA agreed to assign the Purchase and Sale Agreement to the City, and on December 9, 2021, City Council approved the Assignment of the Purchase and Sale Agreement for a consideration of One Dollar ($1.00) and reimbursement of $29,245 in eligible expenses, including the initial escrow deposit and due diligence costs for an appraisal and Phase I Environmental Site Assessment (ESA). At that same December 9, 2021, meeting, Council also approved an Agreement for Option to Purchase between the City and FHA, granting FHA an exclusive option to acquire the site for the sole purpose of developing permanent affordable and/or mixed income housing. On June 29, 2023, City Council approved an Amended and Restated Agreement for Option to Purchase to correct clerical errors, confirm the One Thousand Dollar ($1,000) purchase price, and reaffirm FHA's exclusive rights within the Option Window to acquire the property and convert it to permanent affordable and/or mixed income housing. In connection with the June 29, 2023, approval, Council also made findings pursuant to Fresno Municipal Code Section 4-204, including that there was good cause and clear and convincing benefit to the public to allow the Purchase Option for a period exceeding five years without a Request for Proposal process, and further found that the below-market sales price of $1,000 was justified by the substantial community benefits to be derived from the development of additional affordable and/or mixed income housing. On June 22, 2026, the First Amendment to the Amended and Restated Agreement for Option to Purchase was executed and recorded, opening the option window to begin immediately, evidencing a clear path to site control for FHA's Tax Credit application. Staff now recommends that the City Council approve the Second Amendment to the Amended and Restated Agreement for Option to Purchase 959 North Parkway Drive (APN: 449-324-11), between the City of Fresno and FHA, to revise Exhibit B, Agreement for Purchase and Sale of Real Property and Escrow Instructions, to extend the closing period from 90 days to 200 days, and assign all Homekey provisions, with no change to the overall compensation of the Agreement. Staff further recommends that the City Council authorize the City Manager or designee to execute all necessary documents on behalf of the City. Council approval of this Amendment will ensure FHA has sufficient time to complete all transactional requirements associated with this Surplus Land Act Real Estate transfer, supporting the property’s transition from interim emergency shelter to permanent supportive housing, thereby fulfilling the City’s Homekey obligations to the State of California. The City’s Better Business Act (BBA), established by Resolution No. 2009-118, provides due diligence and oversight requirements for private projects seeking financial assistance from the City exceeding $1,000,000. The Fresno Housing Authority is a public agency, and Resolution 2009-118 provides that requests for financial assistance involving other public agencies and public-public partnerships will be evaluated independently from the BBA. In this case, the BBA does not apply to the Second Amendment, because it does not increase the City’s financial assistance or modify the purchase price, it only extends the closing period and incorporates applicable Homekey program provisions. The City Attorney's Office has reviewed and approved all documents as to form. ENVIRONMENTAL FINDINGS On December 9, 2021, City Council adopted a finding of Categorical Exemption as set forth in the California Environmental Quality Act (CEQA) Guidelines Section 15301/Class 1 (existing facilities) which exempts projects involving negligible or no expansion of an existing facility. This exemption applies because this project involves the purchase of Parkway Inn without expansion of the facility. Staff determined under the CEQA Guidelines this project fits within the definition of existing facilities in Section 15301/Class 1, as Categorically Exempt from further CEQA review. Staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. LOCAL PREFERENCE Local preference is not applicable as this action does not involve the bid or award of a construction or services contract. FISCAL IMPACT There is no impact on the City’s General Fund as a result of this action. Attachments: Second Amendment to the Amended and Restated Agreement for Option to Purchase First Amendment to the Amended and Restated Agreement for Option to Purchase Amended and Restated Agreement for Option to Purchase Agreement for Option to Purchase