REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning & Development Department BY: PHILIP SKEI, Assistant Director Planning & Development Department SUBJECT ..Title ***RESOLUTION - Declaring property located at 959 North Parkway Drive (APN: 449-324-11) to be exempt surplus land (Council District 3) (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends City Council adopt the attached Resolution, declaring property located at 959 North Parkway Drive (APN: 449-324-11) to be exempt surplus land. EXECUTIVE SUMMARY In accordance with California Government Code ���54220-54234, collectively known as the Surplus Land Act (SLA), City Council must take formal action in a public meeting to declare this City-owned property as exempt surplus land. The attached Resolution designates the 1.46-acre parcel located at 959 North Parkway Drive, on the southwest corner of West Dennett Avenue and North Parkway Drive (APN 449-324-11) as exempt surplus real property pursuant to California Government Code �54221(f)(1)(D), subject to all conditions required under this exemption. The California Department of Housing and Community Development approved this exemption on May 26, 2026. This action, if approved by Council, is a necessary step in order to facilitate a future disposition to the Fresno Housing Authority, according to an executed Option to Purchase agreement approved by City Council on June 29, 2023, for conversion to permanent affordable housing. BACKGROUND City staff has determined that the property located at 959 North Parkway Drive, on the southwest corner of West Dennett Avenue and North Parkway Drive (APN 449-324-11) qualifies as exempt surplus real property pursuant to the Surplus Land Act. California Government Code ��54221(f)(1)(D) provides a specific pathway for local agencies to designate land as exempt surplus when it is intended for transfer to another local, state, or federal agency, a federally recognized California Indian tribe, or a third-party intermediary for future dedication to such an agency pursuant to a legally binding agreement. Upon approval of the attached Resolution, City staff will exercise the Amended and Restated Agreement for Option to Purchase 959 North Parkway Drive with the Fresno Housing Authority approved by City Council on June 29, 2023. This action is intended to facilitate the conversion of the property to permanent affordable and/or mixed-income housing, in alignment with the City's broader objectives for housing stability and neighborhood revitalization. The planned implementation of this agreement reflects ongoing interagency coordination and leverages established partnerships to advance long-term housing solutions within the Parkway Drive corridor. This approach is consistent with the City's commitment to utilizing surplus and exempt surplus land to address critical community needs through strategic collaboration and targeted redevelopment initiatives. Staff recommends City Council adopt the attached Resolution, declaring a 1.46-acre parcel located on the southwest corner of West Dennett Avenue and North Parkway Drive (APN: 449-324-11), to be exempt surplus land pursuant to California Government Code ��54221(f)(1)(D). Council adoption of this Resolution will streamline the disposition process by removing certain notice and negotiation requirements that would otherwise apply to surplus land, thereby facilitating transfer to a third-party intermediary for public benefit purposes. The City Attorney's Office has reviewed and approved the attached Resolution as to form. ENVIRONMENTAL FINDINGS Staff previously performed a preliminary environmental assessment of this Project and determined it falls within the Categorical Exemption set forth in 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 planned project involves the sale 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 was not implemented 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. Attachment: Resolution