DATE:
September 3, 2024
TO:
Paul Buddenhagen, City Manager
FROM:
Chadrick Smalley, Community Development Director
SUBJECT:
Resolution Of The City Council Of The City Of Emeryville Authorizing The City Manager To Execute A License Agreement With Bay Area Community Services, Inc For Use Of Real Property Located At 4300 San Pablo Avenue For Temporary Transitional Housing Recommendation
Staff recommends that the City Council adopt the attached resolution authorizing the City Manager to execute a License Agreement with Bay Area Community Services, Inc (“BACS”) for use of real property located at 4300 San Pablo Avenue as a Temporary Transitional Housing Shelter for an initial term commencing on January 1, 2025 and ending April 30, 2025, with one one-year extension subject to the mutual agreement of the City and BACS.
Background
The crisis of homelessness affects much of Alameda County including Emeryville. The City Council has recognized this for a number of years by funding various services and programs including the Family Front Door, the shelter at St. Vincent DePaul, and outreach and case management services for unhoused residents of Emeryville through a contract with Operation Dignity. Additionally, on October 30, 2018, the City Council adopted Resolution No. 18-156 declaring a shelter crisis in Emeryville and authorizing the City to participate in the state funded Homeless Emergency Aid Program.
EOCP/Building Futures License Agreement
On September 17, 2019, the City Council approved Resolution No. 19-136, authorizing the execution of a License Agreement with East Oakland Community Project (“EOCP”) to use the City-owned property at 4300 San Pablo Avenue (the “Property”) as a temporary emergency family shelter for up to 24 months. The license agreement with EOCP also included use of up to four spaces in the City Hall Parking Lot for staff parking, since the Property does not include any off-street parking. The Property was previously utilized by the City as a temporary recreation center and is improved with modular buildings.
EOCP operated the temporary emergency family shelter at the Property until December 28, 2020. On April 30, 2021 the City approved the assignment of the license agreement from EOCP to Building Futures for Women and Children (“Building Futures”), to allow for continued operation of the Family Front Door Coordinated Entry System (i.e. office functions) from the Property. On September 22, 2021, the City Manager executed the First Amendment to the License Agreement extending the term to September 22, 2022. Building Futures continued to operate from the Property until August 5, 2022.
Intergenerational Affordable Housing Project
On September 17, 2019 (the same date the City Council approved the License Agreement with EOCP), the City Council adopted Resolution No. 19-137 authorizing staff to release a Request for Qualifications/Proposals (RFQ/P) for the design and development of an affordable senior or intergenerational rental housing development on the Property.
On July 21, 2020, the City Council adopted Resolution No. 20-85 selecting EAH Housing (“EAH”) as the first-choice developer for the design and development of the Property and authorized the City Manager to execute an Exclusive Right to Negotiate Agreement (“ERN”) with EAH for the purpose of negotiating a Lease Disposition and Development Agreement (“LDDA”) for development of the Property. On September 6, 2022 the City Council adopted the second reading of Ordinance No. 22-007 authorizing execution of the LDDA.
The LDDA provides for the development of 68 units and 7,000 square feet of amenity space within a 5-story building with a courtyard at the second level. The development will serve both Transition Aged Youth (“TAY”) and Senior populations, with a maximum of 13 units set aside for TAY, one unit for an on-site manager, and the remaining 54 units for seniors. The affordable units will serve households earning between 20% and 60% of Area Median Income (“AMI”), with no less than 35 units for households earning no more than 30% of AMI. The Community Development Director approved the planning entitlements for the EAH project on December 5, 2022.
Included among the conditions precedent to conveyance of the leasehold interest in the Property to EAH is the requirement to obtain all financing necessary for the development of the project and submittal of commitment letters from funders. Since execution of the LDDA, EAH has been working towards fulfillment of this condition. The term of the LDDA runs to October 26, 2024.
Insight Housing License Agreement
In November 2022, the Women’s Shelter operated by Insight Housing (then known as Berkeley Food and Housing Project) at 2140 Dwight Way in Berkeley experienced a fire. This facility held both Insight Housing’s Veterans Program and its Women’s Shelter, and the fire rendered the building unhabitable. The participants in the Veteran’s Program were relocated to the newly-constructed Hope Center at 2020 Berkeley Way, Berkeley, as originally planned for that project, while the Women’s Shelter participants were initially relocated to the STAIR Center in Berkeley. Because the STAIR Center is not restricted to women, Insight Housing sought a temporary location for the Women’s Shelter in order to provide these specialized shelter services for up to 32 clients during reconstruction of the Dwight Way facility. Insight Housing toured the facilities at 4300 San Pablo Avenue and found the site suitable as a temporary Women’s Shelter.
On March 23, 2023, the Planning Commission adopted Resolution No. UPDR23-002, which approved Insight Housing’s application for a conditional use permit for the temporary emergency women’s shelter at the Property, subject to certain conditions, until March 23, 2024. Shortly after, on April 4, 2023, the City Council adopted Resolution No. 23-36 authorizing the execution of a License Agreement with Insight Housing for use of the Property, with an initial term commencing on April 7, 2023 and ending December 31, 2023, with a one-year extension subject to the mutual agreement of the City and Insight Housing.
On April 17, 2023, Insight Housing informed the City that delays of the rehabilitation of Insight Housing’s Dwight Way facility necessitated an extension of the License Agreement from March 23, 2024 to June 30, 2024. On December 20, 2023 the Community Development Director approved an extension of the Conditional Use Permit to June 30, 2024 as a Minor Amendment pursuant to Emeryville Municipal Code Section 9-7.214, and the City Manager approved a concurrent extension of the License Agreement. On June 5, 2024, Insight Housing informed the City that additional delays of the rehabilitation of the Dwight Way facility necessitated a further extension of the License Agreement, from June 30, 2024 to December 31, 2024. On June 27, 2024, the Planning Commission approved Resolution No. UP23-002/EXTENSION, extending the term of the Conditional Use Permit to December 31, 2024, and the City Manager approved a concurrent extension of the License Agreement.
Insight Housing currently expects the restoration of the Dwight Way facility to be completed in mid to late December 2024.
Discussion
As noted above, EAH has been working to assemble financing for the intergenerational affordable housing project pursuant to the LDDA. The project’s funding plan requires securing Project Based Section 8 Vouchers (“PBV”) from the Housing Authority of Alameda County (“HACA”). At the time the LDDA was being considered by the City Council, EAH and staff anticipated that a Notice of Funding Availability (“NOFA”) for PBV would be released in late 2022. Since then, HACA has notified staff and EAH that a NOFA for PBV is expected to be released in Fall 2024. Consequently, the intergenerational affordable housing project is not anticipated to commence construction before the end of 2025.
Meanwhile, in spring of 2024, the City of Berkeley contacted staff regarding an upcoming site improvement project that will render the STAIR Center operated by BACS at 1201 2nd Street in Berkeley temporarily inoperable. The STAIR Center is a low-barrier transitional housing program (see program description, Attachment 2). BACS has been seeking a temporary location for the STAIR Center’s Transitional Housing Program in order to continue to provide shelter and navigation services to its clients during the site improvements at the 2nd Street facility.
Staff and BACS have negotiated a License Agreement (attached as Exhibit A to the Draft Resolution) modeled after the License Agreements with EOCP and Insight Housing, for the use of the Property as Temporary Transitional Housing from January 1, 2025 through April 30, 2025, at which point the site improvements at the 2nd Street facility are expected to have been completed. In the event the restoration of the 2nd Street facility is delayed, the License Agreement provides that the term may be extended for up to one year with the mutual agreement of BACS and the City.
For BACS to use the Property for Temporary Transitional Housing, a Conditional Use Permit is required. BACS submitted an application for a Conditional Use Permit, which was heard by the Planning Commission on August 22, 2024. The results of the Planning Commission meeting were not available as of the production of this staff report and will be reported to the City Council on September 3, 2024. The application narrative, which includes a summary of BACS’s proposed operation, as well as excerpts from the submitted plans are attached to this report as Attachments 1 and 2, respectively.
Fiscal Impact
If approved by the City Council, the City of Emeryville would provide use of its Property for the Temporary Transitional Housing operated by BACS through the License Agreement, at a cost to BACS of $1 per year. Pursuant to the License Agreement, BACS is responsible for the utilities and maintenance of the Property. BACS’s operation of the shelter is funded through a combination of City of Berkeley, Alameda County and State funds.
Staff Communication with the Public
As noted above, on August 22, 2024 the Planning Commission held a public hearing to review the use permit for BACS proposed use of the Property.
Conclusion
Staff is requesting that the City Council adopt the attached resolution authorizing the City Manager to execute a License Agreement with BACS for use of the Property as a Temporary Transitional Housing facility.
PREPARED BY: Charles Harris, Community & Economic Development Coordinator II Approved and Forwarded to the
CITY COUNCIL OF THE CITY OF EMERYVILLE:
Paul Buddenhagen, City Manager
ATTACHMENTS
Attachment 1. Narrative summary of proposed operation
Attachment 2. Excerpts from plans submitted for Planning Commission review Draft Resolution, including Exhibit A, License Agreement with Bay Area Community Services, Inc Bay Area Community Services License for 4300 San Pablo Avenue City Council Meeting | September 3, 2024
City of Emeryville
CALIFORNIA
MEMORANDUM