DATE:
December 10, 2024
TO:
Adam Politzer, Interim 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 The First Amendment Of Temporary Emergency Shelter License With Insight Housing For The Use Of Real Property Located At 4300 San Pablo Avenue Extending The License Term To June 1, 2025 Recommendation
Staff recommends the City Council adopt the attached resolution authorizing the City Manager to execute the First Amendment of Temporary Emergency Shelter License with Insight Housing to extend the termination date from December 31, 2024, to June 1, 2025.
Background
The crisis of homelessness affects every area 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 year-round 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. In October 2024, the term of the LDDA was amended to extend it to October 26, 2026.
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 unoccupiable. 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 (see Attachment 1).
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.
On November 25, 2024, Insight Housing informed the City that additional delays of the rehabilitation of the Dwight Way facility necessitate another extension, to June 1, 2025, which is the subject of this report (see Attachment 2).
BACS License Agreement
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 Bay Area Community Services (“BACS”) at 1201 2nd Street in Berkeley temporarily inoperable. The STAIR Center is a low-barrier transitional housing program. On September 3, 2024, the City Council adopted Resolution No. 24-108, authorizing the execution of a License Agreement with BACS 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. This License Agreement provides that in the event that the restoration of the 2nd Street facility is delayed the term may be extended for up to one year with the mutual agreement of BACS and the City.
Staff has communicated with BACS through the City of Berkeley regarding Insight Housing’s request for additional term, and the City of Berkeley has indicated that the construction schedule can be adjusted to accommodate a delay in BACS relocation to the Property.
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 originally envisioned 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 notified staff and EAH that PBV is unlikely to be released in 2025. Consequently, EAH is working to reposition the project to eliminate the reliance on PBV, and the intergenerational affordable housing project is not anticipated to commence construction before the end of 2025.
As noted above, the current License Agreement with Insight Housing provides for an initial term from April 7, 2023 to December 31, 2023, with a one-year extension subject to the mutual agreement of Insight Housing and the City, and approval by the City Manager. In order to extend the agreement beyond December 31, 2024, City Council authorization is required.
Staff has prepared the attached First Amendment of Temporary Emergency Women’s Shelter Agreement which extends the term to June 1, 2025. Insight Housing has indicated that the rehabilitation of the Dwight Way site is expected to be completed in March or April 2025, and that this is the last extension anticipated.
For Insight Housing to continue to use the Property as a Temporary Emergency Women’s Shelter beyond December 31, 2024, an amendment of the Conditional Use Permit is also required. Staff anticipates approving an extension of the Conditional Use Permit as a Minor Amendment pursuant to Emeryville Municipal Code Section 9-7.214, as was done for the previous three-month extension in late 2023.
Fiscal Impact
If approved by the City Council, the City of Emeryville would continue to provide use of its Property for the Temporary Emergency Family Shelter by way of the License Agreement valued at $1 per year. Insight Housing’s operation of the shelter is funded through a combination of City of Berkeley and Alameda County funds, including Homeless Housing, Assistance and Prevention Program funding provided by the State and allocated by Alameda County. Under the terms of the License Agreement, Insight Housing is responsible for all utility costs associated with the Property during its use, which reduces the costs to the City of holding the Property.
Staff Communication with the Public
Staff has not communicated with the public on this item.
Conclusion
Staff recommends that the City Council adopt the attached resolution authorizing the City Manager to execute the First Amendment of License Agreement with Insight Housing to allow for the continued use of the Property as a Temporary Emergency Women’s Shelter.
PREPARED BY: Chadrick Smalley, Director of Community Development Approved and Forwarded to the
CITY COUNCIL OF THE CITY OF EMERYVILLE:
Adam Politzer, Interim City Manager
ATTACHMENTS
Original Temporary Emergency Women’s Shelter License
Letter request for extension from Insight Housing dated November 25, 2024 Draft Resolution, including
Exhibit A – First Amendment to Temporary Emergency Women’s Shelter Amendment of Insight Housing License for 4300 San Pablo Avenue City Council Meeting | December 10, 2024
City of Emeryville
CALIFORNIA
MEMORANDUM