REPORT TO THE CITY COUNCIL, THE CITY IN ITS CAPACITY AS HOUSING SUCCESSOR AND
THE FRESNO REVITALIZATION CORPORATION
FROM: JENNIFER CLARK, Director
Planning & Development Department
PHIL SKEI, Assistant Director
Planning & Development Department
MARLENE MURPHEY, Executive Director
Housing Successor Agency to the Redevelopment Agency
SUBJECT
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Approve an Amended and Restated Disposition and Development Agreement between the City of Fresno, the City of Fresno in its capacity as Housing Successor, and The Park Partners, LLC. for City-owned property located at 815 Fulton Street (APN: 468-28-23T; 0.6 Acres) and Redevelopment Agency owned properties located at 829 & 835 Fulton Street (APN(s): 468-282-05T (0.08 Acres) & 468-282-22T (0.09 Acres)), near the West corner of Fulton and Inyo (Council District 3)
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RECOMMENDATION
Staff recommends that the City Council approve the amended and restated Disposition and Development Agreement between the City of Fresno, the City of Fresno in its capacity as Housing Successor, and The Park Partners, LLC. for City-owned property located at 815 Fulton Street (APN:
468-28-23T; 0.6 Acres) and Redevelopment Agency owned properties located at 829 & 835 Fulton Street (APN(s): 468-282-05T (0.08 Acres) & 468-282-22T (0.09 Acres)), near the West corner of Fulton and Inyo.
EXECUTIVE SUMMARY
On November 6, 2025 the City Council approved a Disposition and Development Agreement (DDA) with The Park Partners, LLC (Developer) to develop a 160-unit Affordable Housing Project at 815, 829, and 835 Fulton Street (Project), land owned by the City and Housing Successor Agency to the Redevelopment Agency.
In order to align with key timelines for the Project’s financing, an amended and restated DDA is required, as allowed by the Fresno Municipal Code 4-204(d).
A summary of the amended changes to the DDA are as follows:
• The Project has increased the unit count from 160 units to 174 units; • The Project has increased the number of income -restricted units from 64 units to 70 units in order to maintain compliance with the California Surplus Land Act Affordable Housing exemption requirement that 40% of the units be income-restricted; • The Project has increased the number of market-rate units from 96 units to 104 units; • The Project unit mix as follows:
o Forty (40) studio units (previously 13) at approximately 370-385 square feet (previously 360-394 square feet)
o One hundred twenty-six (126) two-bedroom units (previously 140) at approximately 722- 813 square feet (previously 689-736 square feet)
o Seven (7) three -bedroom units ( previously 6) at approximately 1,2 88 square feet (previously 1,200 square feet),
o One (1) studio unit designated for an on-site manager • References to “students” have been replaced with “individuals” for compliance with the California Surplus Land Act Affordable Housing Exemption;
• The total development cost of the project has reduced from $84,276,814 to $81,225,000; • Exhibit C reflects the following changes in the amount of funding by source:
o Bond financing increased to $69,498,000 from $67,076,814 o NOFA loan (now “NOFA - City of Fresno Revolving Loan”) is $8,000,000 o Sponsor Mezz Loan B (now “City of Fresno Loan”) is $3,727,000 • Exhibit D reflects a new performance schedule to align with current bond financing requirements.
Subsequent performance milestone dates have been adjusted accordingly.
Approval of the amended and restated DDA will enable the Developer to secure the necessary financing for the Project and the City and Housing Successor to the Redevelopment Agency to proceed with the sale of the properties to the Developer for an affordable housing development as set forth below.
BACKGROUND
The Housing Successor of the Redevelopment Agency of the City of Fresno (Housing Successor) and the City of Fresno (City) have mutual interest in developing properties in the South Stadium district in downtown Fresno, into the Development known as “The Park @ South Stadium”
On April 3, 2014, a Request for Proposals (RFP) was issued by the Housing Successor for a mixed - use, multi-phase development, that included several properties located in the vicinity of Fulton and Inyo Streets. On October 30, 2014, the Council and Housing Successor selected the Noyan Frazier Capital, LLC, and the parties entered into an Exclusive Negotiating Agreement (ENA) to develop potential financing options and to negotiate the terms and conditions of a Development and Disposition Agreement (DDA).
On March 26, 2015, the City Council approved the Purchase and Sale Agreement (PSA) between the Housing Successor and the City for the sale of this property totaling approximately 0.60 acres near the corner of Inyo Street and Fulton (APN 468-282-23T), for a price of $328,000. The property was required to be sold as part of the dissolution of the former Redevelopment Agency
On February 25, 2016, the City Council approved a PSA between the Housing Successor and the City for property located on 829 Fulton (APN 468-282-05T), 835 Fulton (APN 468-282-22T), and the Parking Lot on 815 Fulton Street (APN 468-282-23T) and the material terms of the DDA between the City and Noyan Frazier Capital, LLC for a proposed development that was generally conceived as a five-phase mixed-use residential, retail, and office development.
On June 22, 2018, the City and the Noyan Frazier Capital, LLC entered a First Amendment Agreement to the DDA to amend certain terms of the DDA.
On August 18, 2022, the City Council rejected a resolution Finding Good Cause and Public Benefit for Extension of the South Fulton Mixed Use Residential Rental Project regarding real property disposition of 815, 829 and 835 Fulton, and approved a consideration request from Noyan Frazier Capital L.P. for a Second Amendment to the Amended and Restated DDA, which extended the date to close of escrow and to meet conditions of the DDA. The terms of the aforementioned DDA have since expired.
On November 6, 2025 the City Council approved a Disposition and Development Agreement (DDA) with The Park Partners, LLC (Developer) to develop a 160-unit Affordable Housing Project at 815, 829, and 835 Fulton Street (Project), land owned by the City and Ho using Successor Agency to the Redevelopment Agency.
The proposed development and affordability restrictions support the findings that the property qualifies as exempt from the California Surplus Land Act as stated in Government Code Section 37364(a):
“…whenever the legislative body of a city determines that any real property or interest therein owned or to be purchased by the city can be used to provide housing affordable to persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code or as defined by the United States Department of Housing and Urban Development or its successors, and that this use is in the city's best interests, the city may sell, lease, exchange, quitclaim, convey, or otherwise dispose of the real property or interest therein at less than fair m arket value, or purchase an interest in the real property, to provide that affordable housing under whatever terms and conditions the city deems best suited to the provision of such housing.”
On October 22, 2025, the California Department of Housing and Community Development (HCD) concurred that a development of the type described herein is in compliance with the following requirements of Government Code section 37364:
a) Minimum of 80% of the area of any parcel shall be used for development of housing (remaining 20% could be ancillary commercial or park/open space use); and
b) Not less than 40% of the total number of housing units developed on any parcel pursuant to this section shall be affordable to households whose incomes are equal to, or less than, 75 percent of the maximum income of lower income households (80% of area median income), and at least half of which (20% of the units) shall be affordable to very low -income households (50% of area median income); and
c) Dwelling units shall be restricted by regulatory agreement to remain continually affordable to those persons and families for the longest feasible time, but not less than 30 years and shall be recorded against the property.
On February 18, 2026 HCD issued a Findings Letter confirming all the requirements under the SLA for the purposes of disposing of the Property have been met for Assessor’s Parcel Numbers (APN) 468 - 282-05T and 468-282-022T.
On February 23, 2026 HCD issued a Findings Letter confirming all the requirements under the SLA for the purposes of disposing of the Property have been met for Assessor’s Parcel Number (APN) 468 - 282-023T.
In order to align with key timelines for the Project’s financing, an amended and restated DDA is required, as allowed by the Fresno Municipal Code 4-204(d).
The City Attorney’s Office has reviewed and approved the attached amended and restated DDA as to form.
ENVIRONMENTAL FINDINGS
This Project is subject to a zone clearance review under Chapter 15, Article 51 of the Fresno Municipal Code (FMC). FMC Section 15 -4907 deems zone clearances to be ministerial actions. Therefore, t his project is exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15268 of the CEQA Guidelines as a ministerial project.
LOCAL PREFERENCE
Local preference is not applicable, as this action does not involve a bid or award for construction or services contracts.
FISCAL IMPACT
There is no impact on the City’s General Fund as a result of this action. State and/or Federal funding may be utilized.
Attachments:
Amended and Restated Disposition and Development Agreement Original Agreement