City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01152 June 21, 2022
Title: Grant Agreement for the La Familia Counseling Center, Inc. Opportunity Center [Two-Thirds Vote Required]
Location: Citywide
Recommendation: Pass a Motion: 1) by two-thirds vote waiving the requirement for 10-day posting of agreements over $1 million under City Code section 4.04.020(C) and Council Rules of Procedure Chapter 7, Section E.2.d; and 2) authorizing the City Manager or the City Manager’s designee to execute a Grant Agreement with La Familia Counseling Center, Inc. for the Opportunity Center in an amount not-to-exceed $2 million.
Contact: Denise Malvetti, Deputy Director, (916) 808-7064, [email protected], Ginger Weagraff, Development Project Manager, (916) 808-1222, [email protected]; City Manager’s Office of Innovation and Economic Development
Presenter: None
Attachments:
1-Description/Analysis
2-Grant Agreement with La Familia Counseling Center, Inc.
Description/Analysis
Issue Detail: In 2019, La Familia Counseling Center, Inc. (La Familia) purchased several parcels on Franklin Boulevard between 37th and 38th Avenues with the intent to build an Economic Development Opportunity Center (Opportunity Center). Once constructed, the Opportunity Center will serve as a community hub by providing critical services and resources to some of the City’s most underserved neighborhoods. Specifically, the Opportunity Center will feature:
• A behavioral health clinic where individuals can receive mental health counseling; • A physical health clinic where individuals can receive health care services; • A career center where individuals can receive employment coaching; • A training center where individuals can utilize a computer lab and participate in hosted trainings on various topics; and
• A birth and beyond center where individuals can participate in parenting classes.
On July 23, 2019, the City Council authorized the execution of a $350,000 grant agreement to assist La Familia with pre-development work including completing land acquisition, environmental studies, architectural drawings, and a land survey.
On February 15, 2022, the City Council adopted Resolution No. 2022-0062, which amended the Fiscal Year (FY) 2021/22 Approved Budget. Among the changes was the addition of a $2 million allocation to assist La Familia with property acquisition and financing costs, pre- construction work, project management, soft costs, and construction of on and off-site improvements related to the Opportunity Center.
Policy Considerations: Authorizing this grant agreement is consistent with the policy priorities identified in the FY 2021/22 Midyear Budget Report. The Opportunity Center also aligns with several key tenets of the City’s ScaleUp Sacramento: Inclusive Economic Action Agenda including fostering a more skilled workforce and cultivating opportunities for underserved communities to build wealth.
Economic Impacts: The existence of an Opportunity Center is likely to yield myriad positive economic impacts including boosting employment and increasing wealth building opportunities.
Environmental Considerations:
California Environmental Quality Act (CEQA): The proposed action consists of a $2 million grant to assist La Familia with land acquisition and financing costs, pre- construction work, project management, soft costs, and construction of on and off-site improvements related to the proposed Opportunity Center.
Although the general contours of the project are known, including site acquisition, the project details have yet to be finalized. Site design and layout, operational needs, necessary development entitlements, and other key components of the project are still unknown.
As major components of the project are unknown, the Opportunity Center, including site acquisition, is not a “project” for purposes of CEQA as meaningful environmental review is not yet possible. (CEQA Guidelines § 15004(b); Friends of the Sierra Railroad v.
Tuolumne Park & Recreation Dist. (2007) 147 Cal.App.4th 643, 657-658, holding that a district’s proposed sale of land to the Tuolumne Band of Me-Wuk Indians, who were interested in developing the property, was not a “project” under CEQA because no definitive development plans had been proposed and “CEQA review in the absence of a plan involving an identifiable impact would not be meaningful”; Save Tara v. City of West Hollywood (2008) 45 Cal.4th 116, 139.) Once definitive plans have been developed, the applicant will seek discretionary entitlements for approval (e.g., site plan and design review) and the project would be subject to CEQA review at that time.
Additionally, authorizing the proposed grant agreement does not commit the City to approval of the eventual project, nor does it foreclose alternative solutions or mitigation measures that would otherwise be required in connection with the eventual project.
Sustainability: None.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: This staff report implements the Council action from February 15, 2022, to provide a grant in the amount of $2 million to La Familia for pre- development and construction activities related to the Opportunity Center. Staff further recommends approval of this grant agreement because the Opportunity Center will be a community asset and will address an unmet gap in services and resources.
Financial Considerations: Pursuant to Resolution No. 2022-0062, the City Council approved $2 million for the Opportunity Center as part of the FY2021/22 Midyear Budget Report. There is sufficient funding available in the FY22 Economic Development Priorities (I02180910) project to fund the grant agreement.
Local Business Enterprise (LBE): Not applicable.