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HomeMy WebLinkAboutCC Resolution 15479 (Declaration of Shelter Crisis and Approval of Related Actions and Aquisition of the Property at 350 Merrydale Road)4915-0440-7928 v1 1 RESOLUTION NO. 15479 A RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A GRANT AGREEMENT BETWEEN THE CITY AND COUNTY OF MARIN IN THE AMOUNT OF $8 MILLION AND AFFORDABLE HOUSING AGREEMENT IN A FORM TO BE APPROVED BY THE CITY ATTORNEY TO FACILITATE THE ACQUISITION OF THE REAL PROPERTY LOCATED AT 350 MERRYDALE ROAD (APNS 179-041-27 & 179-041-28) FOR USE AS AN INTERIM SHELTER AND PERMANENT AFFORDABLE HOUSING AND TO ACCEPT THE FULL AMOUNT OF THE GRANT AND APPROPRIATE $7.0 MILLION TO COVER COSTS RELATED TO ACQUISITION; CEQA DETERMINATION: NOT A PROJECT PER GOVERNMENT CODE SECTIONS 8698.4(a)(4); 65660(b), 65662; PUBLIC RESOURCES CODE SECTION 21080(b)(1)[MINISTERIAL PROJECT]; CEQA GUIDELINE 15268(b) [MINISTERIAL PROJECT]; EXEMPT PURSUANT TO CEQA PUBLIC RESOURCES CODE SECTION 15183 [CONSISTENT WITH GENERAL PLAN POLICIES]; CEQA GUIDELINES 15269(c) [EMERGENCY]; 15332 [INFILL] WHEREAS, the City of San Rafael faces a lack of housing supply and affordable housing, as documented in the City’s 2023-2031 Housing Element, the Marin County Civil Grand Jury’s 2024-2025 report titled “The Worrisome Future of Marin Housing,” and Rooted in Marin, a 2025 analysis of anti-displacement strategies for Marin County; and WHEREAS, the City has adopted housing specific goals, policies, and programs to address the lack of housing supply and affordable housing; and WHEREAS, on May 15, 2023 the San Rafael City Council adopted Resolution No. 15215, adopting the City’s 2023-2031 Housing Element; and WHEREAS, the Housing Element’s Housing Action Plan included Goal H-1: Homelessness: End and prevent homelessness in San Rafael as well as Goal H-4: Housing Choice: Meet housing needs through a range of housing choices and affordability levels throughout the city; and WHEREAS, the Housing Action Plan identified policies to advance its goals, including: • Policy H-1.1: Collaboration and Coordination o Work with the County of Marin, local supportive service providers, and housing and social justice organizations to assist persons experiencing homelessness. • Policy H-1.2: Transitional and Supportive Housing o Support permanent supportive housing for those who are unhoused or at risk of losing their housing. • Policy H-1.3: Emergency Shelters o Allow for emergency shelters in appropriate zoning districts in order to accommodate San Rafael’s unsheltered population. • Policy H-4.1: Equitable Distribution of Affordable Housing o Encourage the creation of affordable housing opportunities in all parts of the city, including areas where such housing does not exist today. • Policy H-4.4: Affordability of Projects on Public Land o Prioritize the development of affordable housing rather than market rate units on surplus public land. • Policy H-4.14: Commercial to Residential Conversion 4915-0440-7928 v1 2 o Encourage the adaptive reuse of older commercial buildings, including office and retail buildings, for housing; and WHEREAS, on June 2, 2025 the San Rafael City Council adopted Resolution No. 15420 to adopt the City’s Three-Year Strategic Plan for Fiscal Years 2025-2028; and WHEREAS, the Strategic Plan included Priority Area D: Housing and Homelessness: Facilitate new housing development, assist in ensuring housing stability, support a “Housing First” model, and implement strategies that reduce homelessness; and WHEREAS, the Strategic Plan Priority Area D includes Goal D.1.1: In collaboration with the County of Marin, explore the implementation of a housing-focused interim shelter program, supported by robust case management services to assist in transitioning unhoused community members into permanent supportive housing, or other permanent housing solutions; and WHEREAS, the Strategic Plan Priority Area D also includes Goal D.1.4: Strategically increase and secure additional funding sources by leveraging key partnerships that will support additional programs that reduce homelessness; and WHEREAS, the Strategic Plan further includes Goal D.2: Advance the development of new housing across all affordability levels to meet the stat’s regional housing needs allocation (RHNA) requirements as outlined in the City’s Housing Element, ensuring diverse, sustainable, and equitable housing opportunities for all residents; and WHEREAS, as part of the City’s Equity, Diversity and Inclusion Element, San Rafael’s 2040 General Plan includes Goal EDI-3: Housing Stability: Improve housing stability for all San Rafael residents, particularly those with low or very low incomes; and WHEREAS, in 2025 the County of Marin coordinated Rooted in Marin, an analysis of housing in Marin County and strategies for anti-displacement; and WHEREAS, the Rooted in Marin report found that the lack of housing supply and affordable housing in Marin County have led to sustained population loss since 2018, particularly of low-income households making less than 50 percent of the area median income (AMI), as well as increased greenhouse gas emissions from workers commuting to Marin County, and lost economic opportunities due to people not being able to afford living in Marin County; and WHEREAS, in the spring of 2025, Newmark informed the City about an opportunity to to purchase the 2.5 acres property located at 350 Merrydale Road/3833 Redwood Highway, Assessor’s Parcel Number (APN): 179-041-27 and 179-041-28 (hereinafter referred to as “Property”), which had been placed on the open market for sale by its owners; and WHEREAS, on November 17, 2025, the City Council adopted a resolution declaring a Shelter Crisis pursuant to the Shelter Crisis Act (Gov. Code section 8698 et seq.) 4915-0440-7928 v1 3 WHEREAS, the City now desires to acquire and use the Property for an interim shelter, which includes a low barrier navigation center, to provide shelter to up to 65 individuals at a given time, with good faith efforts to prioritize placement of unhoused individuals located at the City’s current Sanctioned Camping Area, followed by the Andersen Road Encampment, and then other encampments in the City at the interim shelter on the Property; and WHEREAS, the City later intends to use the Property for up to 80 units of permanent affordable housing, and the City will make a good faith effort to keep affordability levels as low as possible dependent on funding and other factors developed in the project’s proforma; and WHEREAS, to advance the goals of reducing homelessness and providing more affordable housing opportunities, the City and County of Marin (“County”) have agreed to partner on the acquisition of 350 Merrydale, which will serve initially as an interim shelter for unhoused individuals and subsequently a permanent affordable housing development project, with the County providing an $8 million grant (“Grant”) for the acquisition of the Property to use it as an interim shelter and permanent affordable housing, allowing the use of the City and County’s State Encampment Resolution Fund- Round 3 Grant to operate an interim shelter; and WHEREAS, at its November 18, 2025, meeting, the Board of Supervisors will consider authorizing the making of the Grant based on the terms and conditions as set forth in the Grant Agreement and the Affordable Housing Agreement attached to the accompanying staff report; and NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of San Rafael as follows: 1. Findings: a. Based upon the accompanying staff report, its attachments, the staff presentation and written and verbal comment submitted before and during the public hearing, the City Council finds the foregoing recitals true and correct. b. California Environmental Quality Act (“CEQA”). Upon declaration of a shelter crisis, CEQA does not apply to financial assistance or an encumbrance of land owned by a local government for a homeless shelter. (Cal. Gov. Code Sec. 8694(a)(4).) Further, execution of the Grant Agreement and Affordable Housing Agreement is exempt from CEQA review pursuant to CEQA Guideline 15061(b)(3), because it can be seen with certainty that there is no possibility that their execution may have a significant effect on the environment. The underlying projects, a temporary homeless shelter or low barrier navigation center are both uses by right and therefore ministerial projects not subject to CEQA, pursuant to Public Resources Code section 21080(b)(1) and CEQA Guidelines section 15268(b). (See also Gov. Code Sec. 65660(b), 65662.) The proposed interim shelter and future affordable housing project are also exempt from CEQA pursuant to Public Resources Code sections 15183 (Community Plan Exemption) and 15332 (Class 32 Infill), as detailed in the attached CEQA memo (Attachment 7). Finally, adoption of this Resolution is exempt pursuant to CEQA Guideline 15269(c) as necessary to mitigate an emergency situation caused by the affordable housing shortage. 4915-0440-7928 v1 4 2. The City Manager is authorized to negotiate and execute the grant agreement in the amount of $8 million with the County of Marin and the Affordable Housing Agreement with the County of Marin in a form to be approved by the City Attorney or designee to facilitate the acquisition of the Property for use as an interim shelter and permanent affordable housing; and 3. The City Manager is authorized to accept the full amount of the Grant and to appropriate $7 million, to cover costs related to acquisition of the Property; and 4. The City Manager or designee is authorized to take any action necessary or incidental to carrying out the intention of this Resolution. I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City on Monday, the 17th day of November 2025, by the following vote, to wit: AYES: Councilmembers: Bushey, Kertz, Llorens Gulati & Mayor Kate NOES: Councilmembers: None ABSENT: Councilmembers: Hill Lindsay Lara, City Clerk