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Home My WebLink About _ 9.2(g) Provide direction to staff regarding a Day Resource Center � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: December 19, 2023 FROM: Steve Bade, Assistant City ITElVI NO. 9.2(g) Manager ***APPROVED BY*** n � t�� ; s' �r ]�,`l3I�C�?�§ rS' �P�it�,C�i �� 1��'��,{'2{�?� sbade@cityofredding.org btippin@cityofredding.org SUBJECT: 9.2(g)--Consider providing direction to staff regarding a Navigation/Day Resource Center Recommendation Provide direction to staff regarding the location, purchase and development, and the operation of a Navigation/Day Resource Center. Fiscal Impact The Encampment Resolution Lookback Disbursement Funding (ERF-3-L) provides $8,354,955 in grant funds to the City of Redding (City) as detailed in the California Department General Services—Business, Consumer Services and Housing Agency(BCSH) Standard Agreement. As part of the ERF-3-L grant award, $3,000,000 was allocated toward the developinent of a Day Resource Center (DRC), In addition, $720,000 has been earmarked for a director and case management services upon the completion of the project and for the first three years of operation. There is no impact to the General Fund. Alte�native Action City Council (Council) may choose to take no action, may choose to consider other DRC loeation/development alternatives or may choose to not pursue a DRC development project. If Council chooses not to pursue the DRC project, any request for redirection of ERF-3-L funds wi11 need to be reviewed and approved by BCSI�and could result in losing the grant award. Report to Redding City Council December 15,2023 Re: 9.2(g) Provide direction to staff regarding a Day Resource Center Page 2 Background/Analysis At the meeting of November 21, 2023, Council discussed several possible directions with regard to developing a DRC. Option 1: Publish a request for proposals, seeking input from the development community for possible DRC sites within the requested service area. Option 2: City to purchase a property and provide a lease option to the operator. Option 3: City staff to partner with the Good News Rescue M�ission (Mission) directly, with. regard to the property already in escrow, and determine the Mission's interest in a DRC. Council requested additional information for option three and directed staff to contact the Mission. Staff inet with Jonathan Anderson, the Mission's Executive Director. The Mission has been negotiating with the property owner of 3145 Veda Street and 3150 South Market Street (Properties) for more than eight months for the purpose of establising a DRC. Furthermore, the GNRM purchased 3127 Veda Street and 3131 Veda Street, located adjacent to the properties in escrow. The combined properties consist of approximately .59 acres with an existing commercial building of approximately 8,000 square feet, with power, sewer, water, four roll-up doors, and a parking lot. All parcels are located in a "Heavy Commercial" designated land use area. Under the use regulations, Heavy Commercial will allow a community social service facility use classification upon review and approval of a use permit by the Planning Commission. A community social service facility is defined as any non-commercial facility such as a day center, which may provide meals, showers and/or laundry facilities along with specialized programs and services related to the needs of those using the facility. The GNRM may be able to amend its current use permit to include the new properties. Overall, the Mission's preferred option is for the City to provide financing in the form a secured loan to the Mission. The financing would be available for the acquision, development and two to three years of operational funding of the DRC. The City would have no ownership in the project nor a covenant on the property. As proposed, the Mission would operate the facility under a new brand, completely separate from the existing Mission operations. The newly branded entity would collaborate with other agencies and nonprofits to co-locate services at the site. Although not their preferred choice, the Mission would consider a lease-option for purchase of the Properties from the City. The Mission has received costs estimates from contractors —they have estimated that the cost to renovate the space is approximately $150 per square-foot. Planning and design work would include a high-level master plan for the properties with additional considerations contemplated for existing Mission-owned parcels, improvement plans, construction costs, electrical calculations, and energy efficiency measures. The rehabilitation would include improvements such as Title 24 (Building Code Energy Efficiency Standards), fire safety, Americans with Disabilities Act upgrades and required City permits. The timeline is estimated to be three to four months for predevelopment activities and six-to-eight months for construction which includes framing, new windows and exterior doors, mechanical upgrades, insulation, sheetrock, interior doors and trim, cabinets, finish work signage, appliances, courtyard creation and landscaping. If the Council approves the City providing financing, staff would draft a development financing agreement that would include the terms, conditions, finance/loan documents and regulatory requirements and return to the City Council for consideration. Report to Redding City Council December 15,2023 Re: 9.2(g) Provide direction to staff regarding a Day Resource Center Page 3 Environmental Review This is not a project as defined under California Environmental Quality Act, and no further action is required. A National Environmental Policy Act review is not necessary as these are State of California and not Federal funds. Council P�^iority/City ManageN Goals • Government of the 21St Century — `Be relevant and proactive to the opportunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." • Economic Development — "Facilitate and become a catalyst for eeonomic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community." • Pubiic Safety — "Work to improve a11 aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding." 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