Agenda Item Wording:
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Lease Agreement Authorization - Authorize the Visalia Homeless Center to lease the City building located at 701 East Race Avenue, to operate a seasonal low-barrier emergency shelter during the winter months for Fiscal Year 2025/26 through FY 2029/30 for an annual fee of $1.
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Prepared by:
Margie Perez, Housing Specialist, margie.perez@visalia.gov, (559) 713-4460;
Melody Murch, Assistant Finance Director, melody.murch@visalia.gov, (559) 713-4379; Renee Nagel, Finance Director, renee.nagel@visalia.gov, (559) 713-4375.
Department Recommendation: Staff recommends that the City Council authorize the City Manager to negotiate and execute a 5-year agreement with the Visalia Homeless Center to lease the Building at 701 East Race Avenue to operate a seasonal low-barrier emergency shelter during the winter months for FY 2025/26 through FY 2029/30 for a $1 annual fee.
Summary:
A Notice of Funding Availability (NOFA) (RFP-25-26-04) was released seeking a qualified non-profit organization to operate a seasonal low-barrier emergency shelter during the winter months for Fiscal Year (FY) 2025-26, with the opportunity to extend up to four (4) additional years upon mutual agreement. In response, the City received only one (1) application from the Visalia Homeless Center (VHC). Staff is recommending the award of RFP-25-26-04 to the VHC to administer a seasonal winter low-barrier emergency shelter.
As a result of this recommended award, the VHC has requested to lease the City owned building at 701 East Race Avenue to be used as the location for a seasonal low-barrier emergency shelter. Based upon the prior use of this location for this purpose, staff is recommending approval of this VHC request.
Background Discussion:
The Request for Proposals: A Notice of Funding Availability (NOFA) (RFP-25-26-04) was released seeking a qualified non-profit organization to operate a seasonal low-barrier emergency shelter during the winter months for Fiscal Year (FY) 2025-26, with the opportunity to extend up to four (4) additional years upon mutual agreement. In response, the City received one (1) application from the Visalia Homeless Center (VHC). The City of Visalia evaluation committee reviewed and scored the application. Based upon overall scores, the evaluation committee recommended to award RFP-25-26-04 for the Operation of a Seasonal Low-Barrier Emergency Shelter to the VHC.
Warming Center: The seasonal low-barrier emergency shelter, also known as a warming center, will be open 7 days a week from 9:00pm to 7:00am during the winter months for people experiencing or at-risk of homelessness. The warming center will be open to all ages including seniors and families with children. Warming center residents will be provided with a blanket, sleeping mat, and simple snacks.
The VHC has successfully operated a seasonal low-barrier emergency shelter for nearly 10-years. The VHC held a City 4-year contract agreement to operate a seasonal low-barrier emergency shelter in the City of Visalia for FY 2021/22 through FY 2024/25. The warming center has been successfully operated at the E Race Building for the past 3 winter seasons from FY 2022/23 through FY 2024/25.
East Race Building: The VHC has requested to continue utilizing the City owned building at 701 East Race Avenue, Visalia, CA 93292 to operate a seasonal low-barrier emergency shelter during the winter months for FY 2025/2026 through FY 2029/2030 at a $1 annual leasing fee. The VHC will be responsible for payment of all utility costs for the property while the shelter is in operation and will be required to maintain all utility accounts in its operational name. The VHC will be responsible for conducting routine custodial services and maintenance of the property according to City standards while in use. The draft lease agreement is included herein as Attachment A - Draft Lease Agreement.
This location is surrounded by commercial properties and is a 5-minute walk away from the Visalia Rescue Mission. The controversial nature of proposed locations for even temporary homeless facilities makes it important to review VHC’s plans to mitigate the effect on the surrounding community.
• Temporary Conditional Use Permit Required: Due to the zoning ordinances at this location, VHC will be required to obtain a Temporary Conditional Use Permit (TCUP). VHC will be required to file an application with the City of Visalia Planning Department to pursue a TCUP.
• Neighborhood Notification: In addition, VHC will notify nearby residents and businesses by providing a letter and VHC staff contact information to each household and business prior to beginning the project.
• Staff Response to Complaints: VHC staff will be available to immediately address any community concerns as they arise during the warming center season.
• Security Provided: Each morning VHC will direct warming center residents to the Visalia Rescue Mission for breakfast to prevent loitering during the day. Security will be provided at the location to ensure homeless individuals do not arrive in the area early before the center opens each night or stay on after the center closes in the morning.
• Daily Clean-up: VHC staff will provide daily cleaning of the building and its surrounding area each morning once the warming center has ended.
Year-Round Drop-In Center: The building lease agreement to be negotiated will stipulate that if a year-round low-barrier drop-in center is developed, and becomes operational, during the 5-year lease agreement, the lease agreement to operate a seasonal low-barrier emergency shelter will end.
Fiscal Impact: Approval of this item will authorize a $1 annual leasing fee for the use of the E Race Building to operate a seasonal low-barrier emergency shelter during the winter months for FY 2025/26 through FY 2029/30. No General Fund money is included or requested for this agreement.
Prior Council Action:
September 20, 2021 - Award RFP-20-21-45 to the Visalia Homeless Center for a 4-year contract agreement to administer a seasonal low-barrier emergency shelter.
Other: None.
Alternatives: None recommended.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move that the City Council authorize the City Manager to negotiate and execute a 5-year agreement with the Visalia Homeless Center to lease the building located at 701 East Race Avenue to administer a seasonal low-barrier emergency shelter during the winter months for FY 2025/26 through FY 2029/30 at a $1 annual lease fee.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 11/17/2025
Attachments: Attachment A - Draft Lease Agreement