REPORT TO THE CITY COUNCIL
FROM: DENIX D. ANBIAH, PE, Director
Capital Projects Department
BY: ANTONIO M. BUELNA, PE, Assistant Director
Capital Projects Department, Capital Administration Division
NANCY BRUNO, Right of Way Manager
Capital Projects Department, Capital Administration Division
SUBJECT
Title
Actions pertaining to the acquisition of fee title interest of portions of two parcels to benefit the H Street Parking Structure Project: (Council District 3)
1. Adopt a finding that the acquisition of portions of Assessor’s Parcel Numbers 467-040-20S and 467-040-22S is exempt from the California Environmental Quality Act (CEQA) pursuant to the common sense exemption in that it can be seen with certainty that there is no possibility the proposed changes will have a significant effect on the environment pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines;
2. Approve the Agreement for Purchase and Sale of Real Property and Escrow Instructions to acquire fee title interest of a combined 2.39-acre (104,029.60 square feet) portion of Assessor’s Parcel Numbers 467-040-20S and 467-040-22S, owned by Fresno Sports & Events Partners LLC, a Colorado limited liability company and Fresno Sports & Events LLC, a Colorado limited liability company, for an amount of $3,862,000.
Body
RECOMMENDATIONS
Staff recommends the City Council 1) adopt a finding that the acquisition of portions of Assessor’s Parcel Numbers 467-040-20S and 467-040-22S is exempt from the California Environmental Quality Act pursuant to the common sense exemption in that it can be seen with certainty that there is no possibility the proposed changes will have a significant effect on the environment pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines, 2) approve the Agreement for Purchase and Sale of Real Property and Escrow Instructions to acquire fee title interest of a combined 2.39-acre (104,029.60 square feet) portion of two parcels located on the west side of H Street, between Kern and Mono Streets, identified as portions of Assessor’s Parcel Numbers (APNs) 467-040-20S and 467-040-22S, owned by Fresno Sports & Events Partners LLC., a Colorado limited liability company and Fresno Sports & Events LLC., a Colorado limited liability company, for a total amount of $3,862,000, and authorize the City Manager or designee to sign all documents necessary to complete the subject acquisition.
EXECUTIVE SUMMARY
The acquisition of portions of APNs 467-040-20S and 467-040-22S (Subject Property) will provide the City with fee title interest in real property located on the west side of H Street, between Kern and Mono Streets in Fresno, California. The project is limited to acquisition of portions of the two parcels, and no physical changes to the parcels are proposed at this time (Project). The Project requires the fee title acquisition of the Subject Property, owned by Fresno Sports & Events Partners LLC., and Fresno Sports & Events LLC, both Colorado limited liability companies (the Owners), which is currently used as a surface parking lot. Following acquisition of the Subject Property, the City may contemplate construction and operation of a parking garage on the acquired parcels. While an initial design for a potential parking garage has been explored, that design is not considered feasible. As such, physical components of the parking garage, including overall size, height, scale, and aesthetic treatments, are uncertain at this time.
The Owners and the City mutually agreed on a total amount of $3,862,000 as just compensation for the acquisition of the Subject Property. Michael Baker, Manager of Fresno Sports & Events Partners LLC., and Fresno Sports & Events LLC., signed the Agreement for Purchase and Sale of Real Property and Escrow Instructions (the Agreement) on October 27, 2025.
BACKGROUND
The Fulton Corridor Specific Plan identifies the area at Inyo and H Streets as a key location for future mixed-use development and public parking to support nearby residential, commercial, and transit uses. Upon receiving State of California public infrastructure funds for the proposed Project, the City is pursuing acquisition of approximately 2.39 acres of a 4.43 acre parcel located between Kern and Mono streets along H Street to maintain flexibility for potential future public purposes consistent with the City’s adopted plan. The proposed acquisition would help ensure long-term alignment with downtown planning and infrastructure priorities.
The City retained Real Property Analysts (RPA) to provide an appraisal report to determine the fair market value (FMV) of the Subject Property. The appraisal report prepared by RPA, with a valuation date of March 28, 2024, determined the FMV of the APNs 467-040-20S and 467-040-22S to be $5,730,000, without consideration of the existing solar system, as defined by Section 1263.320 of the Code of Civil Procedure. Pursuant to Section 7267.2 of the Government Code, an offer of just compensation in the full amount of the appraisal was sent via email to Fresno Sports & Events Partners, LLC (FSEP) on September 6, 2024. FSEP informed the City that they had no desire to sell the property and would notify the City if their position changed.
To continue conversations with FSEP, the City engaged RPA to update the appraisal report to determine the fair market value of APN 467-040-20S only (excluding APN 467-040-22S). The revised appraisal report, with a valuation date of November 7, 2024, determined the FMV of APN 467-040-20S to be $3,370,000, again excluding the value of the existing solar system. An offer of just compensation in the full amount of the revised appraisal was emailed to FSEP on December 16, 2024. FSEP expressed disinterest in selling APN 467-040-20S in its entirety, citing negative impacts to their remaining parcel, APN 467-040-22S. Following further negotiations, the proposed acquisition was modified to include only a portion of APN 467-040-20S, rather than the entire parcel.
The City again engaged RPA to revise the appraisal report to determine the fair market value of the revised portion of APN 467-040-20S. The appraisal, with a valuation date of March 10, 2025, determined the FMV of the portion to be $2,007,000, excluding the existing solar system. An offer of just compensation in the full amount of the revised appraisal was emailed to FSEP on March 21, 2025. FSEP disagreed with the price per square foot reflected in RPA’s appraisal and countered with a valuation of $37.17 per square foot. FSEP was advised of their right to an independent appraisal, pursuant to California Code of Civil Procedures Section 1263.025, which they elected not to pursue. FSEP also submitted a counteroffer of $612,000 to cover the cost of relocating the existing solar system on APN 467-040-20S.
Subsequent discussions identified the need to acquire an additional portion of the property to ensure adequate emergency access. As a result, the total acquisition area was increased to a combined 2.39-acre (104,029.60 square feet). Ongoing negotiations resulted in a mutually agreed upon compensation amount of $3,250,000 for fee title acquisition of the Subject Property, and $612,000 for relocation and removal of the existing solar panels, for a total purchase price of $3,862,000. At the same time, FSEP distinguished between the ownership of the real property and the solar system, clarifying that the real property is owned by FSEP while the solar system is owned by Fresno Sports & Events LLC. The acquisition includes a reservation of access for the Owner’s ingress and egress from the Owner’s remainder parcels to H Street and Inyo Street, with a reservation of these rights included in the grant deed. Since compensation was granted to the Owners for the existing solar panels, and pursuant to the Agreement, relocation of the existing solar panels located on the Subject Property shall occur no later than 30 days following the close of escrow. Michael Baker, Manager for the Owners, signed the Purchase and Sale of Real Property and Escrow Instructions on October 27, 2025.
The City Attorney’s Office has reviewed and approved the Purchase of Real Property and Escrow Instructions as to form. Staff recommends City Council authorize the City Manager or designee to sign all documents necessary to complete the subject acquisition.
ENVIRONMENTAL FINDINGS
The California Environmental Quality Act (CEQA) Guidelines 15061(b)(3) states that the project is exempt from CEQA if it is “covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. CEQA Guidelines Section 15382 defines a “significant effect on the environment” as a “substantial, or potentially substantial, adverse change in any of the physical conditions within the area affected by the project including land, air, water, minerals, flora, fauna, ambient noise, and objects of historic of aesthetic significance.”
The activity proposed by the City is limited to acquiring the two parcels and would not include any physical changes to the parcels. Any future changes to the two parcels, including construction and operation of a potential parking garage will be evaluated to meet the requirements of CEQA once the full scope of the future project is known.
As a result, the proposed activity would not result in a significant effect on the environment, as described in Section 15382, and identified in Section 15061(b)(3) as a limiting factor for exemption under CEQA. Therefore, it can be seen with certainty that there is no possibility that the transfer of the Subject Property may have a significant effect on the environment and as a result, this action is exempt from CEQA pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines.
LOCAL PREFERENCE
Local preference was not considered because this item does not include a bid for or award of a construction or services contract.
FISCAL IMPACT
Funding for this Project was provided by dollars received from the State of California via the Downtown Fresno Public Infrastructure Improvement Grant that has previously been appropriated to FY26 budget. This purchase will have no impact to the General Fund.
Attachments:
Environmental Common Sense Exemption
Purchase and Sale Agreement
Location Map
Vicinity Map