REPORT TO THE CITY COUNCIL
FROM: RANDALL W. MORRISON, PE, Director
Capital Projects Department
AARON A. AGUIRRE, Director
Parks, After School, Recreation, and Community Services Department
BY: ANTONIO M. BUELNA, PE, Assistant Director
Capital Projects Department, Capital Administration Division
NANCY BRUNO, Supervising Real Estate Agent
Capital Projects Department, Capital Administration Division
SUBJECT
Title
Actions pertaining to the acquisition of fee interest of a parcel to benefit the expansion of Radio Park: (Council District 7)
1. Adopt findings of a Mitigated Negative Declaration pursuant to Sections § 15070, 15075, 15150, and 15152 of the California Quality Act Guidelines, for Assessor’s Parcel Number 446-020-10;
2. HEARING to consider a Resolution of Necessity for acquisition of fee title interest of Assessor’s Parcel Number 446-020-10, owned by Mohamed Nasser Salem, for the Radio Park Expansion Project;
3. ***RESOLUTION - Determining that public interest and necessity require acquisition of fee interest of Assessor’s Parcel Number 446-020-10, owned by Mohamed Nasser Salem, for the Radio Park Expansion Project and authorizing eminent domain proceedings for public use and purpose. (Requires 5 affirmative votes) (Subject to Mayor’s Veto)
Body
RECOMMENDATIONS
Staff recommends the City Council (1) Adopt findings of a Mitigated Negative Declaration (ISMND) pursuant to Section § 15070, 15075, 15150, and 15152 of the California Quality Act (CEQA) guidelines for Assessor’s Parcel Number (APN) 446-020-10, (2) conduct a public hearing to consider the adoption of a Resolution of Necessity for the acquisition of APN 446-020-10, a 0.36-acre (15,625 square feet) improved parcel (Property), owned by Mohamed Nasser Salem (Owner) for the Radio Park Expansion Project, and (3) adopt the attached Resolution of Necessity, which states the public interest and necessity require acquisition of fee interest of APN 446-020-10 owned by Mohamed Nasser Salem for the Radio Park Expansion Project; and authorize an eminent domain action to acquire the fee title interest pursuant to California Code of Civil Procedure §1245.230.
EXECUTIVE SUMMARY
The acquisition of APN 446-020-10 will provide the City with fee interest of the real property located at 2329 North First Street, Fresno, California, which is necessary to initiate a project including design, planning, and construction of the Radio Park Expansion Project. The Project requires the fee title acquisition of the Property, improved with a commercial establishment known as Quick Mart. The City needs to acquire the property interest described above to complete the design and construct the Project.
The Resolution of Necessity authorizes the City Attorney to initiate an eminent domain action and obtain an order of possession of the Property. In order to obtain fee interest in the Property, the City must obtain a court order through the Eminent Domain process. This action requires five affirmative votes and is subject to veto by the Mayor.
BACKGROUND
The property located at 2329 North First Street is adjacent to Radio Park which will soon be under construction for a comprehensive rehabilitation, funded by the State of California’s Proposition 68 grant program (Prop 68). The Subject Property was identified in a grant application as a potential future acquisition to facilitate the expansion of Radio Park and the amenities offered to the public. The Parks, After School, Recreation and Community Services (PARCS) Department Capital Improvement budget includes a separate project for the future expansion of Radio Park including the acquisition of the Property located at First/Clinton (Radio Park Expansion Project or Project). In addition to the acquisition of the property, the Project proposes demolition of the existing convenience store and associated parking lot, followed by incorporation of the area into Radio Park including construction of complementary landscaping, park furnishings, and facilities.
The City retained Hamner, Jewell and Associates (HJA) to acquire the Property on its behalf for the Project. HJA retained Hopper Company to prepare an appraisal report of fair market value of the Property for the Project. On October 16, 2023, Hopper Company prepared an appraisal report determining the fair market value of APN 446-020-10 to be $700,000.00, as defined by Section 1263.320 of the Code of Civil Procedure. HJA retained Desmond, Marcello and Amster (DMA) to prepare an appraisal report regarding the Improvements Pertaining to the Realty (IPRs) of Quick Mart, located upon the Property. DMA prepared a report dated November 16, 2023, establishing the fair market value in place of the IPRs to be $113,725.00. The total combined value of the Property and the IPRs was determined to be $813,725.00. Pursuant to section 7267.2 of the Government Code, an offer of just compensation in the full amount of the appraisals prepared by Hopper Company and DMA were delivered via USPS Certified Mail by HJA to the Owner on March 13, 2024. The Owner has indicated their desire to obtain an independent appraisal, and pursuant to California Code of Civil Procedure Section 1263.025, Owner will be reimbursed reasonable costs up to $5,000.00 for the appraisal.
Since the date of the initial offer, HJA acquisition consultants have contacted the Owner’s representatives on 11 occasions by email and telephone calls to discuss the offer to purchase, negotiate a settlement, and to move forward with the acquisition and relocation process. To date, no substantiated counteroffer or a signed Agreement have been received by the City’s consultant.
Staff recommends beginning the process of acquiring the Property from the Owner through the eminent domain process. Starting the eminent domain process now allows the City to obtain an order of possession from the court while giving the Owner a forum in which to make their claim for just compensation. For each property interest to be acquired, a Resolution of Necessity must be adopted prior to the commencement of eminent domain proceedings (See Attachment, Resolution of Necessity Requirements).
The City Attorney’s Office has reviewed and approved the Resolution of Necessity as to form.
ENVIRONMENTAL FINDINGS
An environmental assessment initial study and Mitigated Negative Declaration (Environmental Assessment for APN 446-020-10) dated August 2023, was prepared for the demolition of the existing convenience store and associated parking lot.
An analysis has been performed to pursuant CEQA Guidelines § 15152 to determine whether this project may cause any additional significant effect on the environment, which was not previously examined in the PEIR. Based upon the evaluation guided by the Appendix G/Initial Study Checklist, it was determined that there are project specific foreseeable impacts which require project level mitigation measures.
With mitigation imposed under the PEIR and project specific mitigation, there is no substantial evidence in the record that this project may have additional significant, direct, indirect or cumulative effects on the environment that are significant and that were not identified and analyzed in the PEIR. The Planning and Development Department, as lead agency, finds that no substantial changes have occurred with respect to the circumstances under which the PEIR was certified and that no new information, which was not known and could not have been known at the time that the PEIR was certified as complete has become available.
The Initial Study has concluded that the proposed project will not result in any adverse effects, which fall within the “Mandatory Findings of Significance” contained in § 15065 of the State CEQA Guidelines. The finding is, therefore, made that the proposed project will not have a significant adverse effect on the environment.
Based upon the attached environmental assessment, staff has determined that there is no evidence in the record that the project may have a significant effect on the environment and has prepared a Mitigated Negative Declaration for this project. A public Notice of Intent to Adopt the attached Mitigated Negative Declaration for Environmental Assessment for APN 446-020-10 was filed the Fresno County Clerk on August 4, 2023.
LOCAL PREFERENCE
Local preference was not considered because this agreement does not include a bid for or award of a construction or services contract.
FISCAL IMPACT
The project is in Council District 7. The project is funded by American Rescue Plan Act (ARPA) funds.
Attachments:
Resolution of Necessity (RON)
Resolution of Necessity Requirements
Initial Study for Mitigated Negative Declaration (ISMND)
Vicinity Map
Location Map