REPORT TO THE CITY COUNCIL
FROM: RANDALL W. MORRISON, PE, Director
Capital Projects Department
SCOTT L. MOZIER, PE, Director
Public Works Department
BY: JILL M. GORMLEY, TE, Assistant Director
Public Works Department, Traffic & Engineering Services Division
NANCY BRUNO, Supervising Real Estate Agent
Capital Projects Department, Capital Administration Division
SUBJECT
Title
Approve the Agreement for Purchase and Sale of a Permanent Street Easement and Escrow Instructions to acquire a permanent easement for the construction of the widening of Ashlan Avenue between Bryan Avenue and Hayes Avenue as part of the Tract 6258 Offsite Right of Way Acquisition Project (Council District 1).
Body
RECOMMENDATION
Staff recommends that the City Council approve the Agreement for Purchase and Sale of a Permanent Street Easement and Escrow Instructions to acquire a permanent easement and right of way for public street purposes on a 0.026-acre (1,116 square feet) portion of a 3.18-acre (138,521 square feet) parcel, improved with two single-family residences located at 6249 West Ashlan Avenue (Assessor’s Parcel Number (APN) 512-050-30), owned by Pedro Avila, for a total amount of $48,000.00 in monetary consideration, and authorize the Capital Projects Director or designee to sign on behalf of the City all documents necessary to complete the subject acquisition.
EXECUTIVE SUMMARY
The subject acquisition, as memorialized in the Agreement for Purchase and Sale of a Permanent Street Easement and Escrow Instructions will provide the City with a permanent street easement and right of way for public street purposes which is necessary to construct the street improvements and widening of Ashlan Avenue from Bryan Avenue to Hayes Avenue as part of the Tract 6258 Offsite Right of Way Acquisition Project. The project requires 0.026-acre (1,116 square feet) of permanent street easement and right of way from 6249 West Ashlan Avenue (APN 512-050-30) owned by Pedro Avila. The additional right of way will provide the area necessary to construct street improvements including the widening of Ashlan Avenue to accommodate two westbound travel lanes, one westbound bike lane, one eastbound travel lane, one eastbound shoulder, a median island with left turn openings, and a turn-a-round to accommodate westbound to eastbound U-turns at the intersection of Ashlan Avenue and Olinda Avenue from Bryan Avenue to Hayes Avenue.
Pedro Avila and the City mutually agreed upon a purchase price of $48,000.00 for the 0.026-acre (1,116 square feet) unimproved portion of APN 512-050-30. Mr. Avila signed the Agreement for Purchase and Sale of a Permanent Street Easement and Escrow Instructions on August 29, 2023.
BACKGROUND
The Fresno City Planning Commission on January 8, 2020, approved Vesting Tentative Tract Map Number 6258 (Tentative Map) for a 318-lot single-family residential subdivision on 49.98 acres. The Tentative Map was approved consistent with the Fresno General Plan and the West Area Community Plan to comply with the provisions of the Subdivision Map Act.
The Final Map of Tract Map Number 6258 was approved by City Council on February 4, 2021, with an Addendum to Subdivision Agreement for the Acquisitions of Street Easements, and the Conditions of Approval of the Tentative Map imposed the requirement to widen and improve Ashlan Avenue on the project frontage and transitioning to the west and east of the project frontage. To satisfy this requirement, the Subdivider executed the Addendum to Subdivision Agreement that provides for the City to negotiate and/or exercise its power of eminent domain, to acquire the necessary rights-of-way. The Subdivider has posted an initial deposit in the amount of $507,100.00 for the estimated acquisition and legal costs for the sixteen (16) parcels impacted to satisfy the Conditions of Approval.
WC Ashlan Hayes, LLC, a California limited liability Company (Developer) attempted to negotiate acquisition of the necessary permanent easement and right of way from Pedro Avila. Those negotiations failed, at which time, Developer requested the assistance of the City to acquire the portion necessary for the Project.
The City’s Real Estate staff met with the property owner to discuss purchasing the permanent easement and street right of way from a portion of the 3.18-acre parcel, which is improved with two single-family residences, landscaping, and fencing/gates. The easement/acquisition area is located on the north portion of the parcel, parallel to West Ashlan Avenue and the improvements impacted as a result of the Project include landscaping and fencing.
City staff retained James G. Palmer Appraisals Inc. to prepare an appraisal report of fair market value of the Property for the Project. They determined the total value of the portion of the parcel to be acquired to be $41,979.00, rounded to $42,000.00. The total compensation includes the land value established as $8,414.00; cost to cure was established to be $7,700.00; and a loss in rent value of $25,865.00. The cost to cure amount includes funds for the Property Owner to install a privacy wall and replace an impacted irrigation line; the loss in rent is an amount determined as a result of the proximity of the structure to the City’s new right of way.
City Real Estate staff met with the Property Owner and presented a formal offer on August 16, 2023. The Property Owner did not agree with the value of the cost to cure offered, and after further negotiations, an amount of $48,000 was mutually agreed upon as just compensation for the acquisition. The Property Owner signed the Agreement and Deed on August 29, 2023.
The City Attorney’s Office has reviewed and approved the purchase agreement and associated deed as to form.
ENVIRONMENTAL FINDINGS
A Mitigated Negative Declaration for Vesting Tentative Tract Map No. 6258 and its conditions of approval, which required Ashlan Avenue improvements and acquisition of right of way, was adopted by Planning Commission on January 8, 2020, and the Notice of Determination filed with the County Clerk on January 27, 2020.
Public Works staff performed an analysis pursuant to CEQA Guidelines section 15162 to determine whether subsequent environmental review is required for this project. Based upon this analysis, the following findings were made to support the determination that no subsequent environmental review is required:
1. No substantial changes are proposed in the project which will require major revisions to the MND due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. City staff has reviewed and verified no changes to the conditions of approval of Vesting Tentative Tract Map No. 6258 have occurred since the Planning Commission approval.
2. No substantial changes have occurred with respect to the circumstances under which the project is undertaken which will require major revisions of the previous MND due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. City staff has reviewed and verified no changes to the conditions of approval of Vesting Tentative Tract Map No. 6258 have occurred since the Planning Commission approval.
3. There is no new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous MND was adopted, shows any of the following:
a. The project will have one or more significant effects not discussed in the previous MND. Staff has determined that the proposed acquisition of right of way will not have one or more significant effect.
b. Significant effects previously examined will be substantially more severe than shown in the MND.
c. Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative.
d. Mitigation measures or alternatives previously found to be not feasible are now feasible and would substantially reduce one or more significant effects on the project.
Based upon these findings, City staff has determined that no further documentation is required for this project.
LOCAL PREFERENCE
Local preference was not implemented as this item does not include a bid for or award of a construction or services contract.
FISCAL IMPACT
This Project is located within Council District 1 and will not impact the City’s General Fund. Funds for this purchase were originally allocated in the Fiscal Year 2021 Budget through Resolution 2021-033. The necessary funding for the proposed acquisition is included in the current FY24 fiscal year budget.
Attachment(s):
Purchase and Sale Agreement
Deed of Easement
Vicinity Map
Location Map