REPORT TO THE CITY COUNCIL
FROM: NICOLAS D. MASCIA, PE, Interim Director
Capital Projects Department
SCOTT L. MOZIER, PE, Director
Public Works Department
BY: ANTONIO 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 sale of remnant, undeveloped portions of land from the Veterans Boulevard Project: (Council District 2)
1. Adopt a finding that the sale of remnant, undeveloped portions of land from the Veterans Boulevard Project is exempt from California Environmental Quality Act (CEQA) pursuant to the “Common Sense Exemption,” set forth in the California Environmental Quality Act Guidelines Section 15061(b)(3);
2. Approve the Agreement for Purchase and Sale of Real Property and Escrow Instructions between the City of Fresno and Abbey Transportation System, Inc., a California corporation, for the sale of remnant, undeveloped portions of land located adjacent to the Veterans Boulevard Interchange.
Body
RECOMMENDATIONS
Staff recommends the City Council 1) adopt a finding that the sale of remnant, undeveloped portions of land from the Veterans Boulevard Interchange Project is exempt from California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3), “Common Sense Exemption,” and 2) approve the Agreement for Purchase and Sale of Real Property and Escrow Instructions between the City of Fresno and Abbey Transportation System, Inc., a California corporation (Buyer) to sell a combined 9.88-acres (430,372.8 square feet) of City owned, remnant, undeveloped portions of land identified as portions of Assessor’s Parcel Number (APN) 505-080-21ST, located adjacent to the Veterans Boulevard Interchange in the amount of $1,316,940.77 to the Buyer, and authorize the City Manager or designee to execute the Purchase and Sale Agreement and associated Grant Deed and Affordable Housing Covenant for the transfer of the subject property.
EXECUTIVE SUMMARY
The City of Fresno acquired the vacant portions of APN 505-080-21ST (Subject Property) through an Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions dated October 28, 2014, (Prior Agreement) for the Veterans Boulevard Project (Project). Per paragraph 11(d) of the Prior Agreement, Abbey Transportation System, Inc. (Buyer) was granted an exclusive option to purchase three areas within the original boundaries of their property purchased by the City that would not be used as public right of way. Upon notice of the completion of construction for the Project, the Buyer provided written notice to the City of their intent to exercise the option and purchase the Subject Property at a price established in the Prior Agreement. The total price for the three portions of property is $1,316,940.77. On July 31, 2024, H.R. Sawl, representative of the Buyer, signed the Purchase and Sale Agreement and Escrow Instructions and Affordable Housing Covenant.
BACKGROUND
Veterans Boulevard, originally referred to as the Herndon-Grantland Diagonal, was originally part of the 1984 General Plan and is now a planned six-lane super arterial in the 2035 General Plan. In recent years, staff has completed the Project Study Report (PSR), Project Report and Environmental Impact Report (EIR) and progressed the design of the various phases of Veterans Boulevard from Shaw Avenue to Herndon Avenue. Partnerships with the Fresno County Transportation Authority (FCTA) and Fresno Council of Governments (FCOG) provided funding for completing the final design and right-of-way acquisition. The Veterans Boulevard Project, from Shaw Avenue to Herndon Avenue, has constructed a new partial cloverleaf interchange connecting State Route 99 and Veterans Boulevard, as well as three bridge structures for the overcrossing of State Route 99, Golden State Boulevard, and the Union Pacific Railroad and High-Speed Rail corridors. The ultimate roadway will have six travel lanes, a Class I bicycle lane/pedestrian trail on one side and Class II bicycle lanes on both sides.
The first phase of the Veterans Boulevard Project, the Bullard Extension package, was funded by the California High Speed Rail Authority (CHSRA) and opened to traffic on September 24, 2019. The Veterans Boulevard Grade Separation Project, which was also funded by the CHSRA, was the second phase of the overall project and was opened to traffic on September 21, 2021. The Veterans Boulevard South Extension Project, which is referred to as phase 4a, was the third phase of the overall project and was open to traffic on March 30, 2022. The Veterans Boulevard Interchange Project and the North Extension Project, referenced as phases 3 and 4b, have been open to traffic since November 21, 2023.
The Right of Way phase of the Veterans Boulevard Project acquired several properties to accommodate the ultimate right of way for the northbound State Route 99 off ramp, northbound loop on ramp, and south connector to Veterans Boulevard. The City of Fresno acquired 22.49-acres of land identified as APN 505-080-21ST through an Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions dated October 28, 2014, (Prior Agreement) for the Veterans Boulevard Project (Project), which City Council approved on December 18, 2014, (ID Number 14-603). Per paragraph 11(d) of the Prior Agreement, Abbey Transportation System, Inc. (Buyer) was granted an exclusive option to purchase three areas within the original boundaries of their property purchased by the City that would not be used as public right of way. The combined 9.88-acres (430,372.8 square feet) consists of 1) an area of 5.42-acres (236,095.2 square feet), 2) an area of 2.93-acres (127,630.8 square feet), and 3) an area of 1.53-acres (66,646.8 square feet) which upon the completion of the construction of the Project are confirmed to not be used as public right of way. On July 3, 2024, the Buyer provided written notice to the City of their intent to exercise the option and purchase the Subject Property at a price established in the Prior Agreement. The total price for the three portions of property is $1,316,940.77. On July 31, 2024, H.R. Sawl, representative of the Buyer, signed the Purchase and Sale Agreement and Escrow Instructions and Affordable Housing Covenant.
The City Attorney’s Office has reviewed and approved the Purchase and Sale Agreement as to form.
ENVIRONMENTAL FINDINGS
City staff has performed a preliminary environmental assessment and pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3), has determined with certainty that there is no possibility that the sale of remnant, undeveloped portions of land from the Veterans Boulevard Project may have a significant effect on the environment. Therefore, this item is not subject to CEQA.
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
This Project is located in Council District 2 and will not have an impact on the General Fund. Proceeds from the sale of the Subject Property will be returned to the funding source.
Attachments:
Purchase and Sale Agreement
Notice of Exemption
Vicinity Map
Location