REPORT TO THE CITY COUNCIL
FROM: Randall W. Morrison, PE, Director
Capital Projects Department
SCOTT L. MOZIER, PE, Director
Public Works Department
BY: NANCY BRUNO, Supervising Real Estate Agent
Capital Projects Department, Capital Administration Division
SUBJECT
Title
Actions pertaining to the Blackstone McKinley BNSF Grade Separation Project (Council Districts 1 and 7):
1. Approve the Agreement for Purchase and Sale of Real Property and Escrow Instructions to acquire fee interest of a 0.11-acre (4,800 square feet) parcel improved with a single-family residence located at 1599 North Calaveras Street (Assessor’s Parcel Number (APN) 451-063-02), owned by Edward D. Fanucchi and Mariangela Tosto, in the amount of $525,000;
2. Approve the Agreement for Purchase and Sale of Real Property and Escrow Instructions to acquire fee interest of a 0.115-acre (5,000 square feet) parcel improved with a single-family residence located at 1598 North Glenn Avenue (APN 451-063-01), owned by Edward D. Fanucchi, in the amount of $340,000;
3. Approve the Agreement for Purchase and Sale of Real Property and Escrow Instructions to acquire fee interest of a 0.115-acre (5,000 square feet) parcel improved with a single-family residence located at 1592 North Glenn Avenue (APN 451-063-30), owned by Allan Foglio Jr. and Jennifer Foglio, in the amount of $225,000.
Body
RECOMMENDATIONS
Staff recommends that the City Council 1) approve the Agreement for Purchase and Sale of Real Property and Escrow Instructions to acquire fee interest of a 0.11-acre (4,800 square feet) parcel improved with a single-family residence located at 1599 North Calaveras Street (APN 451-063-02), owned by Edward D. Fanucchi and Mariangela Tosto in the amount of $525,000, 2) approve the Agreement for Purchase and Sale of Real Property and Escrow Instructions to acquire fee interest of a 0.115-acre (5,000 square feet) parcel improved with a single-family residence located at 1598 North Glenn Avenue (APN 451-063-01), owned by Edward D. Fanucchi, in the amount of $340,000, and 3) approve the Agreement for Purchase and Sale of Real Property and Escrow Instructions to acquire fee interest of a 0.115-acre (5,000 square feet) parcel improved with a single-family residence located at 1592 North Glenn Avenue (APN 451-063-30), owned by Allan Foglio, Jr. and Jennifer Foglio, in the amount of $225,000 for the Blackstone McKinley BNSF Grade Separation Project, and authorize the Capital Projects Director or his designee to sign all documents necessary to complete the subject acquisition.
EXECUTIVE SUMMARY
The subject acquisitions, as memorialized in the Agreements for Purchase and Sale of Real Property and Escrow Instructions, will provide the City with 1) fee interest title of 1599 North Calaveras Street (APN 451-063-02), 2) fee interest title of 1598 North Glenn Avenue (APN 451-063-01), and 3) fee interest title of 1592 North Glenn Avenue (APN 451-063-30). These acquisitions are necessary to construct the Blackstone McKinley BNSF Grade Separation Project, which will eliminate two existing at-grade crossings by grade separating North Blackstone Avenue and East McKinley Avenue under the BNSF Railway Mainline Track. The Project requires 1) fee acquisition of APN 451-063-02, improved with a single-family residence, located at 1599 North Calaveras Street, owned by Edward D. Fanucchi and Mariangela Tosto, 2) fee acquisition of APN 451-063-01, improved with a single-family residence, located at 1598 North Glenn Avenue, owned by Edward D. Fanucchi, and 3) fee acquisition of APN 451-063-30, located at 1592 North Glenn Avenue, owned by Allan Foglio, Jr. and Jennifer Foglio. Each of the respective property owners and the City have come to a mutually agreed upon fair and just compensation for each parcel, which is based on an appraised value and subsequent negotiations. The right of way phase of the Blackstone McKinley BNSF Grade Separation Project is funded with local Measure C and California Local Partnership Program Formulaic grant funds.
BACKGROUND
The Blackstone Avenue and McKinley Avenue corridors serve as primary routes for the community, the City’s Bus Rapid Transit system, emergency vehicles, and is also part of the Blackstone Smart Mobility Plan, providing Class IV protected bicycle facilities along Blackstone Avenue through the Project area. The project location has experienced the highest traffic volumes and number of accidents of any at-grade crossing on the BNSF corridor. The Blackstone McKinley BNSF Grade Separation Project will eliminate two existing at-grade crossings by grade separating North Blackstone Avenue and East McKinley Avenue under the BNSF Mainline Track. The City is progressing through the engineering design stage and beginning the right of way acquisition stage of the Project.
The City retained Continental Field Services Corporation (CFS) to acquire parcels on its behalf for the Blackstone McKinley BNSF Grade Separation Project. CFS retained James G. Palmer Appraisals, Inc. (JGPA) to prepare appraisal reports of fair market value of the properties for the Project. An appraisal report prepared by JGPA with a date of April 14, 2023, determined the total value of the Fanucchi and Tosto property (APN 451-063-02) to be $505,000. The appraisal was reviewed by Lawrence D. Hopper, Commercial Appraisal Reviews (LDH), who concurred with the value given by JGPA. On August 2, 2023, CFS met with Mr. Fanucchi and Ms. Tosto and presented a formal offer to them from the City to purchase their property. Mr. Fanucchi and Ms. Tosto did not agree with the value of the property from the appraisal report by JGPA, and Mr. Fanucchi provided his own opinion of the value, which pursuant to California Evidence Code Section 813, he can provide as a qualified witness. After further negotiations with Mr. Fanucchi and Ms. Tosto and consultation with JGPA, the amount of $525,000 was mutually agreed upon as just compensation for the acquisition of the property. Mr. Fanucchi and Ms. Tosto signed the Purchase and Sale Agreement and Deed on March 18, 2024.
Per direction from CFS on behalf of the City, James G. Palmer Appraisals, Inc. prepared an appraisal report dated September 13, 2023, for the Fanucchi property (APN 451-063-01) and determined the total value to be $325,000. The appraisal was reviewed by Lawrence D. Hopper Commercial Appraisal Reviews who concurred with the value given by JGPA. On August 2, 2023, CFS met with Mr. Fanucchi and presented a formal offer to him from the City to purchase his property. Mr. Fanucchi did not agree with the amount offered by the City and provided his own opinion of the value, which pursuant to California Evidence Code Section 813, he can provide as a qualified witness. Mr. Fanucchi countered the City’s offer with a total amount of $340,000. After further negotiations with Mr. Fanucchi and consultation with JGPA, the amount of $340,000 was mutually agreed upon as just compensation for the acquisition of the property. On March 18, 2024, Mr. Fanucchi signed the Purchase and Sale Agreement and Deed.
Per direction from CFS on behalf of the City, James G. Palmer Appraisals, Inc. prepared an appraisal report dated April 14, 2023, for the Foglio property (APN 451-063-30) and determined the total value to be $205,000. The appraisal was reviewed by Lawrence D. Hopper Commercial Appraisal Reviews who concurred with the value given by JGPA. On August 2, 2023, CFS met with Allen Foglio Jr. and Jennifer Foglio and presented a formal offer to them from the City to purchase their property. The Foglio’s did not agree with the amount offered by the City and provided their own opinion of the value of $225,000. After further negotiations and consultation with JGPA, the amount of $225,000 was mutually agreed upon as just compensation for the acquisition of the property. On March 14, 2024, the Foglio’s signed the Purchase and Sale Agreement and Deed.
The City Attorney’s Office has reviewed and approved the Purchase and Sale Agreements and associated Deeds as to form.
ENVIRONMENTAL FINDINGS
This Project was found to be statutorily exempt by Fresno City Council on June 25, 2020, pursuant to California Public Resources Code Section 21080.13(a) and 15282(g) of the California Environmental Quality Act (CEQA) Guidelines. The Notice of Exemption was thereafter recorded with the Fresno County Clerk on July 30, 2020. The statute of limitations for challenges to this exemption has run pursuant to CEQA Guideline Section 15062(d). This Project will eliminate two railroad crossings and grade separate North Blackstone Avenue and East McKinley Avenue under the BNSF Mainline Track.
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 proposed Blackstone McKinley BNSF Grade Separation Project is within Council Districts 1 and 7. These acquisitions will have no impact to the General Fund. All Project costs for the right of way phase are funded with Measure C and California Local Partnership Program Formulaic grant funds. All funds necessary for the acquisitions are included in the current fiscal year budget as previously adopted by the City Council.
Attachments:
Purchase and Sale Agreement (Fanucchi and Tosto)
Purchase and Sale Agreement (Fanucchi)
Purchase and Sale Agreement (Foglio)
Vicinity Map
Location Map