REPORT TO THE CITY COUNCIL
FROM: NICHOLAS D. MASCIA, PE, Assistant City Manager
Interim Director-Capital Projects Department
SCOTT L. MOZIER, PE, Director
Public Works 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
Approve the Agreement for Purchase and Sale of Real Property and Escrow Instructions to acquire fee interest of a 0.43-acre (18,730 square feet) improved parcel, identified as Assessor’s Parcel Number 451-134-05, owned by Joseph E. Alanis, Trustee of the Joseph E. Alanis Revocable Trust dated April 8, 2009, for an amount of $2,027,950.00, for the construction of the Blackstone McKinley BNSF Grade Separation Project (Council Districts 1 and 7).
Body
RECOMMENDATION
Staff recommends the City Council approve the Agreement for Purchase and Sale of Real Property and Escrow Instructions to acquire fee interest of a 0.43-acre (18,730 square feet) parcel improved with an auto body and paint shop known as Greenway Auto Body, located at 1497 North Blackstone Avenue, identified as Assessor’s Parcel Number (APN) 451-134-05 (the “Subject Property”), owned by Joseph E. Alanis, Trustee of the Joseph E. Alanis Revocable Trust dated April 8, 2009, for an amount of $2,027,950.00 for the construction of the Blackstone McKinley BNSF Grade Separation Project (the “Project”), and authorize the Capital Projects Director or his designee to sign all documents necessary to complete the subject acquisition.
EXECUTIVE SUMMARY
The acquisition of APN 451-134-05 (the “Subject Property”) will provide the City with fee title interest of the real property located at 1497 North Blackstone Avenue, Fresno, California, which is necessary to construct the Blackstone McKinley BNSF Grade Separation Project (the “Project”) and 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 the fee title acquisition of the Subject Property, owned by Joseph E. Alanis, Trustee of the Joseph E. Alanis Revocable Trust dated April 8, 2009, (the “Owner”), improved with an auto body and paint shop known as Greenway Auto Body. The City needs to acquire the property interest described above to certify the Project and construct the proposed Project improvements.
On June 13, 2024, the Fresno City Council adopted a Resolution of Necessity for the Subject Property in case negotiations with the property owner were not successful. After extensive discussions, the Owner and the City came to a mutually agreed upon total amount of $2,027,950 as just compensation for the acquisition of the Subject Property. The Owner signed the Agreement for Purchase and Sale of Real Property and Escrow Instructions on February 28, 2025. The Subject Property is occupied by the Owner’s business, which is entitled to relocation assistance pursuant to the Uniform Relocation Act. The City’s relocation consultant has been in contact with the Owner to assist in the relocation of their business.
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 preliminary engineering and right of way phases of the Project. The Project costs for the right of way phase are funded by Measure “C” Grade Separation Program funds and Local Partnership Program Formulaic grant funds.
The City retained Universal Field Services (UFS) to acquire parcels on its behalf for the Project. UFS retained CBRE Valuation & Advisory Services (CBRE) to prepare an appraisal report of fair market value of the Subject Property for the Project. On August 8, 2022, CBRE prepared an appraisal report determining the fair market value of the Subject Property to be $925,000 as defined by Section 1263.320 of the Code of Civil Procedure. The appraisal was reviewed by David S. Mason, Inc., who concurred with the value given by CBRE. Pursuant to Section 7267.2 of the Government Code, an offer of just compensation in the full amount of the appraisal was personally delivered to the Owner by UFS on August 31, 2023. A subsequent, supplemental offer to purchase the Improvements Pertaining to the Realty (IPR) on the property was made on December 14, 2023, in the amount of $262,500. The total combined purchase price for the Subject Property and IPRs is $1,187,500. On July 12, 2023, an updated appraisal report was prepared by CBRE, and the value of the Subject Property was opined to remain at a value of $925,000. The Owner did not agree with the City’s appraiser’s opinion of value and had an independent appraisal report for the Subject Property prepared by James G. Palmer Appraisals, Inc. (JGPA), for which the Owner was reimbursed $5,000 by the City, pursuant to California Code of Civil Procedure Section 1263.025. JGPA determined the value of the Subject Property to be $1,818,000 based on the change in the real estate market since the City’s original appraisal date of August 8, 2022. On August 6, 2024, the Owner’s counsel submitted a counteroffer for the Subject Property in the amount of $1,818,000 and $180,800 for the IPRs, totaling $1,998,800. On February 21, 2025, it was determined that the Owner’s replacement property was not large enough to accommodate both paint booths which the Owner had planned to relocate with his business. On February 25, 2025, the City and the Owner came to a mutually agreed upon settlement for the City to purchase one paint booth and reimburse costs to relocate of the second booth, increasing the price paid for the IPRs by $29,150, for a total of $209,950, adjusting the total compensation amount for the Subject Property and the IPRs to $2,027,950. The Owner is entitled to and will receive move costs and reestablishment reimbursement pursuant to the Uniform Relocation Act. The Owner signed the Purchase and Sale Agreement of Real Property and Escrow Instructions on February 28, 2025.
Staff recommends the City Council authorize the Capital Projects Director or designee to sign all documents necessary to complete the subject acquisition. The City Attorney’s Office has reviewed and approved the Purchase and Sale Agreement 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 acquisition are included in the current fiscal year budget as previously adopted by the City Council.
Attachments:
Purchase and Sale Agreement
Vicinity Map
Location Map