REPORT TO THE CITY COUNCIL
November 19, 2015
FROM: SCOTT L. MOZIER, PE, Director
Public Works Department
THROUGH: ANDREW J. BENELLI, PE, City Engineer/Assistant Director
Public Works Department, Traffic and Engineering Services Division
BY: CRAIG L. HANSEN, Supervising Real Estate Agent
Public Works Department, Real Estate Services Section
SUBJECT
Title
Authorize the City Manager or designee to execute a grant deed for the sale of City of Fresno owned vacant property (APN 478-102-19T and 478-102-20T), located at the southeast corner of Cherry Avenue and Railroad Avenue, to the State of California for the amount of $107,000. (Council District 3)
Body
RECOMMENDATION
To approve the sale of 32,841 square feet of vacant property located at the southeast corner of Cherry Avenue and Railroad Avenue to the State of California for the High Speed Rail project.
EXECUTIVE SUMMARY
The City of Fresno, through the Redevelopment Agency, utilized General Fund dollars to acquire the subject properties in 2007 as part of a plan to create a temporary homeless encampment. At the time, this temporary homeless encampment was to replace the ad hoc encampment located several blocks north under the former Monterey Street overpass. This transaction was to be just one of numerous purchases with the goal of assembling enough contiguous property to create a campus. The following year, in 2008, the economy went into recession and the project stalled. Today, these properties are in the path of High Speed Rail and the California High Speed Rail Authority (CHSRA) has offered to purchase the subject property for the appraised amount of $107,000.
BACKGROUND
The City of Fresno appropriated General Fund dollars to acquire the subject property in 2007, with the Redevelopment Agency handling the actual property acquisition. By 2008 the project was abandoned, partially due to the economic downturn and City budget reductions. The subject property has remained vacant since that time. Based upon the adopted alignment for the High Speed Rail Project, the CHSRA needs to purchase the subject property. APN 478-102-19T and 478-102-20T encompass 32,841 square feet and the High Speed Rail Authority has offered to purchase the parcels in their entirety for the appraised price of $107,000 or approximately $3.25 per square foot. The Authority engaged the right of way firm of Overland, Pacific & Cutler Inc. to appraise the subject property. Staff concurs with the appraised value for the property.
ENVIRONMENTAL FINDINGS
The California High Speed Rail Authority has completed the required environmental impact studies for the high speed rail corridor through the city and county of Fresno. As part of the California High Speed Rail project, the State of California hired Hanover Environmental Services of Chico, California to conduct a Phase-1 Initial Site Assessment. Project Number: HST101-3 13-04 discovered no evidence of recognized environmental conditions or significant environmental concerns in connection with the subject property with the exception of three underground storage tanks which were installed in 1950 and were reportedly removed in 1980.
LOCAL PREFERENCE
N/A
FISCAL IMPACT
The City of Fresno will net $107,000.00 from the sale of the property. Due to the original acquisition having been made with General Fund revenue, the proceeds from the sale of property will be deposited into the General Fund.
Attachment:
Aerial photo of subject property