REPORT TO THE CITY COUNCIL
FROM: Randall W. Morrison, PE, Director
Capital Projects Department
SCOTT L. MOZIER, PE, Director
Public Works Department
BY: JESUS AVITIA, PE, Assistant Director
Capital Projects Department, Transportation Project Management Division
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 1592 North Calaveras Street (Assessor’s Parcel Number (APN) 451-064-01), owned by David and Patricia Wasemiller, in the amount of $191,000.00, for the construction of the Blackstone McKinley BNSF Grade Separation Project
2. 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 1587 North Calaveras Street (APN 451-063-03), owned by Pamela A. Hinojosa De Rodriguez, in the amount of $380,000.00, for the construction of the Blackstone McKinley BNSF Grade Separation Project.
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 1592 North Calaveras Street (APN 451-064-01), owned by David and Patricia Wasemiller in the amount of $191,000.00, and 2) 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 1587 North Calaveras Street (APN 451-063-03), owned by Pamela A. Hinojosa De Rodriguez, in the amount of $380,000.00, 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 1592 North Calaveras Street (APN 451-064-01) and 2) fee interest title of 1587 North Calaveras Street (APN 451-063-03), which 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 451-064-01 improved with a single-family residence, located at 1592 North Calaveras Street, owned by David and Patricia Wasemiller, and 2) fee acquisition of APN 451-063-03 improved with a single-family residence, located at 1587 North Calaveras Street, owned by Pamela A. Hinojosa De Rodriguez.
David and Patricia Wasemiller and the City came to a mutually agreed upon total amount of $191,000.00 as just compensation for the acquisition of APN 451-064-01 and the Wasemiller’s signed the Agreement for Purchase and Sale of Real Property and Escrow Instructions on January 16, 2024. Pamela A. Hinojosa De Rodriguez and the City came to a mutually agreed upon total amount of $380,000.00 as just compensation for the acquisition of APN 451-063-03 and Ms. Rodriguez signed the Agreement for Purchase and Sale of Real Property and Escrow Instructions on January 18, 2024.
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 Wasemiller property (APN 451-064-01) to be $155,000.00. 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 the Wasemiller’s and presented a formal offer to them from the City to purchase their property. The Wasemiller’s did not agree with the value of the property from the appraisal report by JGPA and opted to have an independent appraisal prepared by Jim Karagozian / DBA AAA Value Write Appraisal Services. The independent appraisal report dated December 14, 2023, determined the total value of the property to be $191,000.00. An appraisal review of the independent appraisal was conducted by Real Property Analysts, who concurred with Mr. Karagozian’s value for the property. The amount of $191,000 was mutually agreed upon as just compensation for the acquisition of the property. The Wasemiller’s signed the Purchase and Sale Agreement and Deed on January 16, 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 Rodriguez property (APN 451-063-03) and determined the total value to be $350,000.00. The appraisal was reviewed by Lawrence D. Hopper Commercial Appraisal Reviews who concurred with the value given by JGPA. On October 17, 2023, CFS met with Ms. Rodriguez and presented a formal offer to her from the City to purchase her property. Ms. Rodriguez did not agree with the amount offered by the City and countered the City’s offer with a total amount of $380,000.00, which includes compensation for the Replacement Housing Payment (RHP) Ms. Rodriguez is entitled to as part of the relocation benefits due to the acquisition of her property. Without this negotiated settlement amount, the City would be liable to contribute up to $68,000 towards Ms. Rodriguez’s relocation housing costs in addition to the appraised amount of $350,000.00. The City agreed to accept Ms. Rodriguez’s counteroffer, and on January 18, 2024, Ms. Rodriguez 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).
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 (Wasemiller)
Purchase and Sale Agreement (Rodriguez)
Vicinity Map
Location Map