REPORT TO THE CITY COUNCIL
February 26, 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
CRAIG L. HANSEN, Supervising Real Estate Agent
Public Works Department, Real Estate Services Section
BY: PETE CALDWELL, Senior Real Estate Agent
Public Works Department, Real Estate Services Section
SUBJECT
Title
Actions pertaining to the acquisition of three acres of property owned by J & M Avila Properties, LLC, a California Limited Liability Company:
1. Approve the acquisition of three acres of property owned by J & M Avila Properties, LLC, a California Limited Liability Company, in the amount of $1,536,325, for the construction of Veterans Boulevard overcrossing near Golden State and Bullard Avenue (Council District 2)
2. Authorize the Public Works Director, or his designee, to sign all documents necessary to complete the transaction as delegated by City Manager
Body
RECOMMENDATION
Approve the acquisition of three acres of property owned by J & M Avila Properties, LLC, a California Limited Liability Company, in the amount of $1,536,325 for the construction of Veterans Boulevard overcrossing near Golden State and Bullard Avenue and authorize the Public Works Director, or his designee, to sign all documents necessary to complete the transaction as delegated by City Manager.
EXECUTIVE SUMMARY
The City of Fresno, in cooperation with the California Department of Transportation ("Caltrans"), proposes to build a new interchange on State Route 99 plus supporting roadway improvements in northwest Fresno. The improvements will add a new interchange to State Route 99 between Shaw Avenue and Herndon Avenue as well as a new city arterial roadway that will enhance the local circulation network. The property owner J & M Avila Properties, LLC, a California Limited Liability Company, has agreed to the negotiated value of $1,536,325 for the acquisition of this property located along North Golden State Boulevard near Bullard Avenue.
BACKGROUND
Veterans Boulevard, originally referred to as the Herndon-Grantland Diagonal, was part of the 1984 General Plan and is a planned six-lane super arterial in the 2035 General Plan. The interchange idea was refined in 1986 with a feasibility study conducted to analyze potential interchange/grade separation configurations, with the intention of determining the alternative best suited to the site and the proposed Veterans Boulevard. In 1991, a Project Initiation Document was completed, and in 1996, the official plan line for Veterans Boulevard was adopted. In recent years, staff has completed the Project Study Report ("PSR"), Project Report, and Environmental Impact Report ("EIR"). Veterans Boulevard and the proposed interchange with State Route 99 are identified as part of the Circulation Element in both the City and County General Plans. The new interchange would be a partial cloverleaf connecting State Route 99 and Veterans Boulevard. A new Veterans Boulevard overcrossing would span State Route 99 with three northbound and three southbound lanes, a Class I bicycle lane/pedestrian trail on the west side of the structure, and Class II bicycle lanes on both sides. Veterans Boulevard will have ramps connecting to Golden State Boulevard and will span over the Union Pacific Railroad. Drainage basins will be built to retain water runoff from the project. Typical freeway interchange landscaping will be provided. The City Attorney's Office has reviewed and approved as to form the proposed Purchase and Sale Agreement.
The acquisition of this three-acre property located along North Golden State Boulevard APN 505-080-17s near Bullard Avenue and Golden State Boulevard was appraised by Kelly P. Stevens Real Property Analysts under the direction of Lawrence D. Hopper, MAI. Stevens' appraisal placed the value of land at $1,150,000. The owner obtained a second independent appraisal which placed the value at $1,391,000. Staff and the owner worked through many points leading to the negotiated sales price of $1,536,325 as just compensation. Because the entire property is needed for this portion of the project, including any and all building and structures, the compensation paid is for a global settlement. This global settlement includes any and all potential claims for loss of goodwill. The settlement also includes Federally Mandated Relocation Expenses and assistance ($75,000) and payment of $70,325 for all fixtures and equipment related to the business. In working with property owner, Staff has agreed to a lease arrangement of the building structures and the land until such time as the construction of the overpass is needed. As part of the lease arrangement, a license agreement has been established between the two parties that allows access to the property while construction of the Veterans Blvd is ongoing. The present owner, J&M Avila Properties, LLC, is responsible to construct the access to the property across a different parcel owned by the City of Fresno. Both the lease and license agreements are included as attachments to the Purchase and Sale Agreement.
ENVIRONMENTAL FINDINGS
The proposed project is a joint project by the Caltrans and the Federal Highway Administration, and is subject to state and federal environmental review requirements. Project documentation, including an EIR, has been prepared in compliance with both the California Environmental Quality Act ("CEQA") and the National Environmental Policy Act ("NEPA"). Caltrans is the lead agency under NEPA and CEQA. In addition, Federal Highway Administration's responsibility for environmental review, consultation, and any other action required in accordance with applicable Federal laws for this project is being, or has been, carried out by Caltrans under its assumption of responsibility pursuant to 23 United States Code 327.
An initial study and EIR (SCH No. 2010021054) was prepared for this project and adopted on June 7, 2013. This approval is to implement a portion of the project. An analysis has been performed pursuant to CEQA Guidelines ยง 15162 to determine whether subsequent environmental review is required for this project. Based upon this analysis the following findings are made to support the determination that no subsequent environmental review is required:
1. No substantial changes are proposed in the project which will require major revisions to the EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects.
2. No substantial changes occurred with respect to the circumstances under which the project was undertaken which will require major revisions to the EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects.
3. There is no new information, which was not known and could not have been known at the time of the EIR that was not discussed in the EIR.
Based upon these findings, it has been determined that no further environmental documentation is required for this project.
LOCAL PREFERENCE
Local preference was not considered because the acquisition of this property does not include a bid or award of construction or services contract.
FISCAL IMPACT
The $130 million Veterans Boulevard Project which is located in Council District 2 will have no impact upon the General Fund. The Veterans Boulevard project is being funded through Measure "C" Tier 1 funds, Citywide Regional Street Impact fees, State Transportation Improvement Program ("STIP") funding, Regional Transportation Mitigation Fees ("RTMF") and Federal transportation funds.
Attachments:
Veterans Blvd Vicinity Map
APN Vicinity Map