REPORT TO THE CITY COUNCIL
FROM: NICHOLAS D. MASCIA, PE, Assistant City Manager
Interim Director-Capital Projects Department
AARON A. AGUIRRE, Director
Parks, After School, Recreation, and Community Services Department
BY: ANTONIO M. BUELNA, PE, Assistant Director
Capital Projects Department, Capital Administration Division
NANCY BRUNO, Right of Way Manager
Capital Projects Department, Capital Administration Division
SUBJECT
Title
Actions pertaining to the acquisition of fee title interest of a parcel to benefit the Veterans-Barstow Acquisition Project (Council District 2):
1) Adopt a finding of Categorical Exemption per staff’s determination, pursuant to Section 15303/Class 3 of the California Environmental Quality Act (CEQA) Guidelines for the acquisition of Assessor’s Parcel Number 505-220-59.
2) Approve the Agreement for Purchase and Sale of Real Property and Escrow Instructions to acquire fee title interest of a 0.99-acre (42,934 square feet) unimproved parcel, identified as Assessor’s Parcel Number 505-220-59, owned by De Young Properties 5224 L.P., a California limited partnership, for an amount of $135,000 for the Veterans-Barstow Acquisition Project.
Body
RECOMMENDATIONS
Staff recommends the City Council 1) adopt a finding of Categorial Exemption per staff’s determination, pursuant to Section 15303 of the California Environmental Quality Act Guidelines for the acquisition of Assessor’s Parcel Number (APN) 505-220-59, and 2) approve the Agreement for Purchase and Sale of Real Property and Escrow Instructions to acquire fee title interest of a 0.99-acre (42,934 square feet) unimproved parcel located at the southwest corner of West Barstow Avenue and North Veterans Boulevard, identified as APN 505-220-59, owned by De Young Properties 5224 L.P., a California limited partnership, for an amount of $135,000 for the Veterans-Barstow Acquisition Project (Project), and authorize the City Manager or designee to sign all documents necessary to complete the subject acquisition.
EXECUTIVE SUMMARY
The acquisition of APN 505-220-59 (Subject Property) will provide the City with fee title interest of the real property located at the southwest corner of West Barstow Avenue and North Veterans Boulevard, Fresno, California, which is necessary for the Veterans-Barstow Acquisition Project (Project). The Project requires the fee title acquisition of the Subject Property, owned by De Young Properties 5224 L.P., a California limited partnership (Owner), which is an unimproved parcel that previously was used as a temporary storm water retention basin. In a letter dated October 19, 2023, the Freno Metropolitan Flood Control District (FMFCD) declared sufficient stormwater infrastructure has been installed in the vicinity of the Subject Property and its use as a temporary storm water retention basin is no longer needed.
The Owner and the City came to a mutually agreed upon total amount of $135,000 as just compensation for the acquisition of the Subject Property. Christopher Brandon De Young, the partnership’s Executive Vice-President, signed the Agreement for Purchase and Sale of Real Property and Escrow Instructions on December 3, 2024.
BACKGROUND
A goal of City of Fresno Parks, After School, Recreation, and Community Services (PARCS) Department, as identified in the Parks Master Plan, is to increase park land acreage by 1,095 acres to meet the General Plan overall level of service goals for Fresno’s current population, and by 1,751 acres to meet recreation needs of Fresno’s future population of 2035. Pursuant to this goal, the City Council adopted the Fiscal Year (FY25) budget on June 20, 2024, which included a motion to appropriate Urban Growth Management Fee Funding for the acquisition of property at West Barstow Avenue and North Veteran Boulevard, for the purposes of developing a new park.
The City retained Real Property Analysts (RPA) to provide an appraisal report to determine the fair market value (FMV) of the Subject Property. The appraisal report prepared by RPA with a date of September 5, 2024, determined the FMV of the DeYoung property (APN 505-220-29) (Subject Property) to be $150,000. On October 23, 2024, City staff emailed a formal offer in the amount of $135,000 (the Purchase Price) to Christopher Brandon De Young, Executive Vice President of De Young Properties 5224 L.P., a California limited partnership, to purchase the Subject Property. The Owner questioned why the City’s offer price was lower than the appraised value determined by RPA. It was explained to the Owner that the appraiser learned there are existing conditions upon the parcel from FMFCD which must be met prior to construction, including the need to abandon the temporary storm drainage facilities which may include, but are not limited to: demolition and disposal of certain structures, fencing, backfilling, compaction, and grading of the Subject Property. The City chose to not request this work be done by the Owner and instead reduced the Purchase Price to reflect the estimated cost of the work needed to be performed upon the parcel prior to construction. The Owner stated he understood and agreed to the City performing the work at their cost after the close of escrow. The amount of $135,000 was mutually agreed upon as just compensation for the acquisition of the Subject Property. The Owner signed the Purchase and Sale Agreement and associated Deed on December 3, 2024. Staff recommends the City Council authorize the City Manager 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
Staff performed an environmental assessment of this project and determined that it falls within the Categorical Exemption set forth in CEQA guidelines Section 15303/Class 3 because the project would be limited to acquisition of an existing parcel to provide for the filling of an existing ponding basin and the new construction of small facilities or structures to create a passive park. The park is intended to provide a protected path of travel and rest area for pedestrians and bicyclists. The project would not result in significant impacts on the environment during construction or operation, and the project does not meet any of the exceptions listed in Section 15300.2 of the State CEQA Guidelines.
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 Veterans-Barstow Acquisition Project is located within Council District 2. This acquisition is funded through FY 2025 Urban Growth Management Fee Funds and will have no impact to the General Fund. 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
Notice of Exemption