Actions pertaining to the acquisition of property rights on a parcel located at the southwest corner of East Shields Avenue and North Fresno Street, to benefit the Shields Avenue Trail - Blackstone to Fresno Project (Council District 7): 1. HEARING to consider a Resolution of Necessity for acquisition of a permanent public street easement on a portion of Assessor’s Parcel Number 445-041-41, owned by Jose R. Gutierrez Gomez, for the construction of the Shields Avenue Trail - Blackstone to Fresno Project 2. ***RESOLUTION - Determining that public interest and necessity require acquisition of a permanent public street easement over, under, through, and across a portion of Assessor’s Parcel Number 445-041-41, owned by Jose R. Gutierrez Gomez, for the construction of the Shields Avenue Trail - Blackstone to Fresno Project, and authorizing eminent domain proceedings for public use and purpose (Requires Five Affirmative Votes) (Subject to Mayor’s Veto)

REPORT TO THE CITY COUNCIL FROM: NICHOLAS D. MASCIA, PE, Assistant City Manager Interim Director, Capital Projects Department BRIAN RUSSELL, Director Public Works Department BY: DANIEL VANG, Assistant Director Capital Projects Department, Administration Division NANCY BRUNO, Right of Way Manager Capital Projects Department, Administration Division SUBJECT ..Title Actions pertaining to the acquisition of property rights on a parcel located at the southwest corner of East Shields Avenue and North Fresno Street, to benefit the Shields Avenue Trail – Blackstone to Fresno Project (Council District 7): HEARING to consider a Resolution of Necessity for acquisition of a permanent public street easement on a portion of Assessor’s Parcel Number 445-041-41, owned by Jose R. Gutierrez Gomez, for the construction of the Shields Avenue Trail – Blackstone to Fresno Project ***RESOLUTION – Determining that public interest and necessity require acquisition of a permanent public street easement over, under, through, and across a portion of Assessor’s Parcel Number 445-041-41, owned by Jose R. Gutierrez Gomez, for the construction of the Shields Avenue Trail – Blackstone to Fresno Project, and authorizing eminent domain proceedings for public use and purpose (Requires Five Affirmative Votes) (Subject to Mayor’s Veto) ..Body RECOMMENDATIONS Staff recommends the City Council: 1) conduct a public hearing to consider the adoption of a Resolution of Necessity for the acquisition of a 0.13-acre (5,670.92 square feet) permanent public street easement from a portion of the real property identified as Assessor’s Parcel Number (APN) 445-041-41, owned by Jose R. Gutierrez Gomez, for the construction of the Shields Avenue Trail – Blackstone to Fresno Project; and 2) adopt the Resolution of Necessity, which states that public interest and necessity require acquisition of a permanent public street easement over, under, through, and across a portion of APN 445-041-41, owned by Jose R. Gutierrez Gomez, for the construction of the Shields Avenue Trail – Blackstone to Fresno Project and authorizing eminent domain proceedings for public use and purpose, pursuant to California Code of Civil Procedure §1245.230. EXECUTIVE SUMMARY The acquisition of property rights on a portion of APN 445-041-41, an undeveloped parcel located at the southwest corner of East Shields Avenue and North Fresno Street in Fresno, California (the Subject Property), will provide the City with a permanent public street easement (the Easement). The Easement is necessary to support construction of the Shields Avenue Trail – Blackstone to Fresno Project (the Project). The Easement area, owned by Jose R. Gutierrez Gomez (the Owner), comprises approximately 0.13-acre (5,670.92 square feet) and does not impact any existing improvements. The Resolution of Necessity (RON) authorizes the City Attorney to initiate an eminent domain action and obtain an order of possession for the required property rights on the Subject Property. To acquire the Easement, the City must secure a court order through the eminent domain process. Adoption of this action requires five (5) affirmative votes and is subject to veto by the Mayor. BACKGROUND On September 1, 2016, the City Council approved a funding agreement allowing Measure C funds to be used for the design and construction of the Midtown Trail (then referred to as the “Metro Trail”). The Midtown Trail was divided into five segments to be designed and constructed as stand-alone projects. The Shields Avenue Trail – Blackstone to Fresno Project, located along Shields Avenue from Blackstone Avenue to Fresno Street, is the first geographic segment within the Midtown Trail Project alignment, but not the first constructed segment. The Project consists of a planned seven-mile pedestrian and bicycle multipurpose trail that will ultimately connect the Fresno Area Express hub at Manchester Center to the Clovis Old Town Trail. The planned corridor follows the Herndon Canal alignment along Shields Avenue from Blackstone Avenue to Fresno Street (Segment 1); continues along Shields Avenue from Fresno Street to First Street (Segment 2); follows the Herndon Canal from First Street and Shields Avenue to McKinley and Millbrook Avenues (Segment 3); proceeds along the Mill Creek Canal alignment south of McKinley Avenue from Millbrook Avenue to Clovis Avenue (Segment 4); and then turns north along Clovis Avenue from McKinley to Shields Avenues (Segment 5). Midtown Trail Segment 1 Phase I consists of a Class I trail along the north side of Shields Avenue, from Blackstone Avenue to the Manchester Center entrance intersection. Midtown Trail Segment 1 Phase II will continue the trail by crossing Shields Avenue at the Manchester Center intersection and extending the trail along the south side of Shields Avenue to Fresno Street. Phase I was successfully completed in June 2023 using Active Transportation Program (ATP) grant funding and local Measure C funding. Midtown Trail Segment 1 Phase II involves more complex modifications to Caltrans facilities to accommodate the trail. Caltrans is contributing State Highway Operations and Protection Program (SHOPP) Minor Program funding for improvements within the State right-of-way, including the realignment of the northbound loop on-ramp of State Route 41 to meet current pedestrian-friendly interchange design standards. The Midtown Trail Segment 1 Phase II Project is currently in the Design and Right-of-Way phase, with the final plans, specifications, and estimate (PS&E) package nearly ready for advertisement. The project improvements include construction of a new Class I paved trail, modifications to the State Route 41 and Shields Avenue southbound on-ramp, and the northbound on- and off-ramps and traffic signal. Additional work includes installation of ADA-compliant curb ramps, new street lighting, and new signage and striping. To accommodate construction of the Project, the acquisition of certain property rights is required. One of the affected properties is APN 445-041-41, an undeveloped parcel located at the southwest corner of East Shields Avenue and North Fresno Street. The parcel, zoned NV (No Value), contains a depressed Fresno Irrigation District canal that extends across most of the site and is approximately 0.47-acre (20,473 square feet) in size. A total of 0.13-acres (5,670.92 square feet) of this parcel (the Acquisition Area) is needed for a permanent public street easement for the Project improvements. City Staff (Staff) initially prepared a waiver valuation to determine the value of the Acquisition Area on this parcel. The waiver valuation, dated March 9, 2026, concluded that the fair market value (FMV) of the Easement is $500.00. Pursuant to Section 7267.2 of the Government Code, the City’s first written offer of just compensation, in the full amount of the valuation, was sent in English and Spanish via USPS First-Class Mail to the Owner on March 17, 2026. The Owner later submitted a counteroffer of $175,000; however, no independent appraisal or supporting documentation was provided. Staff informed the Owner’s attorney that the Owner was eligible for reimbursement for an independent appraisal, but none was ever submitted. After the attorney withdrew representation, Staff informed the Owner that the City would proceed with preparation of a Resolution of Necessity, including commissioning an appraisal for potential eminent domain proceedings. City Staff retained Real Property Analysts (RPA) to appraise the Acquisition Area. On August 27, 2026, RPA sent a Notice of Decision to Appraise (NODA) to the Owner, inviting participation in the inspection or submission of relevant information. The Owner did not respond or participate in the appraisal process. The appraisal, with a valuation date of September 10, 2026, concluded that the FMV of the Easement is $500.00. A second written offer of just compensation in the amount of the appraised value was sent in English and Spanish via USPS First-Class Mail and email. The Owner expressed disagreement with the valuation but did not provide an appraisal, revised counteroffer, or additional documentation. To date, no further substantive communication has been received from the Owner. Staff recommends initiating the eminent domain process to acquire the Easement and right-of-way on the Subject Property. Starting the eminent domain process now allows the City to obtain an order of possession from the court while giving the Owner a forum in which to make their claim for compensation. For each property interest to be acquired, a Resolution of Necessity must be adopted prior to the commencement of eminent domain proceedings (see Attachment, Resolution of Necessity Requirements). The Project is funded through local Measure C Trail and Measure P Safe Walking and Biking Trails funding. The City Attorney’s Office has reviewed and approved the Resolution of Necessity. ENVIRONMENTAL FINDINGS On December 10, 2020, City Council adopted Amended and Restated Environmental Assessment No. P20-01778, a determination that the proposed Project for the Midtown Trail qualifies for the streamlined analysis set forth in the California Environmental Quality Act (CEQA) Guidelines Section 15183 (Projects Consistent with a Community Plan, General Plan, or Zoning) and dated December 10, 2020. A Notice of Exemption (NOE) was filed with the Fresno County Clerk on December 16, 2020. LOCAL PREFERENCE Local preference was not considered because this agreement does not include a bid for or an award of a construction or services contract. FISCAL IMPACT This Project, located in Council District 7, has no fiscal impact on the General Fund. The contract will be funded by local Measure C Trail funds and Measure P Safe Walking and Biking Trails funds. Attachments: Resolution of Necessity (RON) Resolution of Necessity Requirements Vicinity Map Location Map Staff Presentation