Acciones relacionadas con la adquisición de derechos de propiedad en una parcela ubicada en 3809 North Sherman Street, para beneficiar el Proyecto de Mejoras Blackstone Shields-Dakota AHSC (Distrito del Consejo 4): 1. AUDIENCIA para considerar una Resolución de Necesidad para la adquisición de una servidumbre de calle permanente, una servidumbre de paso peatonal permanente, y una servidumbre de construcción temporal para propósitos de calle pública, pasarela peatonal, y servicios públicos en porciones del Número de Parcela del Catastro 436-293-08, propiedad de Adelita Murillo y Carlos Murillo, quienes pueden haber adquirido el título como Adelita Murillo y Carlos Murillo, Fideicomisarios del Fideicomiso en Vida de Adelita Murillo y Carlos Murillo fechado el 12 de septiembre de 2022, para la construcción del Proyecto de Mejoras para Vivienda Asequible y Comunidades Sostenibles (AHSC) Blackstone Shields-Dakota 2. ***RESOLUCIÓN - Determinando que el interés público y la necesidad requieren la adquisición de una servidumbre de calle permanente, una servidumbre de paso peatonal permanente, y una servidumbre de construcción temporal para propósitos de calle pública, pasarela peatonal, y servicios públicos sobre, bajo, a través de, y atravesando porciones del Número de Parcela del Catastro 436-293-08, propiedad de Adelita Murillo y Carlos Murillo, quienes pueden haber adquirido el título como Adelita Murillo y Carlos Murillo, Fideicomisarios del Fideicomiso en Vida de Adelita Murillo y Carlos Murillo fechado el 12 de septiembre de 2022, para la construcción del Proyecto de Mejoras Blackstone Shields-Dakota AHSC, y autorizando procedimientos de dominio eminente para uso y propósito público (Requiere 5 votos afirmativos) (Sujeto al Veto del Alcalde)

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 3809 North Sherman Street, to benefit the Blackstone Shields-Dakota AHSC Improvements Project (Council District 4): HEARING to consider a Resolution of Necessity for acquisition of a permanent street easement, a permanent pedestrian easement, and a temporary construction easement for public street, pedestrian walkway, and utility purposes on portions of Assessor’s Parcel Number 436-293-08, owned by Adelita Murillo and Carlos Murillo, who may have taken title as Adelita Murillo and Carlos Murillo, Trustees of the Adelita Murillo and Carlos Murillo Living Trust dated September 12, 2022, for the construction of the Blackstone Shields-Dakota Affordable Housing and Sustainable Communities (AHSC) Improvements Project ***RESOLUTION – Determining that public interest and necessity require acquisition of a permanent street easement, a permanent pedestrian easement, and a temporary construction easement for public street, pedestrian walkway, and utility purposes over, under, through, and across portions of Assessor’s Parcel Number 436-293-08, owned by Adelita Murillo and Carlos Murillo, who may have taken title as Adelita Murillo and Carlos Murillo, Trustees of the Adelita Murillo and Carlos Murillo Living Trust dated September 12, 2022, for the construction of the Blackstone Shields-Dakota AHSC Improvements Project, and authorizing eminent domain proceedings for public use and purpose (Requires 5 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 (1) a 0.0024-acre (102.47 square feet) permanent public street easement, (2) a 0.0051-acre (222.58 square feet) permanent public pedestrian easement, and (3) a 0.01361-acre (592.76 square feet) temporary construction easement from portions of the real property identified as Assessor’s Parcel Number (APN) 436-293-08, owned by Adelita Murillo and Carlos Murillo, who may have taken title as Adelita Murillo and Carlos Murillo, Trustees of the Adelita Murillo and Carlos Murillo Living Trust dated September 12, 2022, for the construction of the Blackstone Shields-Dakota Affordable Housing and Sustainable Communities (AHSC) Improvements Project; and 2) adopt the Resolution of Necessity, which states that public interest and necessity require acquisition of a permanent street easement, a permanent pedestrian easement, and a temporary construction easement for public street, pedestrian walkway, and utility purposes over, under, through, and across portions of APN 436-293-08, owned by Adelita Murillo and Carlos Murillo, who may have taken title as Adelita Murillo and Carlos Murillo, Trustees of the Adelita Murillo and Carlos Murillo Living Trust dated September 12, 2022, for the construction of the Blackstone Shields-Dakota AHSC Improvements 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 portions of APN 436-293-08, located at 3809 North Sherman Street in Fresno, California (the Subject Property), will provide the City with a permanent street easement, a permanent pedestrian easement, and a temporary construction easement (collectively, the Easements). The Easements are necessary to support construction for the Blackstone Shields-Dakota AHSC Improvements Project (the Project). The Easements on the Subject Property, owned by Adelita Murillo and Carlos Murillo (collectively, the Owner), comprise approximately 0.0211-acre (917.81 square feet) in total and include existing improvements that will be evaluated and compensated as part of the acquisition process. 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 Easements, 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 The City of Fresno (City) proposes implementing the Blackstone Smart Mobility Plan by reducing Blackstone Avenue’s vehicular travel lanes from six (6) lanes to four (4), including designated bus-only lanes on the outside of the Number 2 travel lanes. The Project includes enhanced pedestrian lighting along this segment of Blackstone Avenue and widening the sidewalk between Shields and Dayton Avenues to twelve (12) feet, accompanied by a landscaped park strip. Landscaping, irrigation, signage, and restriping will be installed within the Project limits. Class IV bike lanes are proposed on both sides of Blackstone Avenue between Shields and Dakota Avenues. Traffic signals within the Project limits will be updated in accordance with the revised travel lane configuration. Additionally, improvements will be made to the median island to accommodate the installation of a High Intensity Activated Crosswalk (HAWK) beacon system between Garland and Dakota Avenues. The Project will also install sidewalk and ADA-compliant curb ramps along the north side of Dakota Avenue from west of Angus Street to First Street. To accommodate construction of the Project, the acquisition of certain property rights is required. One of the affected properties is APN 436-293-08, located at 3809 North Sherman Street. The larger parcel comprises approximately 0.26-acre (11,454 square feet). From this parcel, a total of 0.0211-acre (917.81 square feet) (the Acquisition Area) is needed in the form of a permanent street easement, a permanent pedestrian easement, and a temporary construction easement to provide the space necessary for Project improvements. Staff retained Real Property Analysts (RPA) to appraise and determine the value of the Acquisition Area on the Subject Property. The appraisal report, with a date of value of August 5, 2026, concluded that the fair market value (FMV) of the Easements is $21,300.00, as defined by Section 1263.320 of the Code of Civil Procedure. City Staff (Staff), including Harmanjit Dhaliwal, Assistant Director of Public Works, met with the Owner and their daughter at the Subject Property on August 10, 2026, where the Project was discussed in detail and the need for the Easements was explained. Staff also discussed that a portion of the Owner’s landscaped property encroaches into the public right-of-way and is currently being used by pedestrians due to the absence of an existing sidewalk. Per the Owner’s request, Staff provided them with a copy of the appraisal report for their review in advance of presenting the formal written offer. Pursuant to Section 7267.2 of the Government Code, a first written offer of just compensation in the full amount of the appraised value was sent via USPS First-Class Mail and email to the Owner by Staff on September 1, 2026. On September 8, 2026, the Owner confirmed receipt of the offer package and stated they believed the City’s offer was too low due to their “anticipated costs associated with addressing the permanent and temporary impacts of the proposed easement,” and submitted a counteroffer in the amount of $69,439.34. The Owner also stated they did not believe the City’s offer “adequately accounts for the permanent impacts to the property’s safety, security, privacy, access, and potential liability, as well as the potential effects on current and future tenancies.” On September 9, 2026, the City rejected the Owner’s counteroffer and submitted a revised amount of $26,300 in an effort to reach a mutually agreeable amount of just compensation. After several unsuccessful attempts to contact the Owner following issuance of the City’s counteroffer, Staff sent a final letter prior to recommending a Resolution of Necessity (RON) to the City Council on October 5, 2026. This correspondence served as the final outreach before Staff recommended that Council adopt the RON. On October 8, 2026, the Owner responded to Staff, rejecting the City’s counteroffer and submitting a new counteroffer of $40,000 to “help address the project’s impacts on our property and our obligations as landlords to provide our tenants in the City of Fresno with a functional, safe, and well-maintained residential home.” The Owner further stated that if the City declined their counteroffer, they requested access to the $5,000 previously offered for “an independent analysis by a commercial advisor.” Staff rejected the Owner’s counteroffer and reiterated that the prior offer of $26,300 exceeded the appraised fair market value. Staff also addressed the request for $5,000 by reminding the Owner of their right to reimbursement – pursuant to California Code of Civil Procedure Section 1263.025, which entitles property owners to reimbursement for an independent appraisal (up to $5,000) - and re-sent the previously provided information outlining the reimbursement process. To date, no further communication has been received from the Owner. Staff recommend initiating the eminent domain process to acquire the Easements 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 the Affordable Housing and Sustainable Communities (AHSC) and Measure C Transit Oriented Development (TOD) Program Funds. The City Attorney’s Office has reviewed and approved the Resolution of Necessity. ENVIRONMENTAL FINDINGS Staff performed an environmental assessment of this project and determined it falls within the Categorical Exemption set forth in CEQA Guidelines, Section 15301/Class 1 (Existing facilities). Section 15301/Class 1 of the CEQA Guidelines exempts from the provisions of CEQA, projects consisting of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. The Project is consistent with the provision of a Class 1 Categorical Exemption because it would improve existing streets by changing the travel lane configuration such as designated bus-only lanes and buffered bicycle lanes and add pedestrian sidewalk. The Project would not increase the number of travel lanes or otherwise increase roadway capacity. None of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines Section 15300.2 apply to this Project. The City Attorney’s Office has reviewed the Environmental Assessment as to form. 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 4, has no fiscal impact on the General Fund. The contract will be funded by Affordable Housing and Sustainable Communities (AHSC) and Measure C Transit Oriented Development (TOD) Program Funds. Attachments: Resolution of Necessity (RON) Resolution of Necessity Requirements Vicinity Map Location Map Staff Presentation