REPORT TO THE CITY COUNCIL FROM: RANDALL W. MORRISON, PE, Director Capital Projects Department SCOTT L. MOZIER, PE, Director Public Works Department BY: ANDREW J. BENELLI, PE, Assistant Director Public Works Department NANCY BRUNO, Supervising Real Estate Agent Capital Projects Department, Capital Administrative Division SUBJECT ..Title Actions pertaining to the acquisition of a permanent street easement and right of way to benefit the Tract 6162 Development Project for the widening of West Ashlan Avenue between North Polk Avenue and North Hayes Avenue (Council District 1): 1. HEARING to consider a resolution of public use and necessity for acquisition of a permanent street easement and right of way for public street purposes over, under, through and across a portion of Assessor's Parcel Number (APN) 511-040-06, owned by Elvia Gonzalez, for the construction of the widening of West Ashlan Avenue between North Polk Avenue and North Hayes Avenue. 2. ***RESOLUTION - Determining that public interest and necessity require acquisition of a permanent easement and rights of way for public street purposes over, under, through and across portions of APN 511-040-06, owned by Elvia Gonzalez, a married woman as her sole and separate property for the construction of the widening of West Ashlan Avenue between North Polk Avenue and North Hayes Avenue and authorizing eminent domain proceedings for public use and purpose (Requires 5 Affirmative Votes) (Subject to Mayor's Veto). ..Body RECOMMENDATIONS Staff recommends that the City Council (1) Conduct a public hearing to consider the adoption of a resolution of public use and necessity for the acquisition of a 4,336 square foot portion of a parcel in permanent street easement and right of way for the widening of West Ashlan Avenue from North Polk Avenue to North Hayes Avenue from Assessor's Parcel Number 511-040-06 (Property), owned by Elvia Gonzalez, and (2) Adopt the attached resolution of public use and necessity, which states the public interest and necessity require a permanent street easement and right of way for public street purposes over, under, through and across real property for the widening of West Ashlan Avenue between North Polk Avenue and North Hayes Avenue; and authorize an eminent domain action to acquire the permanent street easement pursuant to the California Code of Civil Procedure. EXECUTIVE SUMMARY The City's General Plan Circulation Element stipulates that Ashlan Avenue between Polk Avenue and Hayes Avenue be constructed as a four-lane divided arterial with a median island. The right of way and permanent street easement from the Property is required to satisfy the General Plan and the Conditions of Approval of Vesting Tentative Tract Map Number 6162 approved by the Fresno City Planning Commission on December 16, 2016. The permanent easement and right of way acquisition from the subject Property are necessary to construct and complete the widening of Ashlan Avenue between Polk Avenue and Hayes Avenue. The roadway improvements will be constructed by the developer Lennar Homes of California, LLC (Lennar). Lennar made an initial deposit in the amount of $589,000 for the estimated acquisition and legal costs necessary to acquire the right of way to widen Ashlan Avenue. The improvement of Ashlan Avenue is a public necessity, and will help fulfill the City's commitments that were made with the adjacent Fanucci project annexation. BACKGROUND The Fresno City Planning Commission on December 16, 2016, approved Vesting Tentative Map Number 6162 (Tentative Map) for an 83-lot single-family residential subdivision on 16.20 acres. The Tentative Map was approved consistent with the Fresno General Plan and the West Area Community Plan to comply with the provisions of the Subdivision Map Act. The Final Map was approved by City Council on August 19, 2021, with an Addendum to Subdivision Agreement for Acquisitions of Street Easements, and the Conditions of Approval of the Tentative Map imposed the requirement to widen and improve Ashlan Avenue on the project frontage and transitioning as necessary for the design speed of Ashlan Avenue. To satisfy this requirement, Lennar has executed an addendum to the Subdivision Agreement that provides for the City to negotiate and/or exercise its power of eminent domain, to acquire the necessary rights of way. Lennar has posted an initial deposit in the amount of $589,000 for the estimated acquisition and legal costs for the fifteen (15) parcels impacted to satisfy the Conditions of Approval. Lennar and the City have successfully acquired the necessary permanent easement(s) and right of way from fourteen (14) parcels. The subject Property is the single remaining parcel required to complete the Project. Lennar attempted to negotiate acquisition of the necessary permanent easement and right of way from Ms. Gonzalez. Those negotiations failed, at which point Lennar requested the assistance of the City. On February 14, 2023, the City contacted James G. Palmer Appraisals Inc. who performed an appraisal of the Property on behalf of Lennar. James G. Palmer Appraisals Inc. indicated that its opinion of value of the Property had not changed since the original appraisal was updated in November 2022. The November 2022 updated appraisal provides that the total value of the acquisition area is $10,431.00, rounded to $10,500.00. The easement that is needed to widen Ashlan Avenue will not impact the existing single-family home located on the Property or the Property's existing fence and gate on the Ashlan frontage. On April 19, 2023, the Public Works Real Estate staff mailed a formal offer to Eliva Gonzalez. The City did not receive a response. On June 5, 2023, a second letter including the formal offer was personally delivered to the subject property by the Public Works Real Estate Staff. The City received a letter dated August 2, 2023, from David Gilmore, Esq., Ms. Gonzalez's attorney, regarding the City's desire to acquire the Property. On or about August 18, 2023, the City responded to Mr. Gilmore, and reiterated the availability of funds to obtain another appraisal. To date, City has not received a response from Mr. Gilmore or Ms. Gonzalez. City Real Estate Agents will continue their efforts to negotiate the terms of the purchase with Mr. Gilmore and Ms. Gonzalez. However, it is important that the City Council approve the attached Resolution of Necessity to allow for a hearing date to be set with the Courts should negotiations fail. The City Attorney's Office has reviewed and approved the Resolution as to form. ENVIRONMENTAL FINDINGS Tentative Map Number 6162 was determined to be within the scope of the Fresno General Plan Master Environmental Impact Report (MEIR) as defined by Section 15177 of the CEQA Guidelines and staff had properly published a Finding of Conformity to MEIR SCH Number 2012111015 dated November 18, 2016. In addition, after conducting a review of the adequacy of the MEIR pursuant to Public Resources Code Section 21157.6(b)(1), the Planning and Development Department, as lead agency, found that no substantial changes have occurred with respect to the circumstances under which the MEIR was certified; and, that no new information, which was not known and could not have been known at the time that the MEIR was certified as complete, has become available. LOCAL PREFERENCE Local preference was not considered because this agreement does not include a bid or award of a construction or services contract. FISCAL IMPACT This project is located in Council District 1 and will not impact the City's General Fund. Lennar has posted an initial deposit in the amount of $589,000 for the estimated acquisition and legal costs for the fifteen (15) parcels to be acquired. Approval by the Council will allow Lennar to widen Ashlan Avenue to comply with the Conditions of Approval of the Vesting Tentative Tract Map Number 6162 once the hearing date with the courts is established. Attachment(s): Resolution of Necessity (RON) First Written Offer with Agreement for Purchase and Sale Deed of Easement Vicinity Map Location Map