REPORT TO THE CITY COUNCIL FROM: DENIX D. ANBIAH, PE, Director Capital Projects Department SCOTT L. MOZIER, PE, Director Public Works Department BY: SCOTT P. SEHM, PE, Assistant Director Capital Projects Department, Design Services & Transportation Project Management GUSTAVO RANGEL, Project Manager Capital Projects Department, Transportation Project Management Division NANCY BRUNO, Right of Way Manager Capital Projects Department, Capital Administration Division SUBJECT ..Title Actions pertaining to the dedication of portions of City-owned property for public street easements, and acquisition of a permanent easement and right-of-way from private property to support the construction of the Senior Activity Center TOD Housing Street Improvements Project (Council District 4): 1. Adopt an Addendum to the Senior Center and Affordable Housing Project Mitigated Negative Declaration (SCH No. 2024101319), pursuant to Sections 15162 and 15164 of the California Environmental Quality Act (CEQA) Guidelines 2. RESOLUTION - Dedicating those portions of City-owned property for public street purposes to accommodate construction of the Senior Activity Center Transit Oriented Development (TOD) Housing Street Improvements Project 3. HEARING to consider a Resolution of Necessity for acquisition of a permanent easement and right-of-way for public street purposes on a portion of Assessor's Parcel Number 428-090-33, owned by Mike Saadeldin, Mohammad T. Saadeldin, and Masad Inc., a California corporation, for the construction of the Senior Activity Center TOD Housing Street Improvements Project 4. ***RESOLUTION - Determining that public interest and necessity require acquisition of a permanent easement and right-of-way for public street purposes through and across a portion of Assessor's Parcel Number 428-090-33, owned by Mike Saadeldin, Mohammad T. Saadeldin, and Masad Inc., a California corporation, for the construction of the Senior Activity Center TOD Housing Street Improvements 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) adopt an Addendum to the Senior Center and Affordable Housing Project Mitigated Negative Declaration (SCH No. 2024101319) (MND), pursuant to Sections 15162 and 15164 of the CEQA Guidelines, 2) adopt the Resolution dedicating those portions of City-owned property for public street purposes to accommodate construction of the Senior Activity Transit Oriented Development (TOD) Housing Street Improvements Project (Project), 3) conduct a public hearing to consider the adoption of a Resolution of Necessity for the acquisition of a 0.0035-acre (151.24 square feet) permanent easement from the property identified as Assessor's Parcel Number (APN) 428-090-33, owned by Mike Saadeldin, Mohammad T. Saadeldin, and Masad Inc., a California corporation, for the construction of the Project; and 4) adopt the Resolution of Necessity, which states that public interest and necessity require acquisition of a permanent easement and right-of-way for public street purposes through and across a portion of Assessor's Parcel Number (APN) 428-090-33, owned by Mike Saadeldin, Mohammad T. Saadeldin, and Masad Inc., a California corporation, for the construction of the Project, and authorizing eminent domain proceedings for public use and purpose, pursuant to California Code of Civil Procedure �1245.230. EXECUTIVE SUMMARY The City of Fresno proposes streetscape improvements along the Blackstone and Holland Avenues frontages of the Senior Activity Center and planned Senior Housing Development located at the southwest corner of the intersection. The improvements include ADA-compliant curb ramps, a widened 12-foot sidewalk with tree wells and street trees, a new traffic signal with pedestrian countdown heads and push buttons, crosswalks, streetlights, partial removal of the Blackstone Avenue median at Holland Avenue, and additional pedestrian lighting. To support construction of these improvements, staff recommends dedicating portions of City-owned property (APNs 426-253-17 and 426-253-19) as easements for public street purposes. The proposed public street easement dedication areas are described in Exhibit A and depicted in Exhibit B of the associated Resolution. Additionally, the Project requires the acquisition of a permanent easement and right-of-way over a 0.0035-acre (151.24 square feet) portion of APN 428-090-33, located at 4414 North Blackstone Avenue and owned by Mike Saadeldin, Mohammad T. Saadeldin, and Masad Inc., a California corporation (collectively, the Owner). This easement is necessary to accommodate the Project, and any existing improvements will be addressed and compensated as part of the acquisition process. A Resolution of Necessity (RON) is required to authorize the City Attorney to initiate eminent domain proceedings and obtain an order of possession for the needed easement interests. Adoption of the RON requires five affirmative Council votes and is subject to mayoral veto. BACKGROUND The Senior Activity Center TOD Housing Street Improvements Project, funded by Measure C TOD funds, will construct a full traffic signal and crosswalks at the intersection of North Blackstone and East Holland Avenues, as well as streetscape improvements along the frontages of Blackstone and Holland Avenues. Traffic signal improvements include American with Disabilities Act (ADA)-compliant curb ramps, curb and gutter, pedestrian push buttons, crosswalks, and traffic signal loops. Streetscape improvements include replacing the existing sidewalk with a new twelve-foot sidewalk, tree wells, street trees, pedestrian lighting, and street lighting. On December 5, 2024, Council adopted the Mitigated Negative Declaration for the Senior Activity Center and Planned Senior Housing Development Project pursuant to Sections 15070 and 15074 of the California Environmental Quality Act (CEQA) guidelines. The proposed public street easement dedication as described in Exhibit A and shown on Exhibit B of the attached resolution would change the public use of that area and allow the construction of proposed street improvements related to the Senior Activity Center and Planned Senior Housing Development and allow the public utilities to be placed in the franchise area. To accommodate construction of the Project, the acquisition of certain property rights and right-of-way areas is required. One of the affected properties is APN 428-090-33, located at 4414 North Blackstone Avenue. The overall parcel is approximately 0.601-acres (26,200 square feet) and a 0.0035-acre (151.24 square feet) portion is needed to install a full traffic signal and pedestrian crosswalk at the intersection of North Blackstone and East Holland Avenues as part of the Project. The City retained the Dor� Group (TDG) to appraise and determine the value of the acquisition area on the Subject Property. The appraisal report, with a date of value of February 2, 2026, concluded that the fair market value (FMV) of the easement is $4,400, as defined by Section 1263.320 of the Code of Civil Procedure. Pursuant to Section 7267.2 of the Government Code, an offer of just compensation in the full amount of the appraisal was sent via FedEx to the Owner by City Staff (Staff) on February 9, 2026. On February 18, 2026, Staff received an email from the Owner stating that the acquisition of the easement area would cause their business damages by reducing the useable vehicle display area and the dealership's visibility. The Owner submitted a counteroffer of $65,000 for the easement. Staff confirmed with the City's Planning Department that the use of this area for vehicle display is not permitted. The entitlement allowing auto sales at the Subject Property does not authorize vehicle display within required landscaped areas, and such use is not in compliance with either the entitlement or the applicable development code. Staff requested the owner provide justification for the counteroffer amount and reminded them that they may exercise their right to obtain an independent appraisal pursuant to California Code of Civil Procedure Section � 1263.025. No response was received from the Owner. Staff recommends 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 Measure C TOD Program, which fully covers both the Preliminary Engineering and Construction phases of the Project. The City Attorney's Office has reviewed and approved the Resolution of Necessity. ENVIRONMENTAL FINDINGS An environmental assessment was prepared for the project in accordance with the requirements of Sections 15162 and 15164 of the CEQA Guidelines. Preparation of the environmental assessment necessitated a thorough review of the proposed project and relevant environmental issues and considered previously prepared environmental and technical studies. Pursuant to CEQA Guidelines Section 15164(a), a Lead Agency shall prepare an addendum to a previously adopted MND if some changes or additions are necessary but none of the conditions described in Section 15162 calling for preparation of a subsequent EIR or negative declaration have occurred. An analysis has been performed pursuant to CEQA Guidelines Section 15162 to determine whether a subsequent environmental review is required for this project. Based upon this analysis, the following findings are made to support the determination that an Addendum is the appropriate level of environmental review for this action: 1. No substantial changes are proposed in the project which will require major revisions to the MND due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. The only minor addition here is to dedicate a small portion of City-owned property for a public street easement to facilitate pedestrian access to the Senior Activity Center and Affordable Housing Development. 2. No substantial changes have occurred with respect to the circumstances under which the project is undertaken which will require major revisions to the MND 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 of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the MND was adopted showing that: a. The project will have one or more significant effects not discussed in the MND; b. Significant effects previously examined will be substantially more severe than shown in the MND; c. Mitigation measures or alternatives previously found to be not feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or d. Mitigation measures or alternatives which are considerably different from those analyzed in the MND would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. Based upon these findings, it has been determined that a subsequent MND is not required for this approval, and therefore staff has prepared an Addendum to the MND. Please see the attached environmental assessment. 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 $2.3 million project is located in Council District 4 and will have no impact on the General Fund. The Project is funded by a $1,382,945 grant from the Measure C TOD Program, plus an estimated local match of $966,200 in Measure C Flexible Subprogram funds, which fully funds the Preliminary Engineering and Construction Phases of the Project. Attachments: Addendum to MND SCH No. 2024101319 Dedication Resolution Resolution of Necessity (RON) Resolution of Necessity Requirements Vicinity Map Project Location Map Dedication Location Map Resolution of Necessity Location Map Staff Presentation