REPORT TO THE CITY COUNCIL October 13, 2016 FROM: SCOTT L. MOZIER, PE, Director Public Works Department THROUGH: ANDREW J. BENELLI, PE, City Engineer/Assistant Director Public Works Department, Traffic and Engineering Services Division BY: CRAIG L. HANSEN, Supervising Real Estate Agent Public Works Department, Real Estate Services Section SUBJECT ..Title Action pertaining to the sale of the parking lot located at the northwest corner of Fresno Street and H Street 1. Authorize the City Manager or designee to execute a grant deed for the sale of the parking lot located at the northwest corner of Fresno Street and H Street (Boxcar Lot, APN 465-040-33ST & 467-030-35ST) in the amount of $1,392,200 to the State of California High Speed Rail Authority (Council District 3) ..Body RECOMMENDATION 1. Approve the sale of 197,950 square feet of property (Boxcar Parking Lot) located at the northwest corner of Fresno Street and H Street to the State of California High Speed Rail Authority 2. Adopt a finding that a supplemental or subsequent EIR or Negative Declaration is not required pursuant to CEQA Guidelines sections 15162 or 15163, and direct staff to file a Notice of Determination with the Fresno County Recorder pursuant to CEQA Guidelines section 15096(i) EXECUTIVE SUMMARY The California High Speed Rail Authority (Authority) approached the City with a request to purchase the Boxcar Parking Lot on the northwest corner of Fresno Street and H Street. The Boxcar Parking Lot has been owned and utilized by the City of Fresno for the past twelve years. The Authority intends to use this property for passenger parking associated with the rail station and has offered to pay the City the appraised value of approximately $7.00 per square foot, or $1,392,200. With the transfer of the property to the Authority, the existing users of the parking lot will be relocated to other City owned parking facilities. BACKGROUND The City of Fresno acquired the subject property from Southern Pacific Railroad in 2004. The acquisition included all of the property between H Street and the railroad tracks from Stanislaus to Fresno Street. The City constructed the Boxcar Parking Lot on the property between Fresno Street and Tuolumne Street. The Authority would like to purchase the parking lot. They have indicated that they will continue to use the site for parking and are not planning any immediate modifications. The City will continue to own the property between Tuolumne and Stanislaus, which is currently unimproved. Approximately 150 Internal Revenue Service and County of Fresno employees use the parking lot during business hours on a month-to-month basis. During off hours, the lot is used for overflow parking for Fresno Grizzlies baseball games and for other downtown special events. The sale of the Boxcar Parking Lot to the Authority will not impact those special events or the monthly tenants as there are other city facilities which can accommodate those parking requirements. The Authority retained a consultant who completed the Boxcar property appraisal. City staff had the appraisal reviewed by Larry Hopper Appraisals (MIA). Mr. Hopper agreed the appraised price represented an appropriate fair market value. The agreed-to price is roughly $7.00 per square foot covering 197,950 square feet. ENVIRONMENTAL FINDINGS The acquisition of the parcels (APNs: 465-040-33ST and 467-030-35ST) was previously environmentally assessed by the Authority as part of the Fresno to Bakersfield section of the California High Speed Train Project. As lead agency, the Authority prepared an Environmental Impact Report/Environmental Impact Statement and Section 4(f) Evaluation and Draft General Conformity Statement for the Fresno to Bakersfield section of the California High Speed Train Project (SCH No. 2009091126) and it was certified on May 8, 2015. The EIR included acquisition of the subject parcels in its project description and as such, the impact of such acquisitions was considered as a part of the overall analysis in the EIR. As the responsible agency defined in CEQA Guidelines section 15381, the City of Fresno is responsible for mitigating or avoiding only the direct or indirect environmental effects of those parts of the project which it decides to approve. After conducting a review of the adequacy of the EIR in conjunction with the Authority's request to purchase the subject parcels, and after considering the environmental effects of those parts of the project which the City is deciding to carry out, staff recommends the City Council find that a supplemental or subsequent EIR of Negative Declaration is not required pursuant to CEQA Guidelines sections 15162 or 15163, and that the City Council direct staff to file a Notice of Determination with the Fresno County Recorder pursuant to CEQA Guidelines section 15096(i). LOCAL PREFERENCE Local preference is not implicated because this item does not involve public contracting or bidding with the City of Fresno. FISCAL IMPACT The acquisition from the Southern Pacific Railroad and construction of the Boxcar Parking Lot was funded in 2004 with taxable bond proceeds and other funding sources. This particular asset was released from those bonds on October 1, 2014. The City of Fresno will net $1,392,200 from the sale of the property. The proposed use of the sale proceeds will be included in a Council item scheduled for November 13, 2016, in which the Administration will present recommendations regarding the use of Fiscal Year 2016 "carryover" funds. Attachments: Aerial photo of subject property & Downtown vicinity map