FROM:
Engineering
SUBJECT:
Title
Resolution of Necessity Public Hearing: Assessor Parcel Nos. 0232-201-12 and 0232-201-13
End
RECOMMENDATION:
Recommendation
End
COUNCIL GOALS:
• To invest in the city's infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.
• To invest in the city's infrastructure (streets, sewers, parks, etc.) by focusing on relief of traffic congestion.
• To invest in the city's infrastructure (streets, sewers, parks, etc.) by creating and promoting community through people, parks, and programs.
DISCUSSION:
On October 9th, 2021, the City Council approved a Sale Agreement between the City of Fontana and Rosemead Properties Inc. for the acquisition of two vacant properties (APNs 0232-201-12 and 0232-201-13) located on the South-West corner of Arrow Blvd. and Citrus Avenue. A Resolution of Necessity hearing and approval is required by the City of Fontana prior to and as a condition to the close of escrow.
The City Council is being asked to consider adoption of a Resolution of Necessity for the interests in APNs 0232-201-12 and 0232-201-13. These properties are required by the City of Fontana for the installation of infrastructure improvements and for the enhanced delivery of Community based services potentially including food and school supply distribution, housing and homeless services assistance through a program ("Project").
The power of eminent domain is used by the City only as a last resort to obtain interests necessary for projects after 1) negotiations have stalled; or 2) the owner has requested that the City proceed directly to eminent domain for tax or other advantages; or 3) the eminent domain process is necessary to clear the title to the property. In this instance, the City and Rosemead Properties, Inc. jointly commissioned an appraisal report that was used as the basis for the settlement negotiations. Appraisals used by the City must use this definition of Fair Market Value. For this Project, the City obtained an appraisal of Assessor Parcel Numbers 0232-201-12 and 0232-201-13 from Jack Alexander, a California certified general appraiser. An offer of just compensation to the property owners pursuant to California Government Code section 7267.2 was not made by the City due to the agreement reached by the parties. This resolution is sought at the request of the property owner. The City does not anticipate using its power of eminent domain to acquire this Property.
The record owner must be afforded an opportunity to appear and be heard at the hearing. A notice of this hearing was sent by first class mail on January 6, 2022 to the record owner in accordance with Section 1245.235 of the California Code of Civil Procedure. The notice stated the City's intent to consider the adoption of a resolution, the right of the property owner to appear and be heard on these issues, and that failure to file a written request to appear may result in a waiver of the right to appear and be heard. The City scheduled this hearing at which all persons who filed a written request in compliance with applicable law may appear and be heard.
DESCRIPTION OF PROPERTY TO BE ACQUIRED:
The properties affected by the proposed acquisition are two contiguous vacant, unoccupied parcels located at the intersection of Citrus and Arrow, in Fontana, with a combined acreage of 202,990 sf. The proposed acquisition consists of a full acquisition. The property will be used for installation of infrastructure improvements and the Project, enabling the enhanced delivery of various programs, services and outreach throughout the Fontana Community. The legal description and depictions are attached hereto as Exhibit A.
HEARINGS AND REQUIRED FINDINGS:
The recommended action of the City Council at the conclusion of this Public Hearing concerns the acquisition of real property from the property owner, Rosemead Properties, Inc.
California eminent domain law provides that a public entity may not commence with eminent domain proceedings until its governing body has adopted a Resolution of Necessity, which may only be adopted after the governing body has given each party with an interest in the affected property, or their representatives, a reasonable opportunity to appear and be heard on the following matters:
1. The public interest and necessity require the proposed Project;
2. The project is planned or located in a manner that will be most compatible with the greatest public good and the least private injury;
3. The real property to be acquired is necessary for the Project; and
4. The offers of just compensation have been made to the property owner.
In addition, to the extent any of the property sought to be acquired is subject to an existing public use, the City must find that the public use for which the property sought to be acquired and described in the Resolution of Necessity is a more necessary public use to which the property is appropriated.
The above required findings are addressed as follows:
1. The Public Interest and Necessity Require the Proposed Project
The City desires to install infrastructure improvements and enhance and expand the delivery of community-based services (including food and school supply distribution, Housing and Homelessness assistance) by constructing a permanent facility for the Project. Acquisition of the subject property will facilitate those efforts.
2. The Project is Planned or Located in the Manner that will be Most Compatible with the Greatest Public Good and the Least Private Injury
This property is geographically located in Central Fontana - in close proximity to the Downtown Community. Those areas will be the primary focus of installation of infrastructure improvements and future community outreach efforts, making this property an ideal location for the Project.
3. The Real Property Sought to be Acquired is Necessary for the Project
The property to be acquired is located in Central Fontana, and is necessary for the installation of infrastructure improvements and enhance the delivery of community based services and activities through the Project.
4. The Offer of Just Compensation Was Not Made to the Property Owner
Although the City would otherwise be required in eminent domain proceedings to offer just compensation to the record owners of property sought to be acquired, as established by the approved appraisals and as required by Section 7267.2 of the California Government Code, the City and Rosemead Properties, Inc. reached an agreement for the purchase and sale of this property without the City making the required Government Code offer, and Rosemead Properties, Inc. has waived its right to receive a Government Code offer.
Conducting the Public Hearing and adoption of the proposed Resolution of Necessity will facilitate the acquisition of two vacant properties (APNs 0232-201-12 and 0232-201-13) located on the South-West corner of Arrow Blvd. and Citrus Avenue.
FISCAL IMPACT:
Monies are available for the acquisition of these two properties, totaling approximately $3.1M - in fund 601 - Capital Reinvestment.
MOTION:
Approve staff recommendation.