FROM:
Engineering
SUBJECT:
Title
Approve Right of Way Purchase and Sale Agreements of the Properties for the Building A Better Connected Inland Empire (RAISE) Project
End
RECOMMENDATION:
Recommendation
1. Approve and authorize the City Manager to accept modifications made by MWD and enter into a Purchase and Sale Agreement of the properties with Metropolitan Water District of Southern California.
2. Approve and authorize the City Manager to accept modifications made by MWD and enter into a Possession and Use Agreement of the properties with Metropolitan Water District of Southern California.
3. Approve and authorize the City Manager to enter into a Purchase and Sale Agreement of the properties with Intex Corporation.
End
COUNCIL GOALS:
• To invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.
• 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 utilizing Measure-I Funds wisely.
DISCUSSION:
On April 14, 2022, the City of Fontana submitted an application for the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant for the Building A Better Connected Inland Empire project (“Project”) at Cherry Avenue and Victoria Avenue within the Westgate Specific Plan area. This Project will provide major complete street improvements including additional lane capacity, integrated traffic system, medians with protected left turns, streetlights, signage, roundabout, raised medians, approximately 5 miles of Class II bike trails, approximately 2.5 miles of Class I bike lanes, approximately 5 miles of ADA compliant sidewalks, approximately 0.5 miles multi-use trails, pedestrian crosswalks, and countdown signal heads. The Project limits are Victoria Street between Kestrel Avenue to Cherry Avenue and Cherry Avenue between SR-210 westbound ramp intersection and Baseline Road.
In December 2022, the Federal Highway Administration (FHWA) notified the City that it had been awarded $15,000,000 in RAISE grant funding for the Project. The Project is currently in the final phases of design, right-of-way acquisition, utility clearance, and permit approvals. Construction is anticipated to begin in late 2026.
The Project requires several R/W acquisitions from the Metropolitan Water District of Southern California (MWD) and Intex Corporation (Intex) below.
Metropolitan Water District of Southern California (MWD)
The proposed Agreement for Purchase and Sale and Joint Escrow Instructions is between the City of Fontana and MWD for the acquisition of APNs 0228-012-04, 0228-092-18, and 0228-021-26 (the “Properties”) for the Project. The City requires both permanent roadway easements and temporary construction easements (TCEs).
Under the Agreement, the City will purchase the Properties for $364,800, subject to customary escrow, title, and closing conditions. The acquisition will allow the City to consolidate ownership and facilitate the widening and realignment of Cherry Avenue and Victoria Street. The purchase price reflects the fair market value as determined by a certified appraiser and concurred with by MWD.
Approval of the sales is scheduled for consideration by the MWD Board on April 14, 2026 or a subsequent meeting. MWD may suggest modifications of the agreement, in which case, staff will have legal counsel review the agreement again for final approval before the City Manager enters into the agreement.
In addition, staff has proceeded with the preparation of a Possession and Use Agreement with MWD. This agreement is intended to allow the City to proceed with the project while final terms of the purchase are being completed, particularly in the event of delays in MWD Board approval or escrow. The primary purpose of the Possession and Use Agreement is to support Caltrans Right-of-Way Certification requirements should the Purchase and Sale Agreement not be finalized in time. MWD may suggest modifications of the agreement, in which case, staff will have legal counsel review the agreement again for final approval before the City Manager enters into the agreement.
Intex Corporation
The proposed Agreement for Purchase and Sale and Joint Escrow Instructions is between the City of Fontana and Intex Corporation for the acquisition of APNs 0228-021-49, 0228-021-50, 0228-092-17, and 0228-091-28 (the “Properties”) for the Project. The City requires permanent roadway easements, along with a license to allow for construction activities.
Under the Agreement, Intex will donate the Properties to the City. As part of this process, Intex has executed an Acknowledgement for Donation, as required by Caltrans Right-of-Way procedures, confirming that no compensation will be provided for the conveyed interests.
FISCAL IMPACT:
The fiscal impact associated with the approval of the Purchase and Sale Agreement with MWD is $364,800 and is included in the Westgate Improvements Projects #37600042-245-C-8310 and #37600042-630-C-8310. There is no fiscal impact to the Possession and Use Agreement with MWD and Purchase and Sale Agreement with Intex.
MOTION:
Approve staff recommendation.