DATE:
January 21, 2025
TO:
Mayor and City Council Members
FROM:
Rachel Molina, City Manager
BY:
Nathan R. Freeman, Director of Development Services
SUBJECT:
Consider Adoption of a Resolution of Necessity to Acquire a Portion of the Property Located at the Southwest Corner of Poplar Court and Highway 395, bearing Assessor Parcel No. 3064-561-07
RECOMMENDED ACTION
It is recommended that the City Council hold a public hearing on the proposed Resolution of Necessity (Resolution No. 2025-01) and adopt the Resolution of Necessity authorizing the commencement of an eminent domain action necessary to acquire a portion of the property located at the southeast corner of Poplar Court and Highway 395, bearing Assessor Parcel No. 3064-561-07 (the “Property”).
BACKGROUND
The Property is currently vacant and unimproved, located at the southeast corner of Poplar Court and Highway 395. The City seeks to acquire a 22,682 square foot portion of the Property for a permanent easement and a 31,519 square foot portion of the Property for a temporary construction easement in order to improve Poplar Court and support future development. Currently, Poplar Court is an unpaved road that presents challenges for accessibility, traffic flow, and public safety. The improvement of Poplar Court, to be funded and constructed by the owner of the property immediately to the north, will enhance traffic safety, reduce dust pollution, and facilitate efficient transportation. Moreover, these upgrades are critical for compliance with regional planning initiatives and will align with the City’s broader infrastructure development goals. Future development in the immediate area will include industrial and commercial projects. Improving Poplar Court ensures the infrastructure can support these projects, which benefit the community through job creation, increased property values, and an increased tax base.
The portion of the Property needed to improve Poplar Court was appraised by a professional real estate appraiser. The appraiser, licensed by the California Office of Real Estate Appraisers, determined the fair market value of the portion of the Property needed to improve Poplar Court to be $69,611.85, which represents the full amount offered by the City to the property owners.
On October 17, 2024, in compliance with Government Code Section 7267.2, the City made a written offer to purchase the Property. The property owners, Jane Hsieh and Debby Hsieh responded, on December 16, 2024, with a counteroffer of $223,674 (exceeding the appraised value by $154,062).
Under state law, the City must offer just compensation based on the appraised fair market value to ensure an equitable and transparent process. While the City considers counteroffers, it must adhere to the appraised value unless additional evidence justifies a higher amount. This approach upholds fairness and public accountability. The City cannot meet the counteroffer, as California’s eminent domain laws require compensation to align with the appraised fair market value.
On January 6, 2025, in accordance with California Government Code Section 1245.235, the City gave notice to the Property Owners that the City Council would consider a Resolution of Necessity authorizing the acquisition of a portion of the Property by eminent domain. The notice informed the Property Owners of their right to appear at this hearing and be heard on the following issues:
Whether the public interest and necessity require the project; Whether the Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; Whether the acquisition of the Property is necessary for the project; Whether the offer required by Section 7267.2 of the Government Code has been made to the owner or owners of record, or has not been made because the owner cannot be located with reasonable diligence; and Whether the offer required by Section 7267.2 of the Government Code was made in the form and substance required by law.
While a hearing on a Resolution of Necessity is often referred to as a public hearing, the only notice required is 15 days’ notice by regular mail to the property owners. No published notice is required.
The affirmative vote of two-thirds of all the members of the City Council, which in this case is four (4) affirmative votes, is required to adopt the Resolution of Necessity.
FINDINGS REQUIRED IN THE RESOLUTION OF NECESSITY
Public acquisition of a portion of the Property by eminent domain for the improvement of Poplar Court is authorized by Section 19 of Article I of the California Constitution, California Code of Civil Procedure Sections 1240.010 through 1240.050 and Sections 1240.410 through 1240.430, and Government Code Sections 37350, 37350.5, and 40404.
Pursuant to California Government Code Section 1240.030, the power of eminent domain may be exercised to acquire property for a proposed project only if all of the following are established:
The public interest and necessity require the project.
The project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury.
The property sought to be acquired is necessary for the project. Without this property, critical roadway upgrades and future development will be significantly delayed or impaired.
The offer required by Government Code Section 7267.2 has been made. On October 17, 2024, the City extended an offer based on the appraised fair market value. The offer was prepared in compliance with applicable laws and standards.
JUSTIFICATION FOR EMINENT DOMAIN
The project is essential to address existing safety concerns, reduce congestion, and support anticipated growth in the area. Improvements to Poplar Court will enable the development of surrounding properties, stimulate local economic growth, and provide long-term benefits to the community.
The property owners counteroffer exceeds the appraised value by $154,062, which is not supported by the independent appraisal. To ensure a fair and equitable process, the City is legally obligated to rely on the appraised value as the basis for compensation. The eminent domain process ensures that the City can proceed with this critical project in a timely manner while providing just compensation to the property owners.
If the Resolution of Necessity is adopted, the City Attorney’s Office will be instructed to take all steps necessary to commence legal proceedings in a court of competent jurisdiction to acquire a portion of the Property via eminent domain. The City Attorney’s Office will also be directed to seek and obtain an order of prejudgment possession in accordance with the provisions of the eminent domain law so that the City may proceed with the improvements of Poplar Court while the eminent domain proceedings are pending in the court. This ensures that improvements to Poplar Court proceed without delay due to legal disputes, although the property owners retain the right to challenge the offered compensation.
CITY GOAL SUPPORTED BY THIS ITEM
Capital Improvement: Continually evaluate capital improvement priorities.
FISCAL IMPACT
Should the City Council approve the Resolution of Necessity, a budget amendment will be included in the Mid-Year review, presented during the second meeting of February 2025.
ATTACHMENTS
Resolution of Necessity for a Portion of APN 3064-561-07 Legal Description and Plat Map for Permanent Easement and Temporary Construction Easement 01071.0017/815921.1
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the Mayor and City Council Members
Resolution of Necessity for a Portion of APN 3064-561-07 January 21, 2025