ACTION:
____________________________
Clerk/Secretary
Department: Engineering Item No: PH1
Prepared by:
Matt Atteberry, Engineering Division Manager
Sally Rowley, Management Analyst Meeting Date: December 9, 2025 Approved by:
Imelda Huerta, Assistant City Manager
John Conley, City Manager Agenda Location: Public Hearing S
UBJECT: ADOPTION OF A RESOLUTION OF NECESSITY FOR THE ACQUISITION OF CERTAIN
PROPERTY INTERESTS FOR THE OFF-SITE IMPROVEMENT OF VISTA GRANDE DRIVE AS A CONDITION OF APPROVAL OF 2277 VISTA GRANDE DRIVE
S
CHEDULING NOTE:
This public hearing was originally scheduled for November 12, 2025. At the November 12, 2025 Council meeting, the public was informed that the public hearing would be continued to December 9, 2025 to allow the parties time to formalize a resolution the parties had reached in principle. This public hearing will not go forward if the parties have formally resolved this matter prior to the start of the December 9, 2025 Council meeting. If that occurs, the public will be informed at the beginning of the Council meeting that this item has been removed from the agenda.
RE
COMMENDATION:
1. Open, conduct, and close a public hearing to consider the adoption of a Resolution of Necessity for the acquisition of certain property interests for the off-site improvement of Vista Grande Drive as a condition of approval of 2277 Vista Grande Drive.
2. Adopt City Council Resolution No. 2025- , Resolution of Necessity for the acquisition of certain property interests for the off -site improvement of Vista Grande Drive as a condition of approval of 2277 Vista Grande Drive (Assessor Parcel No. 171-100-48).
CO
RRELATION TO CITY COUNCIL GOALS: Routine operational item not directly corresponding to a specific City Council goal.
P
RIOR ACTION: On May 27, 2025, adopted City Council Resolution No. 2025- 91, approving a reimbursement agreement with Shea Homes Limited Partnership for acquisition of Property Interests in connection with off-site improvements (Vote: 5-0).
On Feb
ruary 22, 2022, adopted City Council Resolution No. 2022 -23, approving a General Plan Amendment and Tentative Subdivision Map for a 25-lot single-family residential subdivision located at 2277 Vista Grande Drive (APNs 171 -100-05 and 171- 100-28) (Vote: 3-2, Contreras and Melendez opposed).
S
TATEMENT ON THE SUBJECT: The City Council approved a General Plan Amendment and Tentative Subdivision Map for a 25- lot single -family residential subdivision located at 2277 Vista Grande Drive (“Project”). As part of the Project, the Developer (Shea Homes) intends to develop 25 residential lots, private AGENDA
REPORT
CITY COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
SUCCESSOR AGENCY
BUENA SANITATION DISTRICT
JOINT POWERS FINANCING AUTHORITY
12/09/2025
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MEETING DATE: DECEMBER 9, 2025 PAGE 2
SUBJECT: ADOPTION OF A RESOLUTION OF NECESSITY FOR THE ACQUISITION OF CERTAIN
PROPERTY INTERESTS FOR THE OFF-SITE IMPROVEMENTS OF VISTA GRANDE DRIVE AS A CONDITION OF APPROVAL OF 2277 VISTA GRANDE DRIVE streets, and associated public and private improvements on approximately 17 acres. The Project includes conditions of approval requiring the Developer to construct several public improvements, including the construction of a minimum 50-foot-wide right-of-way (ROW) along Vista Grande Drive (Condition of Approval No. 3(d) of Section F (Engineering Information and Conditions)). Satisfaction of that condition requires the acquisition of additional easement areas along Vista Grande Drive for public use.
Following their unsuccessful efforts to acquire certain property interests along Vista Grande Drive, the Developer sent a letter to the City on February 4, 2025, that triggered the City’s obligation to assist in the acquisition of the property interests under Government Code Section 66462.5. On May 27, 2025, the City executed the City Council approved agreement with Shea Homes Limited Partnership for acquisition of certain real property interests in connection with off-site improvements, attached as Exhibit 2.
The City commissioned an appraisal of the property interests needed for the improvement of Vista Grande Drive to determine fair market value and submitted an Offer of Purchase letter pursuant to Government Code §7267.2 to the p roperty owner on September 29 , 2025, attached as Exhibit 3. This offer was not accepted. Prior to this hearing, a Notice of Hearing was mailed on October 23, 2025 by first class certified mail to the property owner, which informed him of the City Council's intent to consider the adoption of a resolution of necessity and advised the owner of his right to appear and be heard, attached as Exhibit 4.
Staff continues to engage in negotiations with the property owner; however, an agreement has not yet been reached. If a negotiated settlement cannot be achieved, staff recommend that a Resolution of Necessity be approved at this time for the acquisition of property through the eminent domain process.
To commence a proceeding in eminent domain, the City Council, by a two-thirds vote (four affirmative votes) must adopt a Resolution of Necessity. The resolution may only be adopted after each party with an interest in the affected property is given a reasonable opportunity to appear and be heard and after the governing body approves particular findings associated with the Project. Under State law, the City Council must adopt the following findings:
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 offer of just compensation has been made to the property owner.
Details are fully set forth in the attached Resolution of Necessity (Exhibit 1).
With the adoption of the Resolution of Necessity, the City Council finds and determines the following:
A. The public right-of-way road easement and temporary construction easement as described and depicted in the Resolution of Necessity are necessary for the improvement of Vista Grande Drive (a public use that results in the least private injury) as a condition for approval of the proposed Project as follows:
1. The Project contains specific conditions of approval requiring Developer to construct several public improvements, including the construction of a minimum 50-foot-wide right-of-way along Vista Grande Drive with asphalt pavement, street lights, curb, and gutter.
2. Condition of Approval No. 3(d) of Section F (Engineering Information and Conditions), which seeks to facilitate the orderly development of the circulation system for the Project on the Subject Property, requires Developer to acquire, design, and construct the off -site portion of the public segment of Vista Grande Drive (“Off-site Street Improvements”). City and Developer acknowledge that a portion 12/09/2025
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SUBJECT: ADOPTION OF A RESOLUTION OF NECESSITY FOR THE ACQUISITION OF CERTAIN
PROPERTY INTERESTS FOR THE OFF-SITE IMPROVEMENTS OF VISTA GRANDE DRIVE AS A CONDITION OF APPROVAL OF 2277 VISTA GRANDE DRIVE of the property needed to complete the right-of-way improvements along the public portion of Vista Grande Drive is on private property and not owned or controlled by Developer.
3. Satisfaction of the Off- site Street Improvements requires the acquisition of real property for public streets and all uses necessary or convenient thereto, that is neither owned by Developer or City (referred to below as “Off -site Street Property”). The Of f- site Street Property is required to satisfy Condition of Approval No. 3(d).
B. The City has made the offer required by Section 7267.2 of the Government Code to the owners of record:
1. The City obtained an appraisal of the fair market value of the subject real property based on an August 28, 2025 date of value. On September 29, 2025, the City, in accordance with the appraised fair market value, extended a written offer to the owner of record to purchase the subject property.
2. The September 29, 2025 offer to purchase has been not been accepted.
The City has attempted to negotiate the acquisition of the property interests with the property owner, but no agreement has yet been reached with the owner. The amount of just compensation is not an issue before the City Council at this hearing. This hearing relates solely to findings A and B above.
Staff will continue to pursue a negotiated settlement with the property owner throughout this process. Upon adoption of a Resolution of Necessity, the City would file a complaint in eminent domain and deposit with the State Treasury the amount offered to the property owner ($2,250.00). The City would then file a Motion for Order of Prejudgment Possession and provide the property owner at least 90 days' notice of the hearing on the Motion. If the Court grants the Motion, the City would take possession of the easements 30 days after the property owner is served with the Order of Prejudgment Possession. Ultimately, if the City is unable to reach a negotiated settlement with the property owner, the matter would go to a jury trial for decision.
As these improvements are designed to ensure safe public and fire access along Vista Grande Drive, staff recommend approval of this resolution of necessity.
ENVIRONMENTAL IMPACT: The Vista Grande project approval included adoption of a Mitigated Negative Declaration (MND – SCH # 2021090600) which analyzed the overall project, including the Tentative Subdivision Map (TSM) and proposed offsite roadway construction and improvements to the public and private portions of Vista Grande Drive. As noted in the MND, the project would improve the existing roadway along the southern boundary of the project site, which would require right-of-way dedication and temporary construction activities corresponding to the current action.
Under Article 11, Section 15162 of the CEQA Guidelines, when a negative declaration has been adopted for a project, no subsequent environmental analysis is required unless the city determines that (1) substantial changes are proposed to the project that would require major revisions to the previously adopted MND, (2) substantial changes are proposed to the project with respect to the circumstances (current action) that would require major revisions to the previously adopted MND, or (3) new information of substantial importance has been identified since the approval of the MND.
As discussed in the MND, implementation of the project would impact 12.98 acres of Non-Native Grassland (NNG), which included 0.33 acres of off-site NNG. Anticipated impacts would occur from clearing, grading and project construction. The MND analysis resulted in project mitigation for offsite land disturbance of approximately 3,900 sq. ft. on APN 171- 100-48-00 corresponding to the road dedication area (334 sq .ft. more or less) and overlapping temporary construction area (3,382 sq. ft. more or less). These impacts were mitigated to less than significant under Mitigation Measure BIO-2, and the purchase of the mitigation credits to complete this requirement was completed in 2017. Since the current action was previously analyzed 12/09/2025
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MEETING DATE: DECEMBER 9, 2025 PAGE 4
SUBJECT: ADOPTION OF A RESOLUTION OF NECESSITY FOR THE ACQUISITION OF CERTAIN
PROPERTY INTERESTS FOR THE OFF-SITE IMPROVEMENTS OF VISTA GRANDE DRIVE AS A CONDITION OF APPROVAL OF 2277 VISTA GRANDE DRIVE under the adopted MND and there have been no substantial changes to the project, no substantial changes with respect to the current action, and no new information of substantial importance, no further CEQA analysis is required. These findings are included in the attached resolution, Exhibit 1.
F
ISCAL IMPACT: There is no direct fiscal impact with this staff recommendation.
EXHIBITS:
1. City Council Resolution No. 2025- , Resolution of N ecessity for the acquisition of certain property interests for the off -site improvement of Vista Grande Drive as a condition of approval of 2277 Vista Grande Drive (Assessor Parcel No. 171-100-48)
1. Public Right-of-Way Road Easement Attachment to Legal Description a. R
oad Dedication – Legal Description
b. R
oad Dedication - Plat
2. Temporary Construction Easement Attachment to Legal Description a. Tem
porary Construction Easement – Legal Description
b. Tem
porary Construction Easement – Plat
2. Agreement between City of Vista and Shea Homes Limited Partnership for acquisition of certain real property improvement interests in connection with off-site improvements
3. Offer to Purchase (Government Code §7267.2) Letter to Property Owner
4. Notice of Intent to Adopt Resolution of Necessity
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00029213 7
RESOLUTION NO. 2025-
A RESOLUTION OF THE CITY COUNCIL OF THE CHARTERED
CITY OF VISTA, CALIFORNIA, RESOLUTION OF NECESSITY FOR THE
ACQUISITION OF CERTAIN PROPERTY INTERESTS FOR THE OFF-SITE
IMPROVEMENT OF VISTA GRANDE DRIVE AS A CONDITION OF APPROVAL OF 2277 VISTA GRANDE DRIVE (ASSESSOR PARCEL NO. 171-100-48) The City Council of the City of Vista does resolve as follows:
1. Findings. The City Council hereby finds and declares the following:
A. On February 22, 2022, the City Council of the City of Vista (“City”) adopted Resolution No. 2022-23 approving a General Plan Amendment, Zone Change and Tentative Subdivision Map for a 25-lot single-family residential subdivision located at 2277 Vista Grande Avenue (APNs 171-100-05 and 171-100-28) and associated utilities in the City of Vista (the “Project”).
B. The improvement of Vista Grande Drive is a condition of approval of the General Plan Amendment and Tentative Subdivision Map for the Project.
C. California Government Code section 66462.5 authorizes the City to acquire by negotiation or commencement of proceedings pursuant to Title 7 (commencing with Section 1230.010) of Part 3 of the Code of Civil Procedure property interests needed for the construction or installation of offsite improvements required as a condition of the approval of a tentative map.
D. The City is vested by law with the authority to acquire real property and exercise the power of eminent domain to acquire real property under the provisions and authority of and for the purposes and uses authorized by Article 1, Section 19 of the Constitution of the State of California, Government Code sections 37350.5, 37353, 39792, 40401, 40404, 66462.5 and California Code of Civil Procedure sections 1240.010, 1240.110, 1240.120, and 1240.130.
E. Pursuant to the provisions of Section 1245.235 of the Code of Civil Procedure of the State of California, notice has been given to the owner(s) of the property herein, all of whom have been given a reasonable opportunity to appear and be heard before the City Council of the City of Vista at the time and place set forth in said notice, regarding the matters specified therein.
F. It is the City’s intention to acquire for the Project a 334-square-foot public right of way road easement as legally described in Exhibit A and depicted in Exhibit B of Attachment 1 hereto (“Road Easement”) and a 3,382-square foot temporary construction easement as legally described in Exhibit A and depicted in Exhibit B of Attachment 2 hereto (“TCE”), collectively made a part hereof and referred to as the “Subject Property.” G. The Subject Property is a portion of real property located at 2313 Warmlands Avenue, Vista CA 92084, Assessor Parcel Nos. 171-100-48, 171-100-49, and 171-100-50.
2. Action.
A. The findings contained herein are true and correct.
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RESOLUTION NO. 2025-
CITY COUNCIL OF THE CHARTERED CITY OF VISTA
PAGE 2
00029213 7EXH 01 - Resolution of Necessity-2221232 r-3f0b2553 B. The City is authorized to acquire the Subject Property and continue to exercise the power of eminent domain pursuant to and in accordance with Article 1, Section 19 of the Constitution of the State of California, Government Code sections 37350.5, 37353, 39792, 40401, 40404, 66462.5 and California Code of Civil Procedure sections 1240.010, 1240.110, 1240.120, and 1240.130.
C. The public interest and necessity require the Project.
D. The Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury.
E. The Subject Property is necessary for the Project.
F. The offer required by Section 7267.2 of the Government Code, together with the accompanying statement of the amount established as just compensation, has been made to the owner or owners of record, which offer and statement were in a format and contained the information required by Government Code Section 7267.2.
G. The City has complied with all conditions and statutory requirements, including those prescribed by CEQA, that are necessary for approval and adoption of the Project. The City Council has reviewed the previously approved Mitigated Negative Declaration that was prepared for the Vista Grande Residential Project (SCH # 2021090600) and has found the following:
a. No substantial changes are proposed to the project that would require major revisions of the previously adopted Mitigated Negative Declaration. b. No substantial changes are proposed to the project with respect to the circumstances that would require major revisions to the previously adopted Mitigated Negative Declaration.
c. No new information of substantial importance has been identified since the approval of the prior Mitigated Negative Declaration.
Based on the above, the City Council believes the previously approved Mitigated Negative Declaration is sufficient pursuant to Section 15162 of the CEQA Guidelines and that no subsequent or supplemental environmental review is required for the proposed project.
H. The City has complied with all conditions and statutory requirements necessary to exercise the power of eminent domain (the “right to take”) to acquire the Subject Property.
I. If any portion of the area of the Subject Property has been appropriated to some public use, the public uses to which it is to be applied by the City, as described above, is a more necessary and paramount public use, pursuant to Code of Civil Procedure section 1240.610 or, alternatively, are compatible with those other uses pursuant to Code of Civil Procedure section 1260.510.
J. The City Attorney and/or his designee is hereby authorized and empowered to acquire in the name of the City of Vista by condemnation the Subject Property; to prepare, prosecute and conduct to conclusion in the name of the City of Vista such proceedings in the proper court as is necessary for such acquisition and to make such action as may be deemed 12/09/2025
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00029213 7EXH 01 - Resolution of Necessity-2221232 r-3f0b2553 RESOLUTION NO. 2025-
CITY COUNCIL OF THE CHARTERED CITY OF VISTA
PAGE 3
advisable or necessary in connection therewith; to deposit the probable amount of just compensation with the State Treasury Condemnation Fund, based on an approved appraisal; and to obtain an order for prejudgment possession. Counsel is further authorized to correct any errors or to make or agree to non-material changes in the legal description of the property being acquired as may be reasonably necessary. Counsel is further authorized to reduce or modify the extent of the interests or property to be acquired so as to take only those interests in the property that are needed and where such change would not substantially impair the construction and operation of the Project for which the property is being acquired.
K. This Resolution shall be effective immediately upon its adoption.
3. Adoption. PASSED AND ADOPTED at a meeting of the City Council of the City of Vista held on December 9, 2025, by the following vote:
AYES:
NOES:
ABSTAIN:
APPROVED AS TO FORM:
WALTER CHUNG, CITY ATTORNEY
By:
APPROVED
Walter C. Chung
20251103113442
JOHN B. FRANKLIN, MAYOR
ATTEST:
KATHY VALDEZ, CITY CLERK
By:
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EXHIBIT 1
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EXHIBIT A
THAT PORTION OF SECTION 8, TOWNSHIP 11 SOUTH, RANGE 3 WEST, SAN BERNARDINO
MERIDIAN, IN THE CITY OF VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY APPROVED DECEMBER 14, 1885, DESCRIBED AS PARCEL 2 OF THAT QUITCLAIM DEED TO THAD HUTTON, TRUSTEE, THE THAD HUTTON LIVING TRUST, DATE JULY 3, 2012, RECORDED SEPTEMBER 4, 2014, AS DOC. # 2014-0381445, OFFICIAL RECORDS OF SAN DIEGO COUNTY; MORE FULLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHWEST CORNER OF SAID PARCEL 2;
THENCE ALONG THE WESTERLY LINE OF SAID PARCEL 2, SOUTH 33°46'21" EAST 25.00 FEET (NORTH 34°16'00" WEST RECORD) TO THE TRUE POINT OF BEGINNING AND THE BEGINNING OF A NON-TANGENT 75.00 FOOT RADIUS CURVE, CONCAVE SOUTHERLY (A RADIAL TO SAID POINT BEARS NORTH 33°46'21" WEST) SAID POINT ALSO BEING ON THE SOUTHERLY SIDELINE OF THE DEED FOR EASEMENT FOR COUNTY HIGHWAY, RECORDED SEPTEMBER 17, 1956 IN BOOK 6259, PAGE 342 OF OFFICIAL RECORDS OF SAN DIEGO COUNTY;
THENCE DEPARTING SAID WESTERLY LINE, AND ALONG SAID SOUTHERLY SIDELINE, EASTERLY
92.08 FEET ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 70°20'34" (A RADIAL TO SAID POINT BEARS NORTH 36°34'13" EAST) TO THE POINT OF CUSP WITH A 130.00 FOOT RADIUS CURVE, CONCAVE SOUTHERLY (A RADIAL TO SAID POINT BEARS NORTH 23°28'34" EAST);
THENCE LEAVING SAID SOUTHERLY SIDELINE, WESTERLY 23.81 FEET ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 10°29'34" TO THE BEGINNING OF A COMPOUND TANGENT 94.00 FOOT RADIUS CURVE, CONCAVE SOUTHERLY;
THENCE WESTERLY 65.73 FEET ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 40°04'00", (A RADIAL TO SAID POINT BEARS NORTH 27°05'00" WEST) TO THE WESTERLY LINE OF SAID PARCEL 2;
THENCE ALONG SAID WESTERLY LINE, NORTH 02°37'38" EAST 2.58 FEET TO THE TRUE POINT OF BEGINNING.
CONTAINING 334 SQUARE FEET , MORE OR LESS.
EXHIBIT B ATTACHED HERETO AND MADE A PART HEREOF.
_______________________________
MAXIMILIAN LEBL, PLS 9323
_______________________________
DATE:
SHEET 1
EXHIBIT A
LEGAL DESCRIPTION
PLSA 3474
"ROAD DEDICATION - LEGAL DESCRIPTION"
05/27/2025
ATTACHMENT 1
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APN:
171-100-14
APN:
171-100-05
APN: 171-100-02
APN: 171-100-48
PARCEL 2 OF QUITCLAIM DEED
09/04/2014
DOC 2014-0381445, OR
LOT 5
MAP 12552
25'
25'
PVT RDESMT
10/19/53
BK 5020,PG 264,ORPUB RDESMT
09/17/56
BK 6259,PG 342,OR
30'
DEDICATED
PER MAP
12552
POC
TPOB
L1
LINE TABLE
L1 - S33°46'21"E(R) 25.00' (N34°16'00"W)
L2 - N02°37'38"E 2.58' (N02°07'59"E)
C1
CURVE TABLE
C1 - L=92.08' R=75.00' D=70°20'34"
C2 - L=23.81' R=130.00' D=10°29'33"
C3 - L=65.73' R=94.00' D=40°04'00"
C2
C3
L2
N33°46'21"W(R)
N36°34'13"E(R) C1
N23°28'34"E(R) C2
N12°59'00"E(R) PCC)
N27°05'00"W(R)
V I S T A GR A N D E DR
N
S
EW
SHEET 2
LEGEND
PROPERTY LINE
RIGHT-OF-WAY LINE
CENTER LINE
ADJOINING PROPERTY LINE
RECORD DATA PER QUITCLAIM DEED( )
EXHIBIT B
PLAT
PLSA 3474
ROAD DEDICATION AREA ACQUIRED =
334 SQ.FT., MORE OR LESS
EXHIBIT B
"ROAD DEDICATION - PLAT"
SCALE = 1" = 30'
09/04/2014, DOC # 2014-0381445, O.R.
ATTACHMENT 1
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EXHIBIT 'A'
THAT PORTION OF SECTION 8, TOWNSHIP 11 SOUTH, RANGE 3 WEST, SAN BERNARDINO
MERIDIAN, IN THE CITY OF VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY APPROVED DECEMBER 14, 1885, DESCRIBED AS PARCEL 2 OF THAT QUITCLAIM DEED TO THAD HUTTON, TRUSTEE, THE THAD HUTTON LIVING TRUST, DATE JULY 3, 2012, RECORDED SEPTEMBER 4, 2014, AS DOC. # 2014-0381445, OFFICIAL RECORDS OF SAN DIEGO COUNTY; MORE FULLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHWEST CORNER OF SAID PARCEL 2;
THENCE ALONG THE WESTERLY LINE OF SAID PARCEL 2, SOUTH 33°46'21" EAST 25.00 FEET (NORTH 34°16'00" WEST RECORD) TO THE TRUE POINT OF BEGINNING AND THE BEGINNING OF A NON-TANGENT 75.00 FOOT RADIUS CURVE, CONCAVE SOUTHERLY (A RADIAL TO SAID POINT BEARS NORTH 33°46'21" WEST) SAID POINT ALSO BEING ON THE SOUTHERLY SIDELINE OF THE DEED FOR EASEMENT FOR COUNTY HIGHWAY, RECORDED SEPTEMBER 17, 1956 IN BOOK 6259, PAGE 342 OF OFFICIAL RECORDS OF SAN DIEGO COUNTY;
THENCE DEPARTING SAID WESTERLY LINE, AND ALONG SAID SOUTHERLY SIDELINE, EASTERLY 106.56 FEET ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 81°24'10"; THENCE TANGENT SOUTH 42°22'12" EAST 24.12 FEET;
THENCE LEAVING SAID SOUTHERLY SIDELINE, NORTH 87°22'22" WEST 114.60 FEET TO THE WESTERLY LINE OF SAID PARCEL 2;
THENCE ALONG SAID WESTERLY LINE, NORTH 02°37'38" EAST 24.40 FEET TO THE TRUE POINT OF BEGINNING.
CONTAINING 3382 SQUARE FEET , MORE OR LESS.
EXHIBIT 'B' ATTACHED HERETO AND MADE A PART HEREOF.
SHEET 3
EXHIBIT A
LEGAL DESCRIPTION
PLSA 3474
"TEMPORARY CONSTRUCTION EASEMENT - LEGAL DESCRIPTION"
5/27/2025
_______________________________
GARY D. MELLOM, PLS 8537
_______________________________
DATE:
ATTACHMENT 2
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APN:
171-100-14
APN:
171-100-05
APN: 171-100-02
APN: 171-100-48
PARCEL 2 OF QUITCLAIM DEED
09/04/2014
DOC 2014-0381445, OR
LOT 5
MAP 12552
25'
25'
PVT RDESMT
10/19/53
BK 5020,
PG 264, OR
PUB RDESMT
09/17/56
BK 6259,
PG 342, OR
30'
DEDICATED
PER MAP
12552
POC
TPOB
L1
LINE TABLE
L1 - S33°46'21"E(R) 25.00' (N34°16'00"W)
L2 - N02°37'38"E 24.40' (N02°07'59"E)
C1
CURVE TABLE
C1 - L=106.56' R=75.00' D=81°24'10"
L2
N33°46'21"W(R)
V I S T A GR A N D E DR
N87°22'22"W 114.60'
S42°22'12"E
24.12'
N
S
EW
SHEET 4
LEGEND
PROPERTY LINE
RIGHT-OF-WAY LINE
CENTER LINE
ADJOINING PROPERTY LINE
RECORD DATA PER QUITCLAIM DEED( )
EXHIBIT B
PLAT
PLSA 3474
TEMPORARY CONSTRUCTION AREA =
3382 SQ.FT., MORE OR LESS
EXHIBIT 'B'
"TEMPORARY CONSTRUCTION EASEMENT- PLAT"
SCALE = 1" = 30'
09/04/2014, DOC # 2014-0381445, O.R.
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600 B Street, Suite 1650 David W. Skinner
San Diego, California 92101 [email protected]
tel (619) 330-1700
meYers nave fax(619)330-1701www.meyersnave.com
September 29, 2025
Thad Hutton, Trustee
The Thad Hutton Living Trust Dated July 3, 2012
2313 Warmiands Avenue
Vista, CA 92084
Re: Vista Grande Drive Road Improvement Project
Offer to Purchase (Government Code §7267.2)
Property: 2313 Warmiands Avenue, Vista CA 92084
APN: 171-100-48, 49, 50
Dear Mr. Hutton:
This office represents the City of Vista (“City”). The City seeks to make an offer to purchase portions of the above-referenced property located at 2313 Warmiands Avenue, Vista CA 92084 (also known as APNs 171-100-48, 49, 50). The City seeks to acquire the property for the improvement of Vista Grande Drive along the northerly portion of your property. The proposed property acquisition is in accordance with the May 27, 2025 City Council Resolution 2025-91 directing staff to assist the developer Shea Homes Limited Partnership in connection with the construction oftheir new residential development. In this regard, the improvement of Vista Grande Drive is a condition for approval of a General Plan Amendment and Tentative Subdivision Map for a 25-lot single-family residential subdivision located at 2277 Vista Grande Avenue (APNs 171-100-05 and 171-100-28) and associated utilities in the City of Vista. California Government Code section 66462.5 authorizes the City to acquire by negotiation or commencement of proceedings pursuant to Title 7 (commencing with Section 1230.010) of Part 3 of the Code of Civil Procedure the acquisition of the property interests needed for the improvement of Vista Grande Drive.
California Government Code Section 7267.2(a) provides (in pertinent part) that, prior to initiating negotiations for the acquisition of real property, a public entity shall establish an amount that it believes to be just compensation therefor and shall make an offer to the owner or owners of record to acquire the property for the full amount so established. (Emphasis added.) The Litigation Guarantee obtained by the City shows that you are the owner of record for this property.
The larger parcel includes approximately 5.2 acres. Of this, the City seeks to acquire a 334 square foot public right-of-way road easement and a 3,382 square foot temporary construction easement (the “Property Interests”). A legal description ofthe 334 square foot public right-of
A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SAN DIEGO 12/09/2025
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Offer to Purchase (Government Code §7267.2)
Property: 2313 Warmiands Avenue, Vista CA 92084
APN: 171-100-48, 49, 50
September 29, 2025
way road easement and plat map are collectively attached hereto as Exhibit “A”. A legal description and plat map of the 3,382 square foot temporary construction easement are collectively attached hereto as Exhibit “B”.
As required by law, the City has retained a qualified appraiser to establish an amount that it believes to be just compensation for the Property Interests and the City has approved the appraisal. This is an offer to purchase the Property Interests for their full appraised value.
The City hereby offers to purchase the Property Interests for the total sum of $2,250 under the conditions set forth below.
As required by California Government Code Section 7267.2, subd. (a), a written statement of, and summary of the basis for, the amount offered is attached hereto as Exhibit “C”. Under Government Code §7267.2, subd. (a)(2), the City is required to provide the owner of the property with an informational pamphlet detailing the process of eminent domain with the property owner’s rights under the Eminent Domain Law. A copy of an “Informational Pamphlet Regarding the Process of Eminent Domain” is attached hereto as Exhibit “D”.
Conditions. In the event you and the City reach an agreement for the purchase and sale of the Property Interests, an escrow will be opened setting forth the specific terms and conditions of the transaction, along with escrow instructions and a Grant Deed and Temporary Construction Easement Deed will be prepared and submitted for your review. In general terms, the City’s offer is conditioned on the following:
• This offer is conditioned upon your ability to deliver title to the City free and clear of all liens and encumbrances. This condition may only be waived ifthe City expressly agrees to acquire the subject property subject to certain exceptions that appear on the title report.
• Subject to the above, this offer is made to the fee owner of the property for all interests in the Property Interests.
California Government Code Section 7267.1 provides, as a guideline, that a public entity shall make every reasonable effort to acquire expeditiously property by negotiation. At this point in time, the City is merely commencing the formal settlement negotiation process by offering its appraised value, and providing information to you regarding that value. We would be happy to discuss any other pertinent data which you believe should be considered in the negotiation process.
A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SAN DIEGO 12/09/2025
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Offer to Purchase (Government Code §7267.2)
Property: 2313 Warmiands Avenue, Vista CA 92084
APN: 171-100-48, 49, 50
September 29, 2025
To discuss this matter further or schedule a mee ing, please contact me. I look forward to working with you on this transaction.
David W. Skinner
Attachments
Exhibit A Legal Description and Assessor’s Parcel Map (public right-of-way road easement)
Exhibit B Legal Description and Assessor’s Parcel Map (temporary construction easement) Exhibit C Appraisal Summary Statement
Exhibit D Informational Pamphlet Regarding the Process of Eminent Domain DS:CFS
6284664.2
A PROFESSIONAL CORPORATION OAKLAND LOS ANGELES SACRAMENTO SAN DIEGO 12/09/2025
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EXHIBIT A
THAT PORTION OF SECTION 8, TOWNSHIP 11 SOUTH, RANGE 3 WEST, SAN BERNARDINO
MERIDIAN, IN THE CITY OF VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY APPROVED DECEMBER 14, 1885, DESCRIBED AS PARCEL 2 OF THAT QUITCLAIM DEED TO THAD HUTTON, TRUSTEE, THE THAD HUTTON LIVING TRUST, DATE JULY 3, 2012, RECORDED SEPTEMBER 4, 2014, AS DOC. # 2014-0381445, OFFICIAL RECORDS OF SAN DIEGO COUNTY; MORE FULLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHWEST CORNER OF SAID PARCEL 2;
THENCE ALONG THE WESTERLY LINE OF SAID PARCEL 2, SOUTH 33°46'21" EAST 25.00 FEET (NORTH 34°16'00" WEST RECORD) TO THE TRUE POINT OF BEGINNING AND THE BEGINNING OF A NON-TANGENT 75.00 FOOT RADIUS CURVE, CONCAVE SOUTHERLY (A RADIAL TO SAID POINT BEARS NORTH 33°46'21" WEST) SAID POINT ALSO BEING ON THE SOUTHERLY SIDELINE OF THE DEED FOR EASEMENT FOR COUNTY HIGHWAY, RECORDED SEPTEMBER 17, 1956 IN BOOK 6259, PAGE 342 OF OFFICIAL RECORDS OF SAN DIEGO COUNTY;
THENCE DEPARTING SAID WESTERLY LINE, AND ALONG SAID SOUTHERLY SIDELINE, EASTERLY
92.08 FEET ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 70°20'34" (A RADIAL TO SAID POINT BEARS NORTH 36°34'13" EAST) TO THE POINT OF CUSP WITH A 130.00 FOOT RADIUS CURVE, CONCAVE SOUTHERLY (A RADIAL TO SAID POINT BEARS NORTH 23°28'34" EAST);
THENCE LEAVING SAID SOUTHERLY SIDELINE, WESTERLY 23.81 FEET ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 10°29'34" TO THE BEGINNING OF A COMPOUND TANGENT 94.00 FOOT RADIUS CURVE, CONCAVE SOUTHERLY;
THENCE WESTERLY 65.73 FEET ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 40°04'00", (A RADIAL TO SAID POINT BEARS NORTH 27°05'00" WEST) TO THE WESTERLY LINE OF SAID PARCEL 2;
THENCE ALONG SAID WESTERLY LINE, NORTH 02°37'38" EAST 2.58 FEET TO THE TRUE POINT OF BEGINNING.
CONTAINING 334 SQUARE FEET , MORE OR LESS.
EXHIBIT B ATTACHED HERETO AND MADE A PART HEREOF.
_______________________________
MAXIMILIAN LEBL, PLS 9323
_______________________________
DATE:
SHEET 1
EXHIBIT A
LEGAL DESCRIPTION
PLSA 3474
"ROAD DEDICATION - LEGAL DESCRIPTION"
05/27/2025
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APN:
171-100-14
APN:
171-100-05
APN: 171-100-02
APN: 171-100-48
PARCEL 2 OF QUITCLAIM DEED
09/04/2014
DOC 2014-0381445, OR
LOT 5
MAP 12552
25'
25'
PVT RDESMT
10/19/53
BK 5020,PG 264,ORPUB RDESMT
09/17/56
BK 6259,PG 342,OR
30'
DEDICATED
PER MAP
12552
POC
TPOB
L1
LINE TABLE
L1 - S33°46'21"E(R) 25.00' (N34°16'00"W)
L2 - N02°37'38"E 2.58' (N02°07'59"E)
C1
CURVE TABLE
C1 - L=92.08' R=75.00' D=70°20'34"
C2 - L=23.81' R=130.00' D=10°29'33"
C3 - L=65.73' R=94.00' D=40°04'00"
C2
C3
L2
N33°46'21"W(R)
N36°34'13"E(R) C1
N23°28'34"E(R) C2
N12°59'00"E(R) PCC)
N27°05'00"W(R)
V I S T A GR A N D E DR
N
S
EW
SHEET 2
LEGEND
PROPERTY LINE
RIGHT-OF-WAY LINE
CENTER LINE
ADJOINING PROPERTY LINE
RECORD DATA PER QUITCLAIM DEED( )
EXHIBIT B
PLAT
PLSA 3474
ROAD DEDICATION AREA ACQUIRED =
334 SQ.FT., MORE OR LESS
EXHIBIT B
"ROAD DEDICATION - PLAT"
SCALE = 1" = 30'
09/04/2014, DOC # 2014-0381445, O.R.
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EXHIBIT 'A'
THAT PORTION OF SECTION 8, TOWNSHIP 11 SOUTH, RANGE 3 WEST, SAN BERNARDINO
MERIDIAN, IN THE CITY OF VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY APPROVED DECEMBER 14, 1885, DESCRIBED AS PARCEL 2 OF THAT QUITCLAIM DEED TO THAD HUTTON, TRUSTEE, THE THAD HUTTON LIVING TRUST, DATE JULY 3, 2012, RECORDED SEPTEMBER 4, 2014, AS DOC. # 2014-0381445, OFFICIAL RECORDS OF SAN DIEGO COUNTY; MORE FULLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHWEST CORNER OF SAID PARCEL 2;
THENCE ALONG THE WESTERLY LINE OF SAID PARCEL 2, SOUTH 33°46'21" EAST 25.00 FEET (NORTH 34°16'00" WEST RECORD) TO THE TRUE POINT OF BEGINNING AND THE BEGINNING OF A NON-TANGENT 75.00 FOOT RADIUS CURVE, CONCAVE SOUTHERLY (A RADIAL TO SAID POINT BEARS NORTH 33°46'21" WEST) SAID POINT ALSO BEING ON THE SOUTHERLY SIDELINE OF THE DEED FOR EASEMENT FOR COUNTY HIGHWAY, RECORDED SEPTEMBER 17, 1956 IN BOOK 6259, PAGE 342 OF OFFICIAL RECORDS OF SAN DIEGO COUNTY;
THENCE DEPARTING SAID WESTERLY LINE, AND ALONG SAID SOUTHERLY SIDELINE, EASTERLY 106.56 FEET ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 81°24'10"; THENCE TANGENT SOUTH 42°22'12" EAST 24.12 FEET;
THENCE LEAVING SAID SOUTHERLY SIDELINE, NORTH 87°22'22" WEST 114.60 FEET TO THE WESTERLY LINE OF SAID PARCEL 2;
THENCE ALONG SAID WESTERLY LINE, NORTH 02°37'38" EAST 24.40 FEET TO THE TRUE POINT OF BEGINNING.
CONTAINING 3382 SQUARE FEET , MORE OR LESS.
EXHIBIT 'B' ATTACHED HERETO AND MADE A PART HEREOF.
SHEET 3
EXHIBIT A
LEGAL DESCRIPTION
PLSA 3474
"TEMPORARY CONSTRUCTION EASEMENT - LEGAL DESCRIPTION"
5/27/2025
_______________________________
GARY D. MELLOM, PLS 8537
_______________________________
DATE:
12/09/2025
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APN:
171-100-14
APN:
171-100-05
APN: 171-100-02
APN: 171-100-48
PARCEL 2 OF QUITCLAIM DEED
09/04/2014
DOC 2014-0381445, OR
LOT 5
MAP 12552
25'
25'
PVT RDESMT
10/19/53
BK 5020,
PG 264, OR
PUB RDESMT
09/17/56
BK 6259,
PG 342, OR
30'
DEDICATED
PER MAP
12552
POC
TPOB
L1
LINE TABLE
L1 - S33°46'21"E(R) 25.00' (N34°16'00"W)
L2 - N02°37'38"E 24.40' (N02°07'59"E)
C1
CURVE TABLE
C1 - L=106.56' R=75.00' D=81°24'10"
L2
N33°46'21"W(R)
V I S T A GR A N D E DR
N87°22'22"W 114.60'
S42°22'12"E
24.12'
N
S
EW
SHEET 4
LEGEND
PROPERTY LINE
RIGHT-OF-WAY LINE
CENTER LINE
ADJOINING PROPERTY LINE
RECORD DATA PER QUITCLAIM DEED( )
EXHIBIT B
PLAT
PLSA 3474
TEMPORARY CONSTRUCTION AREA =
3382 SQ.FT., MORE OR LESS
EXHIBIT 'B'
"TEMPORARY CONSTRUCTION EASEMENT- PLAT"
SCALE = 1" = 30'
09/04/2014, DOC # 2014-0381445, O.R.
12/09/2025
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Vista Grade Drive Improvement Project City of Vista
1 | P a g e
APPRAISAL SUMMARY STATEMENT
The fair market value of the portions sought for the Vista Grande Drive Improvement Project is based upon an appraisal prepared in accordance with accepted appraisal principles and procedures. Recent land sales and market trends were researched and analyzed to estimate fair market value by the sales comparison approach.
BASIC PROPERTY DATA
OWNER: Thad Hutton Living Trust
SUBJECT PROPERTY ADDRESS: 2313 Warmlands Avenue, Vista, CA 92084 ASSESSOR'S PARCEL NUMBER: 171-100-48, 171-100-49, and 171-100-50 PRESENT USE: The subject property is improved with a detached single-family residence in accordance with its zoning and land use.
HIGHEST AND BEST USE: Detached single-family development.
PROPERTY CONSIDERED
FOR ACQUISITION:
Partial acquisition for a right-of-way road acquisition and a temporary construction easement
INTERESTS VALUED: Fee simple estate and easement interests DATE OF VALUE: August 28, 2025
APPLICABLE ZONING: E-1 (Estate Zone)
APPLICABLE LAND USE: LD (Low Density Residential 2 du/acre) LAND DESCRIPTION: The subject larger parcel is a 5.2-irregular-shaped parcel of land with frontage along Warmlands Avenue and Vista Grande Drive.
The site is generally level to slightly sloping.
IMPROVEMENTS: The property is improved with a 2,555± square detached single- family residence and accessory improvements . The proposed project does not impact any significant building or site improvements, nor is the access impa ired. Therefore, only the land was appraised.
TOTAL PROPERTY AREA:
Larger Parcel:
Portion Sought:
5.2± acres (208,430 SF)
334± SF Right of Way Acquisition (ROW)
3,382± SF Temporary Construction Easement (TCE)
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Vista Grade Drive Improvement Project City of Vista
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RECOMMENDED COMPENSATION FOR REQUIRED PROPERTY
Value of the Whole – Land Only (A) $793,114
Value of Permanent Acquisition (B) $1,169
Value of the Remainder as Part of the Whole $791,945
Value of the Remainder in the After Condition, Before Benefits $791,945 Severance Damages $0
Value of the Remainder in the After Condition, After Benefits $791,945 Value of Temporary Construction Easement (C) $1,065
Total Fair Market Compensation $2,234
Total Compensation (Rounded) (Nominal) $2,250
BASIS OF APPRAISAL
The sales comparison approach was used to opine the fair market value of the subject land. The income and cost approaches were not considered relevant.
(A) Larger Parcel Valuation: The following table is a summary of the principal land data considered in the sales comparison approach and valuation of the identified larger parcel. Consideration was given to properties with similar physical, legal, and economic characteristics.
COMPARABLE LAND SALE DATA
No. Address Sale
Date Doc. No. APN(s) Size
(Ac) Sale Price $/SF*
1 2277 Vista Grande Drive, City of Vista 01/29/21 22-137137 21-071862 171-100-28, 05 16.51 $1,625,000 $3.10
2 2922 Hutchison Street, County of San Diego 07/10/23 23-0179669 170-071-05 5.56 $600,000 $2.90 3 N of Puerta Lomas Drive, City of Oceanside 02/06/24 24-0030542 121-202-24, 25 2.64 $300,000 $2.95 4 3574 Hollyberry Drive, County of San Diego 05/01/24 24-0142274 181-180-89 14.72 $1,625,000 $2.81 5 1550 La Plaza Drive, County of San Diego 10/23/24 24-0288762 222-440-12 4.12 $750,000 $4.47 *Market Condition Adjusted Sales Price
Based on analysis of the comparable sales, discussions with knowledgeable brokers, and market research, the fair market value of the underlying land of the subject larger parcel as of August 28, 2025, was opined to be $3.50 per square foot. The fair market value of the larger parcel is calculated below:
Fair Market Value (Land Only) Size Unit Value Value
Larger Parcel Valuation ........................ 226,604 SF x $3.50 /SF = $793,114
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Vista Grade Drive Improvement Project City of Vista
3 | P a g e
VALUATION OF THE PORTION SOUGHT
(B) Public Right-of-Way Road Acquisition
The proposed project requires a public right-of-way road acquisition from the subject property. According to the legal documents, the acquisition area totals 334 square feet. The fair market value of the right-of-way is calculated below:
Size Unit Value Value
Right of Way Acquisition ......... 334 SF x $3.50 /SF = $1,169
(C) Temporary Construction Easement
The project will require a temporary construction easement (TCE) totaling 3,382 square feet for twelve months. A twelve-month rental period, based on a land value of $ 3.50 per square foot and a 9% annual return on land, which is based on a review of ground lease data from public and private sources, yields an amount for the proposed TCE as calculated below.
Temporary Construction Easement Valuation
Underlying Land Value .......................... 3,382 SF x $3.50 /SF = $11,837 Annual Ground Rent ............................... $11,837 x 9% return = $1,065 Monthly Ground Rent ............................. $1,065 / 12 months = $88.75 TCE Fair Market Value .......................... $88.75 x 12 months = $1,065
SUMMARY OF FAIR MARKET VALUE COMPENSATION
Compensation to the property owner in this case comprises the value of the public right-of-way road acquisition and temporary construction easement as follows:
Right of Way Acquisition .......................................................................................... $1,169 Temporary Construction Easement ............................................................................ $1,065 Total Fair Market Value............................................................................................. $2,234 Total Fair Market Value (rounded) ..................................................... (Nominal) $2,250
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Vista Grade Drive Improvement Project City of Vista
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DEFINITION OF FAIR MARKET VALUE
(See Code of Civil Procedure 1263.320, a & b)
(a) The fair market value...is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available.
(b) The fair market value of property taken for which there is no relevant comparable market is its value on the date of valuation as determined by any method of valuation that is just and equitable.
APPRAISED BY: Mark Hendrickson, MAI, AI-GRS
APPRAISAL FIRM: Hendrickson Appraisal Company, Inc.
Real Estate Appraisers and Consultants
3530 Camino Del Rio N. Suite 205
San Diego, CA 92108
PREPARED BY (Signature):
NAME (Printed):
Mark J. Hendrickson, MAI, AI-GRS
DATE:
September 5, 2025
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INFORMATIONAL PAMPHLET
REGARDING THE
PROCESS OF EMINENT DOMAIN
This is an informational pamphlet only. It is not intended to give a complete statement of all State or Federal laws and regulations pertaining to the purchase of your property for a public use, the relocation assistance program, technical legal definitions, or any form of legal advice. 12/09/2025
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2 WHEN A PUBLIC ENTITY DESIRES TO ACQUIRE YOUR PROPERTY
FOR A PUBLIC PURPOSE
Introduction
This informational handbook is provided to give you general information about property acquisitions for public projects. It is not intended to be a definitive summation of the law or to provide specific advice. For such purposes, it is recommended that you consult your personal attorney or other advisor of your choice.
What Right Does a Public Entity Have to Acquire My Property?
Every City, County, State and various other public entities has certain powers which are necessary for them to operate effectively. For example, States have the power to levy taxes and the power to maintain order. Another power is the power to acquire private property for public purposes. This is known as the power of eminent domain.
The rights of each of us are protected, however, by laws such as the Fifth and Fourteenth Amendments to the United States Constitution, the State Constitution, and Eminent Domain Law. These laws guarantee that if a public entity takes private property it must be for a public purpose and it must pay “just compensation” to the owner. Further, the owner may have additional protections, some of which are explained in this informational handbook.
Title VI of the Civil Rights Act of 1964 (42USC 2000d et. seq.) sets forth the policy of the United States, within constitutional limits, to ensure that all services and/or benefits will be administered without regard to race, color, national origin, or sex.
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3 APPRAISAL OF PROPERTY
How Will It Be Determine How Much to Offer Me for My Property?
Before making an offer of compensation to you, a public entity will obtain at least one appraisal by a competent real property appraiser who is familiar with local property values. The appraiser will inspect your property and provide the public entity with an appraisal report stating his or her opinion of the fair market value of the property rights to be acquired. The appraisal report will be reviewed by the public entity to confirm that the estimate of value is fair and complies with all applicable laws.
Pursuant to both the federal and state constitutions, a public entity is required to offer you “just compensation” for your property. This amount, with limited exceptions, is the fair market value of the property rights to be acquired.
What is “Just Compensation”?
“Just compensation” is generally considered to be fair market value. The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available.
The fair market value of property taken for which there is no relevant, comparable market is its value on the date of valuation as determined by any method of valuation that is just and equitable.
(California Code of Civil Procedure section 1263.320)
How Does an Appraiser Determine the Fair Market Value of My Property?
Each parcel of real property is different and, therefore, no single formula can be devised to appraise all properties. Among the factors an appraiser typically considers in estimating the value of real property are:
How it compares with similar properties in the area that have been sold recently.
How much it would cost to reproduce the buildings and other structures, less any depreciation.
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4 How much rental income it could produce.
Other factors affecting use of the property, including, how old the improvements are which are located on the property, the uses and/or potential development of the property, the location of the property, the size of the property and the size of the acquisition.
Will I Have A Chance to Talk to the Appraiser?
Yes, it is your choice. You must be contacted and given the opportunity to accompany the appraiser on his/her inspection of your property. You may then inform the appraiser of any special features which you believe may add to the value of your property. It is in your best interest to provide the appraiser with all the useful information you can in order to insure that nothing of allowable value will be overlooked. If you are unable to meet with the appraiser, you may wish to have a person who is familiar with your property represent you.
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5 OFFER TO PURCHASE PROPERTY
What is a Written Purchase Offer?
Generally, after the appraisal has been reviewed and confirmed by a public entity and its governing board has approved the making of a purchase offer, the public entity, its counsel or its right of way consultant will serve a property owner with an offer to purchase. The timing of a purchase offer depends on the following factors:
1. The amount of work required to appraise your property;
2. The availability of funding;
3. Possible project delays caused by factors outside the control of the public entity; and/or
4. The public entity decides not to make an offer because it is not moving forward with the Project or for some other reason.
What is a Statement/Summary of the Basis for Its Determination of Just Compensation?
A statement of the basis for the determination of just compensation must be provided to you with the written purchase offer. Among other things, this statement includes:
A general statement of the proposed use for the property. An accurate description of the property to be acquired. A list of the improvements covered by the offer and any conditions. The amount of the offer.
An indication that the offer does not reflect any relocation payments or other relocation assistance which you may receive under other regulations. The recognized definition of the term “fair market value”.
Are Buildings, Structures, and Improvements Considered in an Appraisal?
Sometimes buildings, structures, or other improvements considered to be real property are located on the property to be acquired. If this is the case, a public entity must offer to acquire buildings, structures, or other improvements if they must be removed or if the improvements will be adversely affected by the Project.
When an improvement can be considered real property if owned by the owner of the real property on which it is located, then this improvement will be treated as real property.
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6 Are Tenant-Owned Buildings, Structures and Improvements Considered?
Sometimes tenants lease real property and build or add improvements for their use.
Frequently they have the right or obligation to remove the improvements at the expiration of the lease term. If, under State law, the improvements are considered to be real property, a public entity must make an offer to the tenants to acquire these improvements if they are within the real property to be acquired.
In order to be paid for these improvements, the tenant-owner must assign, transfer, and release all rights, title, and interest in the improvements to the public entity. Also, the owner of the real property on which the improvements are located must disclaim all interest in the improvements.
Just compensation for an improvement will be the amount that the improvement contributes to the fair market value of the whole property, or its value for removal from the property (salvage value), whichever is greater.
Sometimes the lease or rental agreement will set forth the rights and interests in the buildings and improvements between the landlord and the lessee.
May I Keep Any of the Buildings or Other Improvements on My Property?
Very often, many or all improvements on a property are not required by the public entity. This might include such items as a fireplace mantel, shrubbery, or a storage facility. If you wish to keep any improvements, please let the public entity know as soon as possible.
Must I Accept the Written Offer?
NO. You are entitled to present your evidence as to the amount you believe is the value of your property and to make suggestions for changing the terms and conditions of the offer. All public entities are required to make reasonable efforts to consider and respond to your evidence and suggestions.
May I Have Someone Represent Me During Negotiations?
YES. If you would like an attorney, real estate agent, or anyone else to represent you during negotiations, you may do so by informing the public entity’s agent and in writing.
However, state law does not require the public entity to pay the costs for any such representation.
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7 If I Accept the Offer, How Soon Will I Be Paid?
If you reach a voluntary agreement to sell your property and your ownership (title) is clear of encumbrances, payments will be made at the earliest possible date or a mutually acceptable time. Generally, this should be possible within 90 days after you sign a purchase and sale contract. If your ownership is not clear, you may have to pay the cost of clearing title sufficiently to convey clear title on your property. (Title evidence is basically a legal record of the ownership of the property. It identifies the owners of record and lists any restrictive deed covenants and recorded mortgages liens, and other instruments affecting your ownership of the property.)
Will I Have to Pay any Settlement Costs?
You will not be responsible for the reasonable and necessary costs of typical services required to complete the sale, recording fees, transfer taxes, and any similar expenses which are incidental to transferring ownership of your property to the public entity.
A title company will identify these costs and give them to you at the time of settlement.
Ordinarily, if you have paid any of the reimbursable expenses yourself, you will be reimbursed. You should promptly contact your attorney if you believe you have not received satisfactory reimbursement after requesting reimbursement from the public entity.
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8 CONDEMNATION PROCEEDINGS
What Happens if I Don't Accept the Purchase Offer?
If you do not accept the offer amount and are unable to reach a voluntary agreement, a public hearing of the public entity’s governing body (such as a City Council, or Board) may be held to determine the need and necessity for the acquisition of your property for the planned Project as set forth in the written offer. You will be notified of the action with a “Notice of Intent to Adopt Resolution of Necessity to Acquire Real Property.” You will be given reasonable advance notice of your right to attend the hearing upon a written request to appear. You have the right to oppose the adoption of the “Resolution of Necessity” on any and all grounds set forth in Code of Civil Procedure section 1240.030. After the hearing, assuming need and necessity have been found, the public entity may file a suit, called a “Complaint in Eminent Domain,” in court to acquire your property through a condemnation proceeding.
What Happens if a Lawsuit is Filed to Condemn My Property?
Condemnation proceedings are procedures through a court to acquire real property and real property interests under the power of eminent domain. During the condemnation proceedings and trial, you will be provided an opportunity to introduce your evidence of the value of your property to be acquired and, if appropriate, as to the need for acquisition. Of course, the public entity will have the same opportunity. After hearing the evidence of all parties during the trial, the court will determine the right to acquire and the court or jury will determine the amount of just compensation. To help you in presenting your case in a condemnation proceeding, you may wish to consider employing an attorney and other experts, such as an appraiser. However, the costs of these professional services and other costs which you incur in presenting your evidence to the court may be your responsibility.
If construction must begin prior to the condemnation trial, the public entity will most likely attempt to obtain a court's order for prejudgment possession.
What is an Order for Prejudgment Possession?
An order for possession is a procedure within a condemnation proceeding. The public entity must file a motion for the order and you will be given notice of the hearing and have an opportunity to either oppose the granting of the order or agree to it. The order for possession issued by the court allows the public entity to have the use of the portion of your property which is the subject of the proceeding prior to an award of just compensation in court. This procedure is used typically only where the use of your property is necessary to accomplish timely construction of the project for which your property is required.
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9 To obtain an order for possession, the public entity must deposit with the court, the County, or usually the State Treasurer, an amount not less than its appraisal of the fair market value of the property to be acquired (the offer amount). Sometimes, the owner is then permitted to withdraw a portion or all of this amount, depending upon the individual circumstances. It is recommended that you have the help of an attorney if you intend to do this. Should the court award exceed the amount deposited, you will be paid the difference, plus any interest that may be provided by State Law.
What Can I Do If I Am Not Satisfied With the Award of the Amount of Just Compensation?
If you are not satisfied with the amount of the award of just compensation, you may, based upon the specific circumstances, evidence and procedure of the trial, file an appeal with the appropriate appellate court for the area in which your property is located. The public entity may also file an appeal.
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10 GENERAL QUESTIONS
Can A Public Entity Take Only A Part of My Property?
YES. But, if the purchase of only a part of your property reduces the value of the remaining part(s), you must be paid for the loss in value. Also, if any remaining part would have little or no utility or value to you, the public entity will offer to acquire that remaining part from you, if you so desire. Whether the remaining part(s) have a reduced value after acquisition will be determined by the public entity’s appraiser and attorney in conjunction with information provided by the property owner. You may, of course, disagree with this amount and have your own appraiser determine the loss in value. Should you and the public entity be unable to agree to an amount, the public entity may then proceed with condemnation proceedings as set forth above.
Must I Move? How Soon Must I Move?
Not all acquisitions by public entities require a business or home owner to move.
However, should an acquisition, either a portion of the property or the entire parcel, require you to move, every reasonable effort will be made to give you ample time to relocate after the acquisition of your property. In most cases, a mutually satisfactory arrangement can be worked out. Except in an unusual instance where there is an urgent need for your property, you cannot be required to move from your residence or to move your business or farm operation without at least 90 days’ advance written notice of the date by which your move is required.
If you reach a voluntary agreement to sell your property, you cannot be required to move before you receive the agreed purchase price. In the case of a condemnation, you cannot be required to move before the estimated fair market value of your property has been deposited with the court (or into escrow) so that you can withdraw your share.
If you are being displaced from your residence, decent, safe and sanitary replacement housing must be available before you can be required to move.
Will I Receive Assistance with Relocation?
YES. If eligible, in addition to any compensation paid through the property acquisition process, the public entity will provide relocation referral assistance and cash payments for eligible moving expenses. The amount of relocation expense is determined on a case-by-case basis in accordance with the Federal Uniform Act and State Guidelines.
A Relocation Assistance Program brochure describing relocation benefits will be available from the public entity if the project proceeds and you are determined to be eligible to receive these benefits.
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11 No relocation payment received will be considered as income for the purpose of the Internal Revenue Code of 1954.
I’m A Veteran, How About My GI Loan?
After your GI home mortgage loan has been repaid, you may be permitted to obtain another GI loan to purchase another property. Check on such arrangements with your nearest VA office.
LOSS OF GOODWILL
Will I Be Compensated for the Loss of Goodwill for My Business?
If you own a business located and conducted on the real property to be acquired, you may have a right to claim compensation for loss of business goodwill. You should contact your personal attorney or an attorney who practices in the area and has knowledge regarding such claims.
TAXES
If My Property is Worth More Now than When I Bought it, Must I Pay Capital Gains Tax on the Increase?
It is recommended that you consult your tax advisor, tax attorney or the appropriate tax agencies if you have questions concerning these issues. Also, Internal Revenue Service (IRS) Publication 544, “Sales and Other Dispositions of Assets”, is available from the IRS. (NOTE: The number of this publication may change from time to time.) It explains how the Federal income tax would apply to a gain or loss under the threat of condemnation for public purposes. If you have any questions about the IRS rules, you should discuss your particular circumstances with your personal tax advisor, tax attorney, or your local IRS office. The State of California Franchise Tax Board should be able to provide information regarding any State tax due, if any, resulting from the purchase by a public entity.
Any and all questions regarding taxes, payment, or increases of same for replacement properties, cannot be answered by the public entity. You should contact your personal attorney or other tax advisor.
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12 DONATIONS
Is it Possible to Donate My Property?
YES. However, prior to accepting a donation, a public entity must inform the owner in writing of the amount it believes to be just compensation for the property to be acquired. The property owner must indicate in writing that although he/she understands he/she cannot be required to sell his/her property for less than just compensation, he/she voluntarily agrees to do so or to contribute the property without payment of compensation. You are advised to consult with a tax advisor and lender(s) prior to making a donation.
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13 DEFINITIONS
The language used in relation to eminent domain proceedings may be new to you.
These are some terms you may hear. Please note that these definitions are general and are provided to assist in the discussion related to the proposed acquisition. They are not intended to be legal definitions.
Acquire – To purchase.
Answer - The property owner’s written reply, in appropriate legal form, filed with the court in response to the complaint and as requested by the summons.
Compensation – The amount of money to which a property owner is entitled under the law for the purchase or damage to the property.
Complaint – The document filed with the court by the State which initiates an eminent domain proceeding.
Condemnation – The legal process by which a proceeding in eminent domain is accomplished.
Counsel – An attorney or attorneys.
Eminent Domain – The right of government to purchase private property for public use.
Final order of condemnation – The instrument which, when recorded, transfers title to public ownership.
Judgment – The court’s formal decision based on applicable law and the verdict.
Loss of goodwill – A loss in the value of a business caused by the State’s acquisition of property that cannot be reasonably prevented by relocation of the business or the owner adopting prudent or reasonable steps that preserve the value of the business goodwill.
Market value – The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, not obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available.
Parcel – Usually means the property that is being acquired.
Plaintiff – The public agency that desires to purchase the property.
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14 Possession – Legal control; to have the right to use.
Property – The right or interest which an individual has in land, including the rights to use or possess. Property is ownership; the exclusive right to use, possess or dispose of a thing.
Summons – Notification of filing of a lawsuit in eminent domain and of the necessity to file an answer or other responsive pending.
Title – Legal ownership.
Trial – The hearing of facts from plaintiff and defendant in court, either with or without a jury.
Verdict – The amount of compensation to be paid for the property.
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