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HomeMy WebLinkAboutRes2010-046 Sponsored by: CITY OF SEWARD, ALASKA RESOLUTION 2010 -046 A RESOLUTION OF THE CITY OF SEWARD, ALASKA, APPROPRIATING AN ADDITIONAL $20,720 TO ACQUIRE PROPERTY RIGHTS NECESSARY TO CONSTRUCT THE NORTH FOREST ACRES LEVEE/ROAD PROJECT ACROSS TRACT B, DIECKGRAEFF - GILLESPIE REPLAT, FOR A TOTAL COST NOT TO EXCEED $71,720 WHEREAS the Seward City Council passed Resolution 2010 -025 on March 22, 2010, authorizing eminent domain proceedings to acquire property rights necessary to construct the North Forest Acres Levee/Road Project; and WHEREAS, said Resolution expressed the willingness to pay the owners fair market value for a public use easement and in addition, an amount equal to fair market fee value for damages to the area north of the easement; and WHEREAS, said Resolution further expressed a willingness to pay the higher of two peer - reviewed independent appraisals aimed at determining the fair market value of the public use easement plus the fair market fee value for damages to the area north of the easement; and WHEREAS, the first appraisal report was dated April 6, 2009 by MacSwain Associates, LLC ( "MacSwain ") resulting in a total value of $46,300, and the second appraisal report was dated April 26, 2010 by Black- Smith, Bethard & Carlson ( "BSBC "), resulting in a total value of $65,200 ($23,000 value of easement plus $42,200 damages); and WHEREAS, the purpose of this resolution is twofold; 1) to appropriate additional funding in the amount of $20,720 as necessary to pay the higher of the two appraisals ($65,200) plus an additional 10% of $6,520, for a total cost to the City of $71,720; and 2) to authorize the city manager to enter into a negotiated settlement by May 14, 2010, or to proceed as authorized by Resolution 2010 -025, to institute eminent domain proceedings including the use of a declaration of taking. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The additional amount of $20,720 is hereby added to the $51,000 previously appropriated in Resolution 2010 -025, for a total appropriation of $71,720, constituting the appraised fair market value for a public use easement plus the fair market value for damages to the remaining property Tract B, Dieckgraeff - Gillespie Replat, with said funding to come from net assets account no. 666- 6664 -3050 to account no. 666 - 6664 -5790 for the purposes stated above. CITY OF SEWARD, ALASKA RESOLUTION 2010 -046 Section 2. The City Manager is hereby authorized, but not required, to seek a negotiated settlement with the owners to conclude no later than May 14, 2010, so long as the total cost to the City of any such settlement shall not exceed $71,720 and the owners provide the City with the immediate right to occupy and use the land. If a settlement agreement includes replatting to be paid for by the City, such agreement will require additional appropriations and further approval by the City Council Section 3. Failure to reach a negotiated settlement with owners by May 14, 2010 will result in the City Manager and City Attorney instituting eminent domain proceedings including the use of a declaration of taking against Tract B, Dieckgraeff - Gillespie Replat, as authorized by Resolution 2010 -025. Section 4. This resolution shall take affect immediately upon adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 10th day of May, 2010. THE CITY OF SEWARD, ALASKA ti Willard E. I unham, Mayor AYES: Valdatta, Bardarson, Smith, Keil, Shafer, Dunham NOES: None ABSENT: None ABSTAIN: None ATTEST: of se Z I r . .4-‘4% wr ♦ I • Jea LewiA, CMG e • City Clerk * $ s (City Seal) .. ;. �. ♦ As r trarru ... ....Ones. 0* Council Agenda Statement Meeting Date: May 10, 2010 � sF From: Phillip Oates, City Manager "' , � � Agenda Item: Additional Appropriation to Acquire Property gti►sr�P Rights for Tract B, Dieckgraeff-Gillespie Replat In An Amount Not To Exceed $71,720.00 BACKGROUND & JUSTIFICATION: For more than ten years, the City of Seward has been working with state and federal agencies to finalize permitting for construction of the North Forest Acres levee /road project. This project resulted from a flood mitigation task force developed at the request of FEMA, following major flood events in Seward during the past twenty years. In efforts to obtain permits to construct the North Forest Acres levee /road, the City fought to construct the levee as far to the north as possible, in order to minimize the impact on property owners and provide as much protection of property as possible. The agencies preferred the levee to be further south, in order to minimize the impact on wetlands and fish habitat. This conflict resulted in a decade -long effort to determine the exact alignment of the levee /road that would gain acceptance from all agencies involved in the project. Given the protracted debate over alignment, it is clear that this final piece of property is key to proceeding with the project, and that an alternative alignment is not possible. At its meeting of March 22, 2010, the Seward City Council passed Resolution 2010 -025 authorizing the City Manager and City Attorney to institute eminent domain proceedings, including the use of a declaration of taking against Tract B, Dieckgraeff- Gillespie Replat, in order to proceed with construction ofthe North Forest Acres Levee /Road Project. The resolution further authorized a second peer- reviewed appraisal to be conducted by an independent appraiser not previously involved in appraising this property on behalf of the City, in order to ensure that the City was offering to pay fair market value for the required easement, and fair market fee value for damages to the area north of the easement. The resolution authorized the City to pay the higher of two independent, peer - reviewed appraisals. The first independent peer- reviewed appraisal report by MacSwain Associates, LLC dated April 6, 2009, resulted in a value of $46,300 for the easement and the damages to the remainder resulting from the easement. The second independent appraisal report by Black- Smith, Bethard & Carlson assigned a value of $65,200 to the easement and the damages. After adding an additional ten percent (10 %) to the higher ofthe two determined values the total cost to the City ($65,200 plus $6,520) is $71,720. The City Manager may seek to pursue a negotiated settlement with the owners, provided that such settlement is reached no later than May 14, 2010. The purpose of the settlement would be to see whether the parties can reach agreement on a settlement, based on the recent appraisal, without the need to proceed with eminent domain proceedings. Authorizing a settlement agreement may enable the parties to achieve a more mutually desirable outcome, without incurring additional costs to the City above the authorized $71,720. The authorized amount does not include the cost of the driveway relocation, which the City has agreed to pursue outside of this transaction. The owners have expressed the potential desire to "square -off' their remaining bow -tie property to the South ofthe proposed easement. It may be possible for the City to trade a portion of its existing property east of the bow -tie property in exchange for a reduction in the cost paid for the easement and damages. The owners have also expressed a preference for the City to own the property to the north of the proposed easement in fee, rather than as an easement. The authorized settlement amount of $71,720.00 also excludes any costs associated with replatting property which the City might incur if a land exchange or replatting is part of a proposed settlement. If so, eminent domain proceedings will move forward while settlement negotiations continue CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. INTENT: This resolution requests additional funding of $20,720 in order to pay the higher ofthe two appraisals conducted on Tract B, Dieckgraeff - Gillespie Replat, and provides a final opportunity to seek a negotiated settlement prior to the City instituting eminent domain proceedings. ATTORNEY REVIEW: Yes FISCAL NOTE: Funding for this acquisition will come from the North Forest Acres Levee /Road Project. Approved by Finance Department Q4 RECOMMENDATION: Approve Resolution 2010 &uthorizing an additional appropriation of $20,720 for a not -to- exceed amount of $71,720, for the acquisition of property rights necessary to construct the North Forest Acres Levee /Road Project. 33