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HomeMy WebLinkAbout208-07 RESOLUTIONRESOLUTION NO. 208-07 A RESOLUTION TO APPROVE A SETTLEMENT WITH ZION ROAD PROPERTIES, LLC IN THE AMOUNT OF $42,030.00 FOR RIGHT-OF-WAY AND EASEMENTS; AND ESTABLISHING ZION ROAD PROPERTIES, LLC's MAXIMUM ASSESSMENT FOR OFF- SITE IMPROVEMENTS. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves a settlement with Zion Road Properties, LLC in the amount of $42,030.00 for right-of-way and easements. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby establishes the maximum assessment for off-site improvements required of Zion Road Properties, LLC at not more than $42,030.00. PASSED and APPROVED this 4th day of December, 2007 APPROVED: ATTEST: By: DAN COODY, Mayor By: JA-tv SONDRA E. SMITH, City Clerk/Treasurer ItTiIlfrotppr T[L ! E;Y • uN Ron Petrie Submitted By City of Fayetteville Staff Review Form City Council Agenda Items or Contracts 12/4/2006 City Council Meeting Date Engineering Division Action Required: Res /NI07 308 2/M( Rocs L etop rt45, late. Operations Department A resolution to approve a settlement with Zion Road Properties, LLC in the amount of $42,030 for right of way and easements on Zion Road, and to establish the maximum assessment due from Zion Road Properties for off-site street improvements at $42,030. $ 42,030.00 Cost of this request 4520.9520.5809.00 Account Number 06035.1830 Project Number Budgeted Item X 24,496,473.00 Category / Project Budget 2,082,457.43 Funds Used to Date 22,414,015.57 Remaining Balance Budget Adjustment Attached Zion Road (College to Vantage) Program Category / Project Name Street Improvements Program / Project Category Name 2006A Sales Tax Construction Fund Name e rtment director Date aktbCity Attorney Da LPa,Jc. Finance and Internal Service Director Mayor 11-15-0> Date ate Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Received in City Clerk's Office Received in Mayor's Office • Comments. City Council Meeting of December 4, 2007 CITY COUNCIL AGENDA MEMO To: Mayor and City Council Thru: Gary Dumas, Director of Operations From: Ron Petrie, City Engineer to Date: November 15, 2007 Subject: A resolution to approve a settlement with Zion Road Properties, LLC in the amount of $42,030 for right of way and easements on Zion Road, and to establish the maximum assessment due from Von Road Properties for off-site street improvements at $42,030. RECOMMENDATION: Staff recommends approval of a settlement with Zion Road Properties, LLC in the amount of $42,030, for right of way and easements and to establish the maximum assessment due from Zion Road Properties for off-site street improvements at $42,030. BACKGROUND: The Zion Road Project is one of the projects to be constructed under the Transportation Bond Program The project consists of widening approximately 2400 feet of Zion Road to 3 lanes from College Avenue to just east of Vantage Drive, mstallation of an underground storm drainage system, and construction of 6 foot sidewalks on both sides of the roadway, as approved by the City Council and Street Committee. During the process of right of way and easement acquisition on the project, Zion Road Properties, LLC purchased two properties along Zion Road with the stated intention of developing the property. City staff then submitted an offer to Zion Road Properties for easements and right of way necessary across their property based on the appraised value. Zion Road Properties has since agreed to accept the City's offer of $42,030 for easements and right of way, with the understanding that they will in tum repay this same amount to the City if their development is approved prior to the completion of the Zion Road project. In addition, the Zion Road Properties, LLC has requested an assurance that there will be no additional offsite street assessments for the work associated with the Zion Road project. DISCUSSION: Staff has reviewed this proposal and has determined that it is fair to both the City and the property owner. Therefore, acceptance of this settlement is recommended. 1 City Council Meeting of December 4, 2007 A copy of a memo from the City Attorney regarding this issue is attached along with correspondence from Zion Road Properties indicating their willingness to accept the settlement terms. It should be noted that if the Planning Commission determines that additional improvements beyond the scope of the Zion Road Improvement Project are required due to the impacts of development by Zion Road Properties, LLC, the cost of such improvements will be the responsibility of Zion Road Properties, LLC. BUDGET IMPACT: This payment will be funded with a portion of the 2006 Transportation Bond Issue proceeds. $2,540,000 has been budgeted for the Zion Road Improvements Project. 2 RESOLUTION NO. A RESOLUTION TO APPROVE A SETTLEMENT WITH ZION ROAD PROPERTIES, LLC IN THE AMOUNT OF $42,030.00 FOR RIGHT-OF-WAY AND EASEMENTS; AND ESTABLISHING ZION ROAD PROPERTIES, LLC's MAXIMUM ASSESSMENT FOR OFF- SITE IMPROVEMENTS. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves a settlement with Zion Road Properties, LLC in the amount of $42,030.00 for right-of-way and easements. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby establishes the maximum assessment for off-site improvements required of Zion Road Properties, LLC at not more than $42,030.00. PASSED and APPROVED this 4th day of December, 2007. APPROVED: ATTEST. By: By: DAN COODY, Mayor SONDRA E. SMITH, City Clerk/Treasurer FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS KIT WILLIAMS, CITY ATTORNEY DAVID WHITAKER, ASST. CITY ATTORNEY DEPARTMENTAL CORRESPONDENCE LEGAL DEPARTMENT TO: Ron Petrie, City Engineer CC: Jeremy Pate. Director of Current Planning FROM: Kit Williams, City Attorney DATE: November 9, 2007 RE: Assessments for new development when street is being widened by the City As you know §171.03 Street Improvements require developers with development "along any street which is not constructed according to the city's existing standards ... (to) dedicate sufficient right-of-way ... (and) install street paving, curbs, gutters and sidewalks If the City desires to begin widening construction along Zion Road prior to a landowner along Zion Road beginning its development, that landowner would not initially have to dedicate right-of-way nor pave, curb. and gutter Zion Road where it abuts the property. (See also §166.03 Required On -Site Improvements — Subdivision In City Limits (C) Streets) However. if the landowner becomes a developer and proceeds to begin the development process while Zion is being improved, any money paid by the City to the developer to purchase right-of-way (which should now be legally dedicated as a condition for approval) should be refunded to the City. Otherwise, the City would be paying for street right-of-way it would legally he entitled to through mandatory dedication procedures. In this particular instance. I would agree that the City should not seek further reimbursement for its paving, curb and gutter construction costs even though these might have at least partially he required of the developer through Fayetteville Code §166.03 (C) (D) and (E) and §171.03 (A) (2). Therefore, 1 would recommend a compromise position for the City to seek and accept only repayment of the money spent by the City for right-of-way dedication, but not to seek reimbursement for paving. curb and gutter construction costs. You and Jeremy Pate are the designated administrator and interpreters of the Unified Development Code. so you are free to arrive at your own interpretation and position regardless of my opinions. Zion Road Properties, LLC 2397 Green Acres Road Fayetteville, Arkansas 72703 Mr. Ron Petrie — City Engineer City of Fayetteville 113 W. Mountain Fayetteville, AR 72701 Dear Mr. Petrie: We are in receipt of offers from the city of Fayetteville to purchase; tract no. n-4, tract no. n-5, & tract no. n-6 lands from us in order to widen Zion Road. We have reviewed the offered purchase price and we are willing to accept this offer as long as the city agrees that there will be no future assessments charged to our PZD in excess of the offered price. We appreciate your willingness to work with us on this matter. Sincerely, 6," Roger A. Boskus, II Zion Road Properties, LLC 12.10.07 Clarice Pearman - Res. 208-07 Page 1 From: Clarice Pearman To: Petrie, Ron Date: 12.10.07 12:22 PM Subject: Res. 208-07 Attachments: 208-07 Zion Road Properties LLC Settlement.pdf CC: Audit Ron: Attached is a copy of the above resolution passed by City Coundl, December 4, 2007 for Zion Road Properties, LLC. Please be sure to get the clerk's office a copy of the check for settlement and copies of the r -o -w and easement. Have a good day. Thanks. Clarice