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HomeMy WebLinkAbout209-11 RESOLUTIONRESOLUTION NO. 209-11 A RESOLUTION APPROVING A SETTLEMENT AGREEMENT WITH RICHARD L. WATSON, CONCERNING CONDEMNATION LITIGATION FILED AS PART OF THE CATO SPRINGS ROAD IMPROVEMENT PROJECT, IN THE TOTAL AMOUNT OF $9,000.00 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 an agreement with Richard L. Watson, in a total amount of $9,000.00 as full and final settlement of condemnation litigation (City of Fayetteville v. Watson, Washington County Circuit Court Case No. CV 2010-3711-2) filed as part of the Cato Springs Road Improvement Project. Section 2: That the City Council of the City of Fayetteville, Arkansas, in furtherance of the settlement, hereby approves payment of an additional $4,900.00 over and above the $4,100.00 placed on deposit with the court. PASSED and APPROVED this 6th day of December, 2011. APPROVED: B ATTEST: LISA BRANSON, Deputy City Clerk `verrasavnrrarvvv ®zoo„QbAY ® °F U® 3 V ® a :FAYETTEVILLE: �ro9s®-9�,KANS�� �e`e � ° oO® a 'e'�A®,�G AG�e`e`d Chris Brown 0 Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 12/6/2011 City Council Meeting Date Agenda Items Only Engineering Division Action Required: Development Services Department A Resolution Approving a Settlement with Richard L. Watson for Purchase of Right of Way along Cato Springs Road 4,900.00 Cost of this request 4520.9520.5805.00 Account Number 06035.1200 Project Number Budgeted Item X 11,985,409.00 Category / Project Budget 2,419,655.48 Transportation Bond Street Improvements Program Category / Project Name Land Acquisition Funds Used to Date Program / Project Category Name 9,565,753.52 Sales Tax Construction Bonds Remaining Balance Fund Name Budget Adjustment Attached t en ere Depart l(- -1°`1 Date Date uaty-lo_erk Date Finance and Internal Services Director A• 11 Chef of Sta Mor Date /jam./A Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Received in City1 1-10 -1 1 PO4:18 I N Clerk's Office Revised January 15, 2009 ave ev? le THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENT CORRESPONDENCE www.accessfayettevi lle.org CITY COUNCIL AGENDA MEMO City Council Meeting of December 6, 2011 To: Mayor Jordan and City Council Thru: Don Marr, Chief of Staff �Q Jeremy Pate, Director of Development Services From: Chris Brown el3 Date: November 18, 2011 Subject: Approval of a Settlement with Richard L. Watson for Purchase of Right of Way along Cato Springs Road PROPOSAL: Cato Springs Road is planned for improvement from South School to Razorback Road as a part of the Transportation Improvement Bond Program. Right of way acquisition was required from many of the property owners along the route. In order to move forward with the project to bidding and construction, condemnation action on some of the properties was approved by the City Council. The City Attorney filed condemnation suits for these properties, and received Orders of Possession from the Circuit Court so that the project could move forward. In the case of Mr. Watson's property, $4,100, representing the City's appraised value for the right of way and easements, was deposited with the Court at the time of the filing. Since that time, the City Attorney's Office has negotiated with Mr. Watson's attorney, and a settlement proposal has been developed for review by the City Council. This settlement is in the amount of an additional $4,900, making the total payment to Mr. Watson $9,000. RECOMMENDATION: Staff recommends approval of a Resolution authorizing the settlement of the Watson Condemnation Case, and approving an additional $4,900 payment to Richard L. Watson. BUDGET IMPACT: The payment for land acquisition will be made from the project budget allocated for the Cato Springs Road Improvements Project, which is funded by the Transportation Bond Fund. RESOLUTION NO. A RESOLUTION APPROVING A SETTLEMENT AGREEMENT WITH RICHARD L. WATSON, CONCERNING CONDEMNATION LITIGATION FILED AS PART OF THE CATO SPRINGS ROAD IMPROVEMENT PROJECT, IN THE TOTAL AMOUNT OF $9,000.00 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 an agreement with Richard L. Watson, in a total amount of $9,000.00 as full and final settlement of condemnation litigation (City of Fayetteville v. Watson, Washington County Circuit Court Case No. CV 2010-3711-2) filed as part of the Cato Springs Road Improvement Project. Section 2: That the City Council of the City of Fayetteville, Arkansas, in furtherance of the settlement, hereby approves payment of an additional $4,900.00 over and above the $4,100.00 placed on deposit with the court. PASSED and APPROVED this 6th day of December, 2011. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer av�el�vi�e THE CITY OF FAYETTEVILLE, ARKANSAS ENGINEERING DIVISION 125 West Mountain Fayetteville, AR 72701 Phone (479) 444-3443 ARKANSAS www.accessfayetteville.org June 28, 2010 Richard L. Watson 2057 S. Cline Ave. Fayetteville, AR 72701-6831 RE: Dear Mr. Watson: Project No. 06035-1200 Cato Springs Road (S. School to Razorback) Tract No. 21 Offer Letter As you may be aware, the City of Fayetteville is planning improvements to Cato Springs Road, from S. School Street (Hwy 71 B) to Razorback Road. In addition to acquiring additional right-of-way to widen the road, utility lines will also be relocated outside of the right-of-way which will require a permanent easement adjacent to the new right-of-way. Any temporary construction and grading easements will terminate when the project has been completed by the contractor and accepted by the City of Fayetteville. The City of Fayetteville hereby offers $2,900.00 for the acquisition of right-of-way (894 square feet), $1,000.00 for the rights associated with the permanent easement (1,228 square feet), $100.00 for the rental of the property within the temporary construction and grading easement (311 square feet), and $100.00 in damages, for a total offer amount of $4,100.00. Included is a general map of the subject area, as well as a drawing of your specific property depicting the anticipated areas required for the proposed right-of-way and easements. The temporary construction easement area will exclude any permanent structure(s) which may be located or under construction within said temporary construction easement area during the construction of this project. Time is of the essence on this project in order to keep construction on schedule. Please respond by July 16, 2010. If we have not heard from you by then, we will be in immediate further contact. Should you elect to accept this offer, the Warranty Deed, General Utility Easement, and Temporary Construction and Grading Easement contained herein should be executed by all parties with current ownership interest in the particular property. The documents should be notarized and returned to the City of Fayetteville. A City Land Agent will be pleased to witness and notarize the execution of the documents if you will advise our office accordingly. Upon receipt of the documents, a check will be requested and you will be paid the amount indicated in this offer letter. Copies of the Warranty Deed, General Utility Easement, and Temporary Construction and Grading Easement are included for your records. We can provide copies of the recorded documents upon your request and at the appropriate time. Please provide us with a Social Security Number or a Tax Identification Number (Corporation) so that a check can be written. A Vendor Form is provided for this purpose. A City Land Agent will be glad to meet with you at your convenience and discuss all phases of this project and the associated easements and acquisitions. Please contact Jill Goddard at (479) 444-3407, Holly Jones at (479) 444-3414, Kem Wimberly at (479) 444-3415, or Chris Brown, City Engineer, can be reached at (479) 575-8206. Lioneld Jor Mayor LJ/isci Telecor1ii11UCf11igagn?bevice for the Deaf TDD (479) 521-1316 113 West Mountain - Fayetteville, AR 72701 Meed& ei4oceate6L, Ss° Real Estate Appraisers — Consultants 3739 N. Steele Blvd., Siam 1:40, Fa elteullle, AR 72703 * 479-5214313 * Fax: 479-521-6315 * www.reeda• .raisal.biz Tom Reed MAI • Barbara Rhoads October 14, 2009 City of Fayetteville, Arkansas Attn: Jill Goddard 113 West Mountain Street Fayetteville, AR 72701 • Shannon Mueller • Jordan Karnes RE: Cato Springs Road Widening -- Razorback Road to South School Avenue; Fed. Aid Project No. HPP2-1298(1) & HPP2-3758(1), Job #040496; Tract 21; 2057 South Cline Avenue; Fayetteville, Arkansas; Washington County Dear Ms. Goddard: In compliance with your request and for the purpose of estimating the market value of the above captioned property, we hereby certify that we have examined the subject property and have made a survey of matters pertinent to the estimation of its value. We further certify that we have no interest, present or contemplated, in the property appraised and that our fee was not contingent upon the value estimate reported. The following report is presented in a Restricted Use Appraisal Format. Some of the supporting documentation is maintained in the appraisal file. This report can be expanded to a Summary Appraisal Report upon notification from the client. Based upon an analysis of relevant data and contingent upon the Assumptions And Limiting Conditions which follow and appear later in this report, it is our opinion the market value of the fee simple estate of the subject property, as of October 1, 2009, was as follows: WHOLE PROPERTY: Land - $38,200 Improvements - Not Valued Total - - - REMAINDER PROPERTY: Land - - - $35,300 Improvements - - Not Valued $38,200 Total - $35,300 2 SUBTOTAL - - - $ 2,900 PLUS: PRIVACY FENCING LOST DUE TO ROW - $ 100 PLUS: TEMPORARY CONSTRUCTION EASEMENT- $ 100 TOTAL ESTIMATED DAMAGE TO MARKET VALUE $ 3,100 The preceding values reflect terms equivalent to cash to the owner and represent that for real property only. The preceding values are based on the Extraordinary Assumption that the subject land size is as indicated in this report. If this assumption proves to be untrue, the preceding value estimates could be influenced. The following Extraordinary Assumptions are considered with respect to the Remainder Property: 1. The City of Fayetteville, at their expense, will put the land and concrete paving located within the Temporary Construction Easement back to as near original condition as possible; 2. The acquisitions will not adversely affect the subject ingress/egress drives to/from South Cline Avenue; 3. Subject wood privacy fencing located along the south property boundary will be relocated along the new north right-of-way line of Cato Springs Road and connected to the existing fencing running north -south, at the City of Fayetteville's expense; 4. The subject above ground swimming pool will be relocated on the west part of the site outside the acquisition area, at the City of Fayetteville's expense. If any or all of the Extraordinary Assumptions prove to be untrue, the preceding value estimate for the Remainder Property could be influenced. Additional Assumptions and Limiting Conditions appear later in the report. The estimated exposure time for the subject property is one year or less. This was determined by an analysis of market conditions and comparable sales. ..,: sit's APP'irg"r,�, anon Mueller CG2302 .``5fpn'i`''`�r REED & ASSOCIATES, INC. STATE llog f CERTIFIED GENERAL CG2302 ` (aa_ Tom Reed, MAI, CGO217 REED. & ASSOCIATES, lit 4.4 JASON B. KELLEY Assistant City Attorney Judy Housley Office Manager Phone (479) 575-8313 FAX (479) 575-8315 TDD (479) 521-1316 Ken Mourton, Esq. Justin Raines, Esq. Ball & Mourton, Ltd., PLLC P.O. Box 1948 Fayetteville, AR 72702 KIT WILLIAMS FAYETTEVILLE CITY ATTORNEY aye .,vi „le KANS 113 W. Mountain, Suite. 302 Fayetteville, AR 72701-6083 November 17, 2011 Via Facsimile (479) 442-62$3 Re: City of Fayetteville v. Watson, Case No. CV 10-3711-2 Dear Ken & Justin: Subject to the approval of the Mayor and City Council of Fayetteville, the City offers the total of $9,000.00 as just compensation for the taking in the above -referenced condemnation case. This offer expires at noon tomorrow, November 18, 2011. If this is acceptable, we will bring this before the Council at its December 6, 2011 meeting. Assuming it is approved, I will coordinate with you a transfer of a check for executed deeds. I look forward to your positive response. cc: C. Brown ason B. Kelley Assistant City Attorney 1(11/18/2011) Chris Brown - Re: Fayetteville v. Watson, Washington County Circuit Court Case No. CV 10-3711-2 Page From: Jason Kelley To: Rains, Justin M. CC: Brown, Chris Date: 11/18/2011 8:41 AM Subject: Re: Fayetteville v. Watson, Washington County Circuit Court Case No. CV 10-3711-2 That's good news. We will get this going on our end. Jason K. Jason B. Kelley Assistant City Attorney City of Fayetteville, Arkansas 113 W. Mountain St., Suite 302 Fayetteville, Arkansas 72701 Telephone (479) 575-8313 Facsimile (479) 575-8315 Email: ikellevOci.fayetteville.ar.us Website: www.accessfayetteville.orq ( http://www.accessfavetteville.oro/ ) »> "Justin M. Rains" <irains©ballandmourton.com> 11/17/2011 6:11 PM »> Jason, We have agreement from Mr. Watson to the compensation amount of $9,000.00. I will await word from you regarding Council approval. Thanks, Justin Justin M. Rains Ball & Mourton, Ltd., PLLC Attorneys at Law 3608 N. Steele Boulevard, Suite 202 Post Office Box 1948 Fayetteville, Arkansas 72702 Tel: (479) 442-6213 Fax: (479) 442-6233 www.ballandmourton.com ( http://www.ballandmourton.com/ ) r f 1" THE REAL ESTATE CONSULTANTS • REALTORS® *APPRAISERS • CONSULTANTS October 27, 2011 Mr. Richard Watson 2057 S. Cline Avenue Fayetteville, AR 72701 118 N. East Avenue P.O. Box 747 Fayetteville, AR 72702 Phone (479) 442-0762 Re: Appraisal Services - Cato Springs Road Improvement Project Tract #21 — 2057 S. Cline Avenue — Fayetteville, AR Dear Mr. Watson: Per your request, I hereby certify I personally inspected the captioned property and made a survey of matters pertinent to developing an opinion of Cash Equivalent Just Compensation resulting from partial property taking by the City of Fayetteville. You are the client and intended user in this matter. It is prepared for your exclusive benefit and may not be relied upon by any other party. Any other party relying on information contained in this report, without my express permission, does so at their own risk. The following pages contain data gathered during my investigation and show the appraisal method in detail with conclusions rendered. The report conforms to the Uniform Standards of Professional Appraisal as promulgated by the Appraisal Foundation and considered a Summary Appraisal. My primary emphasis is to estimate the following: 1. Fair Market Value of the City's land taking 2. Severance Damages (if any) attributable to the property's marketability after the takings In the following sections, I analyze relevant facts and apply appropriate appraisal processes to the property. Within this report's assignment parameters, my opinion is the following Just Compensation applies — as of June 8, 2011— and subject to stated assumptions and limiting conditions: Respectfully submitted, Twelve Thousand Dollars 4#5404:SA�Jp,4114; +TtffC�f� QSTATE CE ER L * A 4 CGC0zO2 p\e o Mark E. Risk, GAA State Certified General Appraiser #CG0202 $12,000 Section I — Executive Summary Project Identification: Estate Appraised Fee Simple Owner. Property Identification: 5Crghest eZ Best 'Use: Effective Date: Exposure Time: Area Of Whoa: *midway 7a4 ngArea: Area Of 2;mainder. Easement 7a4ngArea: Breakdown Of Takings: Fair 91f ar6t 7Va(ues: Salient Facts et Conclusions City of Fayetteville — Cato Springs Road Widening, Tract #21 Fee Simple — cash equivalent Richard Lee Watson 2057 S. Cline Avenue — Fayetteville, AR Parcel #765-08226-000 Applicable to Before & After Taking — Single Family Residential June 8, 2011 - the date of inspection for Mark E. Risk 12± Months 11,753± Square Feet - per provided documentation 894± Square Feet - per provided documentation 10,859± Square Feet or 0.249± Acre 1,228± Square Feet Permanent Roadway Right -of -Way Permanent Utility Easement Temporary Construction Easement Before the Taking Subject Land Improvements Total $35,000 $49,000 After the Taking Subject Land $28,233 Improvements $44,100 Total Total Loss In Fair Market Value 4 894± Square Feet 1,228± Square Feet 311± Square Feet $84,000 $72,333 $11,667 Affixation Of lust Compensation: Loss in Fair Market Value: Permanent Land Takings - Street Right-of-way Acquisition (Fee Simple) 894± Square Feet @ $3.00/SF = $ 2,682 Utility Easement Acquisition (Fee Simple) 1,228± Square Feet @ $3.00/SF = $ 3,684 Total — Permanent Land Takings Add Severance Damages - Dwelling & Related improvements $49,000 x 10% _ Total Loss in Fair Market Value (As shown on previous page) Add Temporary Construction Easement: 311± SF @ $1.00/SF x 1 Year = Add Privacy Fencing permanently removed 15± LF @ $10.00/LF Total Indicated Just Compensation $ 6,366 $ 4,900 SAY $12,000 $11,266 $ 311 $ 150 $ 11,727 Applicable Definitions Just Compensation - "In condemnation, the amount of loss for which a property owner is compensated when his or her property is taken; should put the owner in as good a position pecuniarily as he or she would be if the property had not been taken; generally held to be market value, but courts have refused to rule that it is always equivalent to market value." Source: Appraisal Institute, Dictionary of Real Estate Appraisal, 4th Edition Pecuniary - "Consisting of or measured in money." Source: Merriam -Webster Online Dictionary IsIttnTIF:ch4:* ..0 i T y of ../ .. '1,---40 37t_FTiFIED \ g GMEM. * M V4 NO. CGCzO2 Mark E. Risk GAA State Certified General Appraiser #CG0202