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Home My WebLink About61-12 RESOLUTIONRESOLUTION NO. 61-12 A RESOLUTION AUTHORIZING THE CITY ATTORNEY TO SEEK CONDEMNATION AND POSSESSION OF CERTAIN LANDS OWNED BY JEY INVESTMENTS, LTD., FIRST STATE BANK, BENEFIT BANK, ALEJANDRO ALBAN, ALGIS MARTINEZ & GINA ALBAN, AND TIM D. & DEEANN B. STUDEBAKER, NEEDED FOR WATER AND SEWER RELOCATIONS ALONG STATE HIGHWAY 16 WHEREAS, the City of Fayetteville and certain property owners have been unable to agree on a fair price for the portions of property owned by each of them which is needed for easements to facilitate water and sewer relocations, and WHEREAS, the City of Fayetteville needs to gain possession of these property promptly to begin work on water and sewer relocations along State Highway 16. NOW, THEREFORE, 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 authorizes the City Attorney to file suit to seek court-ordered possession of property located on or near State Highway 16 owned by JEY Investments, Ltd. that is needed for a utility easement for water and sewer relocations along State Highway 16, and to pay into the registry of the Circuit Court just compensation therefor. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby authorizes the City Attorney to file suit to seek court-ordered possession of property located on or near State Highway 16 owned by First State Bank that is needed for a utility easement for water and sewer relocations along State Highway 16, and to pay into the registry of the Circuit Court just compensation therefor. Section 3. That the City Council of the City of Fayetteville, Arkansas hereby authorizes the City Attorney to file suit to seek court-ordered possession of property located on or near State Highway 16 owned by Benefit Bank that is needed for a utility easement for water and sewer relocations along State Highway 16, and to pay into the registry of the Circuit Court just compensation therefor. Section 4. That the City Council of the City of Fayetteville, Arkansas hereby authorizes the City Attorney to file suit to seek court-ordered possession of property located on or near State Highway 16 owned by Alejandro Alban, Algis Martinez and Gina Alban that is needed for a utility easement for water and sewer relocations along State Highway 16, and to pay into the registry of the Circuit Court just compensation therefor. Page 2 Resolution No. 61-12 Section 5. That the City Council of the City of Fayetteville, Arkansas hereby authorizes the City Attorney to file suit to seek court-ordered possession of property located on or near State Highway 16 owned by Tim D. & Deeann B. Studebaker that is needed for a utility easement for water and sewer relocations along State Highway 16, and to pay into the registry of the Circuit Court just compensation therefor. PASSED and APPROVED this 20th day of March, 2012. APPROVED: ATTEST: By: etne4-iu SONDRA E. SMITH, City Cleric/Treasurer Ob Chris Brown Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 3/20/2012 City Council Meeting Date Agenda Items Only Engineering Division Action Required: Development Services Department Approval of a Resolution authorizing the City Attorney to seek condemnation and orders of possession of certain lands necessary for the Highway 16 (Armstrong to Stonebridge) Water and Sewer Relocation Project. 21,880.00 Cost of this request 5400.5600.5805.00 Account Number 06035.2350 Project Number 168,576.00 Category / Project Budget 120,600.00 Transportation Bond Program Program Category / Project Name Land Acquisition Funds Used to Date Program / Project Category Name 47,976.00 Capital Water Mains Remaining Balance Fund Name Budgeted Item x Budget Adjustment Attached Department D' r City rney Finance and Internal Services Director .0/1V Date Date 3 -5-2,012_, Date Chief of Sta 3 - 6 Date ay ate Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Received in City 03-02-1 2P01 :51 R CV D Clerk's Office u$5 Received in Mayor's Office Comments: Revised January 15, 2009 le ave evi CITY COUNCIL AGENDA MEMO THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENT CORRESPONDENCE City Council Meeting of March 20, 2012 To: Mayor Jordan and City Council Thru: Don Marr, Chief of Staff Jeremy Pate, Director of Development ServiceseS David Jurgens, Utilities Director From: Chris Brown, City Engineer Date: March 1, 2012 Subject: Approval of a Resolution authorizing the City Attorney to seek condemnation and orders of possession of certain lands necessary for the Highway 16 (Armstrong to Stonebridge) Water and Sewer Relocation Project. PROPOSAL: Highway 16 (Armstrong to Stonebridge) is a Transportation Bond Project that is being designed, and will be constructed, by the Arkansas Highway and Transportation Department. AHTD plans to begin construction in late 2012. The City is participating in the amount of 50% the cost of the project, in accordance with the City's agreement with AHTD. In addition, the City is responsible for relocating City water and sewer utilities out of the proposed highway right of way. Currently, water and sewer relocations are being designed by the Engineering Division, and water and sewer easements are being acquired by the City's land agents. Prior to the roadway construction, all utilities, including those owned by the City of Fayetteville Water and Sewer Division, must be relocated out of the limits of the planned roadway construction. The Engineering Division is nearing completion of design of the utility relocations for the City, and is also acquiring necessary utility easements to provide space for the water and sewer and other utilities to be installed. To date, staff has acquired 33 of the 38 easements, leaving 5 still to be acquired. Property owners that have not settled with the City are as follows: • JEY Investments, Ltd. • First State Bank (Oakland 2 Properties, LLC) • Benefit Bank (Kuncl Properties, LLC) • Alejandro Alban, Algis Martinez and Gina Alban • Tim D. and Deeann B. Studebaker A copy of the case history for each of these projects is attached, and provides a timeline of negotiations on each tract. As indicated in the case histories, original offers were made in September and October, 2011, and THE CITY OF FAYETTEVILLE, ARKANSAS numerous contacts were made with the affected owners since that time. In January 2012, and letter notifying property owners of potential condemnation action was sent. In order to meet the schedule set forth by AHTD, and have utility construction completed by October 2012, we must complete the acquisition of easements and move forward to construction within the next two months. RECOMMENDATION: Staff recommends approval of a Resolution authorizing the City Attorney to seek condemnation and orders of possession of certain lands necessary from 5 property owners for the Highway 16 (Armstrong to Stonebridge) Water and Sewer Relocation Project. BUDGET IMPACT: Adequate funds are available in the Huntsville Avenue (Hwy 16) Water and Sewer Relocations subproject of the Transportation Bond Program to pay the cost of these condemnations. The agenda item staff review form indicates $28,100 as the cost of this request. It should be noted that this is based on the estimated values of the easements, and that the final cost is subject to negotiation with the property owners or by court order. The appraised value will be deposited into the Registry of the Circuit Court as just compensation when the condemnation complaint is filed for each property. Attachments: Summary Spreadsheet of Easement Acquisition Status Case History for each property proposed for condemnation Property exhibit for property proposed for condemnation RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY ATTORNEY TO SEEK CONDEMNATION AND POSSESSION OF CERTATN LANDS OWNED BY JEY INVESTMENTS, LTD., FIRST STATE BANK, BENEFIT BANK, ALEJANDRO ALBAN, ALGIS MARTINEZ & GINA ALBAN, AND TIM D. & DEEANN B. STUDEBAKER, NEEDED FOR WATER AND SEWER RELOCATIONS ALONG STATE HIGHWAY 16 WHEREAS, the City of Fayetteville and certain property owners have been unable to agree on a fair price for the portions of property owned by each of them which is needed for easements to facilitate water and sewer relocations, and WHEREAS, the City of Fayetteville needs to gain possession of these property promptly to begin work on water and sewer relocations along State Highway 16. NOW, THEREFORE, 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 authorizes the City Attorney to file suit to seek court-ordered possession of property located on or near State Highway 16 owned by JEY Investments, Ltd. that is needed for a utility easement for water and sewer relocations along State Highway 16, and to pay into the registry of the Circuit Court just compensation therefor. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby authorizes the City Attorney to file suit to seek court-ordered possession of property located on or near State Highway 16 owned by First State Bank that is needed for a utility easement for water and sewer relocations along State Highway 16, and to pay into the registry of the Circuit Court just compensation therefor. Section 3. That the City Council of the City of Fayetteville, Arkansas hereby authorizes the City Attorney to file suit to seek court-ordered possession of property located on or near State Highway 16 owned by Benefit Bank that is needed for a utility easement for water and sewer relocations along State Highway 16, and to pay into the registry of the Circuit Court just compensation therefor. Section 4. That the City Council of the City of Fayetteville, Arkansas hereby authorizes the City Attorney to file suit to seek court-ordered possession of property located on or near State Highway 16 owned by Alejandro Alban, Algis Martinez and Gina Alban that is needed for a utility easement for water and sewer relocations along State Highway 16, and to pay into the registry of the Circuit Court just compensation therefor. Section 5. That the City Council of the City of Fayetteville, Arkansas hereby authorizes the City Attorney to file suit to seek court-ordered possession of property located on or near State Highway 16 owned by Tim D. & Deeann B. Studebaker that is needed for a utility easement for water and sewer relocations along State Highway 16, and to pay into the registry of the Circuit Court just compensation therefor. PASSED and APPROVED this 20th day of March, 2012. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer CASE HISTORY HWY. 16 EAST JEY INVESTMENTS LTD. 8/30/2011 Offer packet mailed including offer letter ($9,130.00), proposed easement, and exhibit. 9/13/11 Mike Ingram, Property Direction for EZ Mart, called. He and Mr. Yates (owner) have been out of town. Will call back week of Sept 26 after looking over packet. 10/10/11 HJ called Mike Ingram. He's checking with Mr. Yates on status. He will call back. 11/22/11 HJ talked to Mike Ingram. He will check with Mr. Yates and will let us know. E-mailed aerial image to Mike. There is concern about location of easement in relation to EZ Mart canopy. 1/5/12 HJ e-mailed Mike Ingram because we had never heard back. 1/9/12 Mike e-mailed back. They are to e-mail counter offer. 1/9/12 HJ e-mail stating where offer amount was derived. Also told Ingram that the City needed to know by Jan 27 or would be turned over to City Attorney. 1/9/12 Ingram assured that it would be "wrapped up way before then". 1/23/12 No further contact with JEY Investments. 1/26/12 Appraisal being prepared for potential condemnation. 1/30/12 Notification letter mailed. 2/10/12 Mike Ingram called and said he was meeting with Bob today. Thinks they will sign. He will e-mail signed copies and will snail mail originals once signed. 2/23/12 Mike Ingram had a questions regarding ROW versus easement (apparently AHTD paid full fee simple for a permanent easement for city street ROW). SE 1/4, NE 1/4 SECTION 22. T -16-N. R -30- V ROe 1 JANICX COURD1N 765-15093-000 NO2.4 Cr4 aor R.0.0. NO2.4 04 7'E 60.05! <`‘ -.EY INVESTMENTS. LTD 765-19979-000 Inst. No. 97-66143 N2041'46 -E t./4 ••••• .C, cr, r 13 4: E17,'53 -E l'en'•-•% i, 16.5513 ..., ../. "0 v • V N 'D 401 '. 4'4‘4*'‘ 464*1**6 61 2 6 Na stO 930 1'0 S 0'4353' v 2251' ROC 1 /4 Corner Sec 1 iOry 23 R '3O -,t NE 1/4, SE 1/4 SECTION 22. 5-16-14, R-30- V NOT TO SCALE SV 1/4. NV 1/4 SECTION 23, 5-16-14, 14-30-11 BURT1 tow* RUM* 760-19939-000 NV /4. „ - 1 / 4 SECTION 23. 5-16-14, 14-30-11 PROP. UTILITY EASEMENT -6,087 Sq. Ft. stioi 04(1 0ke S‘(ee s05 16 EXHIBIT MAY 2011 UTILITY EASEMENT JEY INVESTMENTS LTD CASE HISTORY HWY. 16 EAST OAKLAND 2 PROPERTIES LLC 8/30/2011 Offer packet mailed including offer letter ($5,040.00), proposed easement, and exhibit. Sept. 2011 Sid Norbash talked to Neil Schmitt (father of property owner Robert Schmitt). Neil says they no longer own the property—it has been foreclosed on. Neil advised to sign paperwork before bank takes over. 8/29/2011 Notice of Lis Pendens filed by First State Bank on Oakland 2 Properties LLC (plus other entities)—this was filed day before our offer letter mailed. Nov. 2011 No available phone number for Bob Schmitt, only mailing address is father's house. 11/15/2011 Default Judgment and Decree of Foreclosure filed. Assuming First State Bank in Fayetteville as Todd P. Lewis of Conner & Winters, LLP listed in decree as preparer of instrument. 12/31/2011 Unsure as to who to be on easement – Oakland 2, First State Bank, or both. How to proceed? 1/26/12 Appraisal being prepared for potential condemnation. 1/30/12 Notification letter mailed to both Robert Schmitt and First State Bank. 2/15/12 Letter from Stephen A. Lisle, attorney, representing First State Bank. 2/17/12 JSG mailed copy of original packet to Mr. Lisle. Note that letter and easement were still in Oakland 2 Properties LLC's name. 2/29/12 JSG found deed indicating that full ownership apparently now with First State Bank. Will re -do easement and will make offer as based on new appraisal if appraisal is received by 3/2/12. N09'51'29"E 21.26' N23'53'01"E 25.06' SO9'51'29'W 24.15' kt" _CS e f '743 o Warranty Deed: 2009-28910 765-15252-003 (0 OAKLAND 2 PROPERTIES LLC 44. gel) 0 0 11111111S11140 ce OAKLAND 2 PROPERTIES LLC Warranty Deed: 2009-2O910 765-15261-003 I\\\ SV 1/4, NV 1/4 23-16-30 PROP. UTILITY EASEMENT -5,041 Sq. Ft. GREAT SOUTHERN BANK 765-15252-000 S81'22'11 -E Z20.00' NO2'44.18T SE 1/4, NV 1/4 23-16-30 N86•4 7'04'W 20.00" R/W S87'15'42T 9.15' WARFORD DR. ROC. SW Corner SE 1/4, NW 1/4 Sec. 23, T -16-N, R -30-W RA/ NOT TO SCALE UTILITY EAE AND 2 FRO S LLC CASE HISTORY HWY. 16 EAST KUNCL PROPERTIES LLC 8/30/2011 Sept. 2011 10/10/2011 8/1/2011 12/31/2011 1/26/12 1/30/12 Offer packet mailed including offer letter ($6,925.00), proposed easement, and exhibit. Sid Norbash stopped by site. Building is vacant, mail not being collected. No phone listing for Jason Kuncl. HJ spoke with Michael Mauldin, CPA for Kuncl. Packet is under review. He reluctantly admitted that probably a foreclosure. Packet e-mailed to Mauldin. He is to be in contact. Lis Pendens filed (before our offer). Benefit Bank (of Fort Smith) vs Kuncl Properties LLC (plus other entities). Unsure as to who to be on easement — Kuncl Properties, Benefit Bank, or both. How to proceed? Appraisal being prepared for potential condemnation. Notification letter mailed to both Jason Kuncl and Benefit Bank. 2/3/12 Mark Moll, representing Benefit Bank, called. Said they are the new owners and that either he or another bank representative would be in touch soon. 2/28/12 Sam Harris with Benefit Bank called. They now have full ownership of property. Will re -do easement and will make offer as based on new appraisal if appraisal is received by 3/2/12. Benefit Bank does not want to go to court for condemnation and will most likely sign. NM I/4, NV I/4 23-16-30 S87'58'21'E 11.53' S07'58'21'E 19.40" Rua S8758'21 -E 8.47' 765-15227-000 CITY OF FAYETTEVILLE NOT TO SCALE cu cu EASEMENT 20' PROP. UTILITY Warranty Deed. 2009-36511 KUNCL PROPERTIES LiC 765-15228-001 SW 1/4, NV 1/4 23-16-30 RUC. SW Corner NE 1/4. NW 1/4 Sec. 23, T -16-N, R -30-V KUNCL PROPERTIES LLC 765-15228-000 Warranty Deed. 2009-36511 40- Acre line -PROP. R/W \N87•13'03'N./ 20.00' NE 1/4, NW 1/4 23-16-30 SE 1/4, NW 1/4 23-16-30 GREAT SOuTHERN BANK 765-15252-000 PROP. UTILITY EASEMENT -6,152 Sq. Ft. EX.HIBIT MAY 2011 UTILITY EASEMENT KUNCL PROPERTIES LLC CASE HISTORY HWY. 16 EAST ALBAN, MARTINEZ & ALBAN 9/14/2011 9/20/2011 12/1/2011 12/31/2011 1/26/12 1/30/12 2/14/12 2/14/12 2/17/12 2/22/12 3/1/12 3/1/12 Offer packet mailed including offer letter ($315.00), proposed easement, and exhibit. Algis Martinez called to confirm size of the easement and see if he could get more money. He is to e-mail counter offer. Reminder letter sent. No response since Sept. Appraisal being prepared for potential condemnation. Notification letter mailed. Yolanda Fields, Community Services Director, was asked to contact Alban and/or Martinez as it was initially thought that they would be more comfortable conversing in Spanish. YF talked to Gina Alban. They are in condemnation with AHTD and asked that the City talk to their attorney & business partner, Jason Wales (443- 0292). HJ left message for Jason Wales, Everett Law Firm. HJ left message for Jason Wales, Everett Law Firm. HJ left message for Jason Wales, Everett Law Firm. HJ left message for Jason Wales, Everett Law Firm. Mr. Wales called back. Mark Risk is their appraiser and Mr. Wales indicated that Alban and Martinez will not accept only 25% of fee simple value. NV Corner NV 1/4. NE 1/4 ' SEC, 23 R-311- V S87•39'28E 557.44' NV 1/4, NE 1/4 SEC- 23 T -16-N, 2-32-w ALEJANDRO ALBAN, ALGIS MARTINEZ, 8. GINA ALBAN 765-15185-000 Warranty Deed 2011-3497 V///1 NOT TO SCALE VILA. IAN IL KELLY SMEETSER 7 - 15187^000 N8826'30 't 41.58' S02014 '07V NO2' 4 O'08't -- 11.07' ier.86, 9.87' S8530'5914 41.86' HUNTSVILLE RD PROP. UTILITY EASEMENT -415 Sq. Ft. 177.71 EXIST. WATER/SEWER EASEMENT PER INST. No. 99060996 Ef 1 EXHIBIT MAY 2011 UTILITY EASEMENT ALEJANDO ALBAN, ALGIS MARTINEZ, 43c GINA ALBAN CASE HISTORY HWY. 16 EAST TIM D. & DEEANN B. STUDEBAKER 10/27/2011 Offer packet mailed including offer letter ($470.00), proposed easement, and exhibit. HJ met with Ronald & Mary Studebaker (Tim's parents and owner of adjacent tract). Tim out of town a lot. 12/31/2011 No response or contact with either Tim or DeeAnn Studebaker. 1/26/12 Appraisal being prepared for potential condemnation. Appraiser (Brett Billings) called to say that he had contacted Mr. Studebaker. Mr. Studebaker said property was a rental and renter was usually gone during the day. Declined to accompany appraiser for appraisal visit. 1/30/12 Notification letter mailed. 2/15/12 HJ picked up signed paperwork from Ron and Mary Studebaker (Tim's parents and adjacent property owners). Requested that Tim or Deeann please contact the City as we hadn't heard anything from them. 2/21/12 Tim Studebaker called. Questions regarding 24" maple. Side letter written and mailed offering $1,000.00 for maple, plus other considerations. fsd Kul -115\i PP< P.NS AS SI LAURENCE HILL 765-02303-000 PROP. UTILITY EASEMENT -358 Scif Ft. 6 1487.39028,w 635.81 .U.C. NC Corner NE I/4, NE .1/4 Stc, 23 R -30-v ri I ) cnI‘'I cu inLu I N75.56,54,E 23.05' N15°24'16W 16.10' S75 -56,54,w 21.45, NE 1/4, NE 1/4 SEC. 23 T-16.44. N-30-# TIM & DEEANN STUDEBAKER 765-02302-000 Warranty Deed: 2006-26816 A part of Lot 36 8. 37 W. E. Anderson Farm Plat '11 16.15' NOT TO SCALE RONALD 8. MARY STUDEBAKER 765-02300-000 EXHIBIT JAN- 2011 UTILITY EASEMENT TIM Sc DEANN STUDEBAKER