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Home My WebLink About85-12 RESOLUTIONRESOLUTION NO. 85-12 A RESOLUTION APPROVING A SETTLEMENT AGREEMENT WITH DAVID AND SUSAN DRUDING, CONCERNING CONDEMNATION LITIGATION FILED AS PART OF THE CATO SPRINGS ROAD IMPROVEMENT PROJECT, IN THE TOTAL AMOUNT OF $15,000.00 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 David and Susan Druding, in a total amount of $15,000.00, as full and final settlement of condemnation litigation (City of Fayetteville v. Druding, et al, Washington County Circuit Court Case No. CV 2010-3709-4) 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 $8,600.00 over and above the $6,400.00 placed on deposit with the court. PASSED and APPROVED this 1st day of May, 2012. APPROVED: B ATTEST: By: a SONDRA E. SMITH, City Clerk/Treasurer o��tanr►►vy • FAYETTEVILLE o %-57,,(P,;;; i" 7�H 0000 CP ``�� Chris Brown Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 5/1/2012 City Council Meeting Date Agenda Items Only Engineering Division Action Required: Development Services Department A Resolution Approving a Settlement with David Druding and Susan Druding for Purchase of Right of Way along Cato Springs Road $ 8,600.00 Cost of this request 4520.9520.5805.00 Account Number 06035.1200 Project Number Budgeted Item X 13,451,110.00 Category / Project Budget 4,616,500.00 Funds Used to Date Transportation Bond Street Improvements Program Category / Project Name Land Acquisition Program / Project Category Name 8,834,610.00 Sales Tax Construction Bonds Remaining Balance Budget Adjustment Attached Fund Name Departmen Ii t for City ney t* tPty Date C(^/8.42— Date ^/s4ZDate Finance and Internal Services Director Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: Received in City 04-13-1 2 Al 1:43 R C V D Clerk's Office Received in Mayor's Office Comments: Revised January 15, 2009 le THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENT CORRESPONDENCE ARKANSAS www.accessfayetteville.org CITY COUNCIL AGENDA MEMO City Council Meeting of May 1, 2012 To: Mayor Jordan and City Council Thru: Don Marr, Chief of Staff ��,pp Jeremy Pate, Director of Development Services From: Chris Brown "l''" Date: April 18, 2012 Subject: Approval of a Settlement with David Druding and Susan Druding for Purchase of Right of Way and Easements along Cato Springs Road PROPOSAL: Cato Springs Road is being improved 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 the David and Susan Druding property, $6,400, representing the City's appraised value for the right of way and easements, was deposited with the Court at the time of the filing. The case has proceeded through the court system, up to the point of a jury trial to determine the actual just compensation to be paid to the Drudings. During the trial yesterday, April 17th, a settlement was reached with the Drudings in the amount of $15,000, subject to approval by the City Council. RECOMMENDATION: Staff recommends approval of a Resolution authorizing the settlement of the Druding Condemnation Case, and approving an additional $8,600 payment to David Druding and Susan Druding. This settlement is between the City's latest appraised amount of $7,100 and the Druding's appraisal of $18,250, and is recommended as a settlement that is fair and equitable to both the City and the Drudings. 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. An additional payment of $8,600 will be made to the Drudings, making the total compensation to them $15,000. This is the final property condemnation on the Cato Springs Project that had not been resolved. RESOLUTION NO. A RESOLUTION APPROVING A SETTLEMENT AGREEMENT WITH DAVID AND SUSAN DRUDING, CONCERNING CONDEMNATION LITIGATION FILED AS PART OF THE CATO SPRINGS ROAD IMPROVEMENT PROJECT, IN THE TOTAL AMOUNT OF $15,000.00 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 David and Susan Druding, in a total amount of $15,000.00, as full and final settlement of condemnation litigation (City of Fayetteville v. Druding, et al, Washington County Circuit Court Case No. CV 2010-3709-4) filed as part of the Cato Springs Road Improvement Proj ect. Section 2: That the City Council of the City of Fayetteville, Arkansas, in furtherance of the settlement, hereby approves payment of an additional $8,600.00 over and above the $6,400.00 placed on deposit with the court. PASSED and APPROVED this 1st day of May, 2012. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer Departmental Correspondence A£tKAt'SAS sfayettevville.org LEGAL DEPARTMENT MEMORANDUM TO: MAYOR AND CITY COUNCIL CC: KIT WILLIAMS, CITY ATTORNEY FROM: JASON B. KELLEY, ASST. CITY ATTORNEY DATE: APRIL 18, 2012 RE: DRUDING CONDEMNATION MATTER/CATO SPRINGS RD. PROJECT Kit Williams City Attorney Jason B. Kelley Assistant City Attorney I am pleased to report it appears an amicable settlement has been reached in the above -referenced condemnation case, subject to your approval. To refresh you memory, the City Council authorized condemnation of right-of-way, a general utility easement and a temporary construction easement from David and Susan Druding, a brother and sister, (and other property owners) along property they owned on Cato Springs Road for purposes of completing the Cato Springs Road Improvement Project. The Drudings have the last unresolved condemnation case related to the Cato Springs Road project. During the course of the litigation, the Drudings, who were representing themselves without an attorney, insisted that the City pay full fee simple value for the partial taking of the easement the City had to have for utilities. We strongly disagreed with this assertion as contrary to the law. The Drudings' case was scheduled for trial April 17, 2012. While in court and after the jury was selected, the judge called for a conference in his chambers to inform the parties he agreed with the City's position on the method of calculating compensation owed for the partial taking of an easement and that he would be instructing the jury regarding this correct measure of damages (the before -and -after approach and not the 100% value approach to easement acquisition required of public utility companies). The judge then strongly encouraged the Drudings and the City to reach an amicable settlement. The judge has approved, conditioned upon your approval, a total settlement of $15,000.00 to the Drudings as just compensation for the takings. This represents an additional $8,600.00 payment over and above the initial $6,400.00 already paid into the court at the beginning of the case. Days before trial, the Drudings were demanding $32,000.00. The proposed settlement is Tess than half of that demand, and it is substantially less than the Drudings' appraiser's estimate of $18,250.00. I recommend acceptance of this settlement. Though a long process, this case has allowed the City to establish, once again, that sovereign governments are not required to pay 100% fee simple value for the partial taking of easements. To this extent, pursuit of this case has been well worth the City's time and effort in litigation. 765-08414-000 RICKY LEON 8 DAWN SPARKS 2002-51159 LOT 25 1 NO3.22'.32"E 1195 EXT. R/W ' *Secrion tine FrearAWAE24 VA97 rmil'AOFTRAgtWVAD,117W SW 1/4, SE 1/4 SEC. 20, T -16-N. R -30-W 765-08415-000 DAVID & SUSAN DRUDING 92-34372 0 0I MEADOW VALE SUBDIVISION isi co t48708'40E BLOCK 6 1 20.86. >-.:...6 141 n- :..." a al tv D 6 4. E gi ,--, cs, Tv• 25 4.., , ip. ........... .-.— (A .... •, , LK < el 0 a- w tf.V Rd 0,-6 ton CC ..... Cl. CC > ‘ 4.4.• 4, 4 .1. (1.. ..°` S87'51.20E 58.76' . . —rn on s875• 1'20E 76.69' --T10.1 \N......_._._ CATO SPRINGS RD. rn I en p.oe. RECORD 14115' (PER MEADOW YALE SURD. PLAT) MEASURED = 153.56• r A 5L,11...c..EtLa EXT. R/W SCALE: 1" = 30' X SC Corner SW 1/4, Se 1/4 Cn Sea., 20 1 00 1 C° 1 Ct * N0T28-29'W PROP. R/W--- 1,405 S.F. EXIST. R/W--- 625 S.F. TOTAL 2,030 S.F. • FOUND 112 REBAR-BENT *NOTE: HWY 71 -15TH ST. (CAYETTEVILLE) ARKANSAS STATE HIGHWAY COMMISSION RIGHT OF WAY MAP J013 40039 WASHINGTON COUNTY SHEET 4 of 6 .••••••• EFEB. Revis.40; Obt 21,11•0 U TILI TY E ASKt./E N T .DAMO & SUM WUDING