HomeMy WebLinkAbout274-18 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 274-18
File Number: 2018-0728
HALSELL HOLDINGS, LLC SETTLEMENT OFFER:
A RESOLUTION TO ACCEPT THE SETTLEMENT OFFER FROM HALSELL HOLDINGS, LLC AND
AUTHORIZE THE PURCHASE OF A WATER/SEWER EASEMENT FROM HALSELL HOLDINGS,
LLC ON PROPERTY LOCATED AT 1521 WEST HALSELL ROAD IN THE AMOUNT OF $25,000.00
FOR THE GRAHAM WATERLINE IMPROVEMENTS PROJECT
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 accepts the settlement offer
from Halsell Holdings, LLC and authorizes Mayor Jordan to pay the amount of $25,000.00 to Halsell
Holdings, LLC to acquire a water/sewer easement on property located at 1521 West Halsell Road for the
Graham Waterline Improvements Project.
PASSED and APPROVED on 12/18/2018
«YI LL::
-
����iipil�►+ ����.
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
{
Text File
File Number: 2018-0728
Agenda Date: 12/18/2018 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Resolution
Agenda Number: A. 26
HALSELL HOLDINGS, LLC SETTLEMENT OFFER:
A RESOLUTION TO ACCEPT THE SETTLEMENT OFFER FROM HALSELL HOLDINGS, LLC AND
AUTHORIZE THE PURCHASE OF A WATER/SEWER EASEMENT FROM HALSELL HOLDINGS,
LLC ON PROPERTY LOCATED AT 1521 WEST HALSELL ROAD IN THE AMOUNT OF $25,000.00
FOR THE GRAHAM WATERLINE IMPROVEMENTS PROJECT
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 accepts the settlement offer from
Halsell Holdings, LLC and authorizes Mayor Jordan to pay the amount of $25,000.00 to Halsell Holdings,
LLC to acquire a water/sewer easement on property located at 1521 West Halsell Road for the Graham
Waterline Improvements Project.
City of Fayetteville, Arkansas Page 1 Printed on 1211912018
City of Fayetteville Staff Review Form
2018-0728
Legistar File ID
12/18/2018
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Assistant City Attorney Blake Pennington 11/20/2018
Submitted By Submitted Date
Action Recommendation:
CITY ATTORNEY (02 1)
Division / Department
A resolution to authorize the purchase of a water/sewer easement from Halsell Holdings, LLC on property located
at 1521 West Halsell Road in the amount of $25,000.00 for the Graham Waterline Improvements Project
Budget Impact:
Account Number
Project Number
Budgeted Item? NA Current Budget
Funds Obligated
Current Balance
Does item have a cost? No Item Cost
Budget Adjustment Attached? NA Budget Adjustment
Fund
Project Title
Remaining Budget
V20180321
Purchase Order Number: Previous Ordinance or Resolution # Res 239-18
Change Order Number: Approval Date:
Original Contract Number:
Comments:
OFFICE OF THU '
C rry ATTORNEY
TO:
FROM
DATE:
RE:
DEPARTMENTAL CORRESPONDENCE
Mayor Jordan
City Council
Blake Pennington, Assistant City Atto 4; '7 -
December 4, 2018
Settlement of Halsell Holdings Condemnation Matter
Kit Williams
Cite Attortic),
Blake Pennington
Assistant C;itvAthorne ,
Rhonda Lynch
Paralegal
Based on a July 23, 2018, appraisal done by Reed & Associates, Inc., the City
offered $21,900.00 to Halsell Holdings for a water/sewer easement on
property located at 1521 West Halsell Road. We were unable to reach an
agreement at that time so the City Council authorized our office to proceed
with condemnation.
The representative of Halsell Holdings, LLC has made a counter-offer of
$25,000.00. It is likely that the City would incur at least $3,100.00 in
additional court costs, expert witness fees and other costs if we file a lawsuit.
It probably makes more sense to pay that additional amount to a company
that intends to develop the property. Our office recommends accepting; this
offer and paying $25,000.00 to Halsell Holdings, LLC.
From:
Sent:
To:
Subject:
As a follow up to our meeting this morning, If the City will pay $25,000.00 for the easement, Halsell Holdings will sign the
easement.
Regards
John.
Sent from my iPhone
On Nov 28, 2018, at 8:12 AM, Pennington, Blake<bpenningtonCcDfayetteville-ar.gov> wrote:
Either sounds good to me. I'll be in the office all morning. We usually head to our Rotary Club meeting
around 11:45.
Blake E. Pennington
Assistant City Attorney
Tele: (479) 575-8313
bpenninp,toi>rr favett.eville-ar.gav
From: John Davidson <0ohnhouston77 hotmail.com>
Sent: Tuesday, November 27, 2018 6:34 PM
To: Pennington, Blake <b ennin on fa etteyllle-ar.gov>
Subject: Re: 239-18 Halsell Holdings, LLC
Blake
Thanks for reaching out. I plan to be in town and can stop by the City or get on a call with you
Thursday morning before 11AM if that works for you?
John
From: Pennington, Blake <bpennington@fayettevil1q:.�. y>
Sent: Tuesday, November 27, 2018 4:50 PM
To: John Davidson
Subject: FW: 239-18 Halsell Holdings, LLC
John,
Kit told me you called last week before the City Council meeting. He wants to see if we can work it out
without filing suit. What is your client thinking at this point? I'd like to sit down with you if possible or
chat on the phone if you have a minute.
Thanks,
Blake
Blake E. Pennington
Assistant City Attorney
Tele: (479) 575-8313
b ennin on fa etteville-ar.,Tov
From: CityClerk
Sent: Tuesday, November 27, 2018 3:18 PM
To: Pennington, Blake <lD)ef,nin on fa etteville-ar. ov>
Subject: FW: 239-18 Halsell Holdings, LLC
From: CityClerk
Sent: Tuesday, November 27, 2018 9:28 AM
To: Nyander, Tim <tnyander@Fayetteville=ar.ov>
Cc: Fankhouser, Shea <kfankhouser@favetteville-ar.gov>; Beavers, Jim <ibeavers@favetteville-ar.gov>;
Atha, Kristin <katha@favetteville-ar.ov>; Foren, Andrea <afai-en(�fayetteville_ar_gov>; Hutchens, Liz
<ehutchens@favetteville-ar.gov>; jmain_@favetteville-ar.pov; McGaugh, Les <Imc au h fa etteville-
ar.gov>; Purchasing <purchasing@fayetteville_a,r.gav>; Smallwood, Deborah <dsmallwood@fayetteville-
a r.eov>
Subject: 239-18 Halsell Holdings, LLC
Please see your agenda item passed by Council at the November 20, 2018 City Council meeting. If you
have any questions, please feel free to contact our office.
Have a nice day!
Lisa
Office of the City Clerk Treasurer
113 W. Mountain Street, Suite 308
Fayetteville, AR 72701
479.575.8323
6tyc1erkL@favetteville-ar.g Gv
Website I Facebook I Twitter I In_sligran, I YouTube
<image001.png>
APPRAISAL REPORT
ON
THE HALSELL HOLDINGS, LLC PROPERTY
LOCATED AT 1521 W. HALSELL ROAD,
FAYETTEVILLE, ARKANSAS
WASHINGTON COUNTY
THE CITY OF FAYETTEVILLE
C/O HOLLY JONES
LAND AGENT, ENGINEERING DIVISION
125 W. MOUNTAIN STREET
FAYETTEVILLE, ARKANSAS 72701
REED & ASSOCIATES, INC.
3739 N. STEELE BLVD., SUITE 322
FAYETTEVILLE, ARKANSAS 72703
FILE NO. 6138-1
AS OF
JULY 23, 2018
Real Estate Appraisers — Consultants
q N, Sleele Blvd.u.AR 72-113 _...V. 479-521-63
y_raisal.h
Katie Hnmplon • Jordhm Karnes, MAI ■ Brian Kenwordrn, AM] ■ Shannon A/rreller ■ tom Reed, MAI
August 15, 2018
Holly Jones
City of Fayetteville
Land Agent, Engineering Division
125 W. Mountain Street
Fayetteville, AR 72701
RE: The Halsell Holdings, LLC Property; 1.43± Acres And Residential
Improvements Located At 1521 W. Halsell Road, Fayetteville, Arkansas;
Washington County
Dear Ms. Jones:
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 made a
survey of the 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 real property appraisal report contains data gathered in our investigation,
information from our files, and shows the method of appraisal in detail. This report is presented
under the Appraisal Report Option.
This report addresses: the market value of the Whole Property Land Only prior to the City of
Fayetteville acquiring 1,780± SF in permanent easement, for the Graham Waterline Improvement
Project, as of July 23, 2018; and, the market value of the Remainder Property Land Only after the
City of Fayetteville has acquired the 1,780± SF permanent easement, for the Graham Waterline
Improvement Project, as of July 23, 2018.
Based on an analysis of relevant data, and contingent on the Assumptions and Limiting Conditions
which follow and appear in the Addenda Section of this report, it is our opinion the market value
of the fee simple estate of the subject property, as of July 23, 2018, is as follows:
WHOLE PROPERTY (LAND ONLY) — $609,900
REMAINDER PROPERTY (LAND ONLY) — $58,8,000
DAMAGE TO MARKET VALUE — $ 21,900
The preceding values reflect terms equivalent to cash to the owners and represent that for real
property only.
The following Extraordinary Assumptions are utilized in this report:
1. Subject land size is approximately as indicated in this report.
2. The land area located within the permanent easement will be put back to as
near original condition as possible, by the City of Fayetteville.
If either, or both, of these Extraordinary Assumptions prove to be untrue, one or both of the
preceding value estimates could be influenced.
The reader is referred to additional Assumptions and Limiting Conditions presented in the
Addenda Section of this report.
A Hypothetical Condition of this appraisal is that the Graham Waterline Improvement Project is
complete and in place as of the effective date of this report in estimating the market value of the
Remainder Property Land Only. In reality, the Graham Waterline Project was not complete and
in place as of July 23, 2018. If this Hypothetical Condition is not considered, the estimated market
value of the Remainder Property Land Only could be influenced.
The appraisers are invoking the Jurisdictional Exception Rule in this appraisal. The Uniform
Standards of Professional Appraisal Practice (USPAP) requires, under Standards Rule 1-2 (c) (iv),
"When reasonable exposure time is a component of the definition for the value opinion being
developed, the appraiser must also develop an opinion of reasonable exposure time linked to that
value opinion." However, the Uniform Appraisal Standards For Federal Land Acquisitions, under
Section 1.2.4, states "Appraisers should not link opinions of value under these Standards to a
specific opinion of exposure time, unlike appraisal assignments for other purposes under USPAP
Standards Rule 1-2 (c)."
USPAP states the following under Standards Rule 1-4 (f): "When analyzing anticipated public or
private improvements, located on or off the site, an appraiser must analyze the effect on value, if
any, of such anticipated improvements to the extent they are reflected in market actions." This
appraisal is prepared in conformity to the provisions of the "Uniform Act" and its implementing
regulation 49 CFR Part 24. The 49 CFR Part 24 regulation requires appraisers to disregard any
decrease or increase in the market value of the property that has been caused directly by the project
in the "Before Acquisition Value" appraisal. This is considered a Jurisdictional Exception. In
addition, General Benefits as a result of the project have not been considered in the valuation of
the Remainder Property based on 49 CFR Part 24. Considering USPAP Standards Rule 1-4 (f),
this is also considered a Jurisdictional Exception.
Sincerely,
�& f'' t *
I
Katie Reed Hampton, SR 3642
REED & ASSOCIATES, INC.
w f STATE =�o
REGISTERED 1
883042 -
HAh4'`'
Incl.
Shannon Reed Mueller, CG2302
REED & ASSOCIATES, INC.
Graham Waterline Improvement Project
Parcel No. 765-14506-000
WATERISEWER EASEMENT
BE IT KNOWN BY THESE PRESENTS:
THAT Halsell Holdings, LLC, an Arkansas limited liability company,
hereinafter called GRANTOR, for and in consideration of the sum of Twenty Five
Thousand Dollars ($25,000.00) and other goad and valuable consideration, the
receipt of which is hereby acknowledged, does hereby GRANT, SELL and
CONVEY unto the City of Fayetteville, Arkansas, a municipal corporation,
hereinafter called GRANTEE, and unto Grantee's successors and assigns, a
permanent easement to construct, lay, remove, relay, inspect, enlarge and/or
operate a water and/or sanitary sewer pipe line or lines, manholes, and
appurtenances thereto, on, over, across, and under the following described land
situated in the County of Washington, State of Arkansas, to -wit:
PROPERTY DESCRIPTION: Doc Ref: 2013-15594
A part of the S1/2 of the NW1/4 of the NE1/4 of Section 17, Township 16 North of Range 30 West of the 5"'
P.M., Washington County, Arkansas and bring more particularly described as beginning at a point 462 feet West
of the NE corner of said 20 acre tract, thence South 330 feet, thence West 200 feet, thence North 330 feet,
thence East 240 feet to the place of beginning.
Subject to easements, rights-of-way, and protective covenants record, if any.
Subject to all prior mineral reservations and oil and gas leases.
PERMANENT EASEMENT DESCRIPTION:
A part of the S1/2 of the NW1/4 of the NEI/4 of Section 17, T -16-N, R -30-W described as commencing at a
point which is N86°52'20"W 348.00 feet, N87°17'48"W 121.10 feet and S03°23'36"W 20.00 feet from the NE
corner of said 20 acre tract, said corner being a set cotton spindle, to the true Point of Beginnjng; thence
S03°23'36"W 310.43 feet; thence N87°14'40"W 15.35 feet; thence NO3000'47"E 4120 feet N48'29'22"E 18,57
feet; thence NO2°42'20"E 256.24 feet; thence S87°17'48"E 5.54 feet to the Point of Beginning, containing 1,780
square feet, more or less.
Together with the rights, easements, and privileges in or to said lands which may be required for the full enjoyment
of the rights herein granted.
TO HAVE AND TO HOLD unto said Grantee, its successors and assigns, so long as such pipe line or lines,
manholes and/or appurtenances thereto shall be maintained, together with free ingress to and egress from the real estate
first hereinabove described for the uses and purposes hereinabove set forth.
The said Grantor is to fully use and enjoy the said premises except for the purposes hereinbefore granted to the said
Grantee, which hereby agrees to bury all pipes, where feasible, to a sufficient depth so as not to interfere with cultivation of
soil, and that manholes will be constructed flush with the surface of the ground except in bottom lands where they shall be at
a height above high water.
The Grantor agrees not to erect any buildings or structures in said permanent easement.
The Grantee shall have the right to construct additional pipe lines upon the above described easement at any time in
the future and agrees to pay any damages as a result of such future constrLIC6011 as set out in this easement.
The consideration first above recited as being paid to Grantor by Grantee is in full satisfaction of every right hereby
granted. All covenants and agreements herein contained shall extend to and be binding upon the respective heirs, legal
representatives, successors and assigns of the parties hereto.
It is hereby understood and agreed that the party securing this document in behalf of the Grantee is without authority
to make any covenant or agreement not herein expressed
WATER/SEWER EASEMENT
Page 2 of 2
WITNESS the execution hereof on this the day of 2017
By:
ATTEST:
Halsell Holdings, LLC,
an Arkansas limited liability company
[Please print or type Name and Title]
[Please print or type Name and Title] [SEAL]
ACKNOWLEDGMENT
STATE OF ARKANSAS
ss.
COUNTY OF WASHINGTON
BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and acting Notary Public
within and for said County and State, personally appeared and to me
well known as the persons who executed the foregoing document, and who stated and acknowledged that they are the
and , respectively, of Hassell Holdings, LLC, an Arkansas limited
liability company, and are duly authorized in their respective capacities to execute the foregoing instrument for and in the
name and behalf of said corporation, and further stated and acknowledged that they had so signed, executed and
delivered said instrument for the consideration, uses and purposes therein mentioned and set forth.
WITNESS my hand and seal on this day of .2017.
MY COMMISSION EXPIRES.
Notary