Title
Resolution Authorizing City Attorney to Institute Proceedings to Condemn a Portion of the Property of Bessemer Group, Inc. Located at 5005 Burlington Road in Connection with the Stewart Mill Force Main Sewer Line Project
Body
Department: Legal
Council District: 2
Public Hearing: NA
Advertising Date/By: NA
Contact 1 and Phone: Ted Kallam, Engineering Manager, ext. 2883
Contact 2 and Phone: John P. Roseboro, Assistant City Attorney, ext. 2320
PURPOSE: : The City seeks to acquire a Permanent Utility Easement (PUE) of 3,120 square feet of the property owned by Bessemer Group, Inc. located at 5005 Burlington Road, designated as Parcel # 0090105 in the Morehead / Gilmer Township for the Stewart Mill Force Main Sewer Line Project. The Property Management Section of the Engineering and Inspections Department (PM) requests Council to authorize the initiation of condemnation proceedings because it has been unable to negotiate a purchase price with the property owner.
BACKGROUND: PM attempted to negotiate a purchase within the total appraised value of $8,035.00 for the property. An independent appraiser, Jeffrey A. McKee, Certified General Real Estate Appraiser, A5913, calculated the value of the property for the City. The appraiser used generally accepted appraisal methods and calculated the value based upon the nature of the taking and the square footage taken. PM sent an initial written Offer to Purchase to the property owner on April 18, 2016. PM spoke with the property owner on multiple occasions to discuss the design and offer. The offer was not accepted. PM made every reasonable effort to purchase the property within the appraised amount, but its efforts were not successful. Therefore, PM recommends that the City Council adopt a resolution authorizing the City Attorney to institute proceedings to condemn the required property. Following City Council’s approval, the Legal Department will send a letter to the owner giving him at least thirty (30) days’ notice of the City’s intent to file an eminent domain lawsuit. After the lawsuit is filed and discovery is completed, a mediation or Commissioner’s Hearing, or both, are held to try to resolve the matter with the property owner before trial. Additionally, the parties are free to continue negotiations through the date of trial.
The Stewart Mill Sewer Force Main Project is to divert waste water flows going to the existing Rock Creek Lift Station in order to free up pumping capacity and to provide service to the large draining area that is contiguous to the new lift station.
The acquisition necessary for this property is a Permanent Utility Easement of 3,120 square feet for the property located at 5005 Burlington Road.
The anticipated date for start of construction is November, 2017, with an anticipated completion date of December, 2017. The property is zoned CL- Commercial Low.
City staff further recommends that the City Council authorize payment of the estimated amount of the value of the properties to the Clerk of Superior Court for disbursement to the owner. This will allow the City to take possession, which is required before work for this Project can commence on the properties.
BUDGET IMPACT: The funding for this condemnation is budgeted in Account Number 507-7012-01.6012, Activity #A13088. The funding comes from the Water and Sewer Extension Funds. A minimum of $8,035.00 will be expended to acquire this property, in addition to any litigation costs and/or settlement agreements.
RECOMMENDATION / ACTION REQUESTED: City Council approval of a resolution authorizing the City Attorney to institute proceedings to condemn a portion of the property of Bessemer Group, Inc. in connection with the Stewart Mill Force Main Sewer Line Project.