Title
Resolution Authorizing City Attorney to institute proceedings to condemn a portion of the properties RODICO, INC., located at 1200-1210 Rock Creek Dairy Road in connection with the Rock Creek Dairy Force Main Project
Body
Department: Legal
Council District: 1
Public Hearing: NA
Advertising Date/By: NA
Contact 1 and Phone: Ted Partrick, Engineering Manager, ext 2308
Contact 2 and Phone: James A. Dickens, Assistant City Attorney, ext 2320
PURPOSE: The City seeks to acquire a Proposed Permanent Utility Easement (PUE) of 25,513 square feet and a Proposed Temporary Construction Easement (TCE) of 20 square feet, of the property owned by RODICO, INC., located at 1200-1210 Rock Creek Dairy Road, designated as Parcel # 0108780 in the Rock Creek Township for the Rock Creek Dairy Force Main 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(s).
BACKGROUND: PM attempted to negotiate a purchase within the total appraised value of $26,408.00 for the property. The value of the property was calculated by an independent appraiser, Foster Appraisal Services, Inc., that was contracted by the City to perform the appraisal. 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 a written Offer to Purchase to the property owner(s) on November 26, 2013. PM spoke with the property owner on multiple occasions from November of 2013 to March of 2014 to discuss the design and offer. The property owner rejected this offer. 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 30-day letter to the owner requesting to purchase the property prior to litigation. 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 Rock Creek Dairy Force Main Project consists of a sanitary force main. This is needed in the area due to the growth in the area and the planned growth. This is a upgrade to the area and is needed if any new construction is to take place. The current system in the area is out dated and cannot accept any additional sewer lines to be added. In addition the current system has a flow issue and could have a system failure causing a spillage. The new pipe would be able to handle additional construction in the area and would be a safeguard to avoid spillage of raw sewage. The acquisition necessary for this property is a proposed permanent utility easement of 25,513 square feet and a temporary construction easement of 20 square feet for the property located at 1200-1210 Rock Creek Dairy Road. The anticipated date for start of construction is September, 2014, with an anticipated completion date of December, 2014. The property is zoned LI (Light Industrial).
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 503-7023-02.6012, Activity #A14044, and this is the Water Resources Capital Improvement Fund. Specifically the account 503-7023-02 is for "Sewer Lines FY14" and 6012 is for Land Right of Way. The funding is derived from specifically allocated capital funds for property purchases within the department responsible for the project. A minimum of $26,408.00 will be expended to acquire these properties, 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 properties of RODICO, INC. in connection with the Rock Creek Dairy Force Main Project.