Minutes - Public Works Committee - 07/18/2000

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Parcel 4 that he would not accept the easement offer. City Engineer Jankowski stated he has had no responses from the remaining parcels and would be contacting these remaining property owners by phone early next week to ascertain whether they have an interest in accepting or making a counter offer for settlement of the easement offers. He requested direction on Parcels 1, 5, 6, and 7. Staff recommends that formal appraisals be obtained on Parcels 4, 5, 6, and 7 and that eminent domain papers be filed by the City Attorney with the court. Councilmember Hendriksen asked about the numbers for Parcel 1. City Engineer Jankowski explained that Parcel 1 was offered $550 and the owner counter offered in writing with $1,280. Councilmember Hendriksen asked if the property owner indicated how they calculated the counter offer of $1,280. City Engineer Jankowski explained the property owner had a rental agreement at a certain value and used a 10% rate of return which equaled $6 per square foot. However, the property owner understood that an easement was worth only 50% of the land or $3 a square foot for the easement. Chairperson Zimmerman asked if an appraisal would cost the difference between the offer and counter offer. He suggested the owner be contacted to see if a settlement can be reached. Councihnember Hendriksen stated he does not want to, for the expediency of settling one easement, set a precedent for the others. He stated if an appraisal is not needed, he would be willing to consider including the cost of an appraisal ($500) in the offer, perhaps with a 5% latitude. Councilmember Connolly stated she believes this would be a good offer to make back to the property owner. Director of Public Works/Fire Chief Kapler asked if staff should obtain an estimate on the cost of an appraisal. Councilmember Hendriksen stated before getting an appraisal on all parcels, he would suggest contacting the parcel owners and indicating a settlement offer based on the value of the land plus the cost of the appraisal. He suggested a counteroffer on Parcel 1 of $1,055 to get it settled. City Engineer Jankowski suggested responding by indicating the City has reviewed the counter offer and is offering 10% higher than the property value plus the cost of the appraisal. Motion by Councilmember Hendriksen, seconded by Chairperson Zimmerman, to contact Inner City Oil (Parcel 1) and advise them that the City is about to order an appraisal and, in the intervening time, they can benefit by the value of the appraisal but needs to decide before the Public Works Committee/July 18, 2000 Page 4 of 12