| | | | | | | |  | STAFF REPORT
For Meeting of April 27, 2020
MAYOR AND MEMBERS OF THE CITY COUNCIL | Agenda Item # 8.H.
TITLE: Report re Acquisition of Real Property for NW Geer Road, W. Harper Road and N 1st Pl. Realignmnet. |
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| | | | | | | | Subject
This report will discuss the acquisition of two parcels of land authorized by Resolution 2142 for the purpose of realigning Geer Road, Harper Road and N. 1st Place.
Summary and Background
The purpose of this report is to create a record for and to advise the Council about the acquisition of land necessary for the proposed realignment of the intersection for Geer Road and Harper road. On January 27, 2020, the Council approved Resolution 2142 Declaring a Public Necessity to Acquire Real Property for the NW Geer Road, W. Harper Road and N. 1st Place Realignment.
The Property described in Resolution 2142 contained two parcels with a combined acreage of 0.81 acres (hereinafter referred to as the “Huxoll Property). The City ordered an appraisal by Barak & Associates who placed its fair market value at $65,247.
The City hired the law firm of Saallfield Griggs to represent it in acquiring the Huxoll Property. (Saallfield Griggs is the same law firm that represented the City in the acquisition of the NE Water Tower.)
On 02/12/2020, a 40-day offer letter offering to pay the amount of $65,300 was delivered to Mr. Huxoll and the 40-day offer would expire on March 24, 2020.
ORS 35.346 (1) provides:
“At least 40 days before the filing of any action for condemnation of property or any interest in property, the condemner shall make a written offer to the owner or party having an interest to purchase the property or interest, and to pay just compensation therefor and for any compensable damages to remaining property.
In addition to the 40-day offer letter, on March 9, 2020, the City sent its highest written offer in settlement to Mr. Huxoll:
“As additional context for the reasonableness of this highest offer, recall that the City previously offered to pay you for purposes of getting an appraisal and to pay an additional $20,000.00 over your appraiser’s price, if the parties did not have to get attorneys involved. As you know, you chose not to obtain an appraisal and get reimbursement from the City for those costs. Accordingly, the City then offered $85,300.00 which was rejected by you. You then presented a counter of $200,000.00 without the support of an appraisal. Despite the fact that it had to retain an attorney for this matter and despite the appraised value of the Subject Property at $65,300.00, the City is now reprising its $85,300.00 offer for the above-referenced limited time. As further illustrated by the parties’ negotiating history this is a reasonable offer.”
On March 20, 2020, Mr. Huxoll made a counter offer to the City of $95,000.00, with the City to cover closing costs, a bargain & sale deed, with no additional warranties, and waiver of attorney fees. With Mr. Huxoll dropping his counter offer by $105,000.00 and the parties now being $9,700.00 apart ($95,000 minus $85,300), the City chose fiscal prudence over litigation and accepted Mr. Huxoll settlement offer of $95,000.00. The deed was recorded on April 10, 2020.
Tie-In to Council Goals:
Improving the functionality and safety of this intersection is in the 5-year Capital Improvement Plan.
Fiscal Information
Resolution 2142 authorized the acquisition of two parcels of land for the purpose of realigning Geer Road, Harper Road and N. 1st Place. An appraisal conducted by the City placed the fair market value of the land at $65,000, which assumes a willing seller. Not surprisingly, to acquire the land through the use of eminent domain from an unwilling seller, the price for the land was $95,000.
Alternatives and Recommendation
Alternatives
Not applicable as this is a report of completed action.
Recommendation
Accept this report for the purpose of record keeping regarding the realignment of the intersection of Geer Road, Harper Road and N. 1st Place.
Requested Action/Motion
Approve this report.
Submitted By: Gary Luisi, City Attorney |
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