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Action Recommendation City of Fayetteville Staff Review Form 2016-0419 Legistar File ID 9/20/2016 City Council Meeting Date - Agenda Item Only N/A for Non-Agenda Item Utilities Director / Tim Nyander 9/7/2016 Utilities Department Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends approval of a Resolution authorizing the City Attorney to seek possession by condemnation of easements on of portions of properties necessary for Construction Contract, BID 16-49, Construction, Porter RD – HWY 112/71B Widening and Interchange Water and Sewer Relocations for an estimated cost of $525,900.00 - 87.06% is reimbursable from the AHTD and approval of a budget adjustment. AHTD cost is $457,848.00 and City cost is $68,052.00. Budget Impact: 5400.720.5700-5810.00 Water/Sewer Account Number Fund 11011.1501 Water/Sewer Relocations-Bond Projects Project Number Project Title Budgeted Item? Yes Current Budget $ 1,074,496.00 Funds Obligated $ 89,559.84 Current Balance $ 984,936.16 Does item have a cost? Yes Item Cost $ 525,900.00 Budget Adjustment Attached? Yes Budget Adjustment $ 457,848.00 Remaining Budget $ 916,884.16 Must Attach Completed Budget Adjustment! V20140710 Previous Ordinance or Resolution # Original Contract Number: Approval Date: Comments: MEETING OF SEPTEMBER 20, 2016 TO: Mayor Jordan and City Council THRU: Don Marr, Chief of Staff Tim Nyander, Utilities Director Water & Sewer Committee FROM: Jim Beavers, P.E. DATE: September 6, 2016 SUBJECT: Approval of a Resolution authorizing the City Attorney to seek condemnation and orders of possession for water and sewer easements necessary for the City of Fayetteville, Arkansas; Construction Contract, BID 16-49, Construction, Porter RD – HWY 112/71B Widening and Interchange Water and Sewer Relocations for an estimated cost of $525,900.00 and approval of a budget adjustment. 87.06% is reimbursable from the AHTD. AHTD cost is $457,848.00 and City cost is $68,052.00. RECOMMENDATION: Staff recommends approval of a Resolution authorizing the City Attorney to seek possession by condemnation of easements on of portions of properties necessary for Construction Contract, BID 16-49, Construction, Porter RD – HWY 112/71B Widening and Interchange Water and Sewer Relocations and approval of a budget adjustment. The water and sanitary sewer relocations are required for the construction of the new highway interchange by the Arkansas Highway and Transportation Department, Project AHTD Job BB0414 (PORTER RD. – HWY. 112/71B WIDENING & INTCHNG. IMPVTS. (S). BACKGROUND: In February 2015, the City Council approved by Resolution no. 43-15 the engineering contract with Garver for design of the water/sewer relocations associated with AHTD project BB0414 – 1-49/Hwy 112. The design was substantially completed in June 2015. As the new City of Fayetteville water and sewer easements are contiguous to the new AHTD right-of-way (ROW), the City’s easement acquisition was dependent upon, and progressed with, the AHTD ROW acquisition. Certain easement negotiations were delayed until AHTD ROW acquisitions could be completed through AHTD purchase and/or condemnation. The water and sewer relocations require ten new permanent easements. Five required easements have been acquired as of this date. Of the five remaining easements to be acquired, there are four entities and two general ownerships as follows: AHTD Tract Property Owner Owner Contact Parcel No 5 Drake Street Property LLC Mr. Pendergraft 765-15840-000 6 1155 Properties Mr. Pendergraft 765-15908-000 7 1155 Properties Mr. Pendergraft 765-15889-000 8 RPM1 Properties LLC Mr. Pendergraft 765-15887-000 10 Nelms, LLLP Mr. Nelms 765-15847-000 The Highway Construction project, AHTD Job BB0414 (PORTER RD. – HWY. 112/71B WIDENING & INTCHNG. IMPVTS. (S) is scheduled to start construction in September 2016. The City’s water and sewer relocations construction (two Additional Agenda items) is also schedule to start in September 2016. Staff will continue to negotiate with the property owners to avoid condemnation whenever possible. However, it is imperative that the easements be acquired in order not to delay the AHTD construction or contract. DISCUSSION: As of this date, the City is continuing discussion with the property owners for the referenced easement. BUDGET/STAFF IMPACT: The current working estimate for the costs of these 5 easements is $525,900.00. 2 The water and sewer relocation project is 87.06% reimbursable from AHTD. Budgeted funds for the City’s portion are available in 11011 W/S Relocations for Street Bond Projects. Attachments: Staff Review Form Budget Adjustment Easement definition documents Tracts 5,6,7,8,10 3 APPRAISAL REPORT PARTIAL TAKING FROM THREE TRACTS OF LAND I-49 & Highway 112 Fayetteville, Washington County, Arkansas 72703 CBRE, Inc. File No. 16-361HO-2354 Client Reference No. 16-0000256-001 Holly Jones CITY OF FAYETTEVILLE 4500 S School Ave Fayetteville, Arkansas 72701 www.cbre.com/valuation © 2016 CBRE, Inc. VALUATION & ADVISORY SERVICES 438 E. Millsap, Suite 204 Fayetteville, AR 72703 T 479-442-7401 F 479-442-7806 www.cbre.com August 4, 2016 Holly Jones CITY OF FAYETTEVILLE 4500 S School Ave Fayetteville, Arkansas 72701 RE: Appraisal of Partial Taking from Three Tracts of Land I-49 & Highway 112 Fayetteville, Washington County, Arkansas CBRE, Inc. File No. 16-361HO-2354 Client Reference No. 16-0000256-001 Dear Ms. Jones: At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following appraisal report. The subject property of this appraisal consists of a partial taking. The parent tract is a 92.83- acre (4,043,675 sq. ft.) tract of land located near the intersection of Interstate 49 and State Highway 112 in Fayetteville, Arkansas. Although titled under three ownerships, all are reportedly beneficially owned by the same person(s) and we have therefore considered the property as one. The partial taking by the City of Fayetteville (the condemning authority) consists of 2.49 acres and is located along the northern property boundary. As of the effective date of this analysis, the property was currently zoned as a combination of residential-office and residential-agricultural designations. However, the future land use map for the city of Fayetteville indicates that the property is intended for mixed-use type of project and, in fact, the City of Fayetteville Council did approve a rezoning to Urban Thoroughfare on June 20, 2016. We have taken this new zoning into account in our analysis. Based on the analysis contained in the following report, the due the owner as a result of the imposition of the partial taking as described in this report is as follows: JUST COMPENSATION CONCLUSION Appraisal Premise Interest Appraised Date of Value Value Conclusion Just Compensation - Drake St Property, LLC Fee Simple Estate May 4, 2016 $100,000 Just Compensation - 1155 Properties, LLC Fee Simple Estate May 4, 2016 $100,000 Just Compensation - RPM1 Properties, LLC Fee Simple Estate May 4, 2016 $300,000 Compiled by CBRE The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. © 2016 CBRE, Inc. Holly Jones August 4, 2016 Page 2 The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The intended use and user of our report are specifically identified in our report as agreed upon in our contract for services and/or reliance language found in the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to non-client, non-intended users does not extend reliance to any other party and CBRE will not be responsible for unauthorized use of the report, its conclusions or contents used partially or in its entirety. It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us. Respectfully submitted, CBRE - VALUATION & ADVISORY SERVICES Jeff Ford, MAI Stephen Cosby, MAI, MRICS Vice President Executive Vice President Managing Director AR State Certified General Appraiser No. AR State Certified General Appraiser No. CG2798 CG0197 www.cbre.com/jeff.ford www.cbre.com/stephen.cosby Phone: +1 479 442 7401 x. 6 Phone: +1 479 442 7401 x. 3 Fax: +1 479 442 7806 Fax: +1 479 442 7806 Email: [email protected] Email: [email protected] James Tanner Ray Appraiser AR State Certified Residential Appraiser No. CR2952 Phone: +1 479 442 7401 x. 227 Fax: +1 479 442 7806 Email: [email protected] © 2016 CBRE, Inc. Certification Certification We certify to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment. 4. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 5. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
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