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REQUEST FFOR COUUNCIL ACCTION <br />Daate:6/18/12 <br />Iteem No.: <br />12.b <br />Depaartment ApprrovalCitty Manager AApproval <br />Item Description: Approvve Settlemennt Agreemennt for purchaase of land frfrom PIK <br />B <br />ACKKGROUND <br />2 <br />In thee spring of 22009, the Citty commenceed land acquuisition in orrder to underrtake Phase 11 utility <br />10 <br />andrroadway impprovements iin the Twin LLakes Redevvelopment AArea. As the City’s fundiing was <br />11 <br />requiired to be exppended by thhe end of 2009, the City used its powwer of emineent domain tto initiate <br />12 <br />quickk-take condeemnation on several propperties withinn the area, inncluding thoose parcels owned by <br />13 <br />PIK,to complete the project wwithin the reequired timeeframe. In suummer 2009, the City recceived <br />14 <br />titletto the neededd land for the project. Thhe only unreesolved issuee associated with the <br />15 <br />condeemnation proocess for thee PIK properrties was to rresolve the ffinal settlement. Eminennt domain <br />16 <br />commmissioners haave been apppointed by thhe Courts, but no furtherr action has taken place. <br />17 <br />11 <br />TheCCity offered the propertyy owner of thhe PIK parceels a total off$243,200 too acquire thee needed <br />14 <br />rightof way and temporary cconstructioneasements. TThis offer wwas based upoon an appraiisal <br />15 <br />comppleted by Dwwyer and Dahhlen in sprinng 2009. <br />16 <br />15 <br />As paart of a final settlement oon the purchhase of land ffor rigt-of-wway, staff andd the propertty owner <br />20 <br />havethe discusseed the teardoown of the exxisting builddings on the PPIK propertyy. Under the <br />21 <br />propoosed settlement agreemeent, the propeerty owner wwould agree to the appraaised value oof the <br />22 <br />landaand the Cityy would agree to demolissh the structuures on the PPIK parcels aand assess thhe cost <br />23 <br />backto the propeerty owner.BBelow are thhe specifics oof the propossed settlemeent: <br />24 <br />21 <br />Propposed Termss of Settlement <br />22 <br />Theffollowing aree the proposed terms of settlement bbetween the CCity and PIKK. <br />23 <br />24 <br />1.PIK would acccept the apppraised valuee of $243,2000 as the purrchase price for its land aand <br />26 <br />teemporary easements. <br />27 <br />2.TThe City wouuld undertakee the demoliition the exissting structuures on the PIK parcels aand PIK <br />29 <br />wwould be asseessed all cossts associatedd with the deemolition (e.g. engineeriing reports, ccity staff <br />30 <br />tiime, buildingg removal, etc). <br />31 <br />3.TThe terms of the assessment would innclude: <br />30 <br />a.A tweelve-year asssessment witth a two-yearar repaymentt deferral witth no interesst <br />32 <br />accruiing and a tenn-year repaymment scheduule; <br />33 <br />b.An intterest rate off six percentt. <br />33 <br />c.Full reepayment off the assessmment is due uupon sale of the PIK prooperty. <br />34 <br />PPage 1 of 2 <br /> <br />