During the design phase for a private contract to install a sanitary sewer main, it was discovered that the traveled roadway in Mountain View Boulevard was actually located within private property and out of the platted right of way.  Due to the constraints of the existing ground conditions in this area it would not be economical to relocate the roadway back to the platted right of way.  As such, a monetary offer was made to the record owner of the property to purchase the lot based on the appraised value of the vacant piece of property plus 5%.  The offer was accepted by the property owner.  This property also is bordered on each side by Black Otter Trail Park.  With the city owning this tract of land the traveled road surface will be on public property and Black Otter Trail Park will be contiguous with public land.  

The Council may: 

• Accept the warranty deed for Lot 18 of Panoramic Heights Subdivision, or
• Do not accept the warranty deed, which would keep Mountain View Boulevard within private property.

The property was appraised at $19,451.25.  The city offered that amount plus 5%, totaling $20,475.00 to the property owner, Mr. Edwards.  Mr. Edwards requested $25,000.00 for the property.  Jim Powell, the property owner just east of this property is willing to make up the difference between $25,000 and the City's offer because the ROW is needed to allow him to get sanitary sewer to his property.  Mr. Powell will make a cash contribution to the City in the amount of $4,525.00 and the City would pay Mr. Edwards $25,000.00 for the property.  The funds will be out of gas tax, sanitary sewer funds, and a cash contribution from Mr. Powell.

Staff recommends that council accept the warranty deed for Lot 18, Panoramic Heights Subdivision.