Honaker Realty and Thomas Properties have petitioned to vacate the alley within Block 38, Fosters Addition.  This alley is located between North 27th Street and North 26th Street and 7th Avenue North and 8th Avenue North.  Honaker Realty is purchasing all of the lots within the block except the two properties owned by Thomas Properties.  Thomas Properties owns the property that is occupied by KFC.  Honaker Realty is proposing to redevelop all of the remaining properties into a hotel with parking.  The alley will be utilized as a private drive with a drive thru canopy extending over the current alley way.  This type of private improvement is not allowed over public right of way, so vacating the alley is the best option.  The area of the alley proposed to be vacated is 6,000 square feet.  There is a public sanitary sewer main within the alley which will continue to exist within an easement.  

The Council may:

• Approve acknowledgment of the petition to vacate the above-mentioned right-of-way and set a public hearing for April 13, 2015; or
• Do not acknowledge the petition and terminate the right-of-way vacation process.

The petitioners have provided a market analysis by a realtor for the right of way.  Matt Robertson from NAI Business Properties has established the value of the right of way at $36,062.66.  The petitioner will be required to pay the city this amount for the right of way.

Staff recommends that Council acknowledge the receipt of a petition to vacate the alley within Block 38, Fosters Addition and set a public hearing for April 13, 2015.