Consideration and Approval of Settlement:  Settlement of the condemnation proceeding, City of Flagstaff v. Hanson et al. (S0300CV202200547) related to acquisition of property for the Lone Tree Overpass Project.
 

1. Approve settlement of the condemnation proceeding pursuant to the terms discussed in Executive Session; and
2. Authorize the City Manager, City Attorney, or its outside legal counsel to execute all documents and take other actions as are necessary to finalize the settlement. 

The City has been seeking to acquire certain real property identified as Coconino County Assessor Parcel No. 104-01-097D and located at 510 E. Brannen Avenue for the Lone Tree Overpass Project ("the Property") for several years.  The City followed its standard process for property acquisition. This involved obtaining appraisal from an independent appraiser, making an offer to purchase the property and pay just compensation based on appraised value, and negotiating with the property owner.  In 2022, when the parties were unable to agree upon a purchase price, the City filed a condemnation proceeding.  The parties now desire to settle the litigation, which will result in City obtaining title to the Property.

The City has provided relocation assistance to Flag Ice (the business that was operating on the Property), and Flag Ice has been relocated. 

The settlement will be funded from the Lone Tree Overpass Project (Account #047-10-112-3054-6), FY 2024-25 budget $31,436,856). 
 

The City Council has previously:

• Adopted an ordinance authorizing acquisition of the Property;
• Approved a contract with its general contractor for the Lone Tree Overpass Project, to include the provision of relocation benefits under the federal Uniform Relocation Act, at a public meeting;
• Authorized the filing of a condemnation proceeding at a public meeting;
• Held an Executive Session on February 11, 2025 related to acquisition of the Property including possible settlement of the condemnation proceeding.

1.  Approve settlement.
2.  Do not approve settlement, continue litigation, and provide direction to staff regarding next steps.

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