Consideration and Approval of Settlement:  City of Flagstaff vs Arizona Materials Properties, LLC et al 
 

1. Approve global settlement of the pending condemnation proceeding and claims for relocation benefits under the Uniform Relocation Act related to acquisition of property owned by Arizona Materials Properties, LLC, pursuant to the terms discussed in Executive Session subject to City Attorney approval of final form of document; and
2. Authorize and direct the City Manager and/or City Attorney to execute all documents and take other actions as are necessary to finalize the global settlement. 

The City has been seeking to acquire property owned by Arizona Materials Properties, LLC ("Arizona Materials") for the Lone Tree Overpass Project and the Rio de Flag Flood Control Project for several years. The Arizona Materials property is located at 633 E. Brannen Avenue in Flagstaff.  Arizona Materials operates a cement batch plant business on the property. In 2022 the City filed a condemnation proceeding to acquire the property, City of Flagstaff vs. Arizona Materials Properties, LLC No. S0300CV202200548, in Coconino County Superior Court. As a separate matter, the City is providing business relocation benefits to Arizona Materials pursuant to the federal Uniform Relocation Act.  The global settlement will allow for City to  acquire the property, require Arizona Materials to expeditiously vacate the property, bring the pending litigation to a close, and settle all claims for relocation benefits. 

The global settlement will be funded by the Lone Tree Overpass Project (Account #047-10-112-3054-6, FY 2024-25 budget $31,436,856) and the Rio de Flag Flood Control Project (Account #206-08-385-3236-0, FY 2024-25 budget $20,851,032).

 

The City Council has previously:

• Adopted an ordinance authorizing acquisition of the Arizona Materials property at a public meeting;
• 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;
• Considered possible relocation of Arizona Materials to adjacent property currently owned by BNSF Railway Company  that likely will be acquired by the City (direction was to not allow) at a public meeting;
• Held Executive Sessions related to acquisition of property from Arizona Materials. 

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

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