8.A.
City Council Meeting - FINAL
- Meeting Date:
- 09/01/2026
- Co-Submitter:
- Sterling Solomon
- From:
- Matthew Mansfield, Senior Assistant City Attorney
TITLE:
Consideration and Approval of Settlement: City of Flagstaff v. Consolidated Investment Company, Inc., et al., S0300CV2023-00265, currently pending in Coconino County Superior Court.
STAFF RECOMMENDED ACTION:
- Approve settlement of the matter of City of Flagstaff v. Consolidated Investment Company, Inc., et al., pursuant to the terms of the tentative settlement discussed in executive session on August 25, 2026, and
- Authorize and direct the City Attorney to execute all documents and take such other actions as are necessary to finalize the settlement.
Executive Summary:
This is a condemnation action authorized by Ordinance 2023-10, which approved the acquisition of real property interests for the Milton Road and University Avenue right-of-way project. The City has reached a tentative settlement regarding the value of the property interest acquired, and all claims related to the condemnation action. The tentative settlement and legal advice related thereto were discussed with the City Council in executive session on August 25, 2026.
Financial Impact:
Project Name: Beulah/University Realignment Project
Cost: $2,300,000
This settlement was not budgeted for in the FY2026-27 budget. We currently have $1,407,268 in an escrow account. For the additional $892,732 needed, budget authority from 048-10-118-3047-6-4441 (Butler & 4th Street project) was reallocated to this settlement.
Grant Funded: No
Funding Source: Transportation Tax (Prop 419)
Cost: $2,300,000
This settlement was not budgeted for in the FY2026-27 budget. We currently have $1,407,268 in an escrow account. For the additional $892,732 needed, budget authority from 048-10-118-3047-6-4441 (Butler & 4th Street project) was reallocated to this settlement.
Grant Funded: No
Funding Source: Transportation Tax (Prop 419)
Policy Impact:
None.
Previous Council Decision or Community Discussion:
City Council adopted Ordinance 2023-10 on April 4, 2023.
Options and Alternatives to Recommended Action:
Not approve the tentative settlement and continue to litigate the matter.
Connection to PBB Priorities and Objectives:
N/A
Connection to Regional Plan:
N/A
Connection to Carbon Neutrality Plan:
N/A
Connection to 10-Year Housing Plan:
N/A
Connection to Division Specific Plan:
N/A