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ITEM 28

City Council Memorandum Public Works & Utilities Memo No. RE25-002

Date:

November 4, 2024

To:

Mayor and Council

Thru:

Joshua H. Wright, City Manager
Andy Bass, Deputy City Manager
John Knudson, Public Works and Utilities Director
Daniel Haskins, Capital Projects Division Manager

From:

Erich Kuntze, Real Estate Administrator

Subject:

Resolution No. 5812 Authorizing the Acquisition of Approximately 0.9197 Acres (40,062 Square Feet) of Vacant Land Located East of the Northeast Corner of Cooper Road and Hunt Highway

Proposed Motion:

Move City Council pass and adopt Resolution No. 5812 authorizing the acquisition of approximately 0.9197 acres (40,062 square feet) of vacant land located east of the northeast corner of Cooper Road and Hunt Highway at market value, plus closing costs and escrow fees; authorizing the city’s real estate administrator to sign, on behalf of the city, the purchase agreement, and any other documents necessary to facilitate these acquisitions; authorizing eminent domain proceedings as needed to acquire said real property and obtain immediate possession thereof; and authorizing relocation assistance as may be required by law.

Background:

The city requires additional well sites to provide adequate water for future growth. Cooper Commons Community Association (the “Association”) owns a parcel that is adjacent to the city owned Hunt Highway Water Production Facility (WPF), which includes a water storage tank and booster pump facility. This site is appropriately located for an additional well that will supply the existing facility.

During discussions regarding purchase of the property, the Association's Board of Directors requested the city initiate an eminent domain action to streamline the process. The Association’s attorney subsequently provided a letter (attached) to the city indicating the Board has accepted the city's offer and is in support of the city moving forward with the eminent domain process.

City staff sent letters to adjacent property owners notifying them of the proposed acquisition and of the Board meeting where city staff would make a presentation on the matter. City staff attended the Board meeting virtually on September 25, 2024, made a presentation describing the project, and answered questions from the Board and residents in attendance. The Board provided a positive response to the presentation and sale of its property to the city.

Staff has reviewed the appraisal and offer and supports moving forward with an eminent domain action in order to accomplish the acquisition.

Financial Implications:

The city made an offer to purchase the property in the amount of $352,298, which was accepted by the Association's Board of Directors. The offer was based upon an appraisal obtained from an Arizona independent licensed appraiser.

Funds for the acquisition of the property shall come from the following:

Account No.

Fund Name

Program Name

CIP Funded

603.3820.6713.6WA034

Water Operating

Well Construction/Rehabilitation

Yes

Attachments

HOA Letter

Resolution No. 5812

Location Map