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ITEM 37

City Council Memorandum Public Works & Utilities Memo No. RE25-030

Date:

October 14, 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:

Approval of a Settlement with 13012 E. Chandler Heights, LLC in the Amount of Three Hundred Thousand and no/100ths Dollars ($300,000.00), Plus Statutory Interest, for the Acquisition of Road Right of Way, a Temporary Construction Easement, Drainage Easements, and Easements for Roosevelt Water Conservation District to Relocate their Irrigation Facilities and Improvements Required for the Chandler Heights Road Improvement Project from McQueen Road to Gilbert Road

Proposed Motion:

Move City Council approve a settlement with 13012 E. Chandler Heights, LLC, in the amount of Three Hundred Thousand and no/100ths dollars ($300,000.00) plus required statutory interest, for acquisition of road right-of-way, a temporary construction easement, drainage easements, easement for Roosevelt Water Conservation District required to relocate their facilities and improvements required for the Chandler Heights Road Improvement project from McQueen Road to Gilbert Road.

Background/Discussion

The City of Chandler made a purchase offer on January 10, 2020, in the amount $125,302 for the property rights needed for the construction of the Chandler Heights Improvement Project (McQueen Road to Gilbert Road). The city was unable to reach a voluntary settlement with 13012 E. Chandler Heights, LLC, and therefore, in accordance with the Intergovernmental Agreement between Maricopa County and the city, the file was turned over to Maricopa County for further handling.

On January 28, 2021, the county made a purchase offer in the amount of $160,767 based upon their appraisal for the property rights and improvements. The county was unable to reach a voluntary settlement and turned the file over to the Maricopa County Attorney's Office for further handling.

An eminent domain action was filed by the county, and an order of immediate possession (OIP) was entered on April 23, 2021, allowing the city to proceed with its project. In accordance with the OIP, the county deposited $160,767 with the court. The OIP further provides that statutory interest on the deposit started to accrue from the date of entry of the order.

In preparation for further negotiations and mediation, new appraisals were obtained by the county and by 13012 E. Chandler Heights, LLC. The county's new appraisal was $209,900. 13012 E. Chandler Heights, LLC's appraiser's opinion of total compensation was $610,679.00.

On September 17, 2024, the parties participated in a mediation with Barry Markson, Esq. After a number of exchanges and discussions of value, the mediation concluded with a settlement of $300,000, plus statutory interest, subject to approval by the City Council and the Maricopa County Board of Supervisors.

Staff recommends settlement in the amount of $300,000, plus statutory interest, as in the best interest of the parties. Funds have been set aside in the project for acquisition.

NOTE: The attached map shows the location of the property. The area acquired by the City included only the portions needed for construction of the project, not the entirety of the parcels.

Attachments

Location Map