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Establishing Fair Market Value for Right-of-Way Property Acquistion at Pennsylvania Avenue and Radford Road Copyrighted January 7, 2019 City of Dubuque Consent Items # 24. ITEM TITLE: Establishing Fair Market Value for Right of Way Property Acquisition at Pennsylvania Avenue and Radford Road SUMMARY: City Manager recommending adoption of a resolution which establishes and sets the Just Compensation Valuation (Fair Market Value)for the Pennsylvania Avenue and Radford Road Intersection Improvements Project. RESOLUTION Establishing the Fair Market Value of Real Propertyforthe PennsylvaniaAvenue & Radford Road Intersection Improvements Project, Directing Good Faith Negotiations for the Fee Title Acquisition of Property and Authorizing the Commencementof Eminent Domain Proceedings, if Necessary, to Acquire Property SUGGESTED DISPOSITION: Suggested Disposition: Receive and File;Adopt Resolution(s) ATTACHMENTS: Description Type Establishing Fair Market Value for Right-of-Way Property City Manager Memo Acquisition-MVM Memo Staff Memo Staff Memo Area Map Supporting Documentation Conceptual Roundabout Layout Supporting Documentation Resolution Resolutions THE CITY OF Dubuque � AIFA�erlwGh UB E '�� III► Masterpiece on the Mississippi Z°°'�w'2 7A13 2017 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Pennsylvania Avenue and Radford Road Intersection Improvements Project Right-of-Way Property Acquisition on Property Owned by Widmeier Holdings LLC and Widmeier Investments LLC, James A. Christensen, and McFadden Family Partnership Establishing Fair Market Value and Authorizing Commencement of Eminent Domain Proceedings, if necessary DATE: December 28, 2018 City Engineer Gus Psihoyos recommends the City Council adopt a resolution which establishes and sets the Just Compensation Valuation (Fair Market Value) for each of the below-identified properties to be acquired for the Pennsylvania Avenue and Radford Road Intersection Improvements Project. The value is based on the certified Acquisition Appraisal and Review Appraisal Reports. It is further recommended that the City Council authorize staff to begin good faith negotiations with each identified property owner, and if a settlement cannot be reached through good faith negotiations, commence eminent domain proceedings. JUST PROPERTY OWNER(S) COMPENSATION VALUE Part of Lot 2-1-1-1 , Block 1 , Northrange �/idmeier Holdings Industrial Park, as shown on Exhibit A LLC and Widmeier $34,000.00 attached; and Part of Lot 2-1 , Northrange Investments LLC Sub. #1 , as shown on Exhibit A attached Part of Lot 1-2-1-1 , Block 2, Northrange �ames A. Industrial Park, as shown on Exhibit A Christensen $51 ,000.00 attached Part of Lot 1 , McFadden Farm Place #2, as McFadden Family $1 ,200.00 show on Exhibit A attached Partnershi I concur with the recommendation and respectfully request Mayor and City Council approval. �L;� 1��, ��,�� Mic ael C. Van Milligen �� MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Gus Psihoyos, City Engineer 2 THE C'ITY UF Du�b�que DUB E �� ll � I Mas terpiece on the Mississippi Z�,�,.Z�,z.Z�,,, TO: Michael C. Van Milligen, City Manager_ ._ r� ��FROM: Gus Psihoyos, City Engineer �: �; � - .. SUBJECT: Pennsylvania Ave and Radford Road Intersection Improvements Project Right-of-Way Property Acquisition on Property Owned by Widmeier Holdings LLC and Widmeier Investments LLC, James A. Christensen, and McFadden Family Partnership Establishing Fair Market Value and authorizing commencement of eminent domain proceedings, if necessary DATE: December 27, 2018 INTRODUCTION The purpose of this memorandum is to provide the City Council with information regarding the appraised value of necessary right-of-way property and the City's intent to acquire or condemn if necessary, said property for the Pennsylvania Avenue and Radford Road Intersection Improvements Project. BACKGROUND In 2014, Strand Associates, Inc. was hired by the City to complete a preliminary study and design for the roundabout concept for the intersection of Pennsylvania Avenue and Radford Road improvements. In 2015, GHD (Ourston Roundabouts) was hired by the City to refine the preliminary design to current City standards. A copy of the Ourston preliminary roundabout design is attached to this memo for your reference. City staff has completed a preliminary study on right of way property needed to accommodate the proposed roundabout design. Ar�as proposed for right of way acquisition are shown in light purple on the attached map labelled Exhibit A. Recently, developers and property owners have inquired with City Staff regarding the commercial development of the properties at the northeast and northwest corners of the intersection. With the impending development of this parcels of property this would be a good time to begin discussions with the parties in regard to right of way acquisition/purchase for the proposed roundabout project. CERTIFIED APPRAISAL PROCESS The City has contracted with Felderman Appraisals and Banker Review Services to provide real estate property Appraisal Services for the fee title acquisition of right-of-way for the Pennsyivania Avenue & Radford Road intersecfion improvements Project. Per Federal Code, the City is required to have two (2) independent appraisal valuations for each property to be acquired. Felderman Appraisals is responsible for completing independent Acquisition Appraisal services. Separately, Banker Review Services is responsible for completing independent Review Appraisal services. Both the Acquisition and Review appraisal agents are responsible for preparing, signing, and furnishing to the City a separate, written acquisition appraisal report for each property to be acquired following generally accepted standards of professional appraisal principles and techniques in accordance and compliance with the following: ■ State of lowa law. ■ lowa Department of Transportation's "Appraisal Policy & Procedures Manual". ■ Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as amended, in accordance with Part 24 of Title 49 of the Code of Federal Regulations. ■ Jurisdictional Exception Rule and Supplemental Standards contained in the Uniform Standards of Professional Appraisal Practice (USPAP). ■ Completed in a manner consistent with the appraisal assignment as specified in the lowa Department of Transportation's "Appraisal Operational Manual" ■ Appraisal firm, agent(s) or employee(s) shall have no vested interest, direct or indirect, in the real property being appraised for acquisition. JUST COMPENSATION VALUATION Both Felderman Appraisals and Banker Review Services have completed their appraisal reports and established the certified Just Compensation Valuation (Fair Market Value) for each property to be acquired. Those properties and values are identified as follows: JUST PROPERTY OWNER(S) COMPENSATION VALUE Part of Lot 2-1-1-1, Block 1, Northrange Widmeier Holdings Industrial Park, as shown on Exhibit A attached; LLC and Widmeier $34,000.00 and Part of Lot 2-1, Northrange Sub. #1, as Investments LLC shown on Exhibit A attached Part of Lot 1-2-1-1, Block 2, Northrange James A. $51,000.00 Industrial Park, as shown on Exhibit A attached Christensen Part of Lot 1, Mcfadden Farm Place #2, as show McFadden Family $1,200.00 on Exhibit A attached Partnership BUDGETIMPACT The anticipated City funded for the advance property acquisitions to accommodate the future improvements at the Pennsylvania Avenue and Radford Road intersection is summarized as follows: CIP No. Fund Description Bid Award 300 2256 Penn Radford Intersection (FY19) 71,150 300 1922 Safe Routes to School (FY19) 5,000 300 2142 Street Construction - General (FY19) 10,050 Total Project Funding 86 2 RECOMMENDATION I recommend that the City Council establish the Just Compensation Valuation (Fair Market Value) for each identified property to be the values as set out above, based on the certified Acquisition Appraisal and Review Appraisal reports. I also recommend that the City Council authorize staff to begin good faith negotiations with each identified property owner and if a settlement cannot be reached through good faith negotiations, commence eminent domain proceedings. ACTION TO BE TAKEN The City Council is requested to adopt the attached resolution which establishes and sets the Just Compensation Valuation (Fair Market Value) for each identified property to be acquired based on the certified Acquisition Appraisal and Review Appraisal reports. The resolution also authorizes staff to begin good faith negotiations with each identified property owner and if a settlement cannot be reached through good faith negotiations, authorizes staff to proceed with eminent domain proceedings for the acquisition of the property for the Pennsylvania Avenue and Radford Road Intersection Improvements Project. Prepared by Nate Kiefer, PLS cc: Robert Schiesl, Assistant City Engineer F:\PROJECTS\Roundabout Intersections\Pennsylvania-Radford\Property Acquisition\Council Documents\CC Docs Set Fair Market Value DUB E PENNSYLVANI HA�.� RADUORD� RDH BOUNDABOUT DAGIS ,� o�e�Q�E�aER��aAP��,��aMa,�ovs.,,E� Masterpiece on the Mississippi �� ; �� r r-�;_re �� -�µ�� , �. ri _ -�� *� .�.� _�;� - �� ,�� _ ��_'�:' �� ry ��f �� . . . �k�� `� �'_ � . � - � - � '��`1��'�� ; ��1.,`. ��,. � � � . r � � � _ :+,, �` , \�: -� � `��`� __ '�. � � �•� ` A ��y -,� '�'�' �' ��:; a� rr-, �. � ��' , r _.--5--�- - ` �...� .,,;_,�,;� � ,�" t �t ?��' P . �� f��, .. .Y .'. ,,�_ ."� . 7; WIDMEIER HOLDINGS LLC & , �-�'.��_`,_` ' � ' WIDMEIER INVESTMENTS LLC � JAMES A. CHRI STENSEN — 8,543 SQ. FT. R.O.W. ACQUISITIO�� 5,584 SQ FT. R O.W. ACQUISITION �,a � � — _ - s- :� � _ � , �.�`� � � � � � � � � � ��.�+�- --_- .�:_ � e� �� - � ,� - ,, - - - - , . - - � �� - - . �\ `\` Y .5 �� !� yl �,J �.� � ,. „�� r r 'I.. d' �'� ;�.:� (`; p i � .;-'�.x: .!a"]�nY.a'��•'�r _� �' �„ t ,so' .. . . � . :. ��, p�� • .y. . . � A. ��_�-- MCFADDE �* '�'�, � __ .._ � r ;�f �� t3 �a '� + a. DISCLAIMER:Thls Informatlon was mmplled �sing the Dubuque Area Geographlc Informatlon SVstem oAcis�,wnid,md�d�dar��eaeed ev eom me ciev oF � Map P�epa�ed by: Dubuque and Dubuque County. It Is understood that,whlle me ciev oF o�e�q�e a�d pa�eidpaei�g age�d��ewzed me City of Dubuque mo��,��e�ca�da��ce��fo�mac�o�a�auabie,oA��sa�d 1 inch = 80 feet EXHIBIT A EngineeringDivision ie�s�,vvue�s do�oe wa��a�e me a��a o��,Re�a of ine mr��maeio�o�dar��o�eai�ed ne�em rne ciev a�d PamdPaei�g 50 West 13th St�eet age��i�snau�oe ee neia uaeie Fo�a�v ai�e�e,i�ai�e�e,i��iae�eai, Dubuque,lowa 52001 ��a�e�eiai,v��ieroe,o�svedai aamae�,wneme�Fo��eeaeie o� ��eeaeie,a��s��g o�e oF me a�eno�izea o��a�eno�izea�se oF 80 40 0 80 F22t Phone:(563)589-4270 mis daea o�me i�aewev eo��mis daea o�o�e oF a�v e�ead,oF wa��a�ry wnarsoe�e� Fax.(563)589-4205 .r�{h -� /�• � '. �,,..• . - _ .r�, .:�� J`d ��r.�.if . `}r-'-�'�:�.5.�.: '��• .__.t. _ � : - � . � . .. . r�'� . �:u�� - •�� - - . . . I�I �!:� - . -- �� I ;,,_ •�� . . _�_ _ � � �,': N _. 1 T ♦� � ` �� ` , vT I ` �~� . . , �� ,''- . f�-�' . �. Y•�� . ,F • . 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'. . .:.}��i.I I--1� . _ _" � 'y" __ --.— _ _ . ..__ _ — � SCALE `� PENNSYLVANIA AVENUE at RADFORD ROAD 0 25 50 CONCEPTUAL ROUNDABOUT LAYOUT GHD,Inc., DUBUQUE, IOWA 5325 Wall Sheel,Suite 2305 T 608 249 4545 F 608 249 4402 E ma0lson�ghd.com W www.ghd.com PbtDate: 8/42015 FileName: G188�86188311owaDOTGenaralWorkOrderN6lDubuque-PannandRaMoMCoricepWalLayoutE#iibtl.dpn RESOLUTION NO. 14-19 ESTABLISHING THE FAIR MARKET VALUE OF REAL PROPERTY FOR THE PENNSYLVANIA AVENUE & RADFORD ROAD INTERSECTION IMPROVEMENTS PROJECT, DIRECTING GOOD FAITH NEGOTIATIONS FOR THE FEE TITLE ACQUISITION OF PROPERTY AND AUTHORIZING THE COMMENCEMENT OF EMINENT DOMAIN PROCEEDINGS, IF NECESSARY, TO ACQUIRE PROPERTY WHEREAS, the City of Dubuque (City) has caused to be made appraisals of the properties described below for the Pennsylvania Avenue & Radford Road Intersection Improvements Project and the appraised values for the properties are listed below; and WHEREAS, the legal description of each of the properties to be acquired, the owners and the appraised valuation of each of the properties is listed below; and PROPERTY OWNER(S) JUST COMPENSATION VALUE Part of Lot 2-1-1-1, Block 1, Northrange Industrial Park, as shown on Exhibit A attached; and Part of Lot 2-1, Northrange Sub. #1, as shown on Exhibit A attached Widmeier Holdings LLC and Widmeier Investments LLC $34,000.00 Part of Lot 1-2-1-1, Block 2, Northrange Industrial Park, as shown on Exhibit A attached James A. Christensen $51,000.00 Part of Lot 1, Mcfadden Farm Place #2, as show on Exhibit A attached McFadden Family Partnership $1,200.00 and; WHEREAS, Iowa law requires that the City make a good faith effort to negotiate with the owners regarding the purchase before preceeding with condemnation; and WHEREAS, the City may not make an offer to purchase a property which is less than the Just Compensation Valuation (Fair Market Value) established for the property; and WHEREAS, the City Council now desires to establish the Just Compensation Valuation (Fair Market Value) for each of the properties; and WHEREAS, the City wishes to acquire the properties, by fee title acquisition, listed for the Pennsylvania Avenue & Radford Road Intersection Improvements Project by negotiation or eminent domain proceedings, if necessary. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA AS FOLLOWS: Section 1. The Just Compensation Valuation (Fair Market Value) of each of the properties listed above is hereby established to be the amount of its appraised value as listed above. Section 2. The City Manager is directed to enter into good faith negotiations for the fee title acquisition for each of the above properties, and, if necessary, commence eminent domain proceedings to acquire the properties. Passed, approved and adopted this 7th day of January 2019. Attest: Pi oy D. Buol, Mayor