Title
Consider/Discuss/Act Upon Adoption of a Resolution Determining a Public Necessity to Acquire Certain Property for Public Use by Eminent Domain for Right-of-Way (in Fee Simple) for the Construction Associated with the Stacy Road Elevated Storage Tank Project Located Along Stacy Road Approximately 2400 Feet East of Alma Road; Authorizing the Deputy City Manager to Establish Procedures for Acquiring the Right of Way (in Fee Simple) on Said Property, and Take All Steps Necessary to Acquire the Needed Property Rights in Compliance with all Applicable Laws and Resolutions
Summary
MEETING DATE: March 18, 2014
DEPARTMENT: Development Services / Engineering
CONTACT: Mark Hines, PE, Director of Engineering
RECOMMENDED CITY COUNCIL ACTION:
· Approval of Resolution using a motion in a form substantially similar to the following:
"I move that the City of McKinney, Texas, City Council approve this item as written and adopt the Resolution described in this agenda item and authorize the use of the power of eminent domain to acquire for public use all necessary right-of-way (in fee simple) from the owners of the property depicted on and described by metes and bounds attached to said Resolution, said depiction and description being incorporated in their entirety into this motion for all purposes including the construction, access, and maintenance of the Stacy Road Elevated Storage Tank located along Stacy Road approximately 2400 feet east of Alma Road."
ITEM SUMMARY:
· This Resolution provides authority to the Deputy City Manager to execute documents for the acquisition of right-of-way (ROW) in fee simple; and the use of Eminent Domain to condemn property to construct the Stacy Road Elevated Storage Tank located along Stacy Road approximately 2400 feet east of Alma Road.
BACKGROUND INFORMATION:
· The 2013 Water Distribution System Master Plan provides for an elevated water storage tank in the vicinity of Alma Road in the Regional Employment Center area.
· The 2013-17 Capital Improvements Program currently has funding for the acquisition of land rights for construction of said elevated water storage tank.
· The engineering consulting firm of Birkhoff, Hendricks & Carter, LLP and staff has identified a suitable site in the area of Alma Road and Stacy Road for the construction of the tank.
· The City needs to acquire 2.170 acres of ROW (in fee simple) prior to construction of the Project.
· The affected property owners have been informed of the project details and proposed acquisition.
· The property owners sent the City a Letter of Intent stating that they would be willing to sell the approximate 2 acres to the City for $7.40 per square foot ($322,344.00 per acre) for a total purchase price of $699,486.00. No documentation or appraisal was submitted to the City to support the requested value.
· Staff informed the property owners that the City would need to perform due diligence and have an appraisal completed before extending an offer to purchase the proposed property.
· An independent appraisal firm has completed the appraisal and the property owners are in receipt of the City's initial offer to purchase 2.170 acres for $190,000.00 ($2.00 per square foot/ $87,558.00 per acre).
· The City will attempt to amicably acquire the necessary property rights from the landowners voluntarily through the making of bona fide offers prior to filing an action in Eminent Domain.
· In the event eminent domain proceedings for the acquisition of property rights for the construction of the Stacy Road Elevated Storage Tank may be necessary, this Resolution would authorize said action.
· This project meets the following Core Businesses of the City:
· Plan McKinney's Future Development
· Provide Essential Utility Services for Daily Living
· The acquisition of the following property is necessary for the Stacy Road Elevated Storage Tank Project:
Property Owner |
Description |
Area |
Resolution Exhibit |
Paul & Virginia Lehner |
Fee Simple ROW |
2.170 Acres |
B |
FINANCIAL SUMMARY:
· Funds for the fee simple acquisition are available in the Capital Improvements Program in WA5019.
BOARD OR COMMISSION RECOMMENDATION:
· N/A