Title
Consider/Discuss/Act on a Resolution Authorizing the Execution of Documents for the Acquisition of Sanitary Sewer and Drainage Easements and the Consideration of the Use of Eminent Domain to Condemn Property for the Construction of a Sanitary Sewer line and Drainage Facilities on a property which is Generally Located West of Bois D’Arc Road and South of US 380
Summary
COUNCIL GOAL: Operational Excellence
(2B: Balance available resources to accommodate the growth and maintenance needs of the City)
MEETING DATE: June 7, 2022
DEPARTMENT: Development Services/Engineering
CONTACT: Gary Graham, PE, PTOE, Director of Engineering
RECOMMENDED CITY COUNCIL ACTION:
• Approval of Resolution using a motion in a form substantially similar to the following:
“I move that we approve this item as written and authorize the use of the power of eminent domain to acquire all necessary easements from Denvil Mixon, as identified as owner of record by the Collin County Appraisal District, and any other persons or entities claiming an interest to the property, generally indicated on the attached property location map, for the construction of a sanitary sewer line and associated drainage facilities.”
ITEM SUMMARY:
• This item provides authority to the City Manager to execute documents for the acquisition of sanitary sewer easements and drainage easements; and the use of eminent domain to condemn property for the construction of a sanitary sewer line and drainage facilities to serve the future development and adjacent or nearby properties in accordance with a Development Agreement.
BACKGROUND INFORMATION:
• The City entered into a Development Agreement with property owner Craig Drive Six, L.P. (Craig), or its assigns, for the development of 15.07 acres located to the west of Bois D’Arc Road and south of US 380.
• Under the Agreement, Craig, or its assigns, agreed to fund and construct, at no cost to the City, certain public infrastructure including the extension of offsite utility and drainage improvements across an approximate 37-acre tract owned by Mixon to provide service to Craig’s property and adjacent and or nearby properties.
• Prior to commencement of construction Craig, or its assigns, is required to convey or cause to be conveyed any necessary off-site infrastructure easements which include a sanitary sewer easement and a drainage easement (collectively “Easements”). The Easements are necessary to convey sanitary sewer and stormwater from Craig’s property in a southwesterly direction upon over, and across the adjacent Mixon property to the City’s sanitary sewer and stormwater systems.
• Craig, or its assigns, obtained an independent appraisal to determine the fair market value of the Easements and extended an offer to purchase from Mixon. Craig, or its assigns, has been unsuccessful in the acquisition of the Easements after using all commercially reasonable efforts to do so.
• In accordance with the agreement:
1. If Craig, or its assigns, is unable to acquire all the necessary offsite easements after using reasonable and diligent efforts, upon written notice to the City, the City agrees to use its eminent domain authority subject to approval of City Council to acquire the necessary property interests for Craig’s, or its assign’s construction of the requisite facilities.
2. Craig, or its assigns, has been unsuccessful in its efforts to obtain all the necessary easements and has submitted satisfactory documentation of it’s efforts along with a written request that the City use its eminent domain authority to acquire the needed property rights.
3. In the event the City elects to acquire any property interests through eminent domain, Craig, or its assigns, agrees to reimburse the City for all costs associated with acquiring those interests for public use.
• This agenda item provides authority to the City Manager to execute documents for the acquisition of easements and to take all necessary steps to acquire property rights in order to construct a sanitary sewer line and stormwater facilities to serve future development and adjacent and nearby properties.
• As previously presented to Council, Senate Bill 18 (SB 18) was passed into law during the Texas 82nd Regular Legislative Session and became effective September 1, 2011. The Bill created the following impacts on negotiations and the eminent domain practices of the City:
o The Truth in Condemnation Procedures Act states that a governmental entity must authorize the initiation of a condemnation proceeding at a public meeting and must be approved by a record vote.
o The Act also requires the governmental entity to include in the notice for the public meeting, “the consideration of the use of eminent domain to condemn property” as an agenda item.
o Under the Act, a single ordinance or resolution authorizing the initiation of the condemnation proceeding may be adopted for all units (parcels) of property to be condemned for a utility line from point to point, along a general area/route without identifying a list of specific parcels.
o The required motion (as provided above) indicates that the first record vote applies to all units of property to be condemned. If action is taken as a single vote the minutes of the meeting must reflect that the first vote applies to all units.
FINANCIAL SUMMARY:
• Per the development agreement, funds for the acquisition of easements will be provided for by Craig, or its assigns.
BOARD OR COMMISSION RECOMMENDATION:
• N/A