RESOLUTION: 2008-10

SUBJECT: Resolution authorizing a settlement offer between Segura Investors VIII, LLC, Segura Investors IX, LLC and the City of Lakewood for Parcel 4 for the Colfax at Simms Street Intersection Improvement Project located at 1495 Simms Street.

ADDRESS: 1495 Simms Street.

RECOMMENDATION: Staff recommends approval of this resolution.

SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The City has been negotiating with Segura Investors VIII, LLC and Segura Investors IX, LLC, and has reached a settlement figure for the acquisition of this parcel. This settlement figure was based on the City's appraisal reports and the property owner's appraisal report. Based on the City's experience, when we resolve the value discrepancies through a court proceeding the court will generally split the difference in the price per square foot between the two appraisal reports and add the difference to the City price per square foot. Using the above formula the City's appraisal report determined the value at $23.00 per square foot and the property owner's appraisal report had a value of $32.00 a square foot. Both parties agreed to settle on a price per foot of $27.50 which is half the difference between the two appraisals added to the City's price.

Staff believes this is consistent with how a court would have determined to be the fair value of the property. By accepting this settlement offer the City also avoids attorney and court costs which would have added an additional cost of $10,000.00 to $15,000.00 to settle this acquisition.

FUNDING SOURCE: This project is funded by the Federal Safety Fund.

RESOLUTION ADOPTION DATE: January 14, 2008.

ORIGINATED BY: Department of Public Works

STAFF PERSON RESPONSIBLE: Ted Van Horn, Right of Way Agent, 303-987-7643

DOCUMENTS ATTACHED: Resolution 2008-10
Map

SUBMITTED BY:
Ted Van Horn, Right of Way Agent
Larry Dorr, Director of Finance

REVIEWED BY:
Joni Inman, Director, Mayor and City Manager's Office
Michael J. Rock, City Manager

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