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REQUEST FOR COUNCIL ACTION
RESOLUTION: 2008-34
SUBJECT: Resolution authorizing a settlement offer between Fidelus Depew and the City of Lakewood for Parcel 12 for the Colfax at Simms Street Intersection Improvement Project located at 1485 Simms Street.
ADDRESS: 1485 Simms Street.
RECOMMENDATION: Staff recommends approval of this resolution.
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The City has been negotiating with Lee Bieker, the designated representative
for Fidelus Depew which is the trust that owns the subject property, and we
have reached a settlement figure for the acquisition of this parcel. This settlement
figure was based on the City's appraisal reports and Mr. Bieker's final settlement
proposal.
Historically, when the City resolves 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's price per square foot. Mr. Bieker's price per square foot settlement offer was $27.50, and the City's appraisal report determined the value to be $7.50 per square foot. Using the formula described above, Mr. Bieker and City Staff agreed on a settlement price of $17.50 square foot. The settlement offer includes an additional $24,272.00 value for the landscaping improvements that will be removed as a result of the project, which was determined by Steven Day of Day & Associates, a tree and landscaping consultant. The City's appraised value for the landscaping was $8,000.00. The total proposed settlement amount is $57,212.00. Mr. Bieker was informed that before the City could accept this settlement offer, staff would have to present the offer to City Council for approval. After accepting this settlement offer the City received the owner's appraisal report, which had a total compensation value of $62,235.00. Even though the appraisal report is higher then the agreed settlement offer Mr. Bieker has accepted the settlement offer of $57,212.00.
Staff believes this is consistent with how a court would have determined 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: March 24, 2008.
ORIGINATED BY: Department of Public Works
STAFF PERSON RESPONSIBLE: Ted Van Horn, Right of Way Agent, 303-987-7643
DOCUMENTS ATTACHED: Resolution
2008-34
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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