To: Honorable Mayor and Members of Town Council
From: Michael J. Hyman, Town Attorney
Title
Resolution Authorizing the Acquisition and Immediate Possession of Certain Real Property Through the Statutory Condemnation Process in Furtherance of Construction of the Ridge Road Widening Project [located along Ridge Road between Plum Creek Parkway and Fifth Street]
Body
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Executive Summary
The Ridge Road Widening Project will widen Ridge Road from two lanes to four lanes between SH-86 and Plum Creek Parkway. Ridge Road traffic volumes have risen, and the proposed widening is intended to address safety and operational concerns along the corridor in conjunction with the Town's Transportation Master Plan. The project design shall accommodate for the current roadway configuration and for the ultimate right of way, while providing for safety and connectivity for local traffic. Previously, the Town reconstructed Ridge Road and installed a roundabout at the intersection of Ridge Road and Enderud Boulevard. These improvements, including stormwater, were designed and constructed to accommodate the full four-lane build-out of Ridge Road. The design will include median, sidewalk, bike lanes and streetlights.
In order to construct the Ridge Road Widening Project, it is necessary to acquire right of way, permanent and temporary easements from multiple property owners. In 2019, the Town Council authorized the acquisition of these property interests and conditionally approved the use of the Town’s eminent domain power if, after good faith negotiations, the acquisitions could not be completed by agreement with the property owners.
Pursuant to this Council authorization, the Public Works Department and Town Attorney’s Office have retained appraisers and right of way agents to obtain fair market valuations and conduct negotiations with property owners. Certain acquisitions have been completed, and other acquisitions are pending closing. Unfortunately, staff has not been successful in reaching agreement with the James Dean Bertelsen Trust (the “Owner”) for the acquisition of 1.055 acres of right of way, a permanent slope easement, and a temporary construction easement, which are detailed in Exhibit 1 to the subject Resolution (the “Property Interests”).
Based on the Town’s February 4, 2021, appraisal of the fair market value of the Property Interests, the Town, through its consultant, Western States Land Services LLC, sent the Owner an offer to purchase the Property Interests in the amount of $88,803.70 on June 29, 2021. The Owner asserts that the value calculated for the offer was outdated, pursuant to the appraisal obtained by the Owner in March 2020, and that the Town’s various notices of intent to acquire throughout the years has affected the marketability of the Property Interests.
On October 1, 2021, the Town submitted a revised offer in the amount of $123,751.00 (Attachment B), which represented a 10% increase from the original offer for the consideration of a comparable sale in 2021. The Owner further asserts that an offer cannot be accepted without an updated Owner’s appraisal of the Property Interests and requests that the Town provide payment to allow the Owner to obtain an updated appraisal. Through careful consideration, Town staff declined the Owner’s request because significant delays in obtaining appraisals and scheduling closings would significantly affect this project’s timely progression, and considering that the valuation of the offer was based on the Town’s appraisal in February 2021. Since the Town’s final offer, the Owner has placed the Property Interest for sale, and no response to the final offer has been received. It is apparent to Town staff that a mutual agreement cannot be reached in a reasonable timeframe to ensure that construction of the Ridge Road Widening Project remains on deadline.
Discussion
Under 14.02.070 of the Castle Rock Municipal Code, the Town Attorney must obtain Town Council authorization to commence the statutory condemnation process to acquire the Property Interests. The Owners are afforded the opportunity to address Council and, accordingly, the Owners and their counsel were notified of the Town Council consideration of this Resolution and the opportunity to address Council.
The commencement of the condemnation action enables the Town to seek to acquire possession of the Property Interests at the outset of the legal process. Later, a judicial determination of the fair market value of the Property Interests will be made unless the Town and the Owner reach agreement on valuation. The Owner may elect to have the fair market value determined by a Court-appointed commission or by a jury. In any event, the commencement of the condemnation action does not restrict or impair the ability of the Owner nor the Town to advocate for their respective positions on the proper valuation of the Property Interests.
Recommendation
Staff recommends Town Council approval of a Resolution authorizing the acquisition and possession of the Property Interests through the statutory condemnation process in furtherance of construction of the Ridge Road Widening Project.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Alternative Motions
“I move to approve the Resolution as introduced by title, with the following conditions: (list conditions).”
“I move to continue this item to the Town Council meeting on _____ date to allow additional time to (list information needed).”
Attachments
Attachment A: Resolution
Exhibit 1: Legal Descriptions
Attachment B: Final Offer Letter dated October 1, 2021
Attachment C: Notice of Hearing dated November 8, 2021