Council Communication Office of the City Manager	Date	March 10, 2008
	Agenda Item No. 19 Roll Call No. 08- Communication No. 08-117 Submitted by: Jeb E. Brewer, P.E. City Engineer

AGENDA HEADING:

Approving right-of-way acquisition settlement agreement and accepting easements from MidAmerica Development Company and MidAmerican Energy Company for the Southeast Connector Project – SW 2^nd Street to SE 6^th Street Phase.

SYNOPSIS:

Approval of right-of-way acquisition settlement agreement and acceptance of easements from MidAmerica Development Company, 2000 Financial Center, Des Moines, Iowa 50309, (Marvin A. Pomerantz, Director, and MidAmerican Energy Company, 666 Grand Avenue, Des Moines, Iowa 50309), Gregory E. Abel, Director, for the Southeast Connector Project – SW 2^nd Street to SE 6^th Street Phase. Several easements for right-of-way and construction purposes are needed from this property which is located on the north side of Raccoon Street, between SE 1^st Street and SE 2^nd Street. The City’s Legal and Engineering Departments have negotiated a right-of-way acquisition settlement agreement in the amount of $250,000, which is supported by the City’s most recent independent appraisal and other terms and conditions as outlined below.

FISCAL IMPACT:

Amount: $250,000 plus closing costs

Funding Source: 2007-08 CIP, Street Improvements, SE Connector – SW 2^nd to SE 6^th, STR214, Page – Streets 41.

ADDITIONAL INFORMATION:

This project provides for a four-lane extension of the east/west segment of Martin Luther King Jr. Parkway across the Des Moines River to S.E. Sixth Street. The project will improve access to the central business district, reduce traffic congestion, noise, and pollution, and provide better access for industrial areas in the central city. On November 9, 2007, the City received authorization from the Iowa Department of Transportation (DOT) to commence acquisition of all necessary property interests for this project.

The City’s Legal and Engineering Departments have negotiated a right-of-way acquisition settlement agreement with MidAmerica Development Company and MidAmerican Energy Company including the following terms:

(1) The City will pay consideration in the amount of $250,000 to MidAmerica Development Company and MidAmerican Energy Company for acquisition of the permanent and temporary easement interests required for the project, which amount includes compensation of all land value and severance damage items relating to the relocation and replacement of existing outdoor storage and parking areas.

(2) Upon approval by the City Planning and Zoning Department, the City will vacate and convey to MidAmerican Energy a portion of SE 2^nd Street valued at $20,000 to be used by MidAmerican Energy for internal site access in lieu of providing continued access to SE 2^nd Street and Raccoon Street. The portion of SE 2^nd Street will be conveyed at no cost to MidAmerican in accordance with the terms of the settlement agreement. MidAmerican had previously requested compensation in the amount of $90,247 for gates with card readers and a chain link fence as part of their requirements for access to SE 2^nd Street, which will no longer be needed with this conveyance of City-owned property. Furthermore, the conveyance of this City-owned property eliminates any need for public or private vehicular access to SE 2^nd Street between Market Street and Raccoon Street and to Raccoon Street between SE 2^nd Street and SE 4^th Street, which allows for expansion and increased security of the City’s Fleet Services operation.

In consideration of all factors involved with this property acquisition, this settlement agreement is within a reasonable range of the City’s most recent independent appraised value of $219,000, and without this settlement, the City would have needed to use condemnation to acquire the necessary property rights for the project.

PREVIOUS COUNCIL ACTION(S):

Date: September 24, 2007

Roll Call Number: 07-1829

Action: Establishing fair market value and authorizing acquisition of 200 SE 3^rd Street for the Southeast Connector Project – SW 2^nd to SE 6^th Street Phase. (Council Communication No. 07-578) Moved by Kiernan to adopt. Motion Carried 7-0.

Date: April 25, 2005

Roll Call Number: 05-969

Action: Authorization to proceed with acquisition of the necessary right-of-way and easements for the SE Connector Project from SW 2^nd Street to SE 14^th Street. Moved by Vlassis to adopt. Motion Carried 7-0.

BOARD/COMMISSION ACTION(S): NONE

ANTICIPATED ACTIONS AND FUTURE COMMITMENTS: NONE

For more information on this and other agenda items, please call the City Clerk’s Office at 515-283-4209 or visit the Clerk’s Office on the second floor of City Hall, 400 Robert D. Ray Drive. Council agendas are available to the public at the City Clerk’s Office on Thursday afternoon preceding Monday’s Council meeting. Citizens can also request to receive meeting notices and agendas by email by calling the Clerk’s Office or sending their request via email to cityclerk@dmgov.org.