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Date
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April 7, 2008
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Agenda
Item No. 19 Roll
Call No. 08
- Communication No. 08 -202 Submitted by: Jeb
E. Brewer, P.E. City Engineer |
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AGENDA
HEADING:
Approval of
right-of-way acquisition settlement agreement and accepting real estate
documents from Principal Life Insurance Company for the High Street Realignment
–
SYNOPSIS:
Approval of
right-of-way acquisition settlement agreement and acceptance of real estate
documents from Principal Life Insurance Company, 711 High Street, Des Moines,
Iowa, 50309, (Ted Brackett, Assistant Vice President Corporate Real Estate),
for the High Street Realignment – 10th Street to 14th
Street Project. A partial fee acquisition
of Principal’s surface parking lot and parking ramp property at
FISCAL
IMPACT:
Amount: $1,814,250 partial fee
acquisition; $525,000 estimated parking lot reconstruction work; $70,400
temporary replacement parking costs; and closing costs.
Funding Source: 2007-08 CIP,
Page Streets-20, STR204, CP038, High Street Realignment; Various State and
Local Funding; including $2,000,000 from
ADDITIONAL
INFORMATION:
On February 11, 2008, by Roll Call No. 08-210, City Council authorized
the acquisition, by gift, negotiation, or condemnation, of the right-of-way
required to construct this project and approved the fair market values for
multiple properties. A partial
acquisition consisting of 36,285 square feet of Principal’s parking area is
required and the fair market value of this property was determined by an
independent appraiser at $1,530,000.
The City’s Engineering Department and its Real Estate Division have
negotiated a right-of-way acquisition settlement with Principal Life Insurance
Company including the following terms:
(1) The City will
pay consideration in the amount of $1,814,250 to Principal for acquisition of
the partial fee interest required for the project. In consideration of all factors involved with
the property acquisition, this partial fee acquisition portion of the
settlement agreement is within a reasonable range of the City’s most recent
independent appraised value and other recent sales of comparable property in
close proximity to the project area.
(2) The City will
reimburse Principal the actual cost for temporary parking for 176 parking
spaces during the reconstruction of their surface parking lot. This temporary parking cost is estimated at
$70,400 and is based on a 4 month period.
The final cost will be reconciled to the actual timeframe needed to
reconstruct the surface parking lot.
Principal will utilize temporary parking within the City’s parking
system and pay current rates to the parking system. The City will reimburse principal for this
temporary parking cost as a project expense.
(3) The City will
pay Principal’s actual cost, estimated at $525,000, for all reasonable and
necessary parking lot reconstruction work, which is required as part of the
partial acquisition of the property. The
final cost for said work, estimated at $525,000, shall be based on the final
design requirements to be approved by the City and Principal’s lowest
responsible bid for said work.
The additional costs identified above for temporary replacement parking
and surface parking lot reconstruction work were not included as part of the
City’s appraisal, but the City is required to pay for these items under Iowa
Law. Furthermore, without this
settlement, the City would have needed to use condemnation to acquire the necessary
property rights for the project, which would delay the construction of
Wellmark’s new corporate headquarters.
PREVIOUS
COUNCIL ACTION(S):
Date:
February 11, 2008
Roll Call
Number: 08-210
Action: Establishing
fair market value and authorizing acquisition of multiple properties for the
High Street Realignment –
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,