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Item 8ACITY OF SOUTH LAKE MEMORANDUM (May 18, 2010) To: Shana Yelverton, City Manager From: Robert H. Price, P.E., Public Works Director Subject: Resolution No. 10-022, Authorize the city attorney to bring condemnation action for the purpose of obtaining street right- of-way for the construction and maintenance of North Kimball Avenue located in the T. Mahan Survey, Abstract 1049 at 400 North Kimball Avenue. Action Requested: Approve Resolution No. 10-022, authorizing the city attorney to bring condemnation action for the purpose of obtaining street right-of-way for the construction and maintenance of North Kimball Avenue located in the T. Mahan Survey, Abstract 1049 at 400 North Kimball Avenue. Background Information: Kimley Horn & Associates, Inc. has prepared construction plans for Phase 1 of the North Kimball Avenue widening project. In order to facilitate construction of the proposed improvements, right-of-way will be required from 8 tracts of land located along North Kimball Avenue between S.H. 114 and Kirkwood Boulevard. One of the tracts is owned by NCI Group, Inc. at 400 N. Kimball Avenue. On August 5, 2009, city staff held a meeting regarding acquisition and gave the property owner an offer letter to purchase the right-of-way at a price based on the appraised value for the tract. The owner notified the city on August 26, 2009 that the subject tract was under contract of sale to Kimball Southlake, L.P. and authorized the city to negotiate terms with the prospective buyer, although at the time of the offer the tract was still owned by NCI Group and any compensation offered would be due to NCI Group. City staff subsequently made contact with Kimball Southlake, L.P. and clarified and discussed the terms of the initial offer. On January 18, 2010, both NCI Group and Kimball Southlake, L.P. indicated that they were ready to proceed with the right-of-way acquisition at the city's initial offer price. At that time, the city attorney was asked to draft a contract of sale between the city and both NCI Group and Kimball Southlake, L.P. Since that time we have been unable to consummate the Contract of Sale. On May 4, 2010, the City Attorney's office notified the attorney for NCI Group that we would be requesting the Council authorize condemnation proceedings. On May 11, 2010, the attorney for NCI Group submitted revision requests to the draft contract of sale to the city attorney. Neither party has executed the contract of sale and City staff has not received an independent appraisal from the owners or any counteroffer to the city's original purchase offer. Therefore, staff is presenting the resolution for condemnation to the Council for action. The City Staff and City Attorney are prepared to continue negotiations with the property owners, but are requesting approval of Resolution 10-022 to continue the process in a timely manner. The City Attorney is prepared to make a final offer to NCI Group and Kimball Southlake, L.P. and proceed with condemnation proceedings if the offer is rejected. Financial Considerations: Funds are budgeted in the FY 2008 and FY 2009 General Fund CIP. Strategic Link: The construction of the North Kimball Avenue widening project links to the city's strategy map relative to the focus areas of Mobility and Infrastructure. The specific corporate objectives that are met by the construction of this new transportation infrastructure include: Providing travel convenience within the city and region, investing to provide and maintain high quality public assets, and providing high quality customer service. Citizen Input/ Board Review: None Legal Review: The resolution was prepared by the City Attorney. Alternatives: The City Council may approve Resolution No. 10-022 or deny it. Supporting Documents: Location Map Resolution No. 10-022 Right-of-way exhibit Staff Recommendation: Approve Resolution No. 10-022 Authorizing the city attorney to bring condemnation action for the purpose of obtaining street right-of-way for the construction and maintenance of North Kimball Avenue located in the T. Mahan Survey, Abstract 1049 at 400 North Kimball Avenue. Staff Contact: Robert H. Price, P.E., Public Works Director Gordon J. Mayer, Jr., P.E., City Engineer Michael James, P.E., Civil Engineer Z O_ H a O J H w W CL O w a wa RESOLUTION NO. 10-022 A RESOLUTION OF THE CITY OF SOUTHLAKE, TEXAS AUTHORIZING THE CITY ATTORNEY TO BRING A CONDEMNATION ACTION FOR THE PURPOSE OF OBTAINING A RIGHT OF WAY FOR THE PURPOSE OF CONSTRUCTION AND MAINTENANCE OF ROADWAY IMPROVEMENTS OR FOR OTHER PUBLIC PURPOSES PERMITTED BY LAW WHEREAS, the City of Southlake is in the process of constructing public roadway improvements along North Kimball Avenue (the 'Project") which will serve existing and future development in the City; and WHEREAS, in order to complete construction of the Project, it is necessary for the City to acquire a right of way from property owners who own land across which the Project will be located; and WHEREAS, the City and the owner of one of said properties, NCI Group, Inc., (the "NCI Property"), have been unable to reach an agreement on the acquisition of the needed right- of-way; and WHEREAS, the City Council now deems it necessary to authorize the City Attorney to initiate condemnation proceedings in order to acquire the necessary easement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS: SECTION 1. The City Council of the City of Southlake, Texas, hereby finds and determines that the recitals made in the preamble of this Resolution are true and correct, and incorporates such recitals herein. SECTION 2. The City Council of the City of Southlake, Texas hereby finds and determines that a public necessity exists for the City of Southlake, Texas to acquire a 0.310 acre right of way on the Property, as more particularly described on the attached Exhibit "A" and depicted on the attached Exhibit "B". SECTION 3. The City Attorney is hereby authorized to bring a condemnation lawsuit against the owners, and any and all other parties having an interest in the property, for the purpose of acquiring the above referenced right of way through the exercise of the City's power of eminent domain, provided that the following conditions are first met: Page 1 (a) The City will obtain ownership information and a legal description for each parcel to be acquired; (b) If the property owners and/or other parties are located through the exercise of due diligence, the City Manager, or her designated representative, will: (1) Make a final offer to the owners and/or other parties for the purchase of the above referenced easements; (2) When the final offer to purchase is made, the City Manager or her representative will disclose to the owners and/or other parties, all existing appraisal reports or value studies produced or acquired by the City relating to the owners' or parties' property and used by the City in determining the amount of the final offer; (3) If the owners and/or other parties fail or refuse to accept the City's final offer, the City Manager may direct the City Attorney to file eminent domain proceedings. (c) When any of the owners and/or other parties cannot be located through the exercise of due diligence, the City Attorney may skip the actions described in paragraph (b) and may file eminent domain proceedings against such owners and/or other parties, and shall cite such owners and/or other parties, who cannot be located, by publication in the manner authorized by law. (d) The City Council hereby authorizes the City Manager to make final offers to the owners of such property in such amount as the City Manager determines to be just compensation for conveyance to the City of Southlake of the above referenced easements, based upon appraisals or market studies available to the City Manager. SECTION 4. That the City Council hereby finds and determines that the above described right of way is needed so that the City of Southlake can construct roadway improvements, which is a public purpose and is necessary to serve the public health, safety and welfare. SECTION 5. That this Resolution shall take effect upon its adoption, and it is so Resolved. ADOPTED this day of , 2010. ATTEST: Lori Payne, City Secretary Mayor, City of Southlake Page 2 EXHIBIT "A" LEGAL DESCRIPTION PERMANENT RIGHT-OF-WAY - NORTH KIMBALL AVENUE, PHASE I PARCEL 4 BEING 0.310 acre of land located in the T. Mahan Survey, Abstract No. 1049, Southlake, Tarrant County, Texas, and being a portion of a tract of land conveyed to NCI GROUP, INC.. by the deed recorded in County Clerks File No. D208018532 of the Deed Records of Tarrant County, Texas, Said 0.310 acre of land being more particularly described by metes and bounds as follows: BEGINNING at a "PK" nail found at the Northeast corner of said NCI Group tract, and lying in the centerline of North Kimball Avenue. THENCE S 00' 49' 04" E 320.77 feet, along the East boundary line of said NCI Group tract and along the centerline of said North Kimball Avenue to a "PK"'nail found at the Southeast corner of said NCI Group tract; THENCE S 89' 10' 56" W 44.93 feet, along the new South boundary line of said NCI Group tract, to a %" iron rod marked "Brittain & Crawford" set in the new West right-of-way line of said North Kimball Avenue; THENCE along the new West right-of-way line of said North Kimball Avenue as follows; 1. Northeasterly 45.31 feet, along a curve to the right, having a radius of 1,442.00 feet, a central angle of 01' 48' 00" E, and a chord bearing N 01' 00' 17" E 45,30 feet to a %" iron rod marked "Brittain &'Crawford" set at the beginning of a curve to the left; 2. Northwesterly 64.70 feet, along said curve to the left, having a radius of 1,358.00 feet, a central angle of 02' 43' 48", and chord bearing of N 00' 32' 23" "E 64.70 feet to a %" iron rod marked "Brittain & Crawford" set; 3. N 00' 49' 31" W 206.10 feet, to a %z"-iron rod marked "Brittain & Crawford" set in the North boundary line of said NCI Group tract; THENCE N 82' 46' 28" E 42.25 feet, along the North boundary line of said NCI Group tract, to the POINT OF BEGINNING, containing 0.310 acre(13,504 square feet) of land. LOT 1, BLOCK ;1, MESCO ADDITION CAB.'A', SLIDE 3232, P.R.T.C.T. I Z N 82°46'28"E wl 42.25' POINT OF BEGINNING �F I "PK" NAIL FOUND "PK" NAIL FOUND- , i — -- — — ' W r N z 1 Q J NCI GROUP, INC. CC No. D208018532 I Q J4J� D.R.T.C.T. o1� m 11 _ 1 o Q; CD I� 0 z I = �t 1 o Z �- dWl CC EL Of IUbi PGA 1/2° IRON ROD S w v N < 02"4348" 1 a aj r,7 P R= 1 ,358.00' j z w �� L= 64.70' 1 �� LC= N 00032'23"E Lu 64.70' 1/2 IRON ROD S w a. ®= 01048'00 1 a o R= 1,442.00' L= 45.31 j I I LC= N 01 00 17 E �25,00 4`5.30' "PK" NAIL FOUND 1/2" IRON ROD SEY w z S 89`10'56'eW WI 44.93' CI AREA TABLE JTE INVESTMENTS, LTD. 0.310 ACRE TOTAL VOL. 15405, PC. 216, D.R.T.C.T. 13,504 SQ.FT. SURVEYEDON THE GROUND 0.183 ACRE IN NOVEMBER 12, 2008 PRESCRIPTIVE OF RIGHT-OF-WAY 0.127 ACRE NET ® JAM ES L. BRITTAtN 5,520 SQ.FT. 1674 ES L. B.RITTAIN �ti�FfsS�o�y02 PROPERTY CORNER NOTE REGISTEREDPROFESSIONAL LJ SURF LAND SURVEYOR ALL PROPERTY CORNERS SET ARE 1/2" IRON RODS STATE OF TEXAS NO.1674 WITH CAP MARKED "BRITTAIN & CRAWFORD" CITY 0'F SOUTHLAKE 1400 MAIN STREET SOUTHLAKE, TEXAS, 76092 NORTH KIMBALL AVENUE, PHASE I, S.H. 114 TO PATTERSON WAY EXHIBIT "R" BRITTAIN &CRAWFORD PERMANENT RIGHT—OF—WAY LAND SURVEYING do 0.310 ACRE OF LAND TOPOGRAPHIC MAPPING LOCATED THE (en) szaFAX Nvr-(617R926 t9339xa-snx T. MAHAN SURVEY P.O. BOX "174 ` 3900 SOUTH FREEWAY ABSTRACT .No...1 O49 FOTir WORTH.'TEXAS 76110 E"L admi3Obdfcin—cm f,rd—m SOUTHLAKE, TARRANT COUNTY, \KIMBALL\_ROW-a\ TEXAS SCALE 1 °'= 60'