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Item 5HCitv of Snuthlake_ Texas MEMORANDUM March 7, 2002 To: Billy Campbell, City Manger From: Pedram Farahnak, P.E., Director of Public Works, 481-2308 Subject: Approve Resolution No. 02-015, authorizing the City Attorney to acquire land located at 525 Pearson Lane, Southlake, Texas by the right of eminent domain for the purpose of construction of Johnson Road Improvements. Action Requested: Approve Resolution No 02-015, authorizing the City Attorney to acquire land located at 525 Pearson Lane, Southlake, Texas by the right of eminent domain for the purpose of construction of Johnson Road Improvements. Background Information: The City Council approved funds for the design and construction of Johnson Road in FY 99/00. The construction plans and specifications have been prepared, bids have been received and the contract was awarded for the roadway rehabilitation and widening on March 5, 2002. As of this date, the right of entry on all parcels of land required for the Johnson Road rehabilitation has been acquired, except for a 1,295 square feet parcel located on the southeast corner of the intersection of Pearson Lane and Johnson Road. The property owner has signed a memorandum of agreement for this acquisition dated December 17, 2001 accepting the City appraised amount of $17,905 for the taking of the above referenced 1,295 square feet. Metroplex Title Company has reported that several liens, including federal, city, county and school liens, amounting to $51,251.75 have been placed against the property. After several discussions between the property owner's attorney and the Title Company, both have recommended that acquisition of the property be made through the Southlake's right of eminent domain. Financial Consideration: Appraised value of $17,905, the attorney fees, the customary Tarrant County special Commissioner's fees, and closing costs. Citizen Input/ Board Review: Not applicable. Legal Review: The entire case has been reviewed by the City Attorney. Alternatives: Not applicable. Supporting Documents: Resolution to acquire land by the right of eminent domain. Right of way Acquisition Report. Staff Recommendation: The City Council approve Resolution No.02-015, authorizing the City staff and the City Attorney to acquire the above referenced parcel by the right of eminent domain. Staff Contact: Pedram Farahnak, P.E., Director of Public Works, 481-2308 Valerie Bradley, Assistant to the Director of Public Works PF/kw RESOLUTION NO. 02-015 A RESOLUTION OF THE CITY OF SOUTHLAKE, TEXAS AUTHORIZING THE CITY ATTORNEY TO BRING A CONDEMNATION ACTION FOR THE PURPOSE OF OBTAINING A STRIP OF RIGHT OF WAY FOR USE BY THE CITY FOR THE CONSTRUCTION OF STREET IMPROVEMENTS OR FOR OTHER PURPOSES PERMITTED BY LAW. WHEREAS, the City of Southlake is in the process of constructing street improvements along Johnson Road, (the "Project") which will serve vehicular traffic in the city; and WHEREAS, in order to complete construction of the Project, it is necessary for the city to acquire right of way from property owners who own land across which the Project will be located; and WHEREAS, the city and the owners of said properties, Elizabeth A. Mitchell of Southlake, have been unable to reach an agreement on the acquisition of this right of way as Elizabeth A. Mitchell is unable to convey clear title to the city for said right of wav, ; and WHEREAS, the city council now deems it necessary to authorize the city attorney to initiate condemnation proceedings in order to acquire the necessary right of way. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS: SECTION 1. The City Attorney is hereby authorized to bring a condemnation lawsuit for the purpose of acquiring a street right of way, being more particularly described on the exhibit attached hereto. SECTION 2. The City Council finds that such acquisition in this condemnation action is necessary in order to serve the public health, safety and welfare. PASSED, APPROVED, and EFFECTIVE this day of , 2002. Mayor, City of Southlake ATTEST: City Secretary APPROVED AS TO FORM AND LEGALITY: City Attorney RIGHT OF WAY ACQUISITION REPORT for THE MITCHELL PROPERTY as a part of the JOHNSON ROAD IMPROVEMENTS FROM PEARSON TO RANDOL MILL CITY OF SOUTHLAKE, TEXAS February 22, 2002 PUBLIC WORKS 1400 Main Street, Suite 320 Southlake, TX 76092 �ut�Fi�cak, TABLE OF CONTENTS Johnson Road Reconstruction Mitchell Property Fact Sheet • The City needs 1,295 ft2 (0.0297 acres) of land from the south-east corner of Johnson Road & Pearson Lane (the Mitchell property). • The City and the Ms. Mitchell have a signed Memorandum of Agreement for this taking executed on December 17, 2001. The agreed compensation to Ms. Mitchell is $17,905. • Since the execution of the Memorandum of agreement, Metroplex Title Company has been working diligently to close this transaction. The following is a list of difficulties encountered: o Ms. Mitchell owes a total of $51 ,251.75 in federal, city, county, and school taxes{the City of Southlake currently is involved in a law suit with Ms. Mitchell for the $7,681.16 she owes the City); therefore, the property has several tax liens against this property. o The land was originally owned by Ms. Mitchell & her husband, who passed away several years ago. Metroplex Title Company discovered errors in Mr. Mitchell's probate and informed the City that these issues would have to be corrected before a title policy could be issued. To open probate will be a lengthy process, lasting possibly several years. o When Metroplex Title Company contacted Ms. Mitchell's attorney, he recommended the City condemn the property. Staff's original strategy was to obtain partial releases from the City of Southlake, Tarrant County and Keller Independent School District so that all $17,905 could be given to the IRS for a partial release. Due the issues listed above, staff is recommending the Council approve staff to proceed with a "friendly condemnation hearing" as the most efficient way of obtaining this property and clearing the liens against the taking. 9 2001-Raw-038-TA ROW-38 EXHIBIT "A" BEING a tract of land out of the J. G. Allen Survey, Abstract No. 18. City of Southlake, Texas, and being part of a 1.226 acre tract of land conveyed to Elbert R_ and Elizabeth A. Mitchell as recorded in Volume 5309, Page 156 of the deed Records of Tarrant County, Texas (DRTCT), and being more particularly described as feltmNs. COMMENCING at a found 5M-inch into rod located in the east line of Pearson Lane (FM 4041) for the southwest comer of said 1.226 acre tract, Thence North 00 degrees 21 minutes 01 seconds East along the east line of said Pearson Lane and the west line of said 1.226 acre tract, for a distance of 20932 feet to THE POINT OF BEGINNING; THENCE North 00 degrees 21 minutes 01 seconds East, continue along the east line of said Pearson Lane and the west line of said 1.226 acre tract, for a distance of 36.04 feet to a point in the center of Johnson Road (FM 4091) for the northwest comer of said 1,226 acre tract: THENCE North 89 degrees 27 minutes 20 seconds East along the center line of said Johnson Road and the north line of said 1.22E acre tract for a distance of 216 50 feet to the northeast comer of said 1.226 acre tract; THENCE South 00 degrees 11 minutes 53 seconds East along the east line of said 1 226 acre tract, for a distance of 23.79 feet to a point for a corner; THENCE South 88 degrees 18 minutes 55 seconds West for a distance of 70.51 feet to a point for a corner; THENCE South 89 degrees 09 minutes 12 seconds West for a distance of 136.26 feet to a point for a corner; THENCE South 44 degrees 35 minutes 22 seconds West for a distance of 14.35 feet to the POINT OF BEGINNING and containing 5,516 square feet or 0,1266 acres of land of which 0.0969 acres lies within a public road. 02/20/2002 04:58 6173298520 METROPLEX TITLE PAGE 02/12 4) MEZ'ROF'LEX TITLE, INC. February 20, 2002 TO: Valerie Bradley The City of Southlake FROM: Sandy Cross Metroplex Title, Inc. RE: Parcel 38 Owned by Mrs. Elizabeth Mitchell I am sorry to inform you that we have come to the conclusion that we will not be able to close and insure the above mentioned transaction. Our conclusion was based on many facts that were learned from different sources throughout the process of checking on the title and taxes. Below is a list of different contacts and findings out: -upon receipt of the TITLE COMMITMENT, our first issues of various tax suits and Federal Tax Liens came about; -we learned theses tax suits and liens WERE against Mr. Mitchell, who is now deceased; -we proceeded to make calls to the various entities regarding the tax suits and also obtained a copy of the tax certificate which showed taxes owed from 1983; -the amount of real estate taxes owed on the property is $51,251,75; very near the appraised value of the entire property; -we made phone calls to the Attorneys for the various entities and were finally told to contact the actual taxing authorities to see if or what amounts would be acceptable in order for us to get a partial release of the property from the tax suits; -we also have contacted the UZS to see if we could get a partial release for the Federal Tax Liens against the property; we were told to gather information to see if there was even enough money involved to pay money to the taxing authorities AND the IRS AND the closing costs AND the attorneys fees for the liens; AND court costs, etc.; -we were advised that Mrs. Mitchell had an attorney, which we also contacted, Mr. Meto Mitiff, and after being made aware of the situation, his advice was to CONDEMN the property. -we then were advised that the title plant researched Mr. Mitchells probate and found many errors were made, which would mean the probate had to be reopened and all errors corrected. This is a very timely and costly procedure that in this instance, would not be advisable. Therefore, we have come to the conclusion that this transaction is not worthy of the amounts of time and monies it would take to correct the issues. 1723 Southlake Boulevard, Suite 100 • Southlake, Texas 76092 Metro (817) 329-8421 • Fax (817) 329.8520 E_ PECAN ACRES ADDITION LOT I �a0 VOL. 388-150, PG. 11 ROBERT & CHRYSTAL BOUDREAUX 2001-ROW-03I P.R.T.C.T. VOL. 13947, PG. 441 D.R. T.C.T. , STA 1+24.21 l PROPOSED EXISTING P I X PAVING FENCE (TYP) I W FIR ------------- --- - - ! JOHN50N ROAD 1+0�0 N827'20s`E 216 50' _ _ 13 00 �- - (VARIABLE WIDTH_ R.0 W ). ._(S45'E. _ u S89'09'12"E . `16.26� 88 18'55'W-----_-_-- 36. 4 70.51' 23.79' x zlo S44'35'22'W ? <. zlc I 14.35' Jl= r ! POINT OF I ° SANDRA JONES x zl� BEGINNING VOL. 13704, PG. 251 0' STATION 0+25.98, p.R.T.C.T. c, �LL1 37.00' RT. TRACT ROW-38 x Wlm i 0.1266 ACRES a -I-< pb�� - 0.0969 IN PUBLIC RD. �, �• �� = 0.0297 ACRES NET !Mti ilq,o IC\j � , LD � NN ° n ELBERT R. & ELIZABETH A. MITCHELL 'T VOL. 5309, PG. 156 71 1.23 ACRES x I1 w j AREA REMAINING 1.10 ACRES !o 0 l6 MAILING ADDRESS: iov 525 PEARSON LANE x I b o KELLER, TEXAS' 76248 x 1 i j FIR I S89'27'20'W 218 85' j (N89.45'W 208.7') x POINT OF PEARSON LANE ADDITION I COMMENCING LOT 3 VOL. 388-170, PG. 22 I P.R.T.C.T. DRAWING OF EXHIBIT "A" 0.0297 ACRE RIGHT-OF-WAY (ROW-38) OUT OF THE J.G. ALLEN SURVEY, A-18 0 F 7 CITY OF SOUTHLAKE, TARRANT COUNTY, TEXAS `gTF "rF lv NOTE: BY \P.G 9� . 9 f ) = DEED CALL HALFF ASSOCIATES 4000 FOSSILCREEKBLVD. :u'° FORT WORTH, TEXAS 76137 JERRY L. LEHEW ................................ I, Jerry L. Lehew, Registered Professional Land Surveyor, do hereby certify °; 9 3 8 9 7 Q; that this plat was prepared from a survey made on the ground v°°.0F under my supervision. �a •.,Fs s)°.• �J GIVEN UNDER MY HAND & SEAL this e ��rA< day of .�K�-Y 2001 S U R V BY Jer y L. L.14sw Registered Professional Land Surveyor 5 0 25 50 00 150 State of Texas No. 3897 SCALE IN FEET \19832\dgn\row\. 0GN=P....138.dgn, REF= PARCEL38.dgn, NTEGRA Realty Resources October 15, 2001 The City of Southlake Attn: Ms. Valerie Bradley 1400 Main Street; Suite 320 Southlake, Texas 76092 SUBJECT: Parcel38 Owned by Ms. Elizabeth Mitchell Southlake, Tarrant County, Texas Dear Ms. Bradley: �I We are pleased to transmit this complete appraisal summary report that was prepared on the above referenced property. The purpose of this appraisal is to derive an opinion of the market value of the part taken and any damages, if present, as of September 18, 2001, the effective date of the appraisal. Our opinion of market value is premised upon the Assumptions and Limiting Conditions outlined herein. The definition of market value may be found in Addendum A. The report has been prepared in conformity withthe Uniform Standards of Professional Appraisal Practice (USPAP) and the Standards of Professional Practice of the Appraisal Institute. The subject is improved with a 1,922 square foot single family residence constructed in 1947. Construction consists of brick veneer and wood siding upon a pier and beam foundation. Interior construction consists of painted gypsum board, wood paneling, vinyl flooring, and carpet. The residence lacks central heat and air. Climate control is provided via multiple window units. The subject consists of approximately 1.1331 acres (49,358 square feet). The subject is located at the southeast comer of Johnson Road and Pearson Lane in Southlake, Tarrant County, Texas. I The property is legally described as Tract 1B, J. Allen Survey, Abstract 18, Southlake, Tarrant County, Texas. LOCAL EXPERTISE. ,NATIONALLY 5757 Alpha Road, Suite 603 Dallas, TX 75240-4670 930 West First Street, Suite 303 , R. Worth, TX 76102-2708 Phone: 972-960-1222 • 800-388-8162 • Fax: 972-960-2922 Phone: 8.17-332-5522 - Fax: 817-336-1621 Email dallas@irr.com Email fortworth@irr.com 7 X October 15, 2001 Page 2 Based on the analyses and conclusions and subject to the definitions, assumptions, and limiting conditions expressed in this report, it is our opinion that, as of September 18, 2001: 1. The fee simple market value of the whole property is ...... $ 90,000 2. The value of the part taken is................................................................... $ 1,943 3. The value of the remainder before the taking is ................ $ 88,057 4. The value of the remainder after the taking is ................... $ 72,095 5. Damages...................................................................................................$ 15,962 6. Total compensation due to the property owner is .............................. $ 17,905 If you have any questions or comments, please contact the undersigned. Thank you for the opportunity to be of service. Respectfully submitted, INTEGRA REALTY RESOURCESIDFW Mark R. Lamb, MAI Gregory B. o State of Texas Certification #TX- 1321648- G State of Texas ertification #TX-1329987-G 8