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TO: Charles Balczun, County Administrator FROM: . William Collins, Assistant County Attorney THROUGH: Charles P. Vitunac, County Attorney DATE: January 12, 1988 SUBJECT: Proposed settlement on Health Department condemnation of Montgomery property at 1902 27th Street. Background The acquisition of this parcel was authorized by Resolution 86-82 on September 23, 1986 as part of an assemblage of land north of the County Administration Building for the purpose of constructing public health facilities. A Declaration of Taking and Petition in Eminent Domain was filed by the County on December 5, 1986. By Agreement between Mrs. Montgomery and the County, on March 23, 1987 Mrs. Montgomery deeded the property over to the County for $23,000, less amounts needed to pay off existing liens on the property. (The $23,000 was an amount the property was appraised at by Thomas Osteen on June 27, 1986. Mr. Osteen's appraisal for the County was based on residential utilization of the property.) Mrs. Montgomery reserved the right to further contest the fair market valuation made by Mr. Osteen as a condition of the quick deed over to the County. The County initiated (11/20/86) and subsequently withdrew (1/9/87) a plan amendment and zoning change to accommodate the proposed institutional health facility use. The proposed changes received a favorable recommendation from the City Planning Staff. The residential uses had been excluded from the area's general "Institutional" designation only to avoid making the existing residences non -conforming. However, City Staff felt the residences amounted to a "spot -zoning" in an institutional area, and favored the proposed change. Mrs. Montgomery's Attorney had an appraisal prepared on February 10, 1987 by Peter Armfield which valued the parcel at $52,000 based on an office use of the property. In comparing Mr. Osteen's $23,000 residential appraisal in June of 1986, and Mr. Armfield's $52,000 appraisal of February, 1987 you should be aware that a court in eminent domain proceedings will instruct the jury to value the property as of the date of the deed to the County, March 23, 1987, and to value the property at the highest and best use for which the property is reasot'tbly adaptable and needed, or likely to be needed in the near or foreseeable future. Considerations in going to Trial Should this case go to trial by jury, Mr. Osteen's appraisal of $23,000 would be inadmissible and another appraisal would be required (estimate $2,000). Mr. 87 JAIL 19 1988 BOOK 70 FA.GE 647