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Jackson Parcel 110 memo to BCC July 11, 2019 Page 12 adjacent 1.75 acre parcel was improved with a 2,100 square foot home and a 720 square foot guest cottage. The property was leased back to the owners for a period of time before the buildings were demolished by the County. The remainder 1.28 acre site is now vacant. The adjacent property is depicted on the aerial photo attached to this memorandum as Exhibit "C", but the right-of-way needed for 66th Avenue is not deducted. In the recent past, the County has paid $29,880/acre for an arm's length purchase for the Greene property further south on 66th Avenue near 53rd Street. Using this per acre price, the value of the adjacent parcel is estimated at $38,246.40. The County's initial appraisal of the Parcel was performed by Armfield & Wagner and they assigned a value of $45,000 for the 0.47 acres of right-of-way and $145,000 for the entire property. The appraiser retained by the Jacksons valued the Parcel at $429,000 for a partial take and $510,000 for the entire property. After further discussion, the parties reached an agreement where the County would convey the 1.28 acre adjacent parcel (Parcel 111) to the Jacksons and the sum of $210,000 for the needed 0.47 acre right-of-way parcel (Parcel 110). The conditions of the sale are as follows: 1. The County (or its contractor) will construct an 18' driveway to the remainder Parcel 110. 2. The Jacksons will assume all risks of any drainage issues on Parcels 110 and 111 that may occur as a result of the 66th Avenue improvement project. These conditions were approved by the Public Works Director Due to the close proximity of the new right-of-way line to the front of the house (about 10 feet), most eminent domain appraisers would deem the house a total loss. In arriving at the settlement amount, staff reasoned that its own appraiser deemed the value of the whole parcel to be $145,000 and that the resale value of the adjacent property would be compromised by its smaller size for the area (less than 5 acres), making it most valuable to adjacent property owners like the Jacksons. The Jacksons sought appraisal, engineering and land planning fees in the amount of $22,632.50 which was negotiated downward to $20,000 and attorney's fees pursuant to the eminent domain statute of 33% of the benefit gained for the client ($210,000 - 45,000 = $165,000 x 0.33 = $54,450), making the total cost to purchase $284,450. In the interest of settlement, Mr. Holloway agreed to waive any right to attorney's fees associated with the non -monetary benefits obtained as a result of acquiring the adjacent property and the driveway listed as a condition of the sale. By purchasing the property in advance of filing a lawsuit, staff is attempting to save on expert witness fees that would have been incurred by both parties. Pursuant to eminent domain statutes, the County is responsible for paying reasonable expert witness fees