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• DESCRIPTION AND CONDITIONS Additional right-of-way of twenty feet (20') along the west side of 58th Avenue, and ten feet (10') along the north side of 1E4 Street SW is needed in conjunction with the 58th Avenue Improvements Project. The owner has executed a contract at a purchase price of $15,600.00 per acre for the A-1 zoned land. This price per acre is comparable to other similar parcels the County has purchased based upon appraisals or evaluations. The total Contract Price is $50,000.00 which includes $5,148.00 for land based upon a total area of .33 acre, and additional compensation of $44,852.00 for replacement of an artesian well and removal of a large oak tree within the proposed right-of-way, and severance damages to the building, which will become non -conforming at the 58th Avenue set -back line after the acquisition. There are no appraisal or attorney fees. The purchase price is substantially above the County's prior highest offer of $29,704.91; however, the price has now been negotiated down from DLF's previous counter-offers of $72,773.83 in June 2000, and most recently $55,390.10 on August 15, 2000. Negotiations have taken place since May of 1999. Most of the difference between the County's offer and the negotiated price is due to the Seller's higher estimates of: 1) negative impact to the building value with the new right-of-way line approximately twelve feet from the building; and: 2) compensation the Seller claims is justified due to a $1,260.00 per month increase in insurance premiums based upon the non -conformity (primarily, the time period over which the premiums should be subsidized). The amount of monthly increase in insurance premiums has been confirmed with Seller's insurance company. This parcel is one of eight remaining ones that need to be acquired for the 58th Avenue, Phase 11 Project. At this time, I feel that standard negotiations have reached their maximum potential, and the next step, should the Board not approve this transaction, would be to pursue an order -of -taking through eminent domain proceedings. This of course, would likely be both costly, and time-consuming and could further delay the project. RECOMMENDATIONS AND FUNDING Board options are as follows: Option #1: Approve the $50,000.00 transaction, and authorize the Chairman to execute the contract. Option #2: Don't approve the transaction, and authorize staff to acquire the parcel through eminent domain proceedings. Option #3: Don't approve the transaction, don't authorize staff to acquire the parcel through eminent domain proceedings, thereby postponing the project indefinitely. If Option #1 is approved, funding will be from Account #315-214-541-066.12. ATTACHMENT 1) Contract 2) Legal Descriptions September 5, 2000 79 BK 1114 PG 813