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ul r4, 2001 TO: The Board of County Commissioners FROM: loC,`� William G. Collins II — Deputy County Attorney DATE: July 19, 2001 SUBJECT: King's Highway/5th Street, S.W. Right -Of -Way Acquisition In September of 1997 Indian River County acquired title to a .64 -acre parcel of property (56' x 497.92') from Glenn Legwen for King's Highway improvement project. Title was obtained through an Order of Taking in eminent domain proceedings following a deposit to the registry of the court based upon an appraisal of the property. Since that time there has been significant development in the area, and the King's Highway improvement project has been re -designed. The re -design requires obtaining an additional .82 -acres of property from Mr. Legwen. This includes an additional 40 feet in depth for the King's Highway widening and 50 feet in depth across Legwen's 5th Street, S.W. frontage. The Public Works Department obtained an appraisal of the .82 acres required, which valued the taking at $41,600.00. In any eminent domain proceedings a jury is required to make an award to the property owner in a range between the condemning authority's appraisal and the property owner's appraisal. In all likelihood our appraisal would be a floor but not a cap for a jury award. The statutes governing eminent domain proceedings were revised in 1999 to require pre -suit negotiation and a good faith written offer to the property owner. I am requesting authorization from the Board of County Commissioners to make that good faith written offer in the amount of 1.3 times the appraised value, or a written offer of $54,080.00 ($12,480.00 over appraised value). I arrive at this suggested proposal based on our experience with condemnation cases for Indian River Boulevard and surveys that we did of other jurisdictions a decade ago which showed that the actual costs of condemnation were at least 1.3 times appraised value. In part this is because the condemning authority must pay the property owner's attorney's fees, appraisal fees, accountant's fees regarding business damages, and for any other expert testimony regarding the highest and best use of the property. In fact, one of the condemnation cases for Indian River Boulevard involved a 2 -acre parcel of property in which the County eventually settled the suit and acquired title to the property in exchange for $15,000.00 plus a full turning movement driveway onto the Boulevard. However, the award for attorney's fees, expert fees, etc. in that case as ordered by the court was $90,000.00. Further, the Public Works Department is anticipating construction on the King's Highway improvement project to begin in September. Should the pre -suit negotiation fail and eminent domain proceedings be required the earliest the County could take title to the property under quick take proceedings is anticipated to be around December 8th of this year. Such a delay in taking title could result in re -mobilization expenses if a contractor is delayed on work in the vicinity of King's Highway and 5th Street, S.W. IN