08-11-2020 Condemnation of Easement
City Council Meeting
August 11, 2020
Former Target Property “TC3”
Located next to PAEC and across the street from the future
train station
Purchased in 2014 for $8.2 million
Property came encumbered with a recorded Operation and
Easement Agreement (“OEA”) between TC3 and the
neighboring property owned by Hillside.
Previously purchased Toys R Us property (now the site of the
PAEC) had a similar easement that was extinguished for
$300,000.
Easement was recorded in 1986 when Target property was
developed. It envisions the operation of a large box store
and other retail uses.
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OEA is incompatible with City uses
The City needs parking for the PAEC that is required by
local zoning (interim solution for parking is to use
neighboring lots). Long-term solution is likely a parking
structure
The City currently uses the property for construction
lay-down and other activities that require a large open
space near downtown
Given its close proximity to the new train station. A
future public use would be ideal. Further exploration of
the type of public use will be needed.
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Negotiations
Our 2018 appraisal of the value of the OEA was
$330,000.
Hillside countered with $4.3 million
We will continue to negotiate as part of the
condemnation process, but ultimately will condemn
the property and pay the fair market value as
established by a court if no agreement can be reached
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Proposed Ordinance
Finds that there is a public necessity to extinguish the
OEA
Authorizes the initiation of a condemnation lawsuit
Outside condemnation counsel from Miller Nash
Graham and Dunn will continue to handle the matter
Cost for condemnation was included in the 2020
budget adjustment and will be a part of the next
proposed biennial budget
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Questions?
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