1j. Lake Riley Utility Project, Curry Property: Condemnation Payment.12%11•'91 WED 11:51 FAX 612 452 5550 C K S R F 4y� CHANHASSEN l j002
' CAMPBELL, KNU
TSON SCOTT & FUCHS P.A.
Attorneys at Lain
(612) 452 -5000 .Andre McDo"v l Pochler
Rzwor N. K,nil,cin
Matnc�su K. 1'rctikl "`
['h:,:cla +: M. Scott MaT�
Fax (612) 452 -5550 jol F. K,cIly
I h p (..Fuchs ucrirc M. I ML:Cairron
' 1:111)L:% R. W,11 5tllll George T. S[epllcnsnn
Elh(' 13. Kncr;ch "Also IICCI1SCli ui Wi>CI
5iu•san Lea Pair December 11, 1996
' Mr. Don Ashworth
City Manager
' City of Chanhassen
690 Coulter Drive
Box 147
' Chanhassen, MN 55317
Re: City of Chanhassen / Lake Riley Utilities Project
' Condemnation of Curry Parcel
' Bear Don:
As you know from prior correspondence regarding this matter, the three court
appointed commissioners held hearings in November to determine the appropriate
' compensation to be paid to James and Barbara Curry for the property acquired from
them in the above- referenced Lake Riley utilities project. The Commissioners' Award
' was in the amount of $135,760.00, which award included the statutory reimbursement
of $500.00 for appraisal fees. As you know, both the City and the landowner have
the right to appeal from that Commissioners' Award and resubmit the matter to a jury
' in Carver County. However, I do not believe it in the City's best interest to appeal
from the award and recommend that no appeal be taken.
' I did anticipate that the landowner would appeal the platter. My belief was
based on the following:
L The total easement acquisition area was 3.87 acres.
' 2. The City's appraisal of damages for the taking was $108,100.00. Our
appraiser had valued the property at $21,000.00 per acre. He had also
concluded that a small severance damage was appropriate and had
calculated a temporary easement compensation.
3. The landowner's appraiser appraised the damages at $190,000.00. He
' appraised the portion of the property zoned residential at $28,000.00 an
Suire 317 • Eagandale Office Center • 1.380 Corporate Center Curve • Epti, NIN 55121
12•'11 %96 WEI> 12 :00 FAX 612 452 5550 C K S & F yyy CHANHASSEN
Mr. Don Ashworth
December 11, 1996
Page 2
acre and the portion of the property shown as commercial on the
comprehensive plan at $45,000.00 an acre.
The Conunissioners' Award adopts the $28,000.00 per acre value for the
entire taking area, ignores the commercial valuation issue, and awards a
certain amount for severance and temporary easements consistent with
the City's appraisal.
In January and April, 1996, pursuant to the "quick take" proceeding of the
condemnation, the City has already paid $105,200.00 to the landowner, the balance
due is thus $30,060.00. The landowner is entitled to recover statutory interest at the
rate of 6% on that amount from February 1, 1996 and is entitled to reimbursement for
other appraisal and engineering fees incurred in the condemnation proceeding.
I have received a letter from the landowner's attorney indicating the
landowner's willingness to settle for the Commissioners's Award plus interest plus
reimbursement for the fees that the City is required either by case law or statute to
pay. I strongly recommend that the City approve that settlement since it is the
minimum amount that is owed under the Commissioners' Award. While it is always
possible that an appeal of the matter to a jury could result in a lesser award, in this
case that is extremely unlikely and the cost of the appeal and the jury trial would, in
my opinion, greatly exceed any reduction that may be achieved in the award.
Based on all of the above, I strongly recommend the Council approve payment
of the following:
a. Balance of payment due on award:
b. Interest at 6% from February 1, 1996
to January 1, 1997:
b. Appraisal fee:
C. Planning and engineering costs:
Total
$30,060.00
$ 1,653.30
$ 1,630.00
732.50
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12 11-n6 WED 12:00 F.A-X 612 452 5550 C h S & F CHANHASSEN 0 004
Mr. Don Ashworth
December 11, 1996
' Page 3
' Finally, I request the matter be submitted to the Council for its consideration at
its earliest convenience since the time for appeal is running and a decision on appeal
' must be made before the end of the year.
As always, if you or any member of the Council have any questions, please feel
' free to call me.
1
1
GGF:cah
r
Very truly yours,
CAMPBELL, KNUTSON, SCOTT