Memorandum

City of Lawrence

Legal Services Dept.

TO:	David L. Corliss, City Manager
FROM:	R. Scott Wagner, Management Analyst
CC:	Debbie Van Saun, Asst. City Manager Dave Wagner, Asst. Director-Dept. of Utilities
Date:	November 30, 2006
RE:	Purchase of Easements: Pump Station No. 48 Project

On September 5, 2006, the City Commission authorized purchase of approximately 44 acres south of the KTA and north of N 1175 Road and north of Martin Park for the location of the Baldwin Creek Pump Station.  Additional property acquisition, primarily sanitary sewer easements and temporary construction access and staging areas are required throughout the remainder of the project alignment – (see attached project map).  On October 10, 2006, the final contract to the design build team of CAS Construction/PEC Engineering was awarded.  Mobilization for this project has already begun and the property acquisition team is continuing its efforts to obtain all the necessary property interests for the project.

Additional easements remain to be acquired on several tracts which were considered by the court appointed panel of appraisers, per the condemnation action, on November 28.  The property acquisition team has recommended avoiding acquiring a temporary access area through the Kmart Distribution Center property as listed in the condemnation petition.  Representatives of the Kmart center have expressed various concerns about this access point, and City staff, the design build team, and the property acquisition team have worked to secure the needed access on the adjoining property owned by MCV Limited.  On November 14, the Governing Body authorized purchase of required easements and storage areas on this property.  An additional access route (map - 40,665 sq. ft.) has been designed and terms negotiated with the property owner based upon the prior compensation award, in the amount of $15,000.

The project will still require a permanent and temporary easement for the construction of the sewer main across the southern portion of the Kmart Distribution Center property.  The City will need a 100 foot temporary construction easement (approximately 190,00 sq. ft.) which will convert to a 40’ permanent sanitary sewer easement (approximately 75,655 sq. ft.) map.  The property acquisition team has reached a negotiated settlement with the Sears Holding Corporation (the parent company to the Kmart Corporation who manages their real estate transactions), in the amount of $105,000.  The property acquisition team is recommending settlement with the Kmart Corporation/Sears Holding Co. and withdrawal from the pending condemnation action for this tract which is Lot 1 of the Kmart Center Distribution Center No. 2.  Additional easements are required on Lot 2 of the Kmart Center Distribution Center No. 2.  However, ownership of this parcel is in the control of numerous trustees and the property acquisition team will await the appraiser’s panel award of compensation on this tract.

Action Requested

Authorize payment to MCV Limited for temporary access and staging easements in the amount of $15,000.

Authorize payment to the Kmart Corporation in the amount of $105,000 for temporary and permanent easements.

Project Funding

Initial funding for this acquisition will come from the Utilities Dept. capital improvement reserve fund.  Funding for this project will ultimately be shared by the City at large and by development benefiting from this infrastructure improvement through the payment of special connection charges pursuant to Ordinance 8043.