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:	December 7, 2006
RE:	Purchase of Easements: Pump Station No. 48 Project – Condemnation Award

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 two tracts.  These were considered by the court appointed panel of appraisers, per the condemnation action, on November 28.  The appraiser’s panel provided their report on December 7 which indicated their award of compensation to the property owners.  The City, if we accept the panel’s award, will need to pay the Clerk of Douglas County District Court.  It is only upon payment to the Clerk of the Court that the City will have the right to access and utilize the condemned property rights.  The two tracts considered by the appraiser’s panel are below:

Project Tract 32

The project plans require a permanent and temporary easement for the construction of the sewer main across the southern portion of the Kmart Distribution Center property.  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) for the easements needed on Lot 1 of the Kmart Center Distribution Center No. 2.  Said purchase was approved by the Governing Body on December 5.  Additional easements are required on Lot 2 of the Kmart Center Distribution Center No. 2.  Because ownership of this parcel is in the control of numerous trustees the property acquisition team needed to acquire the easements through the condemnation action.  The City will need a 100 foot temporary construction easement (approximately 124,956 sq. ft.) which will convert to a 40’ permanent sanitary sewer easement (approximately 83,304 sq. ft.).  Map.

Project Tract 33

Tract 33 is owned by Penske Truck Leasing Co., LP.  The City will need a 100 foot temporary construction easement which will convert to a 40’ permanent sanitary sewer easement (approximately 12,144 sq. ft.) Map and temporary contractor storage and staging areas - Map (approximately 90,265 sq. ft.).

Action Requested:

Authorize payment to the Clerk of the Douglas County District court for the easements needed on the Kmart property (Lot 2 of the Kmart Center Distribution Center No. 2) in the amount of $29,600.(Condemnation Tract 32)

Authorize payment to the Clerk of the Douglas County District court for the easements needed on the Penske Truck Leasing Co., LP property in the amount of $29,000.(Condemnation Tract 33)

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.