Item 6: Ordinance Vacating a Portion of Moss Street

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Both the City and the Duncan & Brown appraisals discounted the areas of the proposed utility easements by 25%. It was proposed to reserve a 15’ easement on each side of the proposed vacation for a gas line (east side) and a waterline (west side). The D&B appraisal further discounted the remaining area between the 2 easements by 25% as they believed it would be similarly restricted because of the resulting narrow shape limiting how it could be developed. As it appears based on proposed development the present highest and best use will continue to be as parking and a driveway in which case the narrow shape would limit such use. And to further mitigate the perceived damage to the area between the 2 easements it is believed reasonable to conclude the gas line can be moved into the westerly easement and run parallel to the waterline. It was explained to be a small gas pipe. EWEB explained it was their understanding there would need to be a 3 foot separation between the gas and waterline. As such, it might be reasonable to increase the 15 foot utility easement by the extra 3 feet from the 15’ proposed easement to 18’. This would assume a horizontal separation and provide the same distance on the outside of both of the pipes in the after condition. If vertical separation were used it could minimize the additional easement area. But for this analysis, we are assuming adding the 3 feet horizontal separation. This results in the following vacation assessments: Easterly half. 29,364 square feet of the right of way at the D & B market absorption adjusted rate of $37.70 per sq ft yielding $1,107,022 Westerly half. 16,148 sq ft (22’ x 734’) unencumbered at the D & B market absorption adjusted rate of $28.75 per sq ft yielding $464,255 The 18’ x 734’ (13,212 sq ft) to be encumbered by a utility easement for the water and gas lines at $21.56 (75% of $28.75) per sq ft yielding $284,850 Total estimated assessment recognizing the D & B market absorption rates and related discounting along with combining the utility easements. $1,856,000 (rounded from $1,856,127)** The City’s original estimate of assessment of special benefit was $2,136,000 based on $40 per sq ft with 25% adjustment for easements. D & B’s revised estimate dated 9/16/10 after deleting an emergency vehicle access and adjusting to 2 – 15’ easements yielded $1,590,000. As a point of reference, the mean of the 2 values would be $1,863,000. ** The recommended final proposed assessment of $1,856,000 was concluded as a mutually acceptable administrative settlement by city and university staff and is supported on the findings of both appraiser’s reports. The assessment further assumed using one 18’ utility easement as opposed to two 15’ easements.