HomeMy WebLinkAboutItem 1: Ordinance on U of O - Moss Street Vacation
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Public Hearing: Ordinance Vacating a Portion of Moss Street Located between
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East 15 Avenue and East 17 Avenue (VRI 10-1)
Meeting Date: November 21, 2011 Agenda Item Number: 1
Department: Planning and Development Staff Contact: Steve Ochs
www.eugene-or.gov Contact Telephone Number: 541/682-5453
ISSUE STATEMENT
The City Council will hold a public hearing on a street vacation request submitted by the University of
Oregon. The property affected by this proposed action is the north/south right-of-way of Moss Street
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between East 15 Avenue and East 17 Avenue. A map and aerial context map are included as
Attachments A and B, showing the proposed street right-of-way to be vacated. This item is scheduled
for public hearing only; action is currently scheduled for December 12, 2011.
BACKGROUND
The public hearing date for the vacation request has been set for November 21, 2011. As noted above
and shown on the attached map, the University of Oregon is requesting the City of Eugene to vacate the
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Moss Street right-of-way from East 17 Avenue north to East 15 Avenue. The area of the request is
58,729 square feet (1.35 acres). The University is proposing to develop approximately 107 head-in
parking spaces along Moss Street which necessitates the street vacation.
The vacation request process serves as a means to evaluate the need for public-ways as land develops
and uses change over time. Requests for vacation of public streets are considered in accordance with
sections 9.8700-9.8725 of the Eugene Code (EC) and Oregon Revised Statutes (ORS) 271.080-271.230,
and processed pursuant to EC 9.7445–9.7455. The public hearing is subject to quasi-judicial procedures
in State law and as set forth in EC 9.7065 through EC 9.7095.
A complete copy of the University’s application along with other documents and information related to
the vacation request including a written statement, site plans and consent forms, are also contained in a
binder that has been placed in the Council Office for reference.
Public Hearing Notice
In accordance with EC 9.7440 and ORS 271.110, notice of public hearing for the requested street
vacation has been provided in the following manner: on November 8, 2011, notice was mailed to
property owners, interested parties and the Fairmount Neighbors, the officially recognized neighborhood
group; on November 7, 2011, the property was posted in the immediate vicinity of the requested street
vacation; and on November 7, 2011, and November 14, 2011, legal notice was published in The
Register-Guard newspaper. Any written testimony received in response to public notice will be
forwarded to the City Council for consideration.
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Consent of Abutting and Affected Property Owners
In accordance with ORS 271.080, the University has provided evidence of consent to the street vacation
from all abutting property owners and from property owners of at least two-thirds of the property within
the affected area. The State of Oregon owns all of the properties abutting the street right-of-way.
Application materials submitted with the street vacation include consent forms signed by a
representative from the University of Oregon, on behalf of the State of Oregon. The application
materials also include consent forms signed by a representative of the University of Oregon for more
than two-thirds of the affected (required consent) area. The affected area per ORS is an area that is 200
feet on either side of the street and 400 feet beyond each end of the right-of-way to be vacated. Included
in the application materials is a map showing the affected area and identifying properties with signed
consent forms for the street vacation request.
Applicable Criteria
The Eugene City Council will address the relevant approval criteria from EC 9.8725 in making a
decision on the proposed street vacation, as listed below:
The City Council shall approve, or approve with conditions and reservations of easements,
the vacation of improved public right-of-way, public-ways acquired with public funds, or
undeveloped subdivision and partition plats, or portions thereof, including public right-of-
way and improved public easements located therein, only if the council finds that approval of
the vacation is in the public interest.
Additionally ORS 271.120 is relevant as listed below:
271.120 Hearing; determination.
At the time fixed by the governing body for hearing the petition
and any objections filed thereto or at any postponement or continuance of such matter, the
governing body shall hear the petition and objections and shall determine whether the consent of the
owners of the requisite area has been obtained, whether notice has been duly given and whether the
public interest will be prejudiced by the vacation of such plat or street or parts thereof. If such
matters are determined in favor of the petition the governing body shall by ordinance make such
determination a matter of record and vacate such plat or street; otherwise it shall deny the petition.
The governing body may, upon hearing, grant the petition in part and deny it in part, and make such
reservations, or either, as appear to be for the public interest.
As noted above, consent of the required area has been obtained and public notice has been given in
accordance with statutory and local code requirements. Basic provision of necessary public services and
facilities such as transportation and utilities in the area can be maintained upon approval of the vacation
requests. While attached findings indicate that the vacation requests can be accommodated at this
fundamental level, it remains within the council’s purview to identify what additional requirements, if
any, must be made to find that the request supports the public interest in order for the City to release
ownership of the rights-of-way.
The street vacation request was referred to affected City Departments and public utility service
providers. City of Eugene Public Works Transportation and Engineering staff and the Fire Marshal’s
Office have indicated the street vacation would not compromise transportation or emergency access
needs, and there are no stormwater or wastewater services in the portion of Moss Street right-of-way
subject to the vacation request.
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Referral comments from Public Works staff note that adequate public rights-of-way exist to satisfy all
access and traffic circulation in this vicinity. Adjacent uses, which will include University dormitories,
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housing and the Moss Street Child Development Center, will continue to have access from East 15
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Avenue and East 17 Avenue as well as Moss Street. While this section of Moss Street would be
vacated, it will be reconfigured with head-in parking, and therefore, will continue to remain open for
vehicle access. Such access will also help address emergency access requirements if the area redevelops
in the future. While this street configuration will not be required to remain open as a public street, the
University intends to maintain access on this street to serve the adjacent uses (all owned by the
University).
The requested vacation is related to major campus construction projects that have recently occurred on
the University including the Matthew Knight Arena, Alumni Center and Academic Learning Center all
of which have displaced existing parking in the campus area. This reconfiguration, as part of the larger
University’s Parking Plan, replaces a portion of the lost supply of parking east and north of campus and
will increase the parking supply available for students, faculty and visitors. Segments of Moss Street
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north of 15Avenue and Columbia Street just south of East 13 Avenue have been previously vacated
and similarly converted to provide head-in parking. Additional discussion of traffic circulation and
parking considerations can be found in the findings included in Exhibit C to the Ordinance (Attachment
C).
Referral comments and letters of concurrence from utility providers have confirmed that electric and
natural gas lines located in the right-of-way can remain as long as adequate easements are provided.
The applicant has proposed to maintain easements over the Eugene Water & Electric Board water line
on the west side of the right-of-way, and the Northwest Natural Gas line along the east side of the right-
of-way. The easements will be conveyed prior to or concurrent with the recording of the street vacation.
Complete findings in regards to the approval criteria are included in Exhibit C to the Ordinance
(Attachment C).
Determination of Assessment
Pursuant to EC 9.8710(4), the applicant is required to pay a deposit equal to the assessment of special
benefit resulting from the vacation and the disposition of the property to the benefited property owners.
The assessed value of special benefit is to be determined by the City Manager. In this instance, the
value of the real property for the Moss Street right-of-way was determined to be $1,856,000 as detailed
in the attached Moss Street Vacation Assessment Memorandum (Attachment D). The University of
Oregon has deposited that sum with the City in advance of the public hearing, as required. If the
application is approved, the deposit shall be retained by the City, or if the applications are denied the
money shall be returned.
RELATED CITY POLICIES
Approval criteria for vacation requests (the full text is included above) are located at EC 9.8725,
and corresponding statutory provisions at ORS 271.120, which require the council to find that
approval of the vacation request is in the public interest.
Policies related to the vacation request are included in the Metro Plan and Fairmount/University of
Oregon Special Area Study. Findings related to the policies are included in Exhibit C to the Ordinance
(Attachment C).
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COUNCIL OPTIONS
These items are scheduled for public hearing only, however, council action is required within 30 days of
the close of the record following the public hearing to:
1. Approve the vacation requests by ordinance;
2. Modify and approve the vacation requests by ordinance; or,
3. Deny the vacation requests by ordinance.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends that the City Council hold and close the public hearings on the vacation
request, and take action within 30 days of close of record in order to comply with statutory and local
code requirements. Following the City’s receipt of all testimony, the City Manager will make a
recommendation on the merits of each vacation request to be included in the council packet for action.
SUGGESTED MOTION
No motion is suggested as this item is set for deliberations and action on December 12, 2011.
ATTACHMENTS
A.Map of Street Vacation Request
B.Aerial Context Map of Street Vacation Request
C.Draft Ordinance (with Exhibits A – C) for Street Vacation
D.Moss Street Vacation Assessment Memorandum
FOR MORE INFORMATION
Staff Contact: Steve Ochs, Associate Planner
Telephone: 541/682-5453
Staff E-Mail: steve.p.ochs@ci.eugene.or.us
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ORDINANCE NO. _____
AN ORDINANCE VACATING A PORTION OF MOSS STREET
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LOCATED BETWEEN EAST 15 AVENUE AND EAST 17 AVENUE.
The City Council of the City of Eugene finds that:
A.
On May 10, 2010, the University of Oregon, with the consent of the abutting
property owner(s), applied for vacation of the portion of the following described street:
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Portion of Moss Street extending from East 15 Avenue to East 17 Avenue. The
assessor’s maps and tax lots for the properties abutting the proposed street
vacation are: Assessor's Map 17-03-33-33, Tax Lots 7200, 7600, 7700, 7800,
7900, 8000, 8100, 8200, 8300, 8400; and Assessor’s Map 17-03-32-44, Tax Lot
1900, more particularly described in Exhibit A attached to this Ordinance.
The street vacation is subject to the easements described in Exhibit B attached to
this Ordinance.
B.
The City Council of the City of Eugene has approved an agenda setting a public
hearing to be held at 7:30 p.m. on November 21, 2011, for the purpose of hearing protests and
remonstrances to the proposed vacation.
C.
On November 21, 2011, the City Council held a public hearing regarding the
street vacation.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1
. The City Council of the City of Eugene finds that notice of the hearing was
published and posted as required by law, that the consent of the owner(s) of the abutting property
has been filed in the proceedings, and that the vacation of the street right-of-way is in the public
interest, as described in the Findings attached as Exhibit C to this Ordinance.
Section 2
. The street right-of-way described in Exhibit A attached to this Ordinance is
vacated subject to the easements described in Exhibit B attached to this Ordinance and shall
revert pursuant to the statutes of the State of Oregon.
Section 3
. The City Recorder is directed to file a certified copy of this Ordinance with
the Recorder of Lane County, Oregon, together with a map or plat of said property, and a
certified copy of this Ordinance shall be filed with the Lane County Assessor and another
certified copy shall be filed with the Lane County Surveyor.
Passed by the City Council this Approved by the Mayor this
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12 day of December , 2011. _____ day of December, 2011.
__________________________________ ____________________________________
City Recorder Mayor
Ordinance - Page 1 of 1
Exhibit B, Page 1 of 2
Exhibit B, Page 2 of 2
Exhibit C
Findings:
Vacation of Moss Street
for the University of Oregon
(VRI 10--1)
Background
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The University of Oregon’s requested right-of-way vacation includes Moss Street from East 15
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Avenue south to East 17 Avenue. The area subject to the request is 1.35 acres (58,729 square feet).
The vacation request is part of the University of Oregon’s East Campus development plan which
involves the vacation of portions of Moss Street and Columbia Street from the City. The University
owns all properties that abut the right of way and is proposing to replace the existing on-street
parallel parking with head in parking along Moss Street. This will increase the parking supply
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available for students, faculty and visitors. Segments of Moss Street north of 15 and Columbia
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Street just south of East 13 Avenue have been previously vacated and similarly converted to
provide head in parking.
The vacation request process provides a means to evaluate the need for public ways as land
develops and uses change over time, and to address the manner in which the City may dispense with
public ways. Requests for the vacation of public streets and alleys are considered in accordance
with EC 9.8700-9.8725 and Oregon Revised Statutes 271.080-271.230. These requests are also
subject to procedural requirements at EC 9.7445–9.7455.
Compliance with Approval Criteria
The sole approval criterion at EC 9.8725 requires the City Council to find that approval of the
requested right-of-way vacations is in the public interest. The full text of the approval criterion is
provided below, with findings demonstrating compliance:
The city council shall approve, or approve with conditions and reservations of
easements, the vacation of improved public right-of-way, public ways acquired with
public funds, or undeveloped subdivision and partition plats, or portions thereof,
including public right-of-way and improved public easements located therein, only if
the council finds that approval of the vacation is in the public interest.
Public notice of the hearing for the vacation request has been provided in accordance with
applicable statutory and local code requirements. Consent for the vacation requests from abutting
and affected owners, and payment of a special assessment for the area of vacated right-of-way, have
also been provided as required.
Moss Street Vacation Findings
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The following findings demonstrate that vacation of the portion of Moss Street between East 15
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Avenue and East 17 Avenue is in the public interest. This determination is based on the conclusion
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that the vacation of the portion of Moss Street between East 15 Avenue and East 17 Avenue is
consistent with all applicable adopted policies, will provide efficient use of land and will not
Exhibit C: Findings
Page 1
negatively impact the transportation system, surrounding neighborhoods or emergency access.
Additionally, future planned development opportunities on the University of Oregon campus can be
enhanced through the consolidation of the site. As a result, vacation of the requested street segment
will be in the public interest. Detailed findings to support these conclusions are provided below.
The requested vacation is related to major campus construction projects that have recently occurred
on the University including the Matthew Knight Arena, Alumni Center and Academic Learning
Center all of which have displaced existing parking in the campus area. Most recently, the East
Campus Residence Hall is under construction which is displacing 311 parking spaces on campus
which had been used for student, faculty and visitor parking. The University’s 2010 Parking Plan
replaces the lost supply of parking east and north of campus. Parking areas included in this plan that
have been constructed include; the Northside Parking Project located north of Franklin Boulevard
on Riverfront Parkway (150 spaces); the Matthew Knight Arena Site Parking Garage (375 spaces);
the former ODOT site and Romania SUV lot (196 spaces); Villard Alley Parking (56 spaces) and
the Moss Street head in parking, which would include 107 spaces and is the subject of this vacation
request. This street vacation request is therefore part of an overall plan to mitigate the impact of the
recent parking losses on areas surrounding the University.
Public Works staff has confirmed that adequate public rights-of-way exist to satisfy all access and
traffic circulation needs in the vicinity. While the applicant notes that Moss Street will remain a
two-way through street and the existing street width will be maintained, if vacated, Moss Street will
not be required to remain open as a public street. While this street configuration will not be
required to remain open as a public street, adjacent uses are all owned by the University and as
necessary, adequate access including emergency access will be required through future building
permits if the area redevelops. Adjacent uses on Moss Street include the new East Campus
Residence Hall on the west side of Moss Street and the Moss Street Child Development Center on
the east side of the street. The vacation of Moss Street will not cause additional out of direction
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travel as it is not a through street and ends in a “T” intersection at East 15 Avenue. Vehicles and
bicyclists would need to go to Villard Street to the east or Agate Street to the west to reach a
through connections north to Franklin Boulevard with or without the vacation.
Referral comments from Public Works staff, other affected City Departments and utility providers
note that the provision of necessary public services and facilities such as transportation and utilities
in the area can be maintained upon approval of the vacation request. The City’s Public Works
Transportation and Engineering staff and the Fire Marshal’s office have confirmed that the
vacations would not compromise transportation or emergency access. Referral comments and letters
of concurrence from utility providers confirm that water and natural gas lines located in the street
can be maintained by providing easements to EWEB and Northwest Natural Gas.
Related City Policies – There are adopted policies in the Metro Plan and the applicable refinement
plan (Fairmount/ U of O Special Area Study as amended by Ordinance 20312 and Ordinance
20460) that are relevant to the request. While these policies are not mandatory approval criteria,
consistency with these policies demonstrates that the request is in the public interest. As described
below the proposed vacation is consistent with relevant policies.
Eugene- Springfield Metropolitan Area General Plan Policies
Exhibit C: Findings
Page 2
Transportation Element Policy F.7 (Page III-F-6)
Increase the use of motor vehicle parking management strategies in selected areas through-out
the Eugene-Springfield metropolitan area.
Parking management strategies are programs and programs that result in the more efficient use of
parking resources. The vacation request and redevelopment to increase the parking supply is an
element of a larger parking plan which replaces parking lost by recent construction projects on the
University campus. This parking plan implements several known parking management strategies
by; Providing for shared parking for students, faculty, visitors and event attendees at Hayward Field
and the Matthew Knight arena; Regulating parking, as parking in these lots will be limited and/or
metered; Increasing capacity of existing parking facilities, as reconfiguration of existing on-street
parallel spaces to smaller head in spaces will almost double the number of spaces available on Moss
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Street between East 15 Avenue and East 17 Avenue (from approximately 60 spaces to 107
spaces). As parking management strategies are being and will be implemented the request is
consistent with this policy.
Transportation Element Policy F.13 (Page III-F-7)
Support transportation strategies that enhance neighborhood livability.
The 2010 University of Oregon Parking Plan reorganizes the parking supply east and north of
campus. The parking plan, when combined with parking management strategies and residential
parking programs, will help to reduce the pressure on the use of neighborhood residential streets for
extended parking, and reduce the amount of cut-through traffic looking for parking over the long
term. This strategy will help to enhance neighborhood livability consistent with this policy.
Public Facilities and Services Element Policy G.4 (Page III-G-5)
The cities and Lane County shall coordinate with EWEB, SUB and special service districts
operating in the Metropolitan area, to provide the opportunity to review and comment on
proposed public facilities, plans, programs, and public improvement projects or changes thereto
that may affect on another’s area of responsibility.
The City provided referrals to EWEB, Northwest Natural Gas and other service providers as part of
the vacation process. EWEB and Northwest Natural Gas both have facilities in the existing right of
way and have requested easements to protect their facilities. Easements will be retained as
necessary to protect these facilities, consistent with this policy.
Fairmount / U of O Special Study Area Policies (Fairmount SAS)
University of Oregon Lands Policies (East Campus Area) Policy 1 (As added by page 9 of
Ordinance 20312)
The City of Eugene and the Fairmount Neighbors recognize the current University-adopted East
Exhibit C: Findings
Page 3
Campus Policy as a statement of University Policy.
The University of Oregon’s 2003 Development Policy for the East Campus Area updated in 2004 is
the adopted East Campus Policy. The document contains seven policy elements which guide
development in the area. The City recognizes this plan as a statement of University Policy.
University of Oregon Lands Policies (East Campus Area) Policy 2 (Page 25 Fairmount SAS)
The City shall encourage the University to use its property in East Campus in an orderly
fashion: intensity of use will be greatest near the already dense Central Campus Area (Agate
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Street and 15 Avenue) and become less intense as properties approach low-density residential
uses.
The requested vacation will allow the University to provide additional parking adjacent to the new
East Campus residence hall and in proximity to other University uses including the Matthew Knight
Arena and Hayward field. The use of the area for parking and access provides for an efficient use of
the area consistent with this policy.
University of Oregon Lands Policies (East Campus Area) Policy 3 (Page 25 Fairmount SAS)
The City shall encourage the University to use its land currently zoned PL (Public Land
District) with energy and space efficient structures and land-use patterns.
The area surrounding the vacation is currently zoned PL (Public Land). The creation of head in
parking along the vacated portion of the street will increase the number of parking spaces available
within the same area. This will allow a more efficient use of the land, consistent with this policy.
Traffic Circulation Policy2 (Page 42 Fairmount SAS, renumbered to Traffic Circulation Policy 1 by
Ordinance 20460)
The adverse effects of motor vehicle movement shall be mitigated as much as possible.
The requested vacation of Moss Street is part of the 2010 University of Oregon Parking Plan which
reorganizes the supply of parking in the east and north campus area. The plan is an effort to replace
parking that will be lost due to recent construction projects thereby lessening the University related
parking impacts and cut-through traffic impacts on the residential neighborhoods surrounding the
University. The vacation of Moss Street will not cause additional out of direction travel as it is not a
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through street and ends with a “T” intersection at East 15 Avenue. Vehicles and bicyclists would
need to go to Villard Street to the east or Agate Street to the west to reach through connections
north to Franklin Boulevard, regardless of the vacation.
A portion of the parking spaces resulting from the vacation could be used for Matthew Knight
Arena parking. To address parking and traffic specifically related to arena events, the City,
Fairmount Neighbors and University entered into a legal agreement called the “Arena Impact
Mitigation Agreement”. The agreement incorporates a Transportation Demand Management Plan
(TDM) Plan which includes traffic control plans, and an event parking district was created that
Exhibit C: Findings
Page 4
implements a residential parking permit program for the Fairmount Residential area during arena
events. If mitigation is found to be insufficient, the agreement may be modified to address these
issues. In this manner, adverse effects related to arena specific events can be addressed. Given the
findings above, the proposal is consistent with this policy.
Traffic Circulation Policy 9 (As added on Page 4 of Ordinance 20312 and renumbered as Traffic
Circulation Policy 7 by Ordinance 20460)
With the exception of alleys, vacations of streets within the state approved University East
Campus boundary should not be permitted, unless the applicant, at his or her expense, provides
to the City a local street connection study that demonstrates how the proposed street system
remaining after such vacation meets the intent of the Eugene Code Street connectivity
provisions and that such vacation will not increase traffic volumes on local residential streets.
The applicant provided at their expense, a local street connectivity study, prepared by Branch
Engineering. The study addresses Eugene Code street connectivity provisions found at EC 9.6815.
The study concludes that after the street vacation, the street system will meet the intent of the street
connectivity provisions. Additionally, the local street study notes that the vacation of Moss Street
will not increase traffic volumes in the surrounding neighborhoods consistent with this policy.
Parking Policy 1 (Page 45 Fairmount SAS)
Steps shall be taken to gain better use of existing off-street parking areas and to discourage
long-term storage of vehicles on the street.
As proposed, the vacation will allow the University to create additional off-street parking areas as
once under private ownership the spaces will not be considered on-street spaces. The creation of
additional parking spaces will increase the overall availability of off-street parking in the area,
consistent with this policy.
Parking Policy 3 (Page 45 Fairmount SAS)
The adverse effects of motor vehicle storage shall be mitigated as much as possible.
As noted above, the vacation will allow the University to create additional off-street parking areas
and combined with the parking district in the nearby residential areas will help to discourage long-
term storage of vehicles, consistent with this policy.
Parking Policy 4 (As amended on Page 4 of Ordinance 20312)
Parking Systems adopted for any area within the Special Area Study should avoid creating
parking problems for any other area or land use of the Fairmount Neighborhood by mitigating
parking impacts on the surrounding neighborhood as directed by the City.
The request does not include the adoption of a parking system. To the extent this policy is
applicable to this vacation request, the proposal will allow an increase in the availability of off-
Exhibit C: Findings
Page 5
street spaces which in turn should decrease and not increase parking problems for other areas,
consistent with this policy.
Conclusion
Based on the available information, evidence and testimony received, the City finds that the right-
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of-way vacation for Moss Street between East 15 Avenue and East 17 Avenue as proposed by the
University of Oregon (VRU 10-1), will be in the public interest.
Exhibit C: Findings
Page 6
Public Works
Engineering
City of Eugene
99 E. Broadway, Suite 400
M
Eugene, Oregon 97401
EMORANDUM
(541) 682-5291
(541) 682-5032 FAX
Date: August 26, 2011
To: Lisa Gardner, Planning Director
Cc: Steve Ochs, Associate Planner
From: Russ Royer, Senior Real Property Officer
Subject:Moss Street Vacation Assessment
In preparation for the upcoming vacation hearing Steve Ochs asked that I prepare and send to your attention a
summary of the basis of value for the proposed assessment of the segment of Moss Street right of way between
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15 Avenue and 17 Avenue which is to be vacated by the City to the U of O. As you may recall there was a
basis of value report prepared by a City staff appraiser and also an appraisal prepared by a private appraisal firm
(Duncan & Brown) at the request of the University of Oregon.
The valuation reports resulted in a number of meetings with City staff, U of O staff, and the appraisers. The
participating City and the University staff agreed to recommend the final negotiated assessment of $1,856,000.
The initial assessment prepared by City staff concluded a total assessment value of $2,136,000, while the
estimate of value by the appraisal firm contracted by the University estimated a value of $1,590,000. Both the
City and private appraisers were using the same or similar comparable sales data to estimate the unencumbered
market value of the vacation areas. The variance in value tended to result from assumptions of the appraisers
and their perception of the immediate demand relative to market supply. The expected market demand
resulted in additional discounting of value by the private appraiser. In addition there were utility easements
that needed to be reserved on portions of the subject vacation area. The market value of the subject area was
discounted to recognize the impact of the reserved easements and the resulting diminution of value to the
encumbered areas.
The following summarizes the adjustments for market absorption and the impacts of the reserved easement:
Total area of right of way to be vacated is approximately 58,729 square feet being about 80 feet wide by 734
feet long. Thus half or about 29,364 sq ft will benefit each side of the street which has 2 different values
because of the parcel sizes and resulting market absorption discounts.
Both appraisals began from a base unit price of $40 per square foot, before discounting for easements or market
absorption.
D & B applied a 15% annual discount rate to both parcels to address their estimated market absorption of 1.3
acres per year. This yielded a discounted unencumbered value of $28.75 per sq ft for the larger 13.1 acre parcel
on the west side of Moss Street and $37.70 per sq ft for the smaller 2.6 acre parcel on the east side of Moss. It
is assumed half of the r/w vacated would benefit the properties on each side of the street, thus $28.75 and
$37.70 per sq ft to the respective sides.
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.