City staff and project partners updated the council on right-of-way acquisition and property-closing details tied to the 1600 North (Whiting) corridor project, including appraisals, earlier corridor-preservation purchases and a planned in-kind credit for a portion of Bonneville Park.

Project managers said Orem previously acquired multiple homes along the corridor using Utah County's corridor preservation funds (administered by Mountainland Association of Governments, MAG). Under the original MAG agreement, the city agreed that if the corridor became a state corridor and the property was transferred to the state, the city would reimburse MAG for the original acquisition price (including closing costs) or the property's appraised value at transfer, whichever was less. Staff said that is the formula being followed in current closings.

Staff described one parcel example: the property was purchased around 2019 for roughly $340,000 (documents showed closing costs were included in the original transaction and the total cited figure of the time was $350,000); its current appraisal is higher (staff referenced an appraisal figure cited in documents of about $390,000). Under the MAG agreement, the city would pay MAG the original acquisition amount (roughly $350,000 in the example) and document the difference between the current appraised value and the original purchase price as a donation to the corridor project. Staff emphasized the appraisal/original-purchase lesser-of calculation in the reimbursement agreement with MAG.

Bonneville Park: staff said the corridor alignment will require acquiring the northern portion of Bonneville Park. They described a separate valuation for that park portion (staff cited a value in staff materials in the neighborhood of $401,000) that will be applied as an in-kind credit toward enhanced landscaping and park betterments the city intends along the corridor. Project staff said the park purchase would not remove the whole park; the northern segment would be acquired and credited to match landscaping improvements that exceed the baseline project scope.

Staff also summarized non-financial steps: tenant relocation assistance (the city has been working with tenants of the acquired homes), coordination with Rocky Mountain Power for pole relocations and the need for right-of-way certification so construction can proceed without impacting private property beyond the certified acquisition.

On financial detail, staff said net rent revenue from the city's property management of the acquired homes has accumulated and that those funds will be returned to the MAG preservation pot or used consistent with the corridor-financing agreements; staff cited a total of roughly $200,000 in net rent revenue currently on hand (net of maintenance expenses). They also said the total value of property donations (the delta between appraisals and original acquisition in aggregate across parcels) is roughly $1.6 million, and that documenting these donations preserves future MAG corridor-preservation credit for Orem.

Staff said the project is at the stage of final right-of-way conversations and certification; once right-of-way is certified the city will be able to advertise the corridor construction contracts. No council action was requested at the meeting; staff presented the status and answered council questions.