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Council directs staff to appraise air easements near Tice Park after property owners request changes
Summary
Council discussed nine air easements south of Tice Park that limit above‑10‑foot construction and voted 4‑2 to have staff obtain formal appraisals and return with options for selling or otherwise removing the easements; a resolution to release them without appraisal was not adopted.
Councilors considered staff's report about nine private lots immediately south of Tice Park that carry city air easements restricting construction above 10 feet. City Attorney David Leitenberg and Community Development staff explained the legal history is incomplete but that the easements limit building and have made affected parcels effectively unbuildable under current conditions.
Options and legal process: Staff presented four main options: (1) terminate the easements without compensation, (2) remove them across the board, (3) remove by notification and affirmative request by owners (opt‑in), or (4) appraise the value of the easement interest and sell it. Staff recommended appraisal if council wished to recover value; an appraisal for the interest (not entire parcel value) would be required by municipal selling procedures. Staff solicited proposals and reported two appraisal quotes: roughly $4,900 and $7,200 with one‑ to two‑month turnaround.
Council discussion and vote: Councilors expressed a range of views. Some emphasized infill and redevelopment benefits and supported an owner opt‑in or sale approach; others (including Council President Peralta) worried about encroachment into park views and opposed unilateral removal. After debate the council voted 4‑2 to direct staff to obtain formal appraisals and return with recommended paths and pricing. The motion to immediately adopt a resolution terminating the easements without valuation was not adopted.
Practical consequences and next steps: Staff said appraisal would assess the market value of the air easement interest (the delta in value created by removing the restriction), not the full lot value. If the city proceeds to sell the easements, the proceeds and any proposed use of proceeds (e.g., parks maintenance or affordable housing) will be brought to council. Staff estimated an appraisal turnaround of one to two months and will return with that analysis and recommended procedures.
