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Council considers $30,000 good-faith payment and one-year eminent-domain window in property acquisition agreement
Summary
City attorney presented a draft purchase/payment agreement that would let the city take title after a $30,000 payment while leaving price negotiations open for one year; the landowner’s counsel refused to waive statutory attorney-fee rights if the matter goes to eminent domain.
City attorney Damian outlined a draft agreement that would allow the city to make a $30,000 good-faith payment to acquire a parcel for a living-project site, take immediate title and continue to negotiate final price for one year.
"The city would make a good faith payment in the amount of $30,000," Damian told the council, and he explained a one-year period would allow the parties time to negotiate additional compensation. If the parties cannot reach agreement and the landowner requests it, the agreement would permit the landowner to demand the city initiate an eminent-domain proceeding within one year of closing; appraisal and informal appraiser procedures were described as the first step in that process.
A representative for the property owner said they would not agree to waive statutory rights to attorney fees if the owner were to challenge the appraisal in court. That representative told the council they expected the matter to be resolved by agreement but would not give up legal rights merely for the sake of speed.
Council members discussed the trade-offs of different payment amounts and the financial exposure if litigation reduced the price established by appraisers. After discussion, a motion to approve the agreement (with staff direction to finalize terms consistent with council guidance) was made, seconded and called for a vote.
Why it matters: The draft agreement is intended to let the city proceed with time-sensitive construction while preserving a mechanism for the landowner to seek full compensation through eminent-domain procedures if negotiations fail. The waiver of attorney fees was the primary contested point in the exchange.
Next steps: Staff will finalize the agreement language consistent with the council’s direction and proceed with the closing and related contract actions.
