Council backs appraisal, may pursue eminent domain for East Zone water tower site

City real estate staff briefed the council on March 16 on the East Zone Water Tower Project (CIP #30232), describing the site, negotiation history and next steps to acquire property needed for a water tower and associated easements.

Neils Brown, Real Estate Director, described the project site near Broadway Boulevard and Rose Hill Road. He said the project requires acquisition across three parcels—consisting of just over three acres in fee simple plus two easement interests and a temporary construction easement to support a waterline and access drive tied into an adjacent GP&L substation.

Brown said staff began negotiations in late 2024 and initially received cooperative signals from the owner but communications stalled after the owner consulted counsel. He told the council the owner initially sought $7 per square foot (DCAD value cited around $3 per square foot) and staff had proposed $6 per square foot; the city will order a formal appraisal and make a final offer based on that appraisal, with eminent domain considered only if negotiations and offers fail to secure the necessary property interests.

Council members asked clarifying questions about ownership and process. The council confirmed its interest in allowing staff to obtain an appraisal, make a final offer based on that appraisal, and—if negotiations do not resolve—pursue eminent domain to acquire property needed for the tower; the council indicated unanimous consensus to move the process forward.

Next steps: staff will obtain an appraisal, issue a formal final offer tied to appraised value, and report back to the council. If counsel for the property owner does not respond, staff said it will initiate the formal eminent domain process as needed.