AGENDA MEMORANDUM

Meeting Date:           October 22, 2007

From:                          Jay M. Evans, Interim City Manager

Subject:                      Resolution of the City Commission agreeing to deduct the cost of that portion of the Tav-Lee Trail Phase II along U.S. 441 between Canal Street and Bentley Road from the Fair market Value of the City property needed

by the Florida Department of Transportation for roadway widening.

Staff Recommendation:

Staff recommends approval of the resolution agreeing to deduct the cost of that portion of the Tav-Lee Trail Phase II along U.S. 441 between Canal Street and Bentley Road from the Fair Market Value of the City property needed by the Florida Department of Transportation for roadway widening.

Analysis:

The Florida Department of Transportation is planning for the design, right-of-way, and construction of the widening of U.S. 441 from Perkins Street to Newell Hill Road.  In order to plan appropriately, FDOT needs to know the City’s intentions with regard to that section of the proposed Tav-Lee Trail Phase II between Canal Street and Bentley Road.  If that section of trail is ever to be built, the City needs to act now to incorporate the trail into FDOT’s widening plans.  The Department will incur additional costs for design, right-of-way, and construction of that portion of the trail.  Those costs must be passed along to the City.

The Department estimates that $752,574 is needed for the trail.  However, the Department will need to acquire City-owned land along that section (Community Garden area as well as some smaller portions) that is estimated at $485,000.  If the latter is deducted from the former, the balance owed by the City will be $267,574.  This is a preliminary estimate only.  Right-of-way acquisition is tentatively scheduled for the spring of 2011, but construction is not yet funded, and the City will not have to pay until the time of construction.

The Department has worked with City staff in good faith to arrive at this proposal.  They have agreed to forego charging the City the full pro-rata share of administrative costs associated with taking those private lands that are full-takes, since the Department would experience those costs independent of the trail.  This City is fortunate to have the opportunity to incorporate this portion of the trail into DOT’s project, saving the City from eminent domain proceedings of its own, and allowing the value of City-owned lands to mitigate much of the cost of the trail.

What the Department requires at this point is a commitment by the City to deduct the cost of the trail from the Fair Market Value of the City property.  The actual value of the land will be determined by appraisals during the acquisition process.  This will let them know that based upon  preliminary estimates, there should be  no cost to FDOT for the City’s portions of the required acquisitions.  In turn, they will incorporate the trail into their design.  In doing this, the City is indicating that will proceed in good-faith toward the development of this section of the Tav-Lee Trail Phase II as part of the 441 widening. 

Options:

1. Adopt the resolution committing to the funding proposal for the design, right-of-way, and construction of the Tav-Lee Trail Phase II;

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

Since the estimated cost of the trail exceeds the estimated Fair Market Value of the City-owned land, the City will not receive compensation for property acquired to widen U.S. 441 in the vicinity of Herlong Park.  Instead, the value of the land will be deducted from the cost of the trail, leaving the City needing to fund approximately $267,600 when FDOT constructs the project (sometime after 2011).

Submission Date and Time:    10/18/2007 12:06 PM____

Department: ______________________ Prepared by:  ______________________                      Attachments:         Yes____   No ______ Advertised:   ____Not Required ______ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. __________________                                    Deputy C.M. ___________________                                          Submitted by: City Manager ___________________

Account No. _________________ Project No. ___________________ WF No. ______________________ Budget  ______________________ Available _____________________

RESOLUTION NO._______________

A resolution of the City Commission of the City of Leesburg, Florida, agreeing to deduct the cost of that portion of the Tav-Lee Trail Phase II along U.S. 441 between Canal Street and Bentley Road from the Fair market Value of the City property needed by the Florida Department of Transportation for roadway widening..

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

            THAT the City of Leesburg hereby agrees to deduct the cost of that portion of the  Tav-Lee Trail Phase II along U.S. 441 between Canal Street and Bentley Road from the Fair market Value of the City property needed by the Florida Department of Transportation for roadway widening.

 THAT this resolution shall become effective immediately.

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the __22nd___ day of _October ____ 2007.

                                                                            __________________________

                                                                             Mayor

ATTEST:

__________________________

City Clerk