Suzy Ageton George Karakehian KC Becker Tim ... - City of Boulder

acquisition because of its immediate proximity to the runway. The Rustic Knolls
property is within the safety zone, and has had two significant airplane incidents adjacent
to the property and a brush fire from a third airplane when it was engulfed in flames.
Upon receiving the grant, a formal appraisal of the property was obtained, and the city
Property Agent has made numerous attempts since August to contact the property owners
to discuss the appraisal. The property owners had not responded to any such contacts by
phone or e-mail until the Property Agent received an indirect response last week.
However, it does not appear that such response is likely to lead to settlement of the RTTF
issues.
ANALYSIS:
The city must submit its access plan in 2012 to comply with interim policies of the FAA
in order to avoid losing federal funding. Staff is asking for permission to acquire the
entire property. If the landowner has an interest in constructing a residence on the
property without a hangar or use of the RTTF, the city could acquire just the RTTF
interest to accommodate the landowners. However, if the city acquires just the RTTF
rights rather than the entire parcel, the FAA RTTF requirements would be met, but it is
likely that the CDOT grant would not be useable because it was approved for acquisition
of the entire parcel. The RTTF has a nominal value of about $5,000 because it cannot be
used legally without significant expense.
Acquisition Process
In order for the city to acquire the RTTF to meet the FAA requirements, Colorado law
requires that the city pay the property owners fair market value of the interest acquired.
The city is also required to pay the cost of the property owner’s appraisal. If after
following the formal negotiation process for acquiring the RTTF or all of the property
interests, the city and property owners cannot agree on the fair market value, the city may
bring an eminent domain action.
Eminent domain is the authority of the city to bring an action to secure private land for a
public purpose provided that fair compensation is provided to the landowner. The terms
“eminent domain” and “condemnation” are used synonymously.
Approval of the proposed ordinance does not require an eminent domain action to be
filed in the court now or in the future. However, in order to be able to meet the terms of
the FAA’s interim policy to obtain needed grant funds in 2013, staff is requesting the
authority to use eminent domain if necessary. Attached is an ordinance which, if adopted,
will allow the project to proceed.
NEXT STEPS:
If Council approves the ordinance, the Property Agent will commence the formal
negotiation process to acquire the property. If such negotiations are not successful, the
city attorney’s office will have filed an action in eminent domain in the Boulder District
Court for the court to determine the fair market value of the property.
Agenda Item 3N Page 5