At the March 22, 2017 meeting, the Transportation Agency Board of Directors approved resolutions of necessity for nine properties necessary for the Salinas Rail Extension Project. During this time, Meyers Nave secured settlements on eight of the nine properties that the Board approved resolutions of necessity, with one property, the partial acquisition for 21 Happ Place, going to trial.
The Agency was required to deposit $1,999,560 with the State Condemnation Fund as just compensation for this property, which constitutes a partial acquisition of the parcel and repairing a portion of their warehouse, while the property owner, MWM Investments, was seeking over $2.5 million. A trial date was set for February 11, 2019 for a jury to hear the case and make a determination of the final acquisition price.
The final jury verdict was to value the partial acquisition at $1,306,217, not inclusive of interest and statutory costs. The Agency’s final offer was $1.1 million, while MWM Investment’s final demand was $1.9 million. As a result, TAMC will not be required to cover MWM Investment’s attorney fees since the verdict was closer to our value. The Agency will also receive a check from the State Treasurer reimbursing it from the amount that was placed on deposit.
The following is a break-down of the final budget for the acquisition:
|
Fair Market Value
|
$480,967
|
| Temporary Construction Easement |
$35,773
|
| Cut and Cap |
$410,000 |
| Damages |
$380,250 |
| Jury Verdict |
$1,306,990 |
| Statutory Costs |
$48,092.50 |
| Interest |
$11,169.73 |
| Total Awarded to MWM Investments |
$1,366,252 |
| |
|
| Amount Placed on Deposit by TAMC as Just Compensation |
$1,999,560 |
| Refund to TAMC |
$633,307.77 |
The final court judgement includes a provision that requires MWM Investments to complete the cut and cap of their warehouse before receiving the full amount of the judgement, with the Transportation Agency holding $225,000 of the $1,366,252 in our account. The retainer amount of $225,000 is less than the amount awarded for the 'Cut and Cap' at $410,000 as this will provide MWM Investments with funding to begin the work and represents a significant portion of the overall judgement to ensure that they complete the work expeditiously to receive the balance of funds. The Transportation Agency will release the funds to MWM Investments when certain milestones are met:
Milestone 1: Constructing a temporary wall in the warehouse along the new property line: $25,000
Milestone 2: Demolishing the portion of the warehouse in TAMC’s right of way: $100,000
Milestone 3: Constructing a new permanent wall to the warehouse: $100,000
It is the Agency’s understanding that MWM Investments has secured the necessary building permits and that the cut and cap is scheduled to be completed by April 2020.