Springdale Interchange Settlements Snag

SPRINGDALE — The City Council voted to settle one condemnation lawsuit Tuesday but balked at two others approved last week by a committee.

The council approved paying $564,000 to the owners of property entirely taken by the construction of the Don Tyson Parkway interchange on Interstate 540. Proposals for the two other property owners who had only portions of their land condemned for right of way failed, with one being reduced and the other voted down.

Brad Bruns, alderman, said the difference was the impact created by taking all of John and Laura Sisemore’s land.

“They would have no land left to sell to recoup their losses,” Bruns said. “The other owners had property left.”

The Council Street and Capital Improvement Program Committee voted Thursday to recommend approving settlement offers from three property owners for interchange right of way. The city filed condemnation lawsuits to gain control of the land in time for construction to begin.

The Sisemores will receive $564,000 for their property, with the city already paying $165,000 when the lawsuit was filed. The smaller figure was the city’s appraised value of the 1.85 acres.

At A Glance

Council Action

Springdale’s City Council met Tuesday and approved:

• Settling a condemnation lawsuit on the Don Tyson Parkway east extension for property owned by Rebecca D. Magee and David Gulliver for an additional $19,882 becoming a total cost of $27,782; for property owned by Edward and Gayle Gay for an additional $14,800 becoming a total cost of $22,200

• Buying 3.4 acres on Thompson Street near Cooper Drive appraised for $384,000 for the new Fire Station No. 3 for $180,000

• Adjusting a contract with Engineering Services to add $27,500 to a contract for work on building new fire stations.

Source: Staff Report

Steve Lisle, attorney for the Sisemores, said at the committee meeting the couple owed more on the land than they received from the city. Lisle represented all three property owners before the council Tuesday.

A settlement offer from Victory Church for 1.22 acres for $325,000 was voted down 4-3. The city’s appraisal, which was paid when the lawsuit was filed, was $74,700.

The council voted to adjust a settlement with 4&P LLC to $354,645, down from a $560,000 settlement for 2.15 acres approved by the committee. The city’s appraisal for that right of way was $93,500.

The settlements offered by the property owners were four and five times the city’s appraisal, said Mayor Doug Sprouse.

“The city has never approved such huge differences between the appraisal and a settlement,” Sprouse said. “If we pay this much above appraisals, down the road everyone will think they hire a lawyer and get what they want without going to trial.”

The property owners had their own appraisals that were higher than the settlement figures, Lisle said.

Jim Reed, alderman, said he thought approving the settlements was taking care of the taxpayers’ money.

“We could pay twice as much if we go to court,” Reed said.

Eric Ford, alderman, also said he was taking care of taxpayer money.

“We’re hiring professionals to appraise the property,” Ford said. “We need to listen to them.”

All the settlements would pay about $6 per square foot for the right of way. Ernest Cate, city attorney, said property owned by 4&P LLC was listed for sale at $3.67 per square foot.

The land the city took was prime acreage next to the interstate, Lisle said. The settlement offer was adjusted to $3.79 per square foot, the sale price listed the day the city filed the lawsuit, according to Cate. The listing price was reduced after the lawsuit was filed.

The owner will have to decide if the offer will be accepted, Lisle said. The three land owners approved the settlements forwarded by the committee, Cate said.

The settlements will be paid from $42.7 million in bond money, set aside for streets. Voters approved the bond sale in August 2012. A 1 percent sales tax, first approved in 1993, will pay off the bonds.

Four other condemnation lawsuits remain regarding interchange right of way.

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