Department: Legal
Staff Contact: Ron Shaver, City Attorney
Subject: Consideration of payment of a jury award in R.C. Rentals, LLC, et al. v. City of Olathe
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Item Description:
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Consideration of payment of a jury award in R.C. Rentals, LLC, et al. v. City of Olathe.
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Summary:
The City acquired the building located at 1200 E. Santa Fe Street (former R.C. Rentals, LLC/All American Auto Mart used vehicle dealership) as part of the Santa Fe Street and Ridgeview Road Geometric Improvements Project (PN 3-C-083-15) through the eminent domain process and paid the Court-appointed appraisers award of $590,000 in November, 2018. The property owner appealed the award and the case proceeded to a jury trial. On November 6, 2019, the jury entered an award of $801,000 for the taking of the property ($211,000 above the Court-appointed appraisers award) which was memorialized in a Journal Entry signed by all parties and District Court Judge Gurney on November 12, 2019 (Attachment A).
During the jury trial, the City’s appraiser provided a final appraised value of $470,000 for the property. The landowner’s appraiser provided a final appraised value of $1,000,000 for the property and the former owner testified his belief that the property should be valued at $1,250,000 based on an adjacent land sale. The jury award was a compromise in between the appraisals of the City and the former landowner.
The judgment, court costs and interest to be paid are as outlined below:
Judgment $211,000
Interest at 6.5% from 12/1/1-6/30/19 $7,964.84
Interest at 7.0% from 7/1/19-11/6/19 $5,219.34
TOTAL $224,184.18
(plus statutory judgment interest until paid).
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Financial Impact:
See above. Funds to pay the judgment will come from the project fund.
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Action Needed:
Approve payment of the jury award (plus interest) in R.C. Rentals, LLC, et al. v. City of Olathe.
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Attachment(s):
Attachment A - RC Rentals v. City of Olathe Journal Entry 11.12.2019