Title
Final Condemnation Settlement between Great Lakes Water Authority and Volte 14635 E. Jefferson Investors, LLC, for a Permanent Easement for 14701 East Jefferson, Detroit, MI 48215 (Parcel No. 21000607)
Body
Agenda of: September 25, 2024
Item No.: 2024-297
Amount: $41,004.94
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: September 23, 2024
RE: Final Condemnation Settlement between Great Lakes Water Authority and Volte 14635 E. Jefferson Investors, LLC, for a Permanent Easement for 14701 East Jefferson, Detroit, MI 48215 (Parcel No. 21000607)
MOTION
Upon recommendation and opinion of David W. Jones, General Counsel, the Board of Directors for the Great Lakes Water Authority (GLWA) (1) approves the final condemnation settlement between Great Lakes Water Authority and Volte 14635 E. Jefferson Investors, LLC, for a Permanent Easement for the north 20’ of 14701 East Jefferson, Detroit, MI 48215 (Parcel No. 21000607), and (2) authorizes the Chief Executive Officer to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
GLWA is currently reconstructing and rehabilitating the necessary sewer infrastructure at the Fox Creek Sewer Facility. GLWA staff, with the support of consultants, have determined that GLWA needs to acquire this privately held property to support the project. GLWA secured title and possession of the permanent easement, but the parties continued the litigation regarding just compensation owed to Volte 14635 E. Jefferson Investors, LLC. After commencing discovery, the parties have resolved the litigation (including all remaining claims for just compensation, interest, attorney fees, and costs) for the total amount of $82,118.00 (The estimated just compensation was $41,113.06 plus this additional amount of $41,004.94). This settlement would resolve all claims between GLWA and Volte 14635 E. Jefferson Investors, LLC, for a permanent easement located at 14701 East Jefferson, Detroit, MI 48215 (Parcel No. 21000607).
JUSTIFICATION
Condemnation proceedings were necessary to complete this project while serving the public purpose of maintaining compliance with applicable laws and regulations to protect the environment. To minimize the disruption to adjoining landowners, GLWA is condemning this property as it is necessary to rehabilitate the Fox Creek outfall and regulator chambers. Accordingly, Volte 14635 E. Jefferson Investors, LLC, is entitled to just compensation for the taking. We believe that the proposed settlement represents a fair settlement of the pending litigation given (a) the strengths and weaknesses of the parties’ respective positions, (b) the inherent risks associated with proceeding to a jury trial, and (c) the additional costs that would be incurred in continuing to litigate this case.
BUDGET IMPACT
The funds necessary for the acquisition of this property purchase for this public purpose are available.
COMMITTEE REVIEW
A Resolution Necessity was approved by the Board of Directors on April 24, 2024. The Final Condemnation Settlement is being presented to the Legal Committee for consideration at its meeting on September 25, 2024.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.