Title
A Resolution authorizing the use of a Possession and Use Agreement and Eminent Domain to acquire permanent easements and temporary construction easements for the 8th Street Improvements: Motor City Dr to Fountain Creek Project and 8th Street over Fountain Creek Bridge Maintenance Project using PPRTA funds
Presenter:
Gayle Sturdivant, PE, PMP, City Engineer/Deputy Public Works Director
Kellie Billingsley, Real Estate Services Manager
Body
Summary:
The proposed resolution would authorize the use of Possession and Use Agreements and/or Eminent Domain to acquire permanent easements and temporary construction easements for the 8th Street Improvements: Motor City Drive to Fountain Creek Project (8th Street Project) and the 8th Street Over Fountain Creek Bridge Maintenance Project (“Bridge Maintenance Project) (collectively referred to as the “Projects”) from the following owners (collectively referred to as the “Property Owners”):
• NNN REIT, Inc
• McDonald's Corporation
• CSC3T, LLC
• B&B Merritt Real Estate LLC
• Norris Penrose Legacy Foundation
• Kangaroo Coffee, LLC
• Brookville Partners LLC
• 8th Street Shops, LLC
• GLY, LLC
• JBC Properties, LLC,
• AMAJKA, LLC
• 604 S. 8th St. LLC
Background:
Permanent easements and temporary construction easements are needed from the Property Owners to complete the Projects. These Projects are identified by the Pikes Peak Rural Transportation Authority (“PPRTA”) as a A-list capital project and a bridge maintenance project, respectively. The PPRTA is funding the Projects.
The Bridge Maintenance Project commenced construction in May 2025 and is anticipated to be completed in January 2026. The 8th Street Project is scheduled to begin in October 2025 and is expected to be completed by April 2027. The Projects include the replacement of a major water transmission line, with work coordinated alongside other Colorado Springs Utilities infrastructure and water demand modeling to allow the line to be out of service during the planned construction window; therefore, construction delays for the Projects are not feasible.
The proposed resolution seeks authorization for the use of Possession and Use Agreements and/or Eminent Domain to obtain permanent easements and temporary construction easements from the Property Owners.
The City requires approximately 0.0815-acres (3,560 sf) for a permanent easement and approximately 0.1835-acres (8,002 sf) of temporary construction easements (together referred to as the “Property Interests”) from the Property Owners for the Projects. Acquiring the Property Interests will facilitate the construction of the Projects. Refer to the attached Summary Table, Location Map, and Exhibits for additional details.
Pursuant to Chapter 9 of The City of Colorado Springs Procedure Manual for the Acquisition and Disposition of Real Property Interests, Revised 2021 (“RES Manual”), the City secured an independent appraisal and presented the Property Owners with a Notice of Intent and an Offer to Acquire.
Negotiations with the Property Owners regarding the required Property Interests are ongoing; however, any delay in acquiring the Property Interests would adversely affect construction. The City intends to continue working with these Property Owners and requires the Possession and Use tool to proceed with acquisitions and allow time to finalize the purchase price. Each of the Property Interests appraises for less than $15,000, with most under $5,000. Eminent Domain would be pursued only as a last resort to advance the Projects.
Staff requests City Council approve the Resolution for acquisition of the Property Interests through the use of Possession and Use Agreements and/or Eminent Domain. Additionally, the attached Resolution authorizes the City’s Real Estate Services Manager and the Public Works Director to execute all documents necessary to acquire the Property Interests. In all cases, the Property Owners will be compensated for the Property Interests needed for the Projects.
Previous Council Action:
On August 14, 2012, City Council endorsed the extension of the Pikes Peak Rural Transportation Authority Capital Program in Resolution No. 109-12. Subsequently, on November 6, 2012, citizens approved Ballot Issue 5A extending the PPRTA Capital Program until December 31, 2024, and the issue included this Project.
Financial Implications:
The Project is funded by PPRTA and accounted for in each of the respective budgets for this project.
City Council Appointed Board/Commission/Committee Recommendation:
N/A
Stakeholder Process:
The Property Owners have been engaged with the Projects throughout the engineering phase and property acquisition phase.
Alternatives:
City Council may approve, modify, or deny approval of the Resolution.
Recommended Action
Proposed Motion:
Move to approve a resolution authorizing the use of possession and use and/or eminent domain to acquire the Property Interests needed for the Projects.
Summary of Ordinance Language
N/A