Encroachment Agreement- June 2007

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Issue Permanent Easement Sale 1.Establish Value A permanent easement granting docking rights Establishing a price on the sale of the parcels may be somewhat more The premise here is that the has a dollar value which an appraiser would have complex than establishing the value of an easement. This to some opposite owners should not to quantify. The value of such an easement is extent will depend on the easement rights retained by the City, if any. just be granted easement likely to be less than if the same land is being sold Also, if this is a sale, it will involve more land due to the vacation& rights or be able to acquire outright. dedication to clean up the right-of-way issues(see City R-O-W Width lakeshore property at no Since each opposite parcel would be gaining the Requirements discussion below).There is some minor variability in the cost. They may argue that same benefit,the right to have a dock,there is square footage of land that each of the 4 opposite owners would gain they purchased their probably not much variability in the value of the via the vacation,new dedication and purchase,ranging from 2100 s.f. properties not knowing they easement among the four lots. to 2700 s.f. didn't own the shore-we Value vs.Price Regardless whether the dock rights are acquired via easement or lakeshore property purchase, it can be believe that is incorrect. �.�ed that there is a difference between the `before' and `after' value of the homestead properties. The City Assessor has indicated that the four homestead parcels have been valued for ta�c purposes as if they have lake rights,and as long as they are allowed to continue putting in docks on the City lots,the assessed value would stay the same. If the City were to force removal of the docks,the assessed values would drop significantly. We know from one of the owners that the ability to sell a homestead parcel is diminished without having dock rights firmly in place. It seems reasonable to conclude that a homestead parcel with lake views but not dock rights has a lower value than one with dock rights. The dock rights add value; it is unknown whether the City's not forcing the removal of the docks in the past would have an impact on how they are valued by the owners or prospective buyers. Finally, if an appraisal concluded that the dock rights are worth, say, $200,000 per parcel,the question to be answered is whether the price for the City's lakeshore strips should reflect the difference in value between the home with and without dock rights. If so,will any of the four opposite owners be able or willing to pay that price? Will the City be forcing them to sell in order to cover that cost? Will the City consider an alternative sales method, such as 10-15 year assessment? 2.City R-O-W Width In an easement situation,the easement would be Sale of the lake parcels should be predicated on a vacation and Requirements drafted such that no easement rights are granted rededication of road right-of-way, so that the actual traveled road and Although the dedicated that would interfere with the public road needs of 10' either side of the paved surface is within a dedicated roadway. The road right-of-way between the City. For instance, storage of dock sections on traveled paved road is 18'-20' wide at this location. The standard right- the lakeshore parcels and the portions of the lakeshore parcels that are of-way per City code for this public road would be a 32' paved width the opposite home parcels Within ten feet of the paved road edge might be within a 50' dedicated corridor. Given that 80%of the 2500' length of is 66' in width, a portion of prohibited(recommended). Crystal Bay Road exists only as a prescriptive easement with no the paved traveled road is dedicated right-of-way,reduction of the 66' dedication to just 40' is within three of the four City probably reasonable. This 40' should,however,be centered on the lake parcels. existing road,which would reduce the depth of the lakeshore parcels by as little as 5' on the east end to as much as 23' near the west end. This leaves a sliver of land between the road and the lake no more than 5-10' deep that could be sold to the opposite owners. The total area of land to be vacated would be about 8,000 s.f.;the area to be newly dedicated would be about 2,000 s.f.