The Morgan Hill City Council will consider whether or not to seize a downtown home to expand an existing parking lot there Wednesday night.
The city offered owner Dwight Jungkeit about $500,000 for his quarter- acre property at 35 E. Third Street, which includes a 100-year-old folk Victorian home, last year. Jungkeit made a counter offer in December based on a separate appraisal. Jungkeit said the difference between the city's offer and his asking price was "in the $100,000 range."
A city can undertake eminent domain if its governing board deems the property is necessary for a project that serves the greatest public good, and if the owner of that property has been offered a fair market price for it, City Attorney Danny Wan said.
If the council decides to exercise eminent domain powers, or if the homeowner and city reach an agreed-upon price, Jungkeit will be paid with Redevelopment Agency funds.
How is this possible, considering the Redevelopment Agency does not have eminent domain powers? Simple. City Manager Ed Tewes explained that the city can enact eminent domain for a public purpose. The Redevelopment Agency can fund public projects as well as redevelopment. So the five councilmembers will put on their "City Council" hats to enact eminent domain, and then later put on their "Redevelopment Agency" hats to approve funding the project.
The quarter-acre lot would expand the existing parking lot that runs behind the businesses facing Monterey Road between Second and Third streets. The lot would create about eight new parking spaces, according to a public notice. At the city's offered price of $500,000, that works out to a cost to the city of $62,500 per parking space.
The city has made several property purchases for parking in the past two years.
Across Third street, the city recently bought Simple Beverages and More property for $1.5 million. That property will add as many as 30 spaces downtown. In June 2008, the city spent $683,000 on the Hamilton property next to Sinaloa Cafe which will provide as many as 30 spaces. In May 2008, the city also bought the two-acre lot at Depot Street and Third for $1.1 million. The city created about 90 spaces there.
If the council decides to adopt the resolution of necessity Wednesday night, the city would have six months to file for eminent domain with the court, Wan said. In the meantime, negotiations will continue and if an agreement is made before the city files, the eminent domain will not be pursued.
Natalie Everett
Natalie Everett Natalie Everett is the education and city reporter for The Times. Reach her at (408) 779-4106, ext. 201, or neverett@morganhilltimes.com.
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