The Sedona City Council approved an agreement to settle the city’s pending eminent domain lawsuit with Jean McDonald, formerly the owner of 731 Forest Road, at its Feb. 14 meeting.

After the city authorized the route for the Forest Road connection in September 2021, city staff determined that the project required obtaining right-of-way or easements across 11 parcels with nine owners. The city was able to negotiate access to five of these parcels. The owners of the six remaining parcels refused the city’s initial offers of compensation.

The city began eminent domain proceedings against McDonald’s property, parcel 401-38-003E, in the Coconino County Superior Court on Feb. 28, 2022. On March 14, the city and McDonald agreed to stipulate to the city’s immediate possession of the property on the grounds that the taking of the property was for a public purpose. At that time, the city deposited $110,565 with the court, representing its appraisal of the value of the portion of the property it was seeking to condemn.

City staff and McDonald reached a settlement agreement on Jan. 12, 2023, with the city agreeing to pay McDonald just compensation of $256,000 for its takings, plus approximately $13,010 in interest. McDonald had previously sold the property on April 2, 2022, but reserved the right to receive the settlement amount as part of that transaction. The listing price for 731 Forest Road was $1.5 million.

The city may enter into up to four additional settlement agreements to resolve the remaining eminent domain suits associated with the Forest Road connection project. The initial offers the city made for access to each of these parcels were:

• $223,299 to the Forest Road Condominium Association [the Hyatt Residence Club] for right-of-way across and an easement on parcels 401-17-019C and 401-17-019P
• $167,090 to 741 Forest Road LLC [the Bowers family] for right-of-way across and an easement on parcel 401-38-012
• $241,128 to Stephanie Penman for right-of-way across and an easement on parcel 401-38-015
• $481,914 to Farshid Paydar for right-of-way across and an easement on parcel 401-38-001J

The owners of these parcels likewise agreed to stipulate to the city’s immediate possession, allowing city staff to begin construction of the extension.

The amounts that the city paid for access to the five parcels to which it was able to negotiate access were:

• $216,683 to Farshid Paydar for right-of-way across and easements on parcels 401-38-011B and 401-38-011D
• $839,500 to James and Tina-Marie Ochoa for the purchase of parcel 401-38-006B
• $9,439 to Golden Rocks LLC for an easement on parcel 401-38-011E
• $26,000 to Jason Street Holdings for right-of-way across parcel 401-38-017

Although city staff had also planned to negotiate a temporary construction easement on parcel 401-16- 101A, which was owned at the time by Elliott Greenberg and Gayle Harte, they could not agree on terms with the property owners and later opted to adjust the plans for the extension to eliminate the need for construction activity on that parcel.

The city estimates that the total cost of the Forest Road connection project will be $9.1 million.