Subject:
Title
Consider approval of a Purchase and Sale Agreement for 151.51 acres more or less in Rockingham County for $1,450,000
Body
Presented By: Chris Brown, City Attorney
Recommendation and Review
The Harrisonburg Department of Public Utilities (HPU) is in the process of installing waterlines for its Eastern Source Development project and has identified property in Rockingham County to purchase for project purposes. The route of the waterline currently includes approximately 3,253 feet along a 151.51 acre parcel of property owned by Gerry Saufley in Rockingham County. HPU has encountered geophysical construction issues at a sinkhole on the Saufley property in the proposed alignment. Continuing the proposed alignment will add between $65,000 to $215,000 in construction cost and will also leave the City with significant risk during the life of the waterline. HPU was unsuccessful in negotiating an additional easement from Ms. Saufley to realign the waterline. Ms. Saufley’s farm was listed for sale. After extensive study, HPU determined that by purchasing the property the waterline could be realigned to cross the property in such a way as to eliminate the costs and risk associated with the sinkhole and eliminate other work which would result in a savings of between $253,451 and $453,451. The property could also be used for pipe storage for the project for additional savings of approximately $50,000. The property is zoned for agriculture. The waterline will not affect the use of the property after it is installed. HPU believes that at the end of the Eastern Raw Waterline Project the property can be resold, and the City’s purchase price recouped.