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City settles last Forest Road suits, costs at 69% over estimate

More than two years after construction began on the forest road extension, the City of Sedona finally has clear title to all the land beneath it after negotiating a final settlement with the Bowers family and Dr. Farshid Paidal.

The expansion plan called for the city to obtain rights of way or easements across 11 parcels owned by nine individuals. Four of the property owners representing five of the involved parcels accepted the city’s initial compensation offer. The remaining five landowners rejected the proposed compensation, and the city asked to file a lawsuit in Coconino County Superior Court to seize some of their properties.

As of August 26, the city has reached a settlement with the following:

  • Gene McDonald, 731 Forest Road: offered $110,565. Settled for $256,000.
  • Stephanie and MS Penman, 760 Forest Road: offered $241,128. The case was settled for approximately $419,750.
  • Hyatt Residence Club: Offers $223,299. The case was settled for $450,000.

On October 8, the Sedona City Council approved a settlement agreement with the Bowers family, owners of 741 Forest Road, the land most affected by construction of the widening that will divide 741 Forest Road. As a result of the city’s condemnation process, the usable area of ​​the Bowers’ 2.66-acre parcel was reduced by 0.9 acres due to roads and easements.

The city initially offered $225,913 for the Bowers’ property, but the owners requested $473,500 in compensation. Ultimately, the parties agreed to pay $355,000 in fair compensation, plus interest and temporary construction easement payments, for a total of $383,485.87.

Finally, the Sedona City Council was scheduled to approve a settlement agreement with Paydar, the owner of 750 Forest Road, at its Nov. 26 meeting after press hours. In this case, the city’s ownership amounted to 0.82 acres of the 1.83-acre parcel. City officials initially offered $481,914 in damages, but Paydal countersued for $1,658,000.

In the final settlement, approved by staff on Nov. 13, the city and Paydar agreed to pay a total of $660,000 in fair compensation for the city’s share.

Mr. Paydar previously received $216,683 for easements on two adjacent parcels that he also owns.

City staff originally estimated that easements and rights of way on the disputed lands could be acquired for a total of $1,282,819, but the five final settlements totaled $2,169,235.87, 69% more than staff estimates. . Each property owner who contested the city’s condemnation lawsuit ended up receiving between 37% and 132% more than the city’s original offer.

Originally, the forest road extension was scheduled to be completed in summer 2023 at a cost of $1.6 million, but is now scheduled for completion in March 2025 at a total cost of approximately $21 million.

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