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Silt land payment OK'd by split vote
City votes to pay Silver Cos. for land, but lawsuit likely.
By ELIZABETH PEZZULLO
Date published: 8/27/2003
The Fredericksburg City Council voted 5-2 last night to pay the Silver Cos. $2.3 million for a 48-acre parcel being used for removal of the Embrey Dam.
That action, however, will likely spark a lawsuit from the Silver Cos.
The company said it would refuse the payment since it is $1.1 million below what it believes the land is worth.
City Attorney Jim Pates told the council he had received a letter from the Silver Cos. yesterday asserting that it would move forward with litigation if the resolution passed.
"We've said up front that we're willing to pay for the land," Pates said. "But we won't be intimidated by threatening letters and the fear of a lawsuit."
Pates distributed copies of the letter to council members, but did not provide one to a Free Lance-Star reporter.
The city and the Silver Cos. signed an agreement Feb. 11 requiring the city to pay for the riverfront land for silt removal from the soon-to-be torn-down dam.
According to the contract, the city would pay a price determined by averaging three appraisals of the tract off Fall Hill Avenue. The appraisals, which average $3.4 million, were completed in June.
The city's appraiser valued the land at $1.6 million, the developer's appraiser put it at $4.3 million and an independent appraiser said it is worth $4.4 million.
The city claims the two largest appraisals don't reflect the land's fair market value.
The city arrived at the $2.3 million by averaging the amounts determined by the appraisers based on the "comparably valued land" method rather than the land's future potential worth, which Pates said was how the other appraisers arrived at their estimates.
Councilmen Hashmel Turner and Joe Wilson voted against the resolution.
Wilson said he felt the city had an obligation to abide by the February agreement.
He also said the Silver Cos. agreed to accept $2.9 million for the site.
"Why don't we pay that now and then continue negotiating with them on the price?" he asked.
The Silver Cos. deeded the property to the city soon after executing the February agreement so the Army Corps of Engineers could begin digging a pit to hold the sediment. The defunct structure is being torn down to allow migratory fish to swim upstream.
To reach ELIZABETH PEZZULLO: 540/374-5421 epezzullo@freelancestar.com
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Date published: 8/27/2003
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