Broken Arrow City Council
Meeting of: 05-21-2019
Title:
title
Consideration, discussion and possible approval of Resolution No. 1216, a Resolution authorizing the City Attorney to enter into a final Journal Entry of Judgment in the case of Broken Arrow Economic Development Authority v. The City of Broken Arrow, et al., Tulsa County District Court Case Number CV-2019-0577, authorizing the foreclosure of a portion of a closed alleyway located within Block Eighteen, Original Town of Broken Arrow
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Background:
The Broken Arrow Economic Development Authority (“BAEDA”) owns real property located at 305 North Main Street East in Block 18, Original Town of Broken Arrow (the “Property”). On August 1, 2017, BAEDA, the City and Milestone Capital, LLC (“Milestone”) entered into an Economic Development Agreement whereby, among other things, BAEDA agreed to lease the Property to Milestone, the City agreed to make certain improvements to infrastructure, and Milestone agreed to construct a four-story building consisting of residential, retail, restaurant and office uses and related appurtenances (the “Milestone Agreement”).
The Milestone Project will be built over a portion of an existing alley. On August 21, 2018, the City Council passed Ordinance #3536 closing the t-shaped alley on the Property. In order to complete the Milestone Project, a portion, although not all, of the closed alley needs to be vacated. A closure and a vacation are two different events. The City Council can close a roadway or easement, subject to it being reopened if it becomes necessary, by ordinance. However, if a roadway or easement is vacated, the underlying land is permanently transferred to the person/s owning the abutting land/s. The roadway or easement is permanently extinguished. In order to vacate an alley (a type of roadway), an owner of property abutting the alley must file a District Court action, comply with the applicable statute, and obtain a court order vacating the alley.
It was determined that, because the owner of all of the property abutting the alley is BAEDA, BAEDA would need to be the plaintiff in the District Court action to vacate the alley and the defendants would include the City of Broken Arrow, its franchise holders, and utility companies with easements. Because the City Attorney’s Office has a conflict with representing the City and BAEDA in the same action, and because the Milestone Agreement requires Milestone to pay the attorney’s fees associated with the vacation of the alley, BAEDA retained Albright, Rusher & Hardcastle, P.C., to provide counsel and legal services regarding the alley vacation.
On April 30, 2019, James Rusher, of Albright, Rusher and Hardcastle, filed the action Broken Arrow Economic Development Authority v. City of Broken Arrow, et al, Tulsa County District Court Case Number CV-2019-0577. Staff and the City Attorney recommend the City Council agree to enter into a Journal Entry of Judgment foreclosing and vacating the identified portion of the closed alley. The attached Resolution authorizes the City Attorney to agree to a Journal Entry of Judgment. Once the Journal Entry has been filed with the Court, there will be no further action required in this matter.
Cost: No Cost
Funding Source: No Source
Requested By: Trevor Dennis, City Attorney
Approved By: City Manager’s Office
Attachments: Resolution No. 1216
Recommendation:
recommend
Approve Resolution No. 1216 and authorize its execution.
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