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RESOLUTION NO. 99-340
RESOLUTION TO PRESCRIBE A PROCEDURE TO WAIVE THE
APPRAISAL IN CASES INVOLVING THE ACQUISITION OF PROPERTY
WITH A LOW FAIR MARKET VALUE FOR PUBLIC IMPROVEMENT
PROJECTS THAT MAY ENTAIL CONDEMNATION
WHEREAS, the Iowa General Assembly recently enacted House File 476,which amends Chapter
613 of the Iowa Code to revise aspects of the law relating to the acquisition of private property for
public improvement projects; and
WHEREAS,Section 6B.54(2)of the Jowa Code,as amended by I-IF 476,provides that an acquiring
agency may prescribe a procedure to waive the requirement for an appraisal "in cases involving the
acquisition of property with a low fair market value"; and
WHEREAS, Section 6B.54(2) of the Iowa Code, as amended by HF 476, now requires each
governmental body that acquires property to establish an amount that it believes to be just
compensation for the property or property interest being acquired before it initiates negotiations for
the property;
NOW,THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa that:
Section One. Definitions
For purposes of this resolution, the following terms shall have the following definitions:
Appraisal means a written report, provided by an appraiser in conformance with the
Uniform Standards of Professional Appraisal Practice (USPAP), indicating the fair market
value to be paid for the acquisition or taking of private property, and/or of the damages to
be paid for the acquisition or taking of an interest in private property or of a part of such
property.
Compensation Estimate means a valuation, prepared by an acquisition agent, or other
person with special training or experience for that task, indicating the fair market value for
the acquisition or taking of private property, and/or of the damages for the acquisition or
taking of an interest in private property or of a part of such property. A compensation
estimate shall state an itemization of the elements of the valuation and/or damages. A
compensation estimate is not an appraisal.
Low Fair Market Value means that the acquisition is estimated to have a fair market value
of$10,000 or less, exclusive of payments for the cost of tillage, fertilizer, growing crops,
agricultural right-of-way fence, and legislated $5/lineal foot of lengthened residential
driveway, as determined by a review of available market data.
Section Two. When Appraisals are to be Obtained•
For all acquisitions other than those of low market value, the valuation of the property or
property interest to be acquired shall be determined by an appraisal.
Section Three. Compensation E5timate in I ieu of Appraisal
When it reasonably appears that an acquisition parcel or an interest in an acquisition parcel
is likely to be of low market value, the valuation of that property or property interest shall be
determined by an estimate of compensation in lieu of an appraisal.
The compensation estimate shall be prepared by a person who has acquired knowledge from
working in the field of land acquisition on how to identify, estimate and document the cost to cure
damages and how to determine the value of land to be acquired based on available market data. A
compensation estimate may be prepared by the same person who is engaged to negotiate the
purchase of property or property rights to be acquired.
The person preparing a compensation estimate shall make reasonable efforts to give the
property owners and tenants an opportunity to participate in the preparation of a compensation
estimate, to provide verifiable cost to cure information, and to identify items of damage.
The compensation estimate shall itemize the estimated value of: the land or the interest in
the land, any buildings on the property acquired, all other improvements acquired including fences,
signs, severance damages, and loss of access.
If the estimate of compensation obtained indicates that just compensation for that property
or property interest is in excess of low market value, then an appraisal shall be obtained for that
property or property interest.
Section Four. Establishment of lust Compensation
The City of Ames Director of Public Works is hereby authorized and empowered to
determine the amount of just compensation for each and every property or interest in property to be
acquired for a public improvement project, those determinations to be made on the basis of
appraisals and estimates of compensation made as aforesaid. In no case shall the amount offered on
behalf of the City of Ames for acquisition of a property be less than the lowest appraisal of the fair
market value of the property.
Done this 14th day of September , 1999.
By: Attested by:
Ted Tedesco, Mayor Diane R. Voss, City Clerk
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