Valley Floor valuation trial set for Feb. 5
By Douglas McDaniel
Bolstered by a recent favorable court decision and newly armed with the hiring of the firm of Stifel, Nicolaus to provide support for $20 million in bond financing, the Town of Telluride is ready to pursue its court battle in February with the San Miguel Valley Corporation over its condemnation of the Valley Floor.
With the valuation trial set for Feb. 5 in U.S. District Court in Delta, Telluride Town Attorney Kevin Geiger on Tuesday gave the council on overview of the anticipated proceedings.
He said the town has met all of the jurisdictional requirements for the condemnation, including having the authority to do so for a “legitimate public purpose.” In addition, he said, both the Town and the SMVC have reached the requirement that there has been a failure to agree to terms based on good faith negotiations.
“It will go to a jury of six in Delta,” he told the council. “There is going to be a complex analysis of what is the highest and best use of the property.”
According to a memorandum from Geiger to the town council, the District court has reserved three weeks for the final valuation trial, with a jury of six “freeholders,” that is, property owners, determining the value of the 570-acre parcel.
Geiger’s memo states the landowner will have the burden of proof during the trial, and the “just compensation” due to the SMVC is “determined by considering the reasonable market value of the Valley Floor under an analysis of what is the most advantageous use or development scenario for the Valley Floor, without engaging in speculation.”
The restriction on any possible speculation was supported by a recent ruling by a district judge that a $26 million dollar sale of property in Mountain Village cannot be used as a determining factor for the value of land on the Valley Floor.
In September, the SMVC made a motion that the five acres of land on Country Club Drive, intended for the new Rosewood Resort, should be used as evidence to a valuation trial jury to determine the price of condemnation. However, District Court Judge Charles Greenacre ruled the sale was admissible because the properties weren’t comparable.
In a related matter, the council contracted the bond financing services of Stifel, Nicolaus. According to the acceptance letter from Town Manager Frank Bell, the firm will provide the work on the financing of the $20 million public debt authorized by the town’s voters in November.
“When a determination is made that the town has sufficient resources to acquire the property, your firm will become the selling and managing agent for the related public debt,” Bell stated. “In order to help maximize the town’s available resources we may also wish to explore financing strategies related to the town’s existing and proposed public debt authorizations not related to the Valley Floor acquisition.”
Geiger said the jury that will meet at the Delta County Courthouse at 501 Palmer Street in Delta will determine the amount of compensation the town is required to pay.
“All of this comes down to a one-page jury form,” he said. The final figure the town will need to be paid, Geiger added, will need to be forwarded to the court within 90 days, and the town may take possession of the Valley Floor pending an appeal.
Once the Valley Floor is acquired, the Town will create a conservation easement to “restrict the development of any permanent structures on the Valley Floor so as to maintain its status as undisturbed open space,” Geiger’s memo states.
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Bolstered by a recent favorable court decision and newly armed with the hiring of the firm of Stifel, Nicolaus to provide support for $20 million in bond financing, the Town of Telluride is ready to pursue its court battle in February with the San Miguel Valley Corporation over its condemnation of the Valley Floor.
With the valuation trial set for Feb. 5 in U.S. District Court in Delta, Telluride Town Attorney Kevin Geiger on Tuesday gave the council on overview of the anticipated proceedings.
He said the town has met all of the jurisdictional requirements for the condemnation, including having the authority to do so for a “legitimate public purpose.” In addition, he said, both the Town and the SMVC have reached the requirement that there has been a failure to agree to terms based on good faith negotiations.
“It will go to a jury of six in Delta,” he told the council. “There is going to be a complex analysis of what is the highest and best use of the property.”
According to a memorandum from Geiger to the town council, the District court has reserved three weeks for the final valuation trial, with a jury of six “freeholders,” that is, property owners, determining the value of the 570-acre parcel.
Geiger’s memo states the landowner will have the burden of proof during the trial, and the “just compensation” due to the SMVC is “determined by considering the reasonable market value of the Valley Floor under an analysis of what is the most advantageous use or development scenario for the Valley Floor, without engaging in speculation.”
The restriction on any possible speculation was supported by a recent ruling by a district judge that a $26 million dollar sale of property in Mountain Village cannot be used as a determining factor for the value of land on the Valley Floor.
In September, the SMVC made a motion that the five acres of land on Country Club Drive, intended for the new Rosewood Resort, should be used as evidence to a valuation trial jury to determine the price of condemnation. However, District Court Judge Charles Greenacre ruled the sale was admissible because the properties weren’t comparable.
In a related matter, the council contracted the bond financing services of Stifel, Nicolaus. According to the acceptance letter from Town Manager Frank Bell, the firm will provide the work on the financing of the $20 million public debt authorized by the town’s voters in November.
“When a determination is made that the town has sufficient resources to acquire the property, your firm will become the selling and managing agent for the related public debt,” Bell stated. “In order to help maximize the town’s available resources we may also wish to explore financing strategies related to the town’s existing and proposed public debt authorizations not related to the Valley Floor acquisition.”
Geiger said the jury that will meet at the Delta County Courthouse at 501 Palmer Street in Delta will determine the amount of compensation the town is required to pay.
“All of this comes down to a one-page jury form,” he said. The final figure the town will need to be paid, Geiger added, will need to be forwarded to the court within 90 days, and the town may take possession of the Valley Floor pending an appeal.
Once the Valley Floor is acquired, the Town will create a conservation easement to “restrict the development of any permanent structures on the Valley Floor so as to maintain its status as undisturbed open space,” Geiger’s memo states.
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