The following is in regards to the Four Mile Creek Outfall Sewer and the Eastside Rural Water District 2*

Recently the City of Ankeny threatened my 72 year old mother with condemnation on a property it was trying to acquire for a water main.  The City of Ankeny had offered both her and myself $1.00 for the easement at the time the condemnation threat was made.  The City did not show the method by which they determined the underlying value for the water main easement.  Please review amendments made in HF2351 that were signed into law in 2006 and are now part of the Code of Iowa:

Section 7 of HF 2351 amends Iowa Code Section 6B.2B:

“An acquiring agency shall not make an offer to purchase the property or property interest that is less than the fair market value the acquiring agency has established for the property or property interest pursuant to the appraisal required in section 6B.45 or less than the value determined under the acquiring agency's waiver procedure established pursuant to section 6B.54, subsection 2, for acquisition of property with a low fair market value. A purchase offer made by an acquiring agency shall include provisions for payment to the owner of expenses, including relocation expenses, expenses listed in section 6B.54, subsection 10, and other expenses required by law to be paid by an acquiring agency to a condemnee.”

HF 2351 amends Iowa Code Section 6B.54, subsection 3 as follows:

“Before the initiation of negotiations for real property, the acquiring agency shall establish an amount which it believes to be just compensation for the property, and shall make a prompt offer to acquire the property for the full amount established by the agency. In no event shall the amount be less than the fair market value the acquiring agency has established for the property or property interest pursuant to the appraisal required in section 6B.45, or less than the value determined under the acquiring agency’s waiver procedure established pursuant to subsection 2.

6B.45  Mailing copy of appraisal.

When any real property or interest in real property is to be purchased, or in lieu thereof to be condemned, the acquiring agency or its agent shall submit to the person, corporation, or entity whose property or interest in the property is to be taken, by ordinary mail, at least ten days prior to the date of contact, a copy of the appraisal in its entirety upon such real property or interest in such real property prepared for the acquiring agency or its agent, which shall include, at a minimum, an itemization of the appraised value of the real property or interest in the property, any buildings on the property, all other improvements including fences, severance damages, and loss of access. The appraisal sent to the condemnee shall be that appraisal upon which the condemnor will rely to establish an amount which the condemnor believes to be just compensation for the real property. All other appraisals made on the property as a result of the condemnation proceeding shall be made available to the condemnee upon request. In lieu of an appraisal, a utility or person under the jurisdiction of the utilities board of the department of commerce, or any other utility conferred the right by statute to condemn private property, shall provide in writing by certified mail to the owner of record thirty days prior to negotiations, the methods and factors used in arriving at an offered price for voluntary easements including the range of cash amount of each component.

It appears as though the City has made illegal offers of below market value in this case.  The City did not detail the method for determination of the underlying value of the property when it made its offer of $1.00 as is required in 6B.45.  Apparently the City is in the habit of sometimes "lowballing" its offers whenever property acquisition with the potential of condemnation is involved.  I guess its worth a shot even if the law says otherwise.

Update: The City of Ankeny has recently temporarily withdrawn its request for an easement and withdrawn condemnation proceedings.  The fact remains that the City of Ankeny willfully attempted to use intimidation with the threat of condemnation to obtain property in what appears to be an illegal and unethical manner.  View a copy of the $1.00 easement here.

* If you find any inaccuracies please notify me through the contacts menu under Ankeny Watch