The city of Sedona has reached a settlement agreement with Stephanie Penman and M.S. Penman, owners of 760 Forest Road, in its eminent domain proceedings against the Penmans’ parcel, which were undertaken to acquire right-ofway for construction of the Forest Road Extension Project.
The Sedona City Council approved the agreement without discussion on Oct. 24.
The city originally offered the Penmans $241,128 for a right-of-way and easement across the property, which they declined. Subsequently, the city filed an action to condemn the property in Coconino County Superior Court on Feb. 28, 2022, which was followed by a court order on March 17 granting the city possession of the property.
Rather than paying cash for the right-of-way, the city agreed in mediation to trade the Penmans “the upper portion of the former Ochoa property,” parcel 401-38-006B, which the city acquired from James and Tina-Marie Ochoa for $839,500. At the time, the parcel was 1.04 acres. It had originally been platted as two adjoining parcels that the Ochoas later combined. The city has received Community Development Department approval to return the parcels to their original configuration prior to the land swap; the Penmans will receive the upper parcel.
The new parcel 401-38-006B that the Penmans will receive will be 20,927 square feet, slightly less than half the size of the combined parcel, and will include a 3,503-squarefoot sewer easement. In return, the city will obtain title to 14,872 square feet of the Penmans’ property at 760 Forest Road, along with 2,917 square feet of permanent easements and 4,578 square feet of temporary construction easements.
As a condition of the swap, the city also required that the Penmans accept a deed restriction on the former Ochoa parcel that will prevent it from being used as a short-term rental, a condition that the settlement agreement referred to as “a restriction encumbering the fee title rights transferred to the Penmans.”
Anthony Misseldine, attorney for the Penmans, did not respond to a request for comment.
Litigation continues between the city and the Forest Road Condominium Association — the Hyatt Residence Club — 741 Forest Road LLC, owned by the Bowers family, and Dr. Farshid Paydar over fair compensation for the city’s taking of right-of-way across three remaining parcels.
