The city of Sedona has settled the third of five eminent domain lawsuits filed against the owners of properties whose lots were partially condemned in order to secure right-of-way for the Forest Road Extension project.

The Sedona City Council approved the settlement with the Forest Road Condominium Association, doing business as the Hyatt Residence Club, as a consent item on July 9 without discussion.

The plans for the Forest Road extension required the city to obtain rightof-way or easements on 11 parcels held by nine separate owners. Four of the property owners, representing five of the relevant parcels, accepted the city’s initial offer of compensation. The remaining five landowners refused the proposed compensation, requiring the city to file suit in Coconino County Superior Court to condemn portions their properties.

• The city settled the first of the suits, with Jean McDonald of 731 Forest Road, on Jan. 12, 2023, for $256,000, an increase on the $110,565 that McDonald was originally offered.
• A second suit, with Stephanie and M.S. Penman of 760 Forest Road, was settled on Oct. 24, 2023. City staff had offered the Penmans $241,128 for the necessary right-of-way and eventually settled the suit by agreeing to trade them half of an adjoining parcel, which the city had acquired for $839,500.
• The city’s initial offer to FRCA for the needed right-of-way and easement was $223,299. FRCA countered with a claim for $1,467,298. Following mediation in November, the city and FRCA agreed to settle for $450,000. Per the July 9 council agenda bill, the city has already deposited $241,128 with the Coconino Superior Court and will need to pay an additional $208,872 to complete the taking. As part of the agreement, the city will allow FRCA “to construct four private gates on its private property,” and FRCA will provide gated access to 58 parking spaces to be used by employees of the Shops at Piñon Point.

The city has so far paid the three property owners with whom it has settled a total of $1,125,750, including half the value of the parcel traded to the Penmans, or 96% more than the $574,992 it had originally estimated easements on the three properties would cost. The current planned cost of the Forest Road extension is $15,446,907.73, up from $2,772,047 in May 2019.

Litigation remains ongoing with the Bowers family, owners of 741 Forest Road, and Dr. Farshid Paydar.