More than two years after beginning construction on the Forest Road Extension, the city of Sedona has finally acquired clear title to all of the land beneath it after having negotiated final settlements with the Bowers family and Dr. Farshid Paydar.

The plans for the extension called for the city to obtain right-of-way or easements across 11 parcels owned by nine individuals. 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 of their properties.

As of Aug. 26, the city had settled with:

• Jean McDonald, 731 Forest Road: Offered $110,565; settled for $256,000.
• Stephanie and M.S. Penman, 760 Forest Road: Offered $241,128; settled for approximately $419,750.
• Hyatt Residence Club: Offered $223,299; settled for $450,000.

On Oct. 8, the Sedona City Council approved a settlement agreement with the Bowers family, owners of 741 Forest Road, the property most affected by the construction of the extension, which bisects it. As a result of the city’s condemnation proceedings, the usable area of the Bowers’ 2.66-acre parcel was reduced by 0.9 acres for roadway and easements.

The city originally offered $225,913 for its takings on the Bowers’ property, while the owners claimed $473,500 in compensation. Both parties eventually agreed on fair compensation of $355,000, plus interest and payment for a temporary construction easement, for a total of $383,485.87.

Finally, the Sedona City Council was scheduled to approve at its Nov. 26 meeting, after press time, a settlement agreement with Paydar, owner of 750 Forest Road. The city’s takings in this instance amounted to 0.82 acres of the 1.83-acre parcel. City staff originally offered $481,914 in compensation, while Paydar put in a counterclaim for $1,658,000.

In the final settlement, which received staff approval on Nov. 13, the city and Paydar agreed to a total payment of $660,000 as fair compensation for the city’s takings.

Paydar previously received $216,683 for easements on two adjoining parcels that he also owns.

While city staff originally estimated that easements and right-of-way on the disputed parcels could be acquired for a total of $1,282,819, the total amount of all five final settlements was $2,169,235.87, or 69% above the staff estimate. Each of the property owners who fought the city’s condemnation proceedings ultimately received between 37% and 132% more than the city’s initial offer.

Originally planned for completion in summer 2023 at a cost of $2.77 million,* the Forest Road extension is now expected to be completed in March 2025 at a current total cost of approximately $21 million.

*Editor’s note: The print version of this story incorrectly stated that the original estimate for the cost of the Forest Road extension project was $1.6 million, which was the cost estimate for the easements as of September 2022. City staff’s estimate of the total project cost as of council approval on Oct. 22, 2019, was $2,772,047, with an estimated $400,000 in land acquisition costs.