Janice Peterson

A settlement has been reached between Provo and the owners of part of the land used for the 4800 North connector road between University Avenue and Canyon Road, and the city will end up paying more than four times the amount of its original offer.

"We'll be happy to have this behind us when the settlement is all final, and we appreciate the cooperation of all the parties in bringing this to an amicable resolution," said Helen Anderson, Provo City spokeswoman.

The settlement came just as a jury trial was to begin to determine the correct appraisal of the land. The legal battle over the value of the land has lasted more than five years, with several court battles and Utah Supreme Court appeals.

"It's been a painful experience for my clients, very painful," said Johnson's attorney, Dayle Jeffs. "And I'm sure it hasn't been pleasant for Provo City."

The Newell Johnson family was originally offered $289,000 for the property, but an agreement could not be made. Although the family would not sell the land for the offered price, Jeffs said Newell Johnson was willing to sell for what he believed was a fair price.

"The owners, although they weren't happy with the idea, knew the city needed the road," Jeffs said.

In 2002, Provo attempted to acquire the property through eminent domain and was granted immediate occupancy. However, in an appeal to the Utah Supreme Court, the ruling was overturned because the land was actually in Utah County, not Provo.

The court ruled Provo City did not have the right to land not within its city limits, though Provo City Deputy Attorney David Dixon said the same arrangement had been done all over the state. Instead, the city made an interlocal agreement with the county for the county to use its power of eminent domain, while the city paid for all the costs, Jeffs said.

The Utah Supreme Court gave Utah County and Provo the right to the land in 2006, and Provo deposited $600,000 to pay for the property, based on its value when litigation began in June 2004. However, a court ruled the payment should equal the land's value based on when the city took possession in 2006. Jeffs said the property, in the Edgemont area of Provo, had rapidly increased in value to almost twice the value of the 2004 appraisal.

Both parties hired appraisers to determine the value of the land, and the Utah County appraiser valued the land far lower than the Johnson's appraiser.

"The appraisers came to a fairly close appraisal as far as the value of the land, but they were very far off in terms of damage to the remaining land," Jeffs said.

The leftover property from the deal was significantly diminished in value as a result of the road, Jeffs said. The 85-foot-wide road at the mouth of the property prevents any access to the rest of the property through a smaller road, and few people would want a home near a major road. More than 20,000 cars are expected on the road each day in the next five to 10 years, he said, which could significantly lower the value of adjacent lots.

Dixon said the county's appraiser valued the property at $844,000, while the Johnsons' appraiser valued it at $1,450,000. A jury trial was set to determine which, if either, value was correct. Instead of spending more money on a trial and possible appeals, Dixon said both sides came to an agreement on a midway price.

"We're happy with the settlement. We're not happy the amount has gone up so much," Dixon said.

Jeffs said neither party is completely happy with the result, which is the sign of a good settlement. Both sides had to give up something they wanted, he said.

"Neither side gets exactly what they want, but they both get what they're willing to live with," he said.