1i. Approve Settlement Agreement with George & Margaret Shorba; Lake Riley Utilities/Lyman Blvd. Project 93-32B CAMPBELL, KNUTSON, SCOTT & FUCHS,,..
Attorneys at Law
Thomas J. Campbell (612) 452 -5000 Andrea McDowell Poehler
Roger N. Knutson Fax (612) 452 SSSO Matthew K. Brokl*
a x -
Thomas M. Scott John F. Kelly
Gary G. Fuchs Marguerite M. McCarron
James R. Walston George T. Stephenson
Elliott B. Knetsch "Also licensed in Wisconsin
Suesan Lea Pace February 12, 1997
p pro sick. I is rcc p- h , tit a+n .
Mr. Don Ashworth
City Manager CITY of CNANAASSEN
City of Chanhassen
anhassen
690 Coulter Drive ROOM
Box 147
Chanhassen, MN 55317 FEB 1 2 1997
Re: Lake Riley Utilities /Lyman Boulevard Project ENGINEERING DEPT
Dear Don:
In conjunction with the above - referenced utilities and roadway realignment
project it was necessary to acquire permanent and temporary easements from several
property owners along Highway 101 and Lyman Boulevard. One of the properties is
owned by George and Margaret Shorba. The Shorbas' property is on the east side of
Highway 101 and directly south of the property owned by the Ward Estate that is the
subject of a current subdivision and platting effort.
The Shorba parcel is approximately .65 acres in size and prior to the project
was heavily wooded with rolling topography. The Shorba parcel also had Lake Susan
access rights via an easement on the west side of Highway 101.
As part of the Lake Riley utilities project it was necessary to acquire an
easement over the Shorba property along the east side of Highway 101. The
permanent easement was approximately 8,975 square feet running the full length of
the property along Highway 101 and 40 to 55 feet wide. The project also required an
additional temporary easement of approximately 6,750 square feet along the east side
of the permanent easement. Attached hereto is a photocopy of a portion of the project
maps showing the easement locations. The easement is identified as Parcel 95 -17.
In addition to the easements needed for the utilities project, the future
realignment of Highway 101 would require acquisition of the entire remainder of the
parcel. Because of the future need for the entire parcel, we determined it would be
Suite 317 • Eagandale Office Center • 1380 Corporate Center Curve • Eagan, MN 55121
Mr. Don Ashworth
February 12, 1997
Page 2
less expensive to both the City and to the property owner to acquire the entire parcel
now. The owners agreed with that analysis and have agreed to discuss settlement of
this matter in the form of acquisition of the entire parcel as opposed to just the
easement.
The City's appraisal of the value of the entire parcel is $41,000.00. The
owners' appraisal of the entire parcel is $68,000.00. The owners have offered to
settle the matter for the difference between the two appraisals, or $54,500.00.
I recommend approval of the proposed settlement for the following reasons:
a. If we are unable to settle, we are left with condemnation of only the
permanent easement now and the remainder later. I believe it likely that
the owners will be awarded severance damages in this proceeding
because of the long and narrow, and thus less valuable, portion that will
be left after our easement acquisition. The result will be that we may
have to pay severance now and pay again for the same property when we
acquire it later.
b. By settling now we avoid the expenses of the rest of this proceeding as
well as the expenses of the next acquisition effort.
c. I believe our appraisal is too low and that the court appointed
commissioners would likely award compensation to the landowner of at
least $50,000.00 anyway. The cost to the City arriving at that result will
likely be close to or in excess of the remaining $4,500.00 being
requested by the property owner.
In addition, the owners, Mr. and Mrs. Shorba, wish to receive the payment of
the settlement amount in four equal annual installments without interest. That is, they
request payment of the $54,500.00 as follows: $13,625.00 upon approval of this
settlement by the Council and $13,625.00 on January 15, 1998, 1999 and 2000. A
signed unsecured promissory note from the City would evidence the future payment
obligation.
As stated above, I recommend settlement of this case as set forth above. Please
place this matter on the next available Council agenda for the Council's consideration.
If approved by the Council, please let me know and I will complete the necessary
documentation.
Mr. Don Ashworth
February 12, 1997
Page 3
As always, if you or any member of the Council has any further questions or
requires any additional information, please feel free to contact me.
Very truly yours,
CAMPBELL, KNUTSON, SCOTT
& FUCHS, P.A.
1
By: 41 A.�
• 1. C iS
GGF:cjh
cc: Mr. Charles Folch
I
7 X
\
T
2t E 3MP. 903.8 DEED
EASE �.- 900.72 MEAS.
PERM.
z : EASEMENT I A , ' �
/
` � ` ' /
�` ! /
� �� /
� i
"-s ��\ i� . .- I • . —
'� - � T ;, -, -, ''..X6 1� t �., 9 5 -k:, rf. f �` •_
� .2 -- , ^, N -4 ",,-:`, , / � a 30 TEMP.
.. ,� ,''. E3 . 11 EASEMENT
s• • \� � ti 2,� + `�
T.H. 101 `°-ti, ti\ ` r / 4 j 1
•
• • ••t ai •• .,, . J !
ti S (�
V") / \. •ti X \ e • t $ \• ., ! i".+` ! • /
: n
Tr
Lit , 3 .742,,, j , ;. 40' i 1 4:4;1::,-1:1`
W .7. tr � �Yt.} �` • .,ma w,. \• y
, Yj o \
2 / \ ham, \, ;
F— / am ..... . ..
r
ct
Z at EXISTING T. •, = - -' ` . = ' ,, . . 14. iPERM. r .. . ;,4
EASEMENT
25.63-" �'N > •
/ e al
/
/
1 /