1l. Klein Property Condemnation Settlement.. CAMPBELL, KNUTSON, SCO TT & FUCHS, P.A Mar 20,96 14 :53 No.007 P.02/03
CAMPBELL, KNUTSON) SCO & FU CHS, P.A.
' Attorneys ar Law
Thonm J. (°:
' Rogct N. Knut
Ti om;is M. fic.ott
(;ary G. Fuchs
)atnc, R. Walsh)))
' Elliott R. Knct -cdi
'
Mr. Don Ashworth
City Manager
City of Chanhassen
690 Coulter Drive
'
Box 147
Chanhassen, IVIN 55
317
(612) 452 -5000
Fax (6) 2) 452.5550
March 20, 1996
Andrei, McDowell T'„t Mer
M attltiw K. Brokl
John 1', Kelly
Morguerite M. Mc.(,arrVi
George T. Stcr
, C o v�\ Y-o veA,
o a e
,
r
I Re: Lyman Boulevard /Lake Riley Utilities Project
r
J
L
Dear Don:
As you will recall, in conjunction with the Lyman Boulevard realignment and
the Lake Kiley utilities project it has been necessary to acquire easements over
numerous parcels along Highway 101 and along Lyman Boulevard, One of those
parcels is owned by Willis and Anita Klein. The Klein property is located on the east
side of Highway 101 directly opposite Lake Susan. For purposes of this project, it is
necessary to only acquire an easement over the front portion of the Klein property.
However, it now appears clear that the Highway 101 realignment project will occur
within the next few years and will require total acquisition of the remainder of the
Klein property. If we acquire an easement now, because of the size of the easement
the City will pay severance damages for the diminution in value to the remainder.
Then, in a year or two or three, we will again pay damages when we acquire the
remainder of the property. In effect, we would be paying twice for the same parcel.
To compound the situation, Mr. and Mrs. Klein are elderly, have resided in
Chanhassen their entire lives and are now in need of more full -time care. As a result
of a combination of the probability, if not certainty, of the total acquisition of their
property and their need to move, I have had several meetings with the Kleins and their
children regarding total acquisition of the property now.
In conjunction with that concept, we obtained an appraisal of the entire parcel.
our appraiser appraised the value of the property at $95,000.00 for a total acquisition.
I have entered into negotiations with the Klein family to determine whether total
acquisition is possible and, if so, under what terms.
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CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A
Mar 20 , 96 14:54 No . 00 7 P.03/03 I
Mr. Don Ashworth
March 20, 1996
Page 2
Following negotiations with Mr. and Mrs. Klein and their children, it has been
determined that the Klein family would be willing to sell the property for a total of
$107,000.00. 1 believe it in the best interest
for the City to acquire tile for
that amount. I believe it is a reasonable price
1. We are acquiring the entire parcel and not just an easenien.t and will not
have to pay severance damages and then later pay for the same property
again when we acquire the remainder.
2. The $107,000.00 price includes all relocation costs and any other costs
that may be associated with this acquisition. If we were to acquire the
property at a subsequent time, the City would be liable for relocation
costs which could be well in excess of the additional $12,000.00 that is
being paid to the Klein family now.
3. If we go through condemnation for either the easement or the total
acquisition, in all likelihood condemnation conunissioners will award an
amount higher than our appraisal anyway.
4. No further costs need to be incurred by the City in this proceeding nor in
any subsequent proceeding for acquisition of tine Necessary easements.
I request that the matter be placed before the City Council for their review. If
the proposed acquisition is approved by the City, I will proceed to prepare the
Purchase Agreement and the appropriate documents for acquisition.
If you or any member of the Council wishes to review the matter further or has
any questions, please feel free to call me.
Very truly yours,
CAMPBELL, KNUTSON, SCOTT
&I
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GGF:cjh
Enclosure