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2e. Lyman/Lake Riley Utilities: Klingelhutz Settlement Agreement.' Thomas J. Campbell Roger N. Knutson Thomas M. Scott ' Gary G. Fuchs James R. Walston Elliott B. Knetsch Suesan Lea Pace CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A. Attorneys at Law Mr. Don Ashworth City Manager City of Chanhassen 690 Coulter Drive Box 147 Chanhassen, MN 55317 (612) 452 -5000 Andrea McDowell Poehler Matthew K. Brokl Fax (612) 452 -5550 John F. Kelly Marguerite M. McCarron eorge T/JStephenson April 17, 1996 e, le / Manager's Comment Approval is recommended. APR 19 1996 CITY OF CHANHASSEN Re: Lyman Boulevard /Lake Riley Utilities Project Dear Mr. Ashworth: One of the parcels most impacted by the Lyman Boulevard /Lake Riley utility project is the Klingelhutz homestead property on Highway 101 owned by Al and Mary Klingelhutz. The utility easement being acquired over the Klingelhutz parcel is 39,933 square feet in size (just under one acre) and is shown on the enclosed survey drawing. The utility easement is located entirely within the future, proposed realignment of Highway 101. The easement being acquired is for both utility and roadway purposes. In addition, there is a two year temporary easement over another 40,748 square feet. The construction activity has started on the property. Due to the depth of the utility trench, the construction activity has extended well outside the permanent and temporary easement areas. Mr. Klingelhutz is entitled to be compensated for that additional use of his property. The City's appraisal of the compensation due as a result of the permanent easement and the original temporary easement is $39,100.00. The appraised compensation is based on a land value of $21,000.00 per acre and on the square footage for. the easements as set forth above. Mr. Klingelhutz believes that his land valuation should be between $30,000.00 and $33,000.00 per acre. The appraisal for damages includes severance damages to a portion of the property that, as a result of ' our taking, creates a sliver of land that is unusable or marginally valuable and is located between "old" Highway 101 and the "new" easement. ' I have had several negotiation sessions with Mr. Klingelhutz over the last Suite 317 • Eagandale Office Center 0 1380 Corporate Center Curve • Eagan, MN 55121 C Mr. Don Ashworth April 17, 1996 Page 2 several months. As a result of those efforts, I have a proposed settlement for the City t Council's consideration. Mr. Klingelhutz has agreed to resolve the compensation claim that results from this easement acquisition over a total payment of $65,000.00. That total amount is based on an assumed, compromised land value of $27,000.00 per acre, an expansion of the temporary easement from a width of 80 feet (approximately 40,950 square feet) to a width of approximately 190 feet (98,945 square feet), a diminution in value of the approximately 2.7 acres located in the "sliver" created by the new easement of 37% and $1,000.00 for the cost of replacing his fence. v I recommend the compromise and settlement to the Council for its approval. I ° believe the compromised per acre value to be reasonable and fair. We have settled other acquisitions in this same project on the exact same per acre value. I have verified the approximate extent of the temporary easement to be in the area of 200 feet. Finally, it is, in my opinion, a better alternative to pay the owner for fence replacement than to agree to have our contractor replace it. It is a continuing problem if our contractor replaces the fence because of claims that the quality of the fence is unacceptable, or the replacement is unacceptable or the location is incorrect or some other minor issue continues to fester. Please place this proposed resolution of the easement acquisition on the next available Council agenda for the City Council's consideration. I recommend it to the Council for approval. As always, if you or any member of the Council has any questions or requires additional information regarding this matter, please feel free to contact me. Very truly yours, CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A. B y . 6, . Gary G. uchs GGF:c h Enc osure cc: Mr. Charles Folch 7 P.O.C. = POINT OF COMMENCEMENT P.O.B. = POINT OF BEGINNING I I III MISSION HILLS I I PLAT BOUNDARY -- F- W PROPOSED EASTERLY RIGHT OF WAY W J��l STATE HIGHWAY 101 0 ° 4.0" - PERM l \' ! EASEMENT �:� Orr Schelen CADD Maye ron & Ma Associates, Inc. Engineers ■ ArchiLeeLs ■ Planners ■ Surveyors 9) o •�,\ z '� o f;Y N LL ' ©��` ie 0 T, \ •�i ' LLI r � - - -- --- w I I 40' PERM. EASEMENT — 1 —PROPOSED WESTERLY 101 RI OF WAY STATE HIGHWAY , 1 \ 9� 9> � P.O.B. �~ 50.001 - <_- ' 676.92 -" P.O.C. -' 660. 00 i I 1 � 0 ��'1 1 � ��`o �� ti ► alt 1° -- W. W',2- NWli4a „i,u3.n1e -°^- -- - -- SCALE : 1 ” = 100 FEET Drawn By: Orr Schelen CADD Maye ron & Ma Associates, Inc. Engineers ■ ArchiLeeLs ■ Planners ■ Surveyors Date' 300 Park Place F.asl ■ 5775 Wayzata Boulevard PROPOSED CENTERLINE STATE HIGHWAY 101 PER MN /DOT STUDY 101A LAYOUT DATED 9/11/91 - - -, � T W 0 =� J i i i tw 0 96 -2 ' I w I OWNER: AL H. & MARY JANE KLINGELHUTZ TRU$�T I I PID : 25- 024 -02400 Drawing Title EASEMENT SKETCH 96 -2 CITY PROJECT NO. 93-32 C,HANHASSAN , MINNESOTA Comm. No. Sheet no. i