1g.Resolution Authorizing Initiation of RALF Process for Lakeview HillsCITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Don Ashworth, City Manager
Action by City Mm
Endorsed._ �! ,,,�/ o
Msdifi-
Raiected—_._--_.
FROM: Bob Generous, Planner II ,- �--- -- - - -�_.
DATE: December 5, 1995
SUBJ: Resolution Authorizing Advanced Right -of -Way Acquisition Loan Fund (RALF)
Application Submittal, Lakeview Hills Apartment Property
The Metropolitan Council has established a revolving loan fund to assist local governments in
purchasing right -of -ways within the state trunk Highway system in advance of the actual
construction of these highways. These loans bear no interest and are repaid at the time that the
state highway department purchases the property from the local government. The repurchase
price is the same price established at the time of the purchase of the property by the local
government.
The approval of the resolution merely permits staff to initiate
RALF loan. After applying, the Metropolitan Council gives l
the RALF program. If preliminary approval is granted, the'al
Minnesota Department of Transportation for review. After re
City must obtain and submit to the Minnesota Department of
property for certification. After certification of the appraisal,
for the purchase oft he property with the property. owner. I Thi
for the loan. ThgMetropolitan Council has to give final appr
of the right -of -way
The City of Chanhassen will have to`front so
costs ranging from $5,000 to $10,000, title st
monies are then recoverable as part of the lo,
is eventually repaid when the state purchases
the process for applying for a
> reliminary approval for the use of
iplication is forwarded to the
ceiving preliminary approval, the
Transportation an appraisal of the
the City may initiate negotiations
City then makes final application
oval to use the loan, for the purchase
is part of the process including appraisal
tax payments, etc. However, these
from the Metropolitan Council. The loan
-ty from the City.
The property included for acquisition as part of this resolution is located on the north side of
Lyman Boulevard north of the Lakeview Hills Apartments. The total area to be acquired consists
of approximately 30 acres of which about two- thirds is developable and one -third is wetland and
1
MEMORANDUM
Don Ashworth
December 5, 1995
RALF - Lakeview Hills Apartment
Page 2
lake. The property includes the actual right -of -way for Highway 212 (consisting of
approximately 6.3 acres) and the remainder of the property north of the highway that staff
believes will be severed by the highway and thus lose its economic value (consisting of
approximately 9.5 acres of upland and 10 acres of wetland and lake). In addition, the applicant
is requesting that the 4.3 acres of land immediately south of the Highway 212 corridor also be
taken as part of the right -of -way because the property will lose its economic value. (As part of
their review, MNDOT will determine the total amount of land to be taken.) Staff estimates the
loan amount is between $880,000 and $1,200,000 including land purchase and administrative
costs.
We believe that this request can serve two purposes. The first is the protection of the Highway
212 right -of -way, minimizing the cost appreciation of the land, and at the same time responding
to the financial problems the corridor designation has created for a land owner. The second is
reserving a unique natural resource for future use by the City.
The City of Chaska has quite successfully used RALF funds to purchase large portions of the
Highway 212 corridor in their jurisdiction, even though that segment of Highway 212 is planned
for after the section in Chanhassen. In this same vein, staff anticipates that this property will be
one of the first of many that the City attempts to purchase with RALF funds. The City is
purchasing the property immediately west of this property from Rottlund for acquisition under
the RALF program.
RECOMMENDATION
Staff recommends that the City Council approve the attached resolution authorizing staff to
initiate a RALF application and to enter into negotiations with the land owner for the acquisition
of property within the Highway 212 corridor.
Attachments:
1. Resolution
2. Letter from Steven B. Liefschultz dated December 6, 1995
3. Location Map '
4. Parcel Map
c: Steven B. Liefschultz
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Date
' Motion By
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
RESOLUTION
Resolution
Seconded By
RESOLUTION AUTHORIZING LOAN APPLICATION AND
NEGOTIATIONS TO PURCHASE PROPERTY FOR THE
RIGHT -OF -WAY FOR HIGHWAY 212
WHEREAS, Highway 212 has been designated by the Metropolitan
Council as part of the Metropolitan Highway System Plan; and
WHEREAS, the City Council has officially mapped the right -of-
way for Highway 212; and
WHEREAS, if the City does not acquire the right -of -way at this
time the property will increase in value before highway
construction and advance acquisition is also necessary to avert the
imminent conversion of the property which would jeopardize its
availability for highway construction.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Chanhassen:
1. City staff is authorized and directed to submit a loan
application to the Metropolitan Council to fund the
right -of -way acquisition for Highway 212.
2. City staff and the City Attorney are directed to enter
into negotiations with landowners to acquire the right -
of -way for Highway 212.
ADOPTED this day of , 1995, by the City
Council of the City of Chanhassen.
ATTEST:
F
Don Ashworth, Clerk /Manager
Donald J. Chmiel, Mayor
' 11137
12/29/93
THE REMADA COMPANY
7630 WEST 78m STREET
BLOOMINGTON, MN 55439
(612) 942 -6332
FAX: 942 -6518
December 6, 1995
Mr. Bob Generous, City Planner
City of Chanhassen
City Hall
690 Coulter Drive
Chanhassen, MN 55317
Re: Land in the TH 212 Corridor known as Lakeview Hills Apartments
Dear Mr. Generous:
We have been advised that the City of Chanhassen is cooperating with the Minnesota Department
of Transportation and the Metropolitan Council to acquire right -of -way under the RALF program.
I have read the Advance Acquisition loan Procedures guidelines and feel that the Lakeview Hills
Apartments property is eligible. The property is within the proposed right -of -way corridor of
Highway 212, a major arterial highway designated by the Metropolitan Council as a part of the
metropolitan highway system plan. The corridor has been officially mapped and recorded with the
City of Chanhassen.
It is important that the acquisition procedures be initiated within the next few weeks. Eligibility
guidelines for the RALF program indicate that acquisition can be commenced where the imminent
conversion, or subdivision of land, will jeopardize the availability of property for highway
construction. The City has proposed a multi - million dollar infrastructure improvement program
for the Lake Riley neighborhood which will directly impact this property. In fact, the Lakeview
Hills ownership group has participated in several public hearings that have led to the approval of
the Lake Riley Improvement construction in 1996. The proposed assessment to the Lakeview Hills
property is in excess of $400,000. Because of the immense assessment impact to our property, we
are contemplating a redevelopment project to the entire 50+ acre tract of land. Currently, we are
working on a replatting strategy which will subdivide the property into three developable parcels.
Within the next few weeks these plans will be submitted to the City staff for conceptual review.
Already, we have met with the City staff on the dedication of right -of -way easements for the City
Public works project mentioned earlier. Because of the land dedication for Lake Riley Boulevard
we have surveyed our property. It is essential to have a defined land impact decision relative to the
future highway construction by MnDOT so that the redevelopment of the Lakeview Hills
Apartments site can be commenced.
We understand that condemnation will not be considered as part of this right -of -way acquisition..
Clearly, the Lakeview Hills property partnership is willing to negotiate a fair and equitable
settlement to the acquisition situation.. It is our feeling that the right -of - -way acquisition and
impact to the remainder of our property will be in the approximately $1.0 to $2.0 million range.
We are ready to begin the appraisal process with MnDOT representatives at their earliest
convenience.
Bob Generous, City Planner
December 6, 1995
Page 2
The attached map of the Lakeview Hills Apartment property indicates the parcels of land that are
subject to this discussion. We request that Mn/DOT acquire the Highway 212 right -of -way parcel,
and review the acquisition of the parcels immediately north and south of this property. The
property; to the north of the highway including the upland, wetland, and lake property, will be land
locked; therefore of no practical use for future development. The remnant parcel south of the
highway corridor will be nearly impossible to develop and of no value to the apartment tract,
because of the design characteristics of the highway. In summary, it is requested that the Mn/DOT
acquisition under the RALF Program include:
TH 212 R/W: 6.3 Acres
North Lake/Wetland Parcel: 10.0 Acres
Upland: 9.5 Acres
South Remnant Parcel: 4.3 Acres
30.1 Acres
It is our understanding that the following procedures will be followed by the City and Mn/DOT:
Step 1: Letter from the landowner to the City requesting the City to contract with
Mn/DOT to acquire the appropriate property in question.
Step 2: The City Council will review the staff report, approve of the process and send the
request, with City concurrence, on to the Metropolitan Council. Our
understanding is this can be done within the next two weeks.
0
n
Step 3: Met Council will act within 60 days to approve or reject this request from the
City.
Step 4: Once the Met Council has acted upon the request, it will be sent back to the City
Council for approval of a contract with Mn/DOT to initiate the appraisal process.
Step 5: The two appraisals are completed.
Step 6: The appraisals are submitted to Mn/DOT. The Mn/DOT staff will certify one of
the two appraisals and begin the negotiation process with the landowner.
Step 7: At the conclusion of the Mn/DOT negotiation process with the landowner, they
will send the final offer that is acceptable to both entities to the City Council for
their approval. This concludes the process.
During our discussions, you have requested a brief chronological background of the events that
have created a hardship with respect to the Lakeview Hills apartment complex and the imminent
redevelopment schedule. Please note the following items have led up to the position we are in at
this time:
1
Bob Generous, City Planner
December 6, 1995
Page 3
1. In 1984, our partnership purchased the apartment complex and the land north of the
apartment complex. At that time we asked the City if it would be possible to plat our
entire parcel for purposes of selling off the north and south parcels for development of
apartment buildings. We were advised that because of the 212 Project we could not do so
and they would not entertain such plans. We were told at the time that in approximately
1989 or 1990 there would be a taking and we should be patient.
2. In approximately 1989, we approached the City again regarding submitting a concept plan
for development of multi- family units on both the north and south areas of our parcel.
Again we were told that we were not able to do this and were also advised that all of the
land north of our apartment building would be considered in the taking.
3. In 1993 we were advised by the City that in fact the taking was going to be postponed until
about 1995 or 1996. At that time, we had a number of elderly partners to whom continued
ownership was becoming a burden, regardless of the potential for platting and development
of the north and south areas of the parcel. As a result, the current partners were forces to
buy out approximately six of the existing partners.
4. In 1994 we were advised of the substantial assessment against the parcel. The assessment,
together with the age of the remaining partners, made it imperative that the existing parcel
be platted so as to have the development done and avoid the current partners having to be
faced with those assessments.
5. We have recently been advised that the proposed taking has been postponed indefinitely.
Currently we have one partner who is 73 years of age and partially disabled. We have a
second partner who is 68 years of age and has recently had a heart attack. It has not been
approximately eleven years that we have present partners have had to expend substantial
sums of money to buy out other partners who also were elderly and/or ill.
As the result of the time factors mentioned above, the proposed assessment and the health and age
of the existing partners, we respectfully request that the City initiate an advanced acquisition for
right -of -way within the 212 Corridor through the Metropolitan Council Right -of -Way Acquisition
Loan Fund. We further request that the City then contract with Mn/DOT for purposes of the
process.
Very Truly Yours, '
Steven B. Liefschultz ,
Chief Executive Officer
Enclosures ,
P.S. I am enclosing the drawings that you had requested with this letter.
cc: Len Levine '
Richard Koppy
Bernie Reeck '