1h. Approval of RALF Agreement by the City of Chanhassen and MnDOTn
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CITY OF /'k
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
Action by City A-1rr,inistrator
TO: Don Ashworth, City Manager
FROM: Bob Generous, Planner II
t^ Cer.; ?issia3
DATE: December 5, 1995
p�'i^ "�•' °; - rad to Cau�;:�
SUBJ: Right -of way Acquisition Loan Fund (RALF) Agreement
Between the the Minnesota Department of Transportation and
the City of Chanhassen
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BACKGROUND
The City has initiated three right -of -way acquisition loan fund (RALF) projects within the city
since 1993. The city is in the process of closing on one of those properties, after a two year
period. The other two properties are no longer under consideration due to significant differences
in property valuation between the city and the property owners. This effort has consumed a
considerable amount of staff time as well as City Council time at each phase of the process.
ANALYSIS
The proposed agreement would eliminate many of the administrative requirements for the city
and, hopefully, speed the process along for interested Chanhassen residents. The city would still
be required to approve the resolution initiating the RALF process (i.e., decide if we will try to
purchase the prop:riy), negotiate the purchase of the property, and approve the purchase of the
property and loan agreement with the Metropolitan Council. The city would still. be responsible
for fronting administrative'eosts for MnDOT's work order and the
However, these monies would be reimbursable from the Metropol
MnDOT would assume the responsibility for performing title work, field title work, fixed asset
property inventory, appraisal and appraisal review and certification, administrative settlements,
surveys, legal descriptions, mapping, computation of housing supplement costs, relocation
assistance, and computation of relocation costs for city payment, preparation of purchase
agreements, etc.
MEMORANDUM
Don Ashworth
December 5, 1995
Page 2
RECOMMENDATION
Staff recommends that the City Council approve a motion approving the Right -of way
Acquisition Loan Fund (RALF) Agreement Between the Minnesota Department of
Transportation and the City of Chanhassen.
ATTACHMENTS
1. Right -of way Acquisition Loan Fund (RALF) Agreement Between the Minnesota
Department of Transportation and the City of Chanhassen.
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RIGHT OF WAY ACQUISITION LOAN FUND (RALF) AGREEMENT
BETWEEN MINNESOTA DEPARTMENT OF TRANSPORTATION AND
CITY OF CHANHASSEN
Mn/DOT Agreement No.
THIS AGREEMENT is entered into, by and between the Minnesota Department of Transportation,
(hereinafter "Mn/DOT ") and the City of Chanhassen, (hereinafter "CITY ").
WHEREAS, the CITY and the Metropolitan Council have approved the location of Trunk Highway
No. 212 corridor; and
WHEREAS, the Metropolitan Council may provide loans to the CITY for the acquisition of trunk
highway right of way in accordance with Minnesota Statutes 473.167 Subd. 2a (1994); and
WHEREAS, the CITY plans to proceed to acquire certain real property within the Trunk Highway
No. 212 corridor using loans provided by the Metropolitan Council; and
WHEREAS, from time to time the CITY may require assistance in various real estate related work,
including but not limited to, real estate acquisitions and easements; and
WHEREAS, Mn/DOT has those technical resources and real estate professionals under its employ
capable of performing certain work associated with real estate acquisitions and easements; and
WHEREAS, Mn/DOT desires to help the CITY in the acquisition process of real property located
with the Trunk Highway No. 212 corridor, subject to its availability.
NOW, THEREFORE, Mn/DOT and the CITY agree as follows:
1. TERM OF THE AGREEMENT
This Agreement shall be in effect for 10 years from the date of final execution and approval
by the appropriate CITY, Mn/DOT and State of Minnesota officials and may be extended by
the parties by written amendment as necessary to finalize property transfers.
2. RESPONSIBILITIES OF THE PARTIES
A. The CITY shall submit to Mn/DOT's Agreement Administrator, who is identified in
section 9 below, all preliminary Metropolitan Council loan applications, documents,
and information required by the Metropolitan Council for its loan approvals to fund
Trunk Highway No. 212 corridor property acquisition.
B. Upon receipt of the above information and documents Mn/DOT shall:
Review the location of real property to be acquired and inform the CITY of
real property within the proposed acquisition which is not needed for future '
trunk highway.
2. Forward the CITY's preliminary loan application to the Metropolitan I
Council.
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C. Upon receiving preliminary loan approval from the Metropolitan Council, the CITY '
shall request Mn/DOT property acquisition work from the Mn/DOT Agreement
Administrator.
D. The Mn/DOT Agreement Administrator shall review the CITY's work request and
either accept or decline, in writing, the work based upon Mn/DOT availability of
resources to perform and complete the requested work. Upon acceptance of the work ,
the CITY shall submit a Work Order, attached hereto as Exhibit A. Work Orders
shall be written and executed by both parties to this Agreement on specific projects,
as appropriate, to delineate work duties, dollar amounts, tie frames, and other '
relevant project information. Real property acquisition work shall include, but are
not limited to: title work, field title work, fixed asset property inventory work,
appraisal and appraisal review and certification, administrative settlements, survey,
legal descriptions, mapping, computation of housing supplement costs, relocation
assistance, and computation of relocation costs for CITY payment. '
E. The CITY shall be responsible for presenting the direct purchase offers to real
property owners and negotiating and finalizing purchases of property within the '
Trunk Highway No. 212 corridor.
F. The CITY may elect to perform any real property work Mn/DOT declined to perform
or may retain independent contractors or consultants to perform such property
acquisition work on the CITY's behalf. Reimbursement by Mn/DOT for work not
performed by Mn/DOT are subject to the provisions of section 3 below.
COSTS AND PAYMENTS
At such time as Mn/DOT has adequate funding within the term of this Agreement, and has
actively started the Trunk Highway No. 212 project, Mn/DOT will acquire the real property
within the office Trunk Highway No. 212 Corridor from the CITY. Reimbursement of any
of the costs listed below are subject to the availability of appropriated funds and Mn/DOT's
prior written approval of the costs incurred for acquisition, administration, and
property. Mn/DOT shall reimburse the CITY as follows: '
A. Acquisition Work Costs In the event Mn/DOT declines acquisition work and the
CITY has used contractors of consultants to acquire real property within the official ,
Trunk Highway No. 212 corridor, Mn/DOT shall reimburse the CITY for such work
costs provided that the CITY maintains and submits to Mn/DOT proper
' documentation regarding work performed and associated acquisition costs.
B. Administrative Costs Mn/DOT shall reimburse the CITY reasonable administrative
' costs for each real property parcel acquired by the CITY after receiving
documentation of said costs which meet Mn/DOT/DOT's Agreement
Administrator's satisfaction.
C. Property Costs Mn/DOT shall reimburse the CITY for the following costs for real
property:
' 1. CITY's purchase price of the real property which shall be the certified
appraised value at the time the CITY purchased said real property. If
' Mn/DOT has approved of a negotiated settlement amount, then Mn/DOT
shall pay the CITY such prior approved purchase amount.
2. All applicable relocation costs paid by the CITY in accordance with
Minnesota Statutes Chapter 117 and the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601, et seq.).
4. NONCOMPENSABLE COSTS
A. In the event the CITY acquires additional real property beyond the limits of the
official map of the Trunk Highway No. 212 corridor, the CITY will pay all costs for
the additional property, unless Mn/DOT has given written prior approval of the
excess acquisition.
B. In the event the CITY acquires additional real property beyond the limits of the
official map of the Trunk Highway No. 212 corridor and said property is
contaminated with hazardous waste, it shall be the CITY's responsibility to pursue
cleanup of said property, unless Mn/DOT has given written prior approval for the
excess acquisition.
C. Mn/DOT's obligations regarding paying taxes and assessments on real property the
CITY acquires within the official Mn/DOT map of Trunk Highway No. 212 corridor
shall be limited to the taxes and assessments paid at the time the CITY closed on the
property.
5. AGREEMENT TERMINATION
This Agreement may be terminated by either party, with or without cause, by giving the
other party 30 days written notices.
6. MERGER AND AMENDMENTS
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Nothing in this Agreement shall merge with any prior agreements or understandings
between the parties to this Agreement. Any amendments to this Agreement must be in
writing and signed by the appropriate CITY, Mn/DOT, and state of Minnesota officials.
7.
ASSIGNMENT
Neither the CITY nor Mn/DOT shall assign or transfer any rights or obligations under this
Agreement without the prior written approval of the other party.
AGREEMENT ADMINISTRATORS
For purposes of administering this Agreement, including official communications, the
Agreement Administrators for Mn/DOT and the CITY shall be:
(insert the name, title, address and telephone
a
10.
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number of each Agreement Administrator).
CONFLICT OF INTEREST
Mn/DOT and the CITY shall not knowingly assign work under this Agreement to any
personnel having present or contemplated future personal interest in properties on which
real estate work are performed.
LIABILITY
Mn/DOT and the CITY shall be responsible for their own acts or omissions and the results
thereof to the extent authorized by law and shall not be responsible for the acts or omissions
of the other party or their respective employees or persons engaged to perform any of the
obligations or responsibilities set forth herein. Mn/DOT's liability shall be governed by the
provisions of the Minnesota Tort Claims Act, Minnesota Statutes Section 3.736 (1994), and
any other applicable law.
AUDIT
Pursuant to Minn. Statue. § 16B.06, Subd. 4 (1994), the books, records, documents, and
accounting procedures and practices of CITY relevant to this Agreement shall be subject to
examination by the Legislative Auditor, Mn/DOT, or the State Auditor.
IN WITNESS WHEREOF, the parties have set their hands.
CITY OF CHANHASSEN DEPARTMENT OF TRANSPORTATION
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By: B
Mayor Director, Office of Right of Way and Surveys
Date: Date:
By:
City Clerk
Date:
Approved as to form and execution
By:
Date:
This instrument was drafted by the State of
Minnesota, Department of Transportation,
Policy Development Office, St. Paul, MN
55155
Approved as to form and execution
By:
Assistant Attorney General
Date:
DEPARTMENT OF ADMINISTRATION
B _
Date:
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EXHIBIT A
MN/DOT WORK ORDER
MN/DOT AGREEMENT NO. WORK ORDER NO.
MINNESOTA DEPARTMENT OF TRANSPORTATION
OFFICE OF RIGHT OF WAY AND SURVEYS
This work is issued under the authority of Mn/DOT
Agreement No. between the City of
Chanhassen and the Department of Transportation
and is subject to all applicable provisions and
covenants of that agreement, which are
incorporated herein by this reference.
Mn/DOT agrees to furnish all products and
perform all work defined in this Work Order's
Scope of Services for the consideration stated
within. All attachments to this work order are
incorporated herein by reference.
Proiect Description, Location
Begin Date:
Work Order
Maximum Cost:
Scope of Services:
End Date:
Work Order
Estimated Budget:
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MnDOT Agreement No.
Work Order No.
IN WITNESS WHEREOF the parties have caused this work order to be duly executed
intending to be bound thereby.
CITY OF CHANHASSEN DEPARTMENT OF TRANSPORTATION
By:
Title:
Date:
Approved as to form and execution
By:
Date:
By:
Title:
Date:
Approved as to form and execution
By:
Date:
DEPARTMENT OF ADMINISTRATION
By:
Date:
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