1j. Resolution Authorizing Advanced Right-of-Way Acquisition Laon Fund (RALF) Application Submittal-Holasek Propertya
CITY OF �=
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
Atkn try:`
TO: Don Ashworth, City Manager
FROM: Bob Generous, Planner 11
DATE: November 1, 1994, Update November 17, 1994
Eric � :�.,.._. � ✓_ . ±, - _ -`-' -�
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' SUBJ: Resolution Authorizing Advanced Right -of -Way
(RALF) Application Submittal, Holasek Property
1
[I
Acquisition Loan Fund
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 the process for applying for a
RALF loan. After applying, the Metropolitan Council gives preliminary approval for the use
of the RALF program. If preliminary approval is granted, the application is forwarded to the
Minnesota Department of Transportation for review. After receiving preliminary approval,
the City must obtain and submit to the Minnesota Department of Transportation an appraisal
of the property for certification. After certification of the appraisal, the City may initiate
negotiations for the purchase of the property with the property owner. The City then makes
final application for the loan. The Metropolitan Council has to give final approval to use the
loan for the purchase of the right -of -way.
The City of Chanhassen will have to front some funds as part of the process including
appraisal costs ranging from $5,000 to $10,000, title search costs, tax payments, etc.
However, these monies are then recoverable as part of the loan amount that is eventually
repaid when the state purchases the property from the City.
The property included for acquisition as part of this resolution is located on the south side of
Lyman Boulevard west of Great Plains Boulevard. The total area to be acquired consists of
approximately 61 acres of which about three- quarters is developable and one - quarter is
wetland. The property includes the actual right -of -way for Highway 212 (consisting of
MEMORANDUM
Don Ashworth
November 1, 1994
' Update November 17, 1994
RALF - Holasek Property
Page 2
approximately 40.4 acres) and the remainder of the property east of the highway that staff
believes will be severed by the highway and thus lose its economic value (consisting of
' approximately 6 acres of upland and 14.6 acres of wetland). The Parks and Recreation
Commission is in the process of updating the Parks and Open Space section of the
comprehensive plan and they are proposing that this additional property be designated as
' parks and open space in the City's Land Use Plan. The estimated loan amount is about
$730,000 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 pursuing the purchase of the Frank Fox property immediately south of this
property for acquisition under the RALF program. A third appraisal of the Fox property is
' being performed pursuant to MNDOT's direction. A third property, located between Rice
Marsh Lake and Lake Riley is being negotiated for purchase.
' UPDATE
City Council tabled this item at the November 14, 1994 Council meeting to receive additional
clarification from staff regarding the possible purchase of this property through the RALF
process.
' Q: Is this property inside the Metropolitan Urban Services Area (MUSA) line?
A: This property is located outside of the MUSA line.
Q: Are we agreeing to purchase the property for $30,000 per acre?
' A: No. When a property owner requests that the City initiate the acquisition of their
property through the RALF program, the city requests that the applicant provide an estimated
' purchase amount ($30,000 per acre). Staff evaluates the estimated purchase price and then
prepares a cover memo with our estimate of what the actual loan amount will be including
the purchase amount ($15,000 per acre for upland and $1,500 per acre for wetland) and
P,
Don Ashworth
November 1, 1994
Update November 17, 1994
RALF - Holasek Property
Page 3
administrative costs. However, neither of these amounts are binding.
As part of the process, the City will be required to have two appraisals performed on the
property. MNDOT will then certify one or both of the appraisal amounts as the purchase
price for the property. Once the City has a certified purchase amount, we may then negotiate
with the property owner for the actual purchase of the property. If the negotiated purchase
amount is the certified appraisal amount, then we proceed to the preparation of the final loan
agreement. If the negotiated purchase amount exceeds the certified appraisal amount, then we
would have to go back to MNDOT for a settlement agreement on the negotiated purchase
amount. In any case, City Council must approve any negotiated purchase amount.
The authorization provided in this resolution is for staff to initiate the RALF process for this
property. The resolution does not establish a purchase amount, nor does it require the City to
purchase this property. Rather, it begins the process.
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 landowner for the
acquisition of property within the Highway 212 corridor.
Attachments:
1. Resolution
2. Letter from Delores B. Holasek dated 10/6/94
3. Location Map
4. Parcel Map
c: Delores B. Holasek
Michael L. Meyer
f
r
i
I Date
I Motion By
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
-me 40 •
Resolution
Seconded By
RESOLUTION AUTHOR12ING LOAN APPLICATION AND
NEGOTIATIONS TO PURCHASE PROPERTY FOR THE
RIGHT -OF -NAY FOR HIGHWAY 212
WHEREAS, Highway 212 has been designated by the Metropolitan
Council as part of the Metropolitan Highway System Plan;
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 , 1994, by the City
Council of the City of Chanhassen.
I ATTEST:
Don Ashworth, Clerk /Manager
11137
12/29/93
Donald J. Chmiel, Mayor
s
RECEIVED '
} 1994
CITY OF CHANHH�S�-f" t
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'
y.ttn C=r� A�hwcorth - City Manager
I. Litiorp_, B Holasek., own a pproxi m ately 61 acres of land on Lyman Blvd.
'
in = rianr).ass (see att ached leqal description. Approximately 70% of this
ianj is within the new preposed Hwy 212 right -of -way and value of the
'
re-,t of Tne iano is s evereiv diminished by the loss of the 212 right -of-
wav riort ic,n of this property. I request that the Cit of Chanhassen or
wr,= +rPvPr ;�+itr+i is pl,rchasinq the land for the highway, purchase the
,
acres That i own at this lo cation. Based on the selling pric of
r_ironerties in T.he area, I anticipate a sales price of $30,000
'
i r,> .� _ ++_�+,� �ieas inform me of the next step I should take.
RECEIVED '
} 1994
CITY OF CHANHH�S�-f" t
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