1f. Resolution Authorizing Advanced Right-of-way Acquisition Loan Fund Application Submittal1
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CITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Don Ashworth, City Manager
FROM: Bob Generous, Planner II
DATE: January 19, 1994
Anion by City Administrator
Endo r +— ✓ 3>W Ix
Modifie
Rejecte
Dat / - A0 - l
Date Submitted to Commission
Date Submitted to Couned
SUBJ: Resolution Authorizing Advanced Right -of -Way Acquisition Loan Fund
(RALF) Application Submittal
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 initia
advanced RALF loan. After applying,' the Metropolitan Co
for the use of the RALF program. Af preliminary approval,
forwarded to the Minnesota Department of Transportation f
preliminary approval, the "'must obtain and submit to 6
Transportation an appraisal''of the property for certification.
appraisal, the City may initiate negotiations for.;the purchas
owner. The City then makes final application „foz the loan.
the process for applying for an
cil gives preliminary approval
granted, the application is
review. After receiving
Minnesota Department of
lfter certification of the
if the property with the property
give final approval to use the loan for the purchase of the right -of -v
must still give final approval for the purchase of the property if
approved by the Met Council and an acceptable, purchase price
the property owner. Y'
icil has to
Council
is
be negotiated with
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.
f
MEMORANDUM
Don Ashworth
' January 19, 1994
Page 2
The property included for acquisition as part of this resolution is located between Lyman
' Boulevard and Pioneer Trail and would be part of the Powers Boulevard extension and
Highway 212 interchange. The total area to be acquired consists of approximately 57.3 acres.
This right -of -way splits the Fox parcel into two 41 acre pieces located on the east and west
' ends of the right -of -way to be taken. The estimated loan amount is about $1,500,000. The
purchase of this property protects the Highway 212 right -of -way from potential development,
thus reducing future right -of -way costs for the state and ultimately its residents, and at the
' same time responds to the financial problems the corridor designation has created for a
Chanhassen land owner. The property is currently zoned A2, Agricultural Estate District and
' is located in the southern 1995 Study Area on the 2000 Land Use Plan.
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 the first of many that the City attempts to purchase with RALF funds.
' Contingent on the City Council's approval, staff will review the entire Highway 212 corridor
in the City and put together a list of property owners to be contacted to see if their properties
could be purchased through this program.
' Recommendation
Staff recommends that City Council approve the resolution authorizing staff to submit a
RALF loan application to the Metropolitan Council for the purchase of the Frank Fox parcel.
Approval of the resolution only allows staff to initiate this process. The actual purchase of
' the property must still be approved by City Council.
Attachments:
1. Resolution
2. Letter from Frank Fox dated 12/27/93
3. Location Map
4. Parcel Map
5. MN Statute Sec. 473.167, Subd. 2
6. Advanced acquisition loan guidelines
L�
CITY
OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
RESOLUTION
Date Resolution '
Motion By 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
Metropolitan Highway System Plan;-and
I
Council as part of the
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
in before highway
'
time the property will increase value
acquisition is also necessary to avert the
construction and advance
of the property which would jeopardize its
imminent conversion
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
Metropolitan Council to fund the
application to the
right -of -way acquisition for Highway 212.
'
2. City staff and the City Attorney are directed to enter
to acquire the right-
into negotiations with landowners
'
of -way for Highway 212.
ADOPTED this day of , 1994, by the City '
Council of the City of Chanhassen.
A TTEST: '
'
on Ashworth, Clerk /Manager Donal d J. Chmiel l Mayor
1
1 2/29 ,
12/29/93
December 27, 1993
Dear Council Members,
I, Frank Fox, recuest the City of Chanhassen to proceed
with the purchase central part of my farm for right of way
for Highway 212 Corridor.
The land to be acquired, (57.3 acres) severs my farm
of 139.95 acres leaving approx. 41 acres + or - each side
of the acquired land.
OFFERED PRICE 7 � c � t ��
Sincerely,
RECE* I V ZD
GEC ? i 1993
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1989
RIGHT -OF -WAY ACQUISITION LOAN FUND
(RALF)
MINN. STATUTES 473.1679 SUBD. 2 AND 3
The council may make loans to counties,
Subd. 2. LOANS FOR ACQUISITION. '
towns, and statutory and home rule charter cities within the metropolitan area for the
purchase of property within the right -of -way of a state trunk highway shown on an '
official map adopted pursuant to section 394.361 or 462.359 or for the purchase of
property within the proposed right -of -way of a principal or intermediate arterial
highway designated by the council as a part of the 1 romlet'on hi all be stem by '
and approved by the Council pursuant to subdivision
the Council, from the fund established pursuant to this subdivision, for purchases
approved by the Council. The loans shall bear no interest. The Council shall make '
loans only: (1) to accelerate the acquisition of primarily undeveloped property when
there is a reasonable probability that the property will increase in value before highway
construction, and to update an expired environmental impact statement on a project '
for which the right -of -way is being purchased; or (2) to avert the imminent conversion
or the granting of approvals which would allow the conversion of property to uses
which would jeopardize its availability for highway constructs r market) not ,
make loans for the purchase of property at a price which ex ceeds the fai
value of the property or which includes the costs of relocating or moving persons or '
property. A private property owner may elect to receive the purchase price either in a
lump sum or in not more than four annual installments s for nst payments, the deferred
installments. If the purchase agreement pro ,
Council shall make the loan in installments corresponding to those in the purchase
agreement. The recipient of an acquisition loan shall convey the property for the
construction of the highway at the same price.which the recipient paid for the ,
property. The price may include the costs of preparing environmental documents that
were required for the acquisition and that were paid for with money that the recipient
received from the loan fund. Upon notification by the Council that the plan to '
construct the highway has been abandoned or the anticipated location of the highway
changed, the recipient shall sell the property at market value in accordance with the
procedures required for the disposition of the property. All rents and other money ,
received because of the recipient's ownership of the property and all proceeds from
the conveyance or sale of the property shall be paid to the Council. If a recipient is
not permitted to include in the conveyance price the cost of preparing environmental '
documents that were required for the acquisition, then the recipient is not required to
repay the Council an amount equal to documents. of the loan
environmental fund and spent in preparing the envi '
authorized by subdivision 3, all money paid to the Council by recipients of loans, and
all interest on the proceeds and payments shall be maintained as a separate fund.
For administration of the loan program the Council may expend o f the author zed levy for '
year an amount no greater than three percent of the amount
that year.
PART A: Advance Acquisition toans
' I• Eli ibilit Guidelines city within (or partially
town or statutory or home rule eligible
to apply for a
I. A county, litan Area is eligi ble.
within),xhe Metropo rtation Seven is not eligible
loan. The Minnesota Department of Transpo ro osad right-of-way
urchase of property within a P p p ursuant to
2, Loans are hase of
shown on an official map adopted p
for the p urc
of a state trunk highway Loans are also for the p
Minn. Stat. 39 or 462.359• of an interstate freeway or
property within a proposed right- of-way titan Council as a part
the Metropo the Council
major arterial highway designate
way S y s plan and approved by
of the metropolitan highway Y Subd• I.
t pursuant to Minn. Stat. See. 413.
` to avert the imminent conversion or
3. The Council shall make loans only construction.
gran of approvals that would allow the co str propert
ti way
the its availability for h
to uses jeopardizing only for the purchase of property from a willing
4• Loans will be condemnation.
seller. k ' not be
5•
Property to be acquired must v on oreligiblefor inclusion on a
park land °rister which is e it
historic reg eriodic
lications will be considered as they are received, not on a p
6. APP
funding cycle.
T II• Advance Ac uisitit on Loan A IicIIII Procedures
A. preliminary Approval
1 The a pplicant submits, for preliminary Council approval, an application
including, as a minimum: app li c ation and
a• Resolution of local jurisdiction authorizing loan app
'
purchase of prop erty.
b. St of need to acquire property, including evidence regarding
imminent conversion*
c• Amount of loan requested. � irS�lMA1E�
Prop arty to be acquired, its ac�i�ht-of-
d• A legal descript1on ofp the Pr�pin relation to the highway
'
and a map showing
way.
e. A statement of the app
ticant's eligibility to incur this debt
(Form available from the Council.)
1
E
2. For land within state trunk highways, Council staff will forward the
i
application to Mn /DOT for advisory comments within 45 days. At this
time, Mn /DOT will have the option to acquire the land itself.
3. The Council, as part of 02, will request that Mn /DOT determine whether
or to what extent the land lies within a, ; proposed right -of -way. If
'
MnDOT determines that any part lies outside the proposed right-of -way,
MnDOT shall be requested'to determine whether such part has economic
'
value. if MnDOT determines such part to be an uneconomic remnant, the
entire parcel shall be eligible for purchase with a right- of-way "
acquisition loan. If MnDOT determines such part to be an economic
'
remnant, only such part as lies within the proposed right- of-way shall
be eligible for purchase with a right- of-way acquisition loan. The
'
Council shall accept Mn /DOT's determination regarding the economic
'
value of excess property.
'
4. Within 75 days from original receipt of preliminary application, the '
Council must consider the application, including any Mn /DOT comments,
and will either disapprove or give preliminary approval and authorize'
the applicant to proceed with the application process.
B. Final Approval '
1. After receiving preliminary approval, the applicant must obtain and '
submit to Mn /DOT an appraisal (two appraisals if purchase price is over
$100,000) made by an appraisor on the list of Qualified Appralsors
Available for State Contracts. Mn /DOT will have 30'days to certify the '
appraisal. No offer can be made to the property owner until Mn /DOT
certifies the appraisal.
2. After Mn /DOT certifies the appraisal, the applicant may begin
'
negotiations with - the property owner. If the negotiated sale price is
above the appraised value of the property (i.e., an administrative
settlement) Mn /DOT must approve it. In cases where the property to be
acquired is not within a state highway right -of -way, the appraisal
'
review would be performed by the constructing agency.
3. The applicant submits the appraisal certification, purchase agreement,
t
(administrative settlement, if required), statement of cost, and draft
loan agreement to the Council as a final application.
4. The Council finally approves or disapproves the loan. If the loan is
'
approved, a loan agreement for the purchase price of the property and
the costs incurred by the applicant may be executed.
'
III. Loan Agreement
After the Council approves a loan application, Council legal staff will prepare
'
a final loan agreement that will include at least the following points and any
others the Council might specify as a condition of approval.
I. Loans bear no interest.
n P
Date
1 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 , 1994, by the City
Council of the City of Chanhassen.
ATTEST:
Don Ashworth, Clerk /Manager Donald J. Chmiel, Mayor
11137
12/29/93