1i. RALF Loan Approval, Adelmann PropertyCITY OF li
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 H
L
DATE: October, 5, 1994
SUBJ: Right -of -way Acquisition Loan Fund (RALF)
BACKGROUND
The Metropolitan Council has established a r
purchasing right -of -ways within the state true
construction of these highways. These loans
the state highway department purchases the I
repurchase price is the same price establishes
the local government.
Action by City Adm1n1*tatR
Endorsed Dw�
ModK i ed--------
R�jected.
-
DO SubrAted to Co MISSW
Pete Su�nnitted to Council
lost(? -�r`F
vdIVipg loan fund to assist local governments in
ghway system in advance of the actual
;ear nc interest and are repaid at the time that
operty *rom the local government. The
at the time of the purchase of the property by
In December, 1993 and January, 1994�1ie City Councilassed resolutions authorizing staff to
submit applications to the Metropolitan' Council for Right-"of-Way Acquisition Loan Fund
(RALF) monies to purchase the Charles Adelmann, parcel #1, and Frank Fox, parcel #2,
r
properties in the attached map within the Highway 212 corridor.
The City of Chaska has qbu to successfully used RALF funds
Highway 212 comdoi'in therurisdtom� eYSl though .that,g
SUMMARY
1
Parcel 1, Adelmann Proyerty
purchase large portions of the
ment of Highway 212 is
staff anticipates that these
case with R funds.
entire gh' 212 corridor
atted i6l if their properties
The property is located on the south side of Rice Marsh Lake approximately 642 feet west of
the eastern city limits of Chanhassen and Eden Prairie. The total area to be acquired consists
�
MEMORANDUM
Don Ashworth, City Manager
October 5, 1994
' Page 2
of approximately thirty (30) acres of which about half is developable and half is marsh land
' and lake. The property includes the actual right -of -way for Highway 212 (consisting of 6.167
acres) and a piece of property north of the highway that staff believes will be severed by the
highway and thus lose its economic value (consisting of approximately 9 acres of developable
land and 14 acres of wetland and lake). This additional property is designated as parks and
open space in the City's 2000 Land Use Plan. We believe the use of RALF serves two
purposes. The first is the protection of the Highway 212 right -of -way 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.
' There is still a question as to the amount of developable land north of the Highway 212 right -
of -way. As part of the negotiation process, the exact amount of developable land will have to
be determined through a wetland delineation. The property owner will be responsible for
making this delineation, subject to city verification and approval.
The Minnesota Department of Transportation ( MNDOT) is in the process of certifying an
' appraisal of the property based on a value of $23,500 per developable acre. Staff is basing its
estimated purchase price of $25,000 per developable acre based on discussions with the
property owner's real estate agent about a pending purchase agreement for the remainder of
the parcel with Rottlund homes. Should we be successful in negotiating the $25,000 per
developable acre purchase price, we would then be required to have the $25,000 per
developable acre purchase price approved by MNDOT through an administrative settlement.
Upon approval of an administrative settlement with MNDOT, preparation of a purchase
P PP P P P
agreement, legal review, title search and title insurance, and draft loan agreement, staff will
bring the final loan application back for City Council approval for submittal to the
Metropolitan Council. The estimated loan amount is about $385,000 including the purchase
price (based on $25,000 per acre of developable land), appraisal costs, carrying costs, legal
fees, and title search and insurance.
' RECOMMENDATION
Staff recommends that the City Council approve the following motion:
"The City Council authorizes staff to negotiate a purchase agreement for the Adelmann
property based on a purchase price of approximately $25,000 per developable acre."
Parcel 2, Fox Property
The property 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
Don Ashworth, City Manager
October 5, 1994
Page 3
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 has received two appraisals for the Fox property. Upon submittal of the appraisals '
to MNDOT for certification, staff has been advised by MNDOT that due to the wide
divergence in appraisals, $2,550 and $12,000 per acre, a third appraisal will be required-for ,
this property. (The cost of this additional appraisal will be included in the final loan amount.)
MNDOT has provided the city with a list of four appraisers they suggest we use for our
RALF appraisal. ,
Staff is requesting that City Council authorize staff to enter into a contract with one of these
appraisers to perform an appraisal of the Fox property. Award of the contract will be based ,
on price and required completion time.
RECOMMENDATION '
Staff recommends that the City Council approve the following motion:
" Council authorizes staff to enter into a contract for an a '
The City Cou appraisal of the Frank Fox
property with one of the MNDOT recommended appraisers." I
Attachments '
1. Property Location Map
2. Letter from Michael F. Strapp to Robert Generous dated 10/4/94 '
.
IMPFAWFUM
wigs-
�"� 92
y
?/,r • e; �I
� \\ �r� r: G ,
�� G1`I ■-LEI/
��!' �►
��
I
0
Mn /DOT Appraisal Section TEL: 612 -282 -5251
Minnesota Department of Transportation .
Transportation Building
°F rf 395 John Ireland Boulevard
Saint Paul, Minnesota 55155 -1899
October 4, 1994
Mr. Robert Generous
Planner H
City of Chanhassen
690 Coulter Drive,
Chanhassen, MN 55317
RE; Suggestcd Fee Appraisers - Parcel 2 (Frank Fox)
Oct 4,94 12:53 No.003 P.02
1'
�I
L
0
Dear Mr. Generous; '
The following is a list of suggested fee appraisers for the Fox property that the City is proposing
to acquire in the future Trunk Highway No. 212 corridor. All of the appraisers suggested are on
the State's list and based on this revicwers experience with said appraisers, I'm sure they would do
an excellent. job, Mr. Lied] and Mr. Marks have previously completed parcels for the City of
Chaska on the same corridor.
At the request of Mr. David Pearson in our Metro Division, I will be certifying the lower of the
two appraisals on the Adelmann property ASAP. ,
If I can be of any other assistance or if you need additional information, please don't hesitate to
contact me.
Sincerely,
AichaeylF
Review Appraiser
i
Oct 4,94 12 :53 No.003 P.03
kKKEN & LIEDL, INC.
MINNEAPOLIS, MN 55426
25 -0000
UNIVERSAL VALUATION SERVICE
L4XOPEE, MN 55379
445 -9100
TCRAMER, GIISLER, STRAND & DAYTON
MINNEAPOLIS, MN 55426
45 -9575
THE TAYLOR APPRAISAL COMPANY
MINNEAPOLIS, MN 55422
44 -9860
URNSVILLE, MN 55306
92 -7099
Mn /DOT Appraisal Section TEL:
612 - 282 -5251
CLETUS C. LIEDL
B
'
8085 WAYZATA BOULEVARD
SUITE 105
5
RICHARD G. MARKS
12951 KOEPER AVENUE
S
'
KENNETH A. DAYTON
220 INTERCHANGE WEST
'
435 FORD ROAD
5
'
DENNIS B. TAYLOR
5955 GOLDEN VALLEY ROAD
SUITE 100
5
DENNIS KELSALL
B
15000 WILDWOOD ROAD
8
Oct 4,94 12 :53 No.003 P.03
kKKEN & LIEDL, INC.
MINNEAPOLIS, MN 55426
25 -0000
UNIVERSAL VALUATION SERVICE
L4XOPEE, MN 55379
445 -9100
TCRAMER, GIISLER, STRAND & DAYTON
MINNEAPOLIS, MN 55426
45 -9575
THE TAYLOR APPRAISAL COMPANY
MINNEAPOLIS, MN 55422
44 -9860
URNSVILLE, MN 55306
92 -7099