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E-12. TH 101 EAW Preliminary Design: Approve Loan App and Purchase of Property0 CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952.227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.227.1120 Fax: 952.227.1110 Recreation Center 2310 Coulter Boulevard Phone: 952.227.1400 Fax: 952.227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax: 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 E-la- MEMORANDUM TO: Todd Gerhardt, City Manager FROM: Paul Oehme, Dir. of Public Works /City Engineer 1 DATE: December 14, 2015 C *� SUBJ: Trunk Highway 101 EAW Preliminary Design: Approve Resolution Authorizing Loan Application and Purchase of Property through the Metropolitan Council Right -of -Way Acquisition Loan Funds (RALF) Project No. 14 -08 PROPOSED MOTION "The City Council approves a resolution authorizing loan application and purchase of property through Metropolitan Council Right -of -Way Acquisition Loan Funds (RALF) for the TH 101 Improvements from Pioneer Trail to Flying Cloud Drive, Project No. 14 -08." BACKGROUND On November 23, 2015, the City Council reviewed the preliminary design, approved the EAW and adopted the official map for the corridor. DISCUSSION The preferred alignment used for the official map results in the need to acquire right - of -way from twenty -one (21) separate parcels. Most of the right -of -way acquisition from these parcels are for temporary easement or a stripe of property needed for future right -of -way. However, seven properties in their entirety are needed future right -of -way. The official map has been prepared to identify the necessary right -of- way needs for the proposed improvements. The purpose of the official map is to preserve the future right -of -way needs. Fax: 952.227.1310 Due to the significant right -of -way impacts and the uncertainty of the timing for the Senior center construction of the project, the City has been exploring the potential of use of the Phone: 952.227.1125 Metropolitan Council Right -of -Way Acquisition Loan Fund (RALF) program to Fax: 952.227.1110 advance purchase land from willing sellers to protect it from future development/redevelopment and to address hardship situations. Website www.ci.chanhassen.mn.us The process for using RALF funds to purchase property is as follows: • City submits a preliminary loan request. Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow Todd Gerhardt TH 101 EAW Preliminary Design: Met Council Loan Applicant & Purchase of Property December 14, 2015 Page 2 • After the Metropolitan Council determination that the properties are eligible for RALF funding, the City would have the properties appraised and negotiate a price with a willing seller. The City is reimbursed for costs they incur to acquire the property from the Metropolitan Council. Any income derived from the property while under City ownership is returned to the RALF account. • MnDOT reviews and certifies the appraisals. • The Council lends money to City to purchase the right -of -way from willing sellers. • When MnDOT needs the land for highway construction, it buys the property from the City at the price paid for the property. • The City repays the loan to the RALF account. In order to request the RALF funding, the City Council is asked to approve the attached resolution authorizing the loan application and the purchase of properties. Attachment: Resolution g: \eng \pub1ic \_2014 projects \14 -08 th 101 -pioneer trail to csah 61 \council backgrounds presentations\2015_12_14 bkgd ralf fund request cc res..doc CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: December 14, 2015 RESOLUTION NO: 2015 -XX MOTION BY: SECONDED BY: RESOLUTION APPROVING LOAN APPLICATION AND PURCHASE OF PROPERTY THROUGH METROPOLITAN COUNCIL RALF FUNDS FOR THE TH 101 IMPROVEMENTS EAW PRELIMINARY DESIGN WHEREAS, City Council has reviewed the preliminary design and approved the EAW and adopted the official map of the corridor; and WHEREAS, the official map requires right -of -way acquisition from parcels for the proposed TH 101 improvements; and WHEREAS, advanced purchase of land from willing sellers to protect it from future development/redevelopment and to address hardship situations through Right -of -Way Acquisition Loan Funds (RALF) has been explored; and WHEREAS, approval of this Resolution is necessary in order to begin the request process for RALF funding. NOW, THEREFORE, BE IT RESOLVED that the City of Chanhassen approves a resolution authorizing the loan application and purchase of properties. Passed and adopted by the Chanhassen City Council this 14`x' day of December, 2015. ATTEST: Todd Gerhardt, City Manager Denny Laufenburger, Mayor YES NO ABSENT