1a RALF Process, Webber Property 1560 Bluff Creek Drive
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CITY OF
CHANHASSEN
MEMORANDUM
TO: Don Ashworth, City Manager
690 City Center Drive, PO Box 147 FROM:
Chanhassen, Minnesota 55317
Phone 612.937.1900 DATE:
General Fax 612.937.5739
Engineering Fax 612.937.9/52 SUBJ:
Public Safety Fax 612.934.2524
\\lfb WWlV. ci. clJanhassen. mn. us
Bob Generous, Senior Planner
November 23, 1998
Resolution Authorizing Advanced Right-of-Way Acquisition Loan
Fund (RALF) Application Submittal, Charles Webber
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 permits staff to initiate the process for applying for
a Right-of-Way Acquisition Loan Fund (RALF) loan. After applying, the
Metropolitan Council gives preliminary approval for the use of the RALF
program. Prior to preliminary approval by the Metropolitan Council, the
application is forwarded to the Minnesota Department of Transportation
(MNDOT) for review and approval of the right-of-way acquisition. After
appraisals are performed and a purchase price is agreed upon between the city and
the property owner, the city drafts a purchase agreement for the parcel and 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 property owner has requested that the city perform the appraisals rather than
relying on MNDOT for this work. This will expedite the process compared to
other RALF property acquisitions where appraisals are performed by MNDOT.
Once the appraisals are completed, they must be submitted to MNDOT for
certification. If the purchase price differs from the certified appraisal amount,
MNDOT must approve an administrative settlement for the purchase price.
The City of Chanhassen will have to front funds for administrative work as part of
the process including appraisals, surveying, legal fees, title search and insurance,
tax payments, etc. ranging from $10,000 to $15,000. However, these moneys are
recoverable as part of the loan amount from the Metropolitan Council. The loan
is eventually repaid when the state purchases the property from the city.
~e City ofChanhasse1l. A groll'ing community with c1cill! lakes, qUtllity schools, a channing dOll'lltown, thriving businesses, and beautiful park;. A great plla to lit 'e. li'ork, iln4 fa.
Don Ashworth
November 23, 1998
RALF - Charles Webber
Page 2
The property included for acquisition as part of this resolution is located between Pioneer Trail
and Bluff Creek Drive in the West half of Section 26 and the East half of Section 27, Township
116, Range 23. The total area proposed for acquisition is approximately 46.5 acres of right- of-
way for Highway 212. Staff estimates the loan amount to be approximately $1,110,000 including
land acquisition and administrative costs. The purpose of the acquisition is to protect the
Highway 212 right-of-way and minimizing the cost appreciation of the land.
The City of Chanhassen has purchased two parcels to the northeast of this property through the
RALF process. The cities of Chaska and Eden Prairie have successfully used RALF funds to
purchase large portions of the Highway 212 corridor in their jurisdictions.
RECOMMENDATION
Staff recommends that the City Council approve the attached resolution authorizing staff to
initiate a RALF application and to enter into n~gotiations with the land owner for the acquisition
of property within the Highway 212 corridor.
Attachments:
1. Resolution
2. Letter from Charles Webber to Don Ashworth dated October 29, 1998
3. Location Map
4. Parcel Map
c: Charles Webber
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE:
RESOLUTION NO:
MOTION BY:
SECONDED BY:
A 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 conversation of the property which would jeopardize its availability for highway
construction.
WHEREAS, the property owner, Charles Webber, has requested that the city initiate the
advanced acquisition of right-of-way in the Highway 212 Corridor.
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.
Passed and adopted by the Chanhassen City Council this 23rd day of November, 1998.
ATTEST:
Don Ashworth, City Clerk/Manager
Nancy K. Mancino, Mayor
YES
NO
ABSENT
*WEBBER)
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October 29, 1998
City of Chanhassen
Attn: Don Ashworth
City Manager
690 City Center Dr.
P.O.Box 147
Chanhassen, MN 55317
Dear Don,
As per my conversation with Kate your City Planner on October 29, 1998,
the intent of this letter is to request the City of Chanhassen to begin the
application for funds for acquisition of Highway 212 right of way located
on 1560 Bluff Creek Dr. within your city.
Kate left me with the impression that you have all the property informa-
tion you need. Should you require any further information please contact
me.
,
Sin_~~~IY, \
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~es Webber
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