1g Approve Resolution for construction of Highway 212
CITY OF
CHANHASSEN
)0 City Center Drive. PO Box 147
Chanhassen. Minnesota 55317
Phone 612.937.1900
General Fax 612.937.5739
EIIgineering Fax 612.937.9152
Jublic Safety Fax 612.934.2524
WM lVlVw.ci.challhassen.I1IIl./ls
~J
MEMORANDUM
TO:
Don Ashworth, City Manager
Anita Benson, City Engineer ~
FROM:
DATE:
May 5,1998
SUBJ:
Approve Resolution Supporting Acquisition of Remaining Right-of-
Way for the Construction of Highway 212 - Southwest Corridor
Transportation Coalition - PW290
The Southwest Corridor Transportation Coalition has prepared a resolution for
adoption by its members to support the completion of acquisition of all remaining right-
of-way for the new Trunk Highway 212 project at the earliest possible date. This
resolution urges MnDOT to assignment the necessary funds to enable MnDOT: 1) to
acquire the remaining parcels as soon as possible (in 1998); and 2) take advantage of
current prices before further increases of value may occur. The Coalition is convinced
that this would be a wise expenditure of public funds at this time as compared with the
dramatically higher prices which will almost certainly be required at a later date.
Specifically, the resolution requests that the Minnesota Department of Transportation
immediately allocate such funds (through its "protective buy" powers or otherwise) as
are required to complete acquisition of all right-of-way required to complete
construction of the new Trunk Highway 212 between Interstate 494 in Eden Prairie and
existing Trunk Highway 212 at Carver County 147, and also requests that the
Metropolitan Council levy the maximum amount permitted by law for the purpose of
funding the right-of-way loan acquisition fund until such a time as all right-of-way for
the n~w Trunk Highway 212 has been purchased.
It is recommended that the City of Chanhassen adopt the resolution as prepared by the
Southwest Corridor Transportation Coalition supporting these right-of-way
acquisitions.
Jms
Attachments: 1.
2.
Letter to Richard Stehr, MnDOT, dated March 25,1998.
Letter to Curt J ohoson, Metropolitan Council, dated
March 30, 1998.
Resolution.
3.
c: Charles Folch, Director of Public Works
Kate Aanenson, Planning Director
Bob Generous, Senior Planner
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SOUTHWEST CORRIDOR TRANSPORTATION COALITION
470 Pillsbury Center
Minneapolis, MN 55402
(612) 337-9300
Mr. Richard Stehr
District Engineer
lvIetroJ'olitaul District
lvIinnesota Department of Traulsportation
Waters Edge
1500 West County Road B-2
Roseville, MN 55113
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pr..,f;v BY FAX AND MAIL
582-1302
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MAR 2 7 1998
lvIarch 25, 1998
GII i vr vl1ANHASSE
RE: Purchase of Remaining Right-of-Way for Proposed New Highway 212
Dear lvIr. Stehr:
As you know, the Southwest Corridor Traulsportation Coalition is a nonprofit corporation.
It represents units of government, businesses auld individuals in Hennepin, Carver auld lvIcLeod
Counties, who support widening of Trunk Highway 5 to four laules and construction of New
Highway 212 between Interstate 494 in Eden Prairie auld the City of Cologne.
The cities of Eden Prairie, Chanhassen and Chaska as well as Hennepin County, Carver
County, lvIinnesota Department ofTraulsportation (lvInDOT) auld lvIetropolitan Council (lvIC) have
cooperated for maulY years in efforts to bring about the construction of New Highway 212. The
project was first proposed in the late 1940s. In 1967, aul agreement was reached among the
affected communities that New 212 should be constructed substaultially in accordaulce with the
"'current planned route. At that time it was thought that the project would be completed by the
end of 1972.
In the late 1980s, the cities of Eden Prairie, Chanhassen auld Chaska, Hennepin County,
Carver County, lvInDOT auld lvIetropolitaul Council jointly funded the preparation of the
environmental impact statement for the project. In 1987 agreement was reached upon the official
map of the project auld, between the period 1987 to 1989, the official map was incorporated into
the comprehensive plans of the respective communities. In 1993, the EIS was given final
approval by the federal government.
Based upon the most recent information available to me, it appears that all parcels
required for completion of New 212 within the City of Eden Prairie (except one), have been
acquired by lvInDot or are currently in the process of being acquired. We understauld that the
remaining parcel is owned by a family which presumably would sell to lvInDOT or the City of
Eden Prairie in the near future if funds were available for purchase of the property.
RJL140054
LN400-51
Mr. Richard Stehr
March 25, 1998
Page 2
The contract for the first phase of New 212 construction was awarded February 27, 1998.
That project relates to upgrading of the intersection of T.H. 5 and Prairie Center Drive and is
scheduled to begin in 1998.
The contract for the second phase of New T.H. 212 (construction of additional lanes along
T.H. 5 from Prairie Center Drive to Wallace Road, the concurrent portion of New T.H. 212 and
T.H. 5) is scheduled to be awarded in September 1998 and construction is to begin in 1999.
The third phase of New 212 construction will involve construction of the New 212
improvements between Eden Prairie Road and the intersection ofT.H. 5 and Wallace Road. The
contract for construction of this portion of the project is scheduled to be awarded in November
1998.
In the City of Chanhassen, a large number of parcels need to be acquired. Several large
parcels which are important to the New 212 project are owned by elderly property owners who
would very much desire to sell their properties. In some cases, the parcels are within the
metropolitan urban service area (MUS A) and in other cases the parcels are not currently
anticipated to be added to the MUSA until approximately 2005. Experience has shown that land
values are likely to increase from 300 to 1,000 percent when the property is added to the MUSA.
Within the City of Chaska, all but approximately seven parcels have been acquired or are
in the process of acquisition.
As to the portion of the New 212 project which is within Chaska Township, no parcels
have yet been acquired. However, the City of Chaska anticipates annexing this area in the next
few years and has been working with the township and Carver County to identify a process which
will enable the acquisition of these parcels as soon as funding exists with which to purchase the
required right-of-way.
Representatives of the cities of Eden Prairie, Chanhassen and Chaska have been working
cooperatively to identify a process for completing the acquisition of all remaining right-of-way
for the New 212 project at the earliest possible date. The following are some reasons for their
commitment to doing so:
· Land values are escalating dramatically.
· There has already been approximately $50 million invested in purchase of right- of-
way design, planning, and other related expenditures for the New 212 project
(principally by MnDOT or through use of RALF funds).
· Construction of New Highway 212 is a high priority project for each of the
communities
RJL140054
LN400-51
Mr. Richard Stehr
March 25, 1998
Page 3
· The New 212 corridor has been preserved since 1987 and in most areas is
surrounded by developed or developing land.
· Each of the cities has already contributed substantial funds and staff time to the
design, environmental review, planning and right-of-way acquisition for the
New 212 project.
· Many of the property owners are elderly and wish to make final dispositions of
their property and to distribute or liquidate their holdings in recognition of their
age.
· Most owners have held their property for many years and have been unable to
either develop or sell the portion of their properties encumbered by the planned
right-of-way since adoption of the official map in 1987 (or before).
· The RALF fund does not have sufficient cash to enable purchase of all of the
remaining parcels of real estate within the foreseeable future.
· They wish to increase the likelihood of New Highway 212 being built by
acquiring the right-of-way before its cost becomes financially prohibitive.
Members of the Southwest Corridor Transportation Coalition have adopted a resolution
urging that MnDOT assign the necessary funds to enable MnDOT: (1) to acquire the remaining
parcels as soon as possible (in 1998); and (2) take advantage of current prices before further
increases of value may occur. We are convinced that this would be a very wise expenditure of
public funds at this time as compared with the dramatically higher prices which will almost
certainly be required at a later date.
I am enclosing a copy of the Coalition resolution.
The City of Chaska has prepared an analysis, dated March 23, 1998, indicating that
197 acres have been acquired in Chaska for $5,781,700. The City estimates that these purchases
would have cost over $7,500,000 at present prices. Furthermore, as Chaska Township parcels
are designated as being within the MUSA, they will increase in value from $6,000 to $9,000 per
acre to $25,000 to $30,000 per acre. As dramatic as these increases have been in Chaska, the
increases have been even more significant in Eden Prairie and Chanhassen.
RJL1400S4
LN400-S1
Mr. Richard Stehr
March 25, 1998
Page 4
We request the opportunity to meet with you and representatives of your staff at your
earliest convenience to discuss your response to our request.
RJL:jms
Enclosure
cc: Randy Johnson, Hennepin County Commissioner
Tom Johnson, Hennepin County Department of Public Works
Tracy Swanson, Chair, Carver County Board of Commissioners
Roger Gustafson, Carver County Engineer
Mel Dose, McLeod County Commissioner
Rick Kjonaas, McLeod County Engineer
Jean Harris, Mayor, City of Eden Prairie
Carl Jullie, City Manager, City of Eden Prairie
Nancy Mancino, Mayor, City of Chanhassen
Don Ashworth, Manager, City of Chanhassen
Robert Roepke, Mayor, City of Chaska
Dave Pokorney, City Administrator, City of Chaska
Erik Paulsen, State Representative
Carol Molnau, State Representative
Tom Workman, State Representative
Ed Oliver, State Senator
Roy Terwilliger, State Senator
Claire Robling, State Senator
Howard Swenson, State Representative
Dennis Fredrickson, State Senator
Board of Directors
RJL140054
LN400-51
RESOLUTION OF THE MEMBERS OF
SOUTHWEST CORRIDOR TRANSPORTATION COALITION
WHEREAS, construction of New T.H.212 from Interstate 494 in Eden Prairie to Cologne
is of highest priority to the Southwest Corridor Transportation Coalition;
WHEREAS, the New 212 Corridor has been preserved on the official maps of the affected
communities since 1987;
WHEREAS, land values in the New T.H. 212 Corridor are escalating dramatically;
WHEREAS, there has already been approximately $50 million invested in purchase of
right-of-way, design, planning, and other related expenditures for the New 212 project
(principally by MnDOT or through use of RALF funds);
WHEREAS, construction of New Highway 212 is a high priority project for each of the
communities;
WHEREAS, In most areas the New 212 Corridor is surrounded by developed or
developing land;
WHEREAS, each of the cities has already contributed substantial funds and staff time to
the design, environmental review, planning and right-of-way acquisition for the New 212 project;
WHEREAS, many of the property owners are elderly and wish to make final dispositions
of their property and to distribute or liquidate their holdings in recognition of their age;
WHEREAS, most owners have held their property for many years and have been unable
to either develop or sell the portion of their properties encumbered by the planned right-of-way
, " since adoption of the official map in 1987 (or before); and
WHEREAS, the RALF fund does not have sufficient cash to enable purchase of all of the
remaining parcels of real estate within the foreseeable future.
NOW, THEREFORE, the Southwest Corridor Transportation Coalition hereby:
1. Requests that the State of Minnesota Department of Transportation immediately
allocate such funds (through its "protective buy" powers or otherwise) as are
required to complete acquisition of all right-of-way required to complete
construction of New Highway 212 between Interstate 494 in Eden Prairie and
existing Trunk Highway 212 at Carver County Road 147; and
2. Requests that the Metropolitan Council levy the maximum amount permitted by
law for the purpose of funding the Right of Way Loan Acquisition Fund until such
time as all right-of-way for New Trunk Highway 212 has been purchased.
RJL140058
LN400-51
Adopted this 20th day of March, 1998.
RJL140058
LN4 00 - 51
By
MAR-24-98 TUE 17:16
P_01
[I]
City of CHASKA
MEMO
To:
Bob Lindall
President, Southwest Transportation Coalition
Dave Pokorney
March 23, 1998
RALF Funds
From:
Date:
Re:
Recently you asked if I could prepare an estimate of the value of acquiring Highway 212
right-of-way prior to construction. To date, the City has utilized Metropolitan Council
Right-of-Way Acquisition Loan Funds (RALF) to acquire $5.6 million of property,
consisting of 197 acres. This property has been acquired over the past six year period.
Based on current values, we have completed a preliminary analysis which indicates that at
current values, this property would be worth well in excess of $7.5 million. For example,
raw undeveloped land was selling at $8,000 to $10,000 per acre in the late 1980's, as
compared to current values which are in excess of $30,000 per acre.
As you are aware, the City of Chaska is currently having discussions with Chaska Township
concerning an annexation. It will be critical that property within the Township area be
acquired prior to the MUSA line being expanded to include the Township. Currently, values
of Township land range between $6,000 and $9,000, and will probably increase to the
$25,000 to $30,000 range once the MUSA line is extended. Since property owners also
are aware of the future value, it may be difficult to acquire these properties at current
. values without the ability to utilize eminent domain which is not an option without a
willing seller under the RALF program.
Properties to be acquired include 55.53 undeveloped acres and five developed parcels
containing 16.55 acres with homes. Four are owner occupied and the fifth is vacant. Staff
has placed an estimated value on these properties of $2.5 million to complete the
acquisitions for the proposed new Highway 212 corridor within Chaska's boundaries.
If you desire additional information, please feel free to contact me at your convenience.
ONE CITY HALL PLAZAlCHASKA, MN 55318-1962/PHONE (612)448-28Sl/FAX (612)448-9300
l\ktrODolitan Riebt-of.::Wjlv AcputsltjOn Loan9 status
City of Chaska, Minnesota
March 17, 1998
1.-90-1 Outlot 0 Plus Lots 1 & 2, 2.30 S 161.500.00 $ 6,644.00 S 168.144.00
Block 2. Chestnut Hills 2nd
(Cal Haasken)
1-92-3 The Oaks (3 lots) 20.46 450.000.00 7.745.00 441.198.00
plus 6.19 acres . 16.547.00
(Chaska Investment) 433,453.00
... L-92-6 Althea Hanson Property .29 82.500.00 3.851.00 86.351.00
L-92.12 Francis Hammers . Oak Hill 9.3 195.000.00 8.684.39 203.684.39
1-92-13 Fred Molnau 14.3 335.600.00 10,521.79 346.121.79
L-92-14 BOl Property 12.6 457,400.00 11.422.12 468.822.12
L-92-15 Ranch Properties 21.404 230.000.00 12.451.00 242.451.00
(Ron Krueger)
L-93-3 Schindler Addition 15.83 286.000.00 8.188.30 294.188.30
(Gary Laurent)
1-94-1 Amoco 011 Co. 10.25 325.000.00 20.400.64 345.400,64
L-94-2 Esther Chase Property 11.33 305.000.00 8.694.75 313.694.75
1.-94-5 Outlot G. Cortina Woods 29.35 816,760.00 14.625.31 836.425.31
(Chaska Investment) + 5.040,00
Amendment to Final Payment 821.800.00
. L-94-6 2325 Chestnut Ave. N. .21 56.000.00 5.020.70 9.350.00 70.370.701
(Donna Mae Miller) (Vaugn)
. L-94-7 2345 Chestnut Ave. N. .54 75.000.00 5.537.00 19.750.00 100.287.00
(Dennis & Phyllls Guerts)
L-96-3 Hundertmark Heights 9.76 295.000.00 10.768.87 305,768.87
Oohn Klingelhutz)
L-97-1 BOl (Outlot 0, Hazeltine 17.835 900.000.00 12,739.34 912,739.3~
Bluff 8th)
L-97.4 Chaska Investment (21.37 21.3Z 630,000.OQ 16.051.70 646 ,051. 71
Acres - Tract A, RLS 61.
S31 - TU6 - R23)
197.129 $5,589.153.00 $163,345.91 519,100.00 $5,781,698.9
(The three'" properties contained houses and out-buildings - buildings were demolished with the exception of tl
Althea Hanson house which is leased to the CAP Agency,)
SOUTHWEST CORRIDOR TRANSPORTATION COALITION
470 Pillsbury Center
Minneapolis, MN 55402
(612) 337-9300
March 30, 1998
Mr. Curt Johnson
Chair, Metropolitan Council
Mears Park Centre
230 East Fifth Street
St. Paul, MN 55101
~ECEIVEO
APR 0 1 1998.
CITY OF C'HANH
' ~SSEN
Re: Budget Levies by Metropolitan Council for Funding of the Right-of-Way
Acquisition Loan Fund
Dear Mr. Johnson:
As you may know, the Southwest Corridor Transportation Coalition is a nonprofit
corporation.. It represents units of government, businesses and individuals in Hennepin, Carver
and McLeod Counties who support widening of Trunk Highway 5 to four lanes and construction
of New Highway 212 between Interstate 494 in Eden Prairie and the City of Cologne.
The cities of Eden Prairie, Chanhassen and Chaska as well as Hennepin County, Carver
County, Minnesota Department of Transportation (MnDOT) and Metropolitan Council (MC) have
cooperated for many years in efforts to bring about the construction of New Highway 212. The
project was first proposed in the late 1940s. In 1967, an agreement was reached among the
affected communities that New 212 should be constructed substantially in accordance with the
current planned route. At that time it was thought that the project would be completed by the
end of 1972.
In the late 1980s, the cities of Eden Prairie, Chanhassen and Chaska, Hennepin County,
Carver County, MnDOT and Metropolitan Council jointly funded the preparation of the
environmental impact statement for the project. In 1987, agreement was reached upon the official
map of the project and, between 1987 and 1989, the official map was incorporated into the
comprehensive plans of the respective communities. In 1993, the EIS was given final approval
by the federal government.
Based upon the most recent information available to me, it appears that all parcels
required for completion of New 212 within the City of Eden Prairie (except one), have been
acquired by MnDOT or are currently in the process of being acquired. We understand that the
remaining parcel is owned by a family which presumably would sell to MnDOT or the City of
Eden Prairie in the near future if funds were available for purchase of the property.
The contract for the first phase of New 212 construction was awarded February 27, 1998.
That project relates to upgrading of the intersection of T.H. 5 and Prairie Center Drive and is
scheduled to begin in 1998.
RJL140S41
LN400-S1
Mr. Curt Johnson
March 30, 1998
Page 2
The contract for the second phase of New T.H. 212 (construction of additional lanes along
T.H. 5 from Prairie Center Drive to Wallace Road, the concurrent portion of New T.H. 212 and
T.H. 5) is scheduled to be awarded in September 1998 and construction is to begin in- 1999.
The third phase of New 212 construction will involve construction of the New 212
improvements between Eden Prairie Road and the intersection ofT.H. 5 and Wallace Road. The
contract for construction of this portion of the project is scheduled to be awarded in November
1998.
In the City of Chanhassen, a large number of parcels need to be acquired. Several large
parcels which are important to the New 212 project are owned by elderly property owners who
would very much desire to sell their properties. In some cases, the parcels are within the
metropolitan urban service area (MUSA) and in other cases the parcels are not currently
anticipated to be added to the MUSA until approximately 2005. Experience has shown that land
values are likely to increase from 300 to 1,000 percent when the property is added to the MUSA.
Within the City of Chaska, all but approximately seven parcels have been acquired or are
in the process of acquisition.
As to the portion of the New 212 project which is within Chaska Township, no parcels
have yet been acquired. However, the City of Chaska anticipates annexing this area in the next
few years and has been working with the township and Carver County to identify a process which
will enable the acquisition of these parcels as soon as funding exists with which to purchase the
required right-of-way.
Representatives of the cities of Eden Prairie, Chanhassen and Chaska have been working
cooperatively to identify a process for completing the acquisition of all remaining right-of-way
for the New 212 project at the earliest possible date. The following are some reasons for their
commitment to doing so:
· New Highway 212 is part of the National Highway System.
· The New Highway 212 Project (construction of an 18 mile four-lane, divided
freeway from 1-494 in Eden Prairie to Cologne) is of state-wide significance in
that there are no existing four-lane highways serving the southwestern portion of
the State between U.S. Highway 169 serving Mankato and 1-94 serving St. Cloud.
· There have previously been $10.7 million of federal demonstration grant funds
invested in the New T.H. 212 project.
. Although the contract for construction of the first phase of the New T.H. 212
Project was let on February 27, 1998, due to lack of sufficient funds, the 20-year
RJL14 0541
LN400-51
Mr. Curt Johnson
March 30, 1998
Page 3
program of MnDOT only contemplates construction of the portion of the project
lying easterly of Lyman Boulevard in Chanhassen and the program of the
Metropolitan Council does not contemplate construction of anything west of Eden
Prairie Road in Eden Prairie prior to the year 2020.
· Land values are escalating dramatically.
· There has aiready been approximately $50 million invested in purchase of right-of-
way design, planning, and other related expenditures for the New 212 project
(principally by MnDOT or through use of RALF funds).
· Construction of New Highway 212 is a high priority project for each of the
communities.
· The New 212 corridor has been preserved. since 1987 and in most areas IS
surrounded by developed or developing land.
· Each of the cities has already contributed substantial funds and staff time to the
design, environmental review, planning and right-of-way acquisition for the
New 212 project.
· Many of the property owners are elderly and wish to make final dispositions of
their property and to distribute or liquidate their holdings in recognition of their
age.
· Most owners have held their property for many years and have been unable to
either develop or sell the portion of their properties encumbered by the planned
right-of-way since adoption of the official map in 1987 (or before).
· The RALF fund does not have sufficient cash to enable purchase of all of the
remaining parcels of real estate within the foreseeable future.
· The Coalition wishes to increase the likelihood of New Highway 212 being
built by facilitating acquisition of the right-of-way before its cost becomes
financially prohibitive.
Members of the Southwest Corridor Transportation Coalition have adopted a resolution
urging that the Metropolitan Council levy the maximum amount permitted by law for the purpose
of funding the RALF fund until all right of way for New T.H. 212 has been purchased.
I am enclosing a copy of the Coalition resolution.
RJL140541
LN400-51
Mr. Curt Johnson
March 30, 1998
Page 4
The City of Chaska has prepared an analysis, dated March 23, 1998, indicating that
197 acres have been acquired in Chaska for $5,781,700. The City estimates that these purchases
would have cost over $7,500,000 at present prices. Furthermore, as Chaska Township parcels
are designated as being within the MUSA, they will increase in value from $6,000 to $9,000 per
acre to $25,000 to $30,000 per acre. As dramatic as these increases have been in Chaska, the
increases have been even more significant in Eden Prairie and Chanhassen.
Please let me know if you have any questions about this. Thank YOli.
RJL:jms
Enclosure
cc: Julius C. Smith, Member, Metropolitan Council
Ann Braden, Metropolitan Council staff
Randy Johnson, Hennepin County Commissioner
Tom Johnson, Hennepin County Department of Public Works
Tracy Swanson, Chair, Carver County Board of Commissioners
Roger Gustafson, CarVer County Engineer
Jean Harris, Mayor, City of Eden Prairie
Carl Jullie, City Manager, City of Eden Prairie
Nancy Mancino, Mayor, City of Chanhassen
Don Ashworth, Manager, City of Chanhassen
Robert Roepke, Mayor, City of Chaska
Dave Pokorney, City Administrator, City of Chaska
Erik Paulsen, State Representative
Carol Molnau, State Representative
Tom Workman, State Representative
Ed Oliver, State Senator
Roy Terwilliger, State Senator
Claire Robling, State Senator
Howard Swenson, State Representative
Dennis Fredrickson, State Senator
Board of Directors
Todd Vlatkovich
Fred Corrigan
RJL140541
LN400-51
RESOLUTION OF THE CITY COUNCIL
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