1a Resolution Authorizing RALF - Hwy 212
C ITV OF
CHAIHASSEI
1. a...
-
690 COULTER DRIVE · P.O. BOX 147. CHANHASSEN, MINNESOTA 55317
(612) 937-1900. FAX (612) 937-5739
TO:
Don Ashworth, City Manager
ActIOn tiy City AdmlnJstr'a'l~f
Enilol'serl ../ bw A
Modified
Rejectl.!r1
Dalv ~-?. a~q 7
Dati! Submitted to CommlsslOjf
MEMORANDUM
FROM:
'~J
Bob Generous, Senior Planner . r~::i -
DATE:
May 21, 1997
-Date Submittod to Council
_S::: ~/- 11
SUBJ:
Resolution Authorizing Advanced Right-of-Way Acquisition Loan Fund (RALF)
Application Submittal, John Klingelhutz
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. If preliminary approval is granted, the
application is forwarded to the Minnesota Department of Transportation (MNDOT), subject to a
separate agreement between the City and MNDOT, for review, to have appraisals performed, and
to prepare required settlement agreements. The City then 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 City of Chanhassen will have to front some funds as part of the process including appraisal
costs, title search and insurance, tax payments, etc. ranging from $5,000 to $ I 0,000. However,
these moneys are then 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.
The property included for acquisition as part of this resolution is located on the north side of
Lyman Boulevard in the northeast quarter of section 24, township 116, range 23. The total area
to be acquired consists of approximately 12.3 acres of right-of-way for Highway 212. Staff
estimates the loan amount between $450,000 and $550,000 including land purchase and
Don Ashworth
May 21, 1997
RALF - John Klinge1hutz
Page 2
administrative costs. The purpose of the acquisition is the protection of the Highway 212 right-
of-way, as well as minimizing the cost appreciation of the land and responding to the financial
problems the corridor designation has created for a land owner.
The City of Chanhassen has purchased the two parcels to the east of this property through the
RALF process. 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.
RECOMMENDATION
Staff recommends that the City Council approve the attached resolution authorizing staff to
initiate a RALF application and to enter into negotiations with the land owner for the acquisition
of property within the Highway 212 corridor.
Attachments:
1. Resolution
2. Letter from Thomas Griep dated May 5, 1997
3. Location Map
4. Parcel Map
c: John Klingelhutz
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.
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
day of
.1997.
ATTEST:
Don Ashworth, City Clerk/Manager
Nancy K. Mancino, Mayor
YES
NO
ABSENT
KLINGELHUTZ
CONSTRUCTION
May 5, 1997
Ci ty of Chanhassen
Attn: Robert Generous, City Planner
690 Colter Drive
P. O. Box 147
Chanhassen, MN 55317
Dear Bob,
As per our telephone conversation on May 2, 1997, 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 Klingelhutz Development Company property within your
city.
I have enclosed the property information for your use. Should you
need any more information, please let me know.
Sincerely,
~A~
Thomas Griep
'i;'~ ( {] G 1Ss/
350 EAST HIGHWAY 212
CHASKA, MN 55318
612 1448-3330
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