1c. Resolution Auth. RALF Process for TH 212 Right-Of-Way
C ITV OF
CHANHASSEN
1(!..
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690 COULTER DRIVE. P.O. BOX 147. CHANHASSEN, MINNESOTA 55317
(612) 937-1900. FAX (612) 937-5739
MEMORANDUM
TO:
Don Ashworth, City Manager
FROM:
Bob Generous, Senior Planner
DATE:
December 3, 1997
SUBJ:
Resolution Authorizing Advanced Right-of-Way Acquisition Loan Fund (RALF)
Application Submittal, James Curry
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 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 City of Chanhassen will have to front funds, once a purchase amount is agreed to, for
administrative work as part of the process including legal fees, title search and insurance, tax
payments, etc. ranging from $5,000 to $10,000. However, these monies are then recovered 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 Northwest quarter of Section 24 and the Northeast quarter of Section 23,
Township 116, Range 23. The total area proposed for acquisition is approximately 66.7 acres
consisting of 50 acres of right-of-way for Highway 212 (45.62 acres) and the Highway 101
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Don Ashworth
December 3, 1997
RALF - James Curry
Page 2
realignment (Parcel F - 4.38 acres) and 16.7 acres for a potential park and ride facility, bus
maintenance and office facility, and public works facility (Parcel B - 8.06 acres and Parcel C _
8.61 acres). The purchase of the additional 16.7 acres is contingent upon Metropolitan Council
and MNDOT approval of the land outside the mapped right-of-way. Staff estimates the loan
amount between $3,500,000 and $4,000,000 including land acquisition and administrative costs.
The purpose of the acquisition is to protect the Highway 212 right-of-way, as well as minimizing
the cost appreciation of the land.
The City of Chanhassen has purchased two parcels to the east of this property through the RALF
process. The cities of Chaska and Eden Prairie have quite 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 negotiations with the land owner for the acquisition
of property within the Highway 212 corridor.
Attachments:
1. Resolution
2. Letter from Bruce G. Odlaug to Donald Ashworth dated November 20, 1997
3. Location Map
4. Parcel Map
c: Bruce Odlaug, Attorney for Mr. Curry
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
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MAUN & SIMON
PLC
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Reply to: Minneapolis
Writer's Direct Dial: (612) 904-7419
November 20, 1997
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By Messeneer
Mr. Donald Ashworth
City Manager
Cit'J of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
Re: James and Barbara Curry
Our File No. C018100-M02
Dear Mr. Ashworth:
We are the attorneys for James and Barbara Curry. The Currys are the owner of
approximately 80 acres in the City of Chanhassen in the area of Highway 101 and Lyman
Boulevard. I am enclosing in this regard a copy of a Neighborhood Map on which I have
outlined in yellow the property owned by the Currys.
There is shown on the Neighborhood Map an area of the Curry property that is
proposed to be used for Highway 212 right-of-way. There has been recorded by the
Minnesota Department of Transportation an official map setting forth the proposed right-of-
way. According to our survey of the Curry property, the proposed right-of-way is in excess
of 45 acres.
\Ve have delivered to Mr. Robert Generous of your Plamring Department a copy of
the survey. We have, on the enclosed Neighborhood Map, designated parcels by letter
which coincide with the lettered parcels on the survey.
The survey also reflects as Parcel F the proposed right-of-way for the future Highway
101 realignment. Parcel F contains approximately 4.38 acres. In addition, we have been
advised that Parcel B has been designated by Southwest Metro Transit for the location of
a park and ride site. Parcel B contains approximately 8 acres.
We are requesting, on behalf of our clients, that the City of Chanhassen make
application to the Metropolitan Council for an acquisition loan to acquire this property
pursuant to the Right-Of-Way Acquisition Loan Fund (Minn. Stat. ~ 473.167, Subdivision
~ATT()RN[)S AT LAW
Mr. Donald Ashworth
November 20, 1997
Page 2
212 right-of-way and the proposed Highway 101 right-of-way. If possible, we would like to
also negotiate the transfer of the park and ride site at the same time.
We would estimate that the value of the right-of-way to be taken is in excess of
$5,000,000. If you need any additional information concerning the property, please contact
the undersigned and we would be happy to furnish the same to you. Thank you in advance
for your consideration to this matter.
Very truly yours,
~tfl
\"~ruce G. Odlaug ,
BGO:kh
Enclosures
cc: Robert Generous (w/encl. - By Messenger)
Mr. and Mrs. James Curry (w/encl. - By Regular Mail)
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