HomeMy WebLinkAbout4L - Northwood Rd Easement
DATE:
4L
LARRY ANDERSON, CITY ENGINEER
CONSIDER APPROVAL OF A FEE INCREASE FOR
EVERGREEN LAND SERVICE CO FOR EASEMENT
NEGOTIATION FOR PROJECT 94-02 NORTHWOOD
ROAD
APRIL 15, 1996
AGENDA #:
PREP ARED BY:
SUBJECT:
INTRODUCTION:
The purpose of this Agenda item is to authorize an increase in fees
to Evergreen Land Services Co. for easement negotiation for
Project 94-02 Northwood Road.
BACKGROUND:
On January 17, 1995 the Council authorized Evergreen Land
Services Co. to negotiate easements for Northwood Road. This
proposal was based upon 12 parcels and the City providing the
appraisal amounts to be offered to the property owners. The
Council authorized $6,000 for these services.
After the work was authorized staff set up a meeting with the
attorney, appraiser, surveyor and Evergreen Land Services Co. to
discuss the process for acquiring easements. I t was the consensus
that the property could be acquired for less money if the amounts
offered were based upon the Assessors Market Value per square
foot of easement acquired instead of the appraised amount. The
appraised amounts is what would have to have been used if
Eminent Domain proceedings were pursued, and to have a
defensible appraisal.
Evergreen Land Services Co. used this method in calculating the
amounts to be offered. The fee quoted was based upon being given
the appraisal amounts.
The actual number of parcels acquired were 19 instead of the
proposed 12. The proposal anticipated Northwood Road being
under construction in 1995 with a short time for negotiation. The
parcels not acquired would have been acquired through eminent
domain. With the project being done in 1996 a much longer time
16200 Eagle Creek Ave. S.E.. Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 1 Fax (612) 447-4245
AG9402EV.DOC AN EQUAL OPPORTUNITY' EMPLOYER
was available for easement negotiation. F our parcels of the 19
have not signed; however staff believes all will sign shortly with
the exception of Jim Dunn.
Evergreen Land Services Co. used the assessor's market value to
acquire the necessary easements. In doing so, Evergreen Land
Services Co. "saved" city taxpayers a total of $41,000. Evergreen
Land Services Co. is requesting that the authorization fee for
services be increased from $6,000 to $14,000 on the basis that the
negotiations were considerably more protracted and time
consuming than originally estimated.
DISCUSSION:
By having Evergreen Land Services Co. use the Assessors Market
Value for land values the cost of easement acquisition has been
reduced. Evergreen Land Services Co. spent a significant amount
of time negotiating easements beyond the intent of their proposal.
The amount of parcels negotiated was increased as part of the final
project design.
ISSUES:
The project cost has been reduced by $41,000 as a result of using
this service.
ALTERNATIVES:
The Alternatives are as follows:
1. Approve as part of the consent agenda a motion authorizing
the fee increase to $14,000 to Evergreen Land Services Co.
2. Table this item for a specific reason (requires removal from
Consent Agenda).
RECOMMENDATION: The recommendation is Alternative Number 1.
FINANCIAL IMPACT: The costs will be recouped from the municipal state aid account.
ACTION REQUIRED: Place Agenda Item 4 L on the consent agenda to approve
increasing the fee to Evergreen Land Services Co. to $14,000 for
easement negotiation for N wood Road Project 94-02.
AG9402EV.DOC