HomeMy WebLinkAbout5G Property Acquisition for 150th St & TH 13 PRIO4
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Prior Lake,MN 55372
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CITY COUNCIL AGENDA REPORT
MEETING DATE: SEPTEMBER 28, 2015
AGENDA#: 5G
PREPARED BY: LARRY POPPLER, CITY ENGINEER/ INSPECTIONS DIRECTOR
PRESENTED BY: LARRY POPPLER
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING ACQUISITION OF
PROPERTY FOR THE 150T" STREET/ TH 13 IMPROVEMENT PROJECT
DISCUSSION: Introduction
The cities of Savage and Prior Lake, along with Mn/DOT, have been working coop-
eratively to develop the final design for the 150th Street/TH 13 intersection. As the
project has developed, property acquisition costs have risen. The Cooperative
Agreement with the City of Savage requires that the City of Prior Lake provide writ-
ten approval of the property acquisition costs beyond the approved amounts.
History
In 2014, a feasibility report was prepared and included several alternatives for the
150th Street / Highway 13 project. Two alternatives were debated in September.
Ultimately, on consecutive nights September 15 and 16, 2014 the Savage and Prior
Lake City Councils selected Concept 5B along with a Cost Sharing Agreement for
the project.
In July, the project was bid and awarded to SM Hentges and Sons. The project is
now under construction.
Current Circumstances
On February 9, 2015, the City Council approved the revised property acquisition
amounts based on the appraisals for land acquisition. This authorization adjusted
the property acquisition amount to $1,030,150. Offers to property owners have be
made since this City Council action.
This project includes 18 properties which require property acquisition. Of these
properties, 7 have settled on the property acquisition based off the appraisals.
While some property owners have settled on the offered amounts as approved by
Council, others have provided additional data supporting a higher amount.
Conclusion
The request tonight is to approve additional property acquisition costs in the amount
of $6,500 on two properties. City Staff recommends approval. This will close the
books on two more properties, bringing the total to nine.
ISSUES: The Cost Sharing Agreement included a provision of allowing the City of Prior Lake
to approve property acquisition costs if they exceeded 110% of the originally esti-
mated $862,000. However, the original preliminary design did not contemplate the
Phone 952.447.9800 / Fax 952.447.4245/www.cityofpriorlake.com
extent of work in Prior Lake at the 150th Street and Estate Avenue. The work in-
volved to build this intersection to MNDOT State Aid Standards is extensive and
includes additional property acquisition and construction costs as a result.
Other properties believe they also should be compensated at a larger value. These
counteroffers have not been fully evaluated or may be subject to a "commissioners
hearing" for further debate. Future City Council property acquisition actions may be
necessary.
FINANCIAL Property acquisition was originally estimated to be $862,000, but was later approved
IMPACT: to be $1,030,150. With approval tonight, authorized property acquisition amount
would be $1,036,650. Considering other outstanding properties, future approvals
may be necessary.
ALTERNATIVES: 1) Approve a Resolution Authorizing Property Acquisition up to $1,036,150 for the
150th Street and Trunk Highway 13 Improvement Project.
2) Deny this item for a specific reason and provide staff with direction.
3) Table this item until some date in the future.
RECOMMENDED A motion and a second for approval of alternative #1.
MOTION:
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/vivssoli" Prior Lake, MN 55372
RESOLUTION 15-xxx
A RESOLUTION AUTHORIZING ACQUISITION OF PROPERTY FOR THE
150TH STREET/TH 13 IMPROVEMENT PROJECT
Motion By: Second By:
WHEREAS, On September 16, 2014, the City Council approved resolution 14-139 approving a cooperative
agreement with the City of Savage for the 150th Street and TH 13 Improvement Project; and
WHEREAS, The Cooperative Agreement outlined the cost participation between the Cities of Savage and
Prior Lake; and
WHEREAS, The City of Prior Lake has agreed to pay for property acquisition costs in excess of$862,000
as outlined in the agreement; and
WHEREAS, A provision of the agreement specified that any costs 110% of $862,000 require written
approval from the City of Prior Lake; and
WHEREAS, On February 9, 2015, the City Council approved the sum of the property acquisition up to
$1,030,150 which was based on the appraisals; and
WHEREAS, Two properties have presented counteroffers which would increase the property acquisition by
$6,500.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The City of Prior Lake hereby authorizes property acquisition up to$1,036,650 for the 150th Street and
TH 13 Improvement Project.
PASSED AND ADOPTED THIS 28th DAY OF SEPTEMBER 2015.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ❑ ❑ ❑ ❑ ❑
Nay ❑ ❑ ❑ ❑ ❑
Abstain ❑ ❑ ❑ ❑ ❑
Absent ❑ DODD
Frank Boyles, City Manager