HomeMy WebLinkAbout8B TH13 - Duluth Accept Negotiated Settlement ReportPhone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: JULY 16, 2018
AGENDA #:
PREPARED BY:
8B
JASON WEDEL, PUBLIC WORKS DIRECTOR/CITY ENGINEER
PRESENTED BY: JASON WEDEL
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING THE
NEGOTIATED SETTLEMENT VALUE AND AUTHORIZING CITY
OFFICIALS TO MAKE OFFERS TO PURCHASE INTERESTS IN REAL
PROPERTY AT THE NEGOTIATED VALUE FOR THE DULUTH
AVENUE INTERSECTION IMPROVEMENT PROJECT (CITY PROJECT
#TRN15-000003)
DISCUSSION: Introduction
The purpose of this agenda item is to seek approval from the City Council
for the negotiated settlement value and authorizing the City officials to
make offers to purchase interests in real property at the negotiated
settlement value.
History
A feasibility report was originally prepared for the Duluth Avenue
Intersection Improvement project in January 2015. The feasibility report
was accepted and the project was ordered by the City Council on January
26, 2015. However, due to projected tax levy impacts, the project
construction was delayed. The feasibility report was updated in 2018 to
included assessments to adjacent properties that will benefit from the
proposed improvements as part of the overall financing of the project. The
revised feasibility report was approved by the City Council on February 5,
2018.
The Duluth Avenue Intersection Improvement Project includes widening
the intersection to include dedicated left, thru, and right turn lanes on
Duluth Avenue in both directions at the intersection with TH13. It also
includes the addition of a right turn lane into the Holiday Station Store’s
northerly entrance, the construction of a median on Duluth Avenue to
restrict the access to the entrance for the Village Lake Mall to right -in/right-
out near the intersection, the construction of a mini roundabout at the
intersection of Duluth and Village Lake Drive, as well as modifications to
several of the southerly entrances to the Village Lake Mall property and the
realignment of the Toronto/Village Lake Drive intersection.
Current Circumstances
There are a total of six parcels that required a varied combination of
permanent easement, temporary easement, construction interference and
affected site improvements. Two of these properties accepted the offers
2
ISSUES:
FINANCIAL
IMPACT:
as presented and have signed the required easements. The remaining
four parcels counter offereded with a different amount. WSB & Associates
negotiated with these four parcels and were able to negotiate final values
that were below the counteroffers but above the original offer. The
property owners have accepted the negotiated settlement and have signed
the required easements.
Property acquisition on public improvement projects can be a long process.
The City is at the end of this process for this project in time for construction
to occur yet this year. WSB has worked diligently to complete this task in a
timely manner. While the final agreed to amounts are above the appraisal,
the cost difference is minor in relation to the project as a whole. If the City
Council rejects the counteroffer, the project will not be able to be
completed this year.
The negotiated settlement cost will add minor additional cost to the overall
project amount. WSB & Associates has negotiated with the property
owners on behalf of the City and the additional cost is as follows:
Parcel
Total
Appraised
Value
City of Prior
Lake Proposed
Compensation
Negotiated
Settlement
Amount
Parcel 1 $11,950 $11,950 $11,950
Parcel 2 $9,300 $9,300 $10,000
Parcel 3 and 7 $99,850 $99,850 $102,850
Parcel 4 $79,225 $79,225 $90,000
Parcel 5 $30,150 $30,150 $43,880
Parcel 6 $9,800 $9,800 $9,800
Total $240,275 $240,275 $268,480
ALTERNATIVES: 1.Approve a resolution approving negotiated settlement value and
authorizing the officials to make offer to purchase interests in real
property at the negotiated settlement value.
2.Deny this item for a specific reason and provide staff with
direction.
3.Table the item until some date in the future.
RECOMMENDED
MOTION:
A motion and second for approval of Alternative #1.
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 18-___
RESOLUTION APPROVING THE NEGOTIATED SETTLMENT VALUE AND AUTHORIZING CITY
OFFICIALS TO MAKE OFFERS TO PURCHASE INTERESTS IN REAL PROPERTY AT THE
NEGOTIATED SETTLEMENT VALUE FOR THE DULUTH AVENUE INTERSECTION IMPROVEMENT
PROJECT CITY PROJECT #TRN15-000003
Motion By: Second By:
WHEREAS,
WHEREAS,
WHEREAS,
The City of Prior Lake, a Minnesota municipal corporation acting by and through the City
Council and is authorized by law to acquire real property (“Property”) which is needed for
public use or purpose; and
The City Engineer has ordered appraisals from WSB and Associates and has received full
and final appraisals for the Duluth Avenue Intersection Improvement Project, City Project
#TRN15-000003 (the “Project”); and
It is necessary that the City obtain title and possession to the necessary easements by
negotiation or condemnation before construction contracts may begin; and
WHEREAS,
WHEREAS,
The City made offers to property owners for the Property based on the appraisal values;
and
The City has reached a negotiated settlement for purchase interest in a real property for
the value as presented by the City Engineer; and
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 negotiated settlement value is hereby approved.
3.The City Manager, City Engineer and City Attorney are hereby authorized to acquire the Property
required for the Project in fee or by easement, through negotia tion or condemnation and to make offers
to purchase interests in real property at the negotiated settlement value as presented by the City
Engineer for the Duluth Avenue Intersection Improvement Project, City Project #TRN15-000003.
Passed and adopted by the Prior Lake City Council this 16th day of July, 2018
VOTE Briggs McGuire Thompson Burkart Braid
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
Abstain ☐☐ ☐ ☐ ☐
______________________________
Frank Boyles, City Manager