Adopt Resolution #20-280 approving Settlement Agreement with Minnesota Department of Transportation for Parking Lot Encroachment onto Highway 10 Right of Way

The purpose of this case is to consider an interim settlement agreement with the Minnesota Department of Transportation pertaining to a right of way encroachment on Highway 10 adjacent to 6141 Highway 10 NW. 

The City acquired this parcel for Highway 10 purposes in 2005. This site was previously the location of a small office building that was destroyed by a gas explosion prior to 2005. Subsequent to the City acquiring the parcel, the City granted a parking easement to the Outpost Bar and Grill.

During the original Highway 10 study and planning efforts circa 2012, it was discovered that the ground sign and parking stalls along Highway 10 for the Outpost Bar and Grill actually encroached onto Highway 10 right of way. Some of those stalls are actually in front of the City Owned parcel. 

Notification is not required. MnDOT is working directly with the Outpost Bar and Grill. City Staff has been in communication with the Outpost Bar and Grill as well to assist in options. 

Unfortunately, the sign for the Outpost Bar and Grill will need to be relocated. However, MnDOT is will to work on an encroachment agreement for the parking stalls. MnDOT needs to work through some legal logistics that will take some time. MnDOT acquired easement in the 1930s and needs to acquire full right of way to allow this encroachment. 

MnDOT started this request with the Outpost circa 2013 and has been attempting a resolution since that time. The City has been waiting for a resolution in the background, but now must act to protect ourselves from fines or costs of abatement. Discussions between MnDOT and City Staff have been cordial and productive. Parking stalls in front of our parcel have already been barricaded and the City will be absolved of any legal liability by entering into the Settlement Agreement. 

Sidebar - the original site plans from 20+ years ago when the sign was approved proved to be inaccurate, leading to the current situation. Technology has dramatically advanced since then to avoid these situations in the future. 

This case is being handled as part of normal Staff duties. 

Staff recommends approval of the Settlement Agreement

Motion to adopt Resolution #20-280 approving Settlement Agreement with the Minnesota Department of Transportation for parking lot encroachment onto Highway 10 right of way.