Update on Required Land Acquisitions for the Sunwood Drive Realignment Project - PORTIONS OF THIS DISCUSSION MAY BE CLOSED TO THE PUBLIC

The Armstrong Boulevard/Highway 10 interchange project is considered one of the highest transportation priorities in the City.  In an effort to reduce the overall costs the Council has been discussing ways to preconstruct portions of this project, such that it can be accomplished in phases.  One phase of this interchange project is the realignment of Sunwood Drive, which is being considered to improve traffic flow through the area in the short term, create a consolidated signalized access to the COR along its western boundary, provide for a portion of the City's cost participation in the interchange project, and create additional development options for the COR property.  The Sunwood realignment will construct the first intersection north of Highway 10 on Armstrong Boulevard, at a location that addresses the major concerns expressed by MnDOT and Anoka County.

The project includes the realignment of Sunwood Drive, between approximately Zeolite Street and Armstrong Boulevard (see attached preliminary design).  The intent is to work north to south on Armstrong Boulevard and complete another section of the roadway in its final location; to set the stage for the ultimate interchange over the railroad tracks and Highway 10.  Draft feasibility studies were presented to the Public Works Committee and HRA on December 13, 2011, with the only remaining outstanding item being the funding package.  On that date the HRA authorized the preparation of appraisals for the potential acquisition of 3 parcels along the west side of Armstrong Boulevard that are necessary for portions of this project, and ultimately the interchange project.

On January 24, 2012 draft feasibility studies were presented to the City Council for consideration.  At that meeting the City Council authorized the final design contracts with Landform and WSB & Associates, and ordered the preparation of plans and specifications. On February 28, 2012 the City Council was updated on this project, and additional discussions took place with respect to the required property acquisitions south of 147th Avenue NW.  Appraisals have been completed on these 3 parcels and negotiations are underway with the various property owners.  On March 13, 2012 the City Council approved the funding package for the Sunwood realignment project, and authorized staff to begin negotiations with property owners north of 147th Avenue to acquire small portions from 2 separate parcels.  Attached to this case is an exhibit that shows the temporary and permanent easements that are required on these properties to maintain existing drainage patterns.

Staff has negotiated with representatives from both properties for the acquisition of the necessary easements.  We have now reached a tentative agreement on the Billmark property, and have revised the project plans to eliminate impacts to the National Growth property.  Staff would like to present the specifics of the terms and seek approval of a purchase agreement on the Billmark property, and update the Council on the proposed plan revisions associated with the National Growth property.

Attached to this case are the funding packages that the City Council approved on March 13, 2012.  We have recently been told that the Sunwood realignment project has not been selected for funding under the Transit Oriented Development (TOD) grant program through the Metropolitan Council, therefore we will be advancing project implementation using scenario 2.

Based upon discussion.