5.3.
HRA Regular Session
- Meeting Date:
- 10/14/2014
- Submitted For:
- Patrick Brama
- By:
- Patrick Brama, Administrative Services
Information
Title:
Consider Resolution #14-10-219 Approving Sale of Permanent and Temporary Easements over Ramsey HRA Owned Property
Purpose/Background:
Purpose:
Consider authorizing conveyance of easements on HRA owned property located within The COR in relation to the U.S. Highway 10/Armstrong Boulevard Interchange Project. Attached to this case is a concept map which provides an overview of the request(s) before the HRA.
Background (U.S. Highway 10/Armstrong Boulevard Interchange)
Existing at-grade intersections located along U.S. Highway 10 from the City of Anoka to the City of Ramsey are major safety hazards for pedestrians, commuters and businesses alike. A substantial portion of U.S. Highway 10 in the City of Ramsey runs parallel to a set of Burlington Northern Santa Fe (BNSF) train tracks. In the event a train passes through the City of Ramsey during a time of emergency, public safety personnel are physically cut-off from U.S. Highway 10; and are unable to respond. Over the past two decades, increased traffic along both U.S. Highway 10 and the BNSF train tracks has pushed this public safety issue to the forefront.
Construction of a grade-separated interchange located at U.S. Highway 10/ Armstrong Boulevard in the City of Ramsey has been identified as the first major step to improve safety along U.S. Highway 10. To date, the $35M Armstrong Interchange project has received over $28M in dedicated funding; with remaining portions expected to fall into place by year-end 2014. Bidding for this project is expected to be completed by winter 2014-15. Construction is anticipated to begin spring of 2015.
Background (Easements)
Anoka County is the "project manager" for the Armstrong Interchange Project. The Armstrong Interchange project requires Anoka County to acquire property (for ROW and improvements), permanent easements (for permanent drainage, ROW, etc.) and temporary easements (for construction staging, temporary drainage during construction, etc.).
Attached to this case is correspondence from Anoka County related to two HRA owned properties. Anoka County is requesting one permanent public easement on the property located on the NE corner of Sunwood Drive and Armstrong Boulevard for drainage purposes. Anoka County is requesting two easements (one permanent and one temporary) on the property located SE of Sunwood Drive and Armstrong Boulevard.
Background (Process)
Per State Statute 117.042, Anoka County has the authority to acquire (or condemn) real property for the Armstrong Interchange Project. Due to the aggressive project timeline, Anoka County has officially began the process of condemnation with the Ramsey HRA and other effected property owners to allow for spring construction to commence.
Anoka County has completed final design for the Armstrong Interchange Project. In doing so, a number of property acquisitions, permanent easements, and temporary easements required for the project have been identified (including the three easements outlined in this case). Anoka County has officially notified and provided a written offer to the City for all requested easements on HRA owned property. Anoka County has also provided the City with copies of market value appraisals for all easements. Additionally, Anoka County has began the process of condemnation to ensure spring groundbreaking for this project. Attached to this case is all relative correspondence, notifications and information.
Moving forward, the Anoka County will acquire the proposed easements on HRA owned property. However, how that transaction will schematically transpire depends on what direction (alternative) the HRA chooses. See next section for details.
Consider authorizing conveyance of easements on HRA owned property located within The COR in relation to the U.S. Highway 10/Armstrong Boulevard Interchange Project. Attached to this case is a concept map which provides an overview of the request(s) before the HRA.
Background (U.S. Highway 10/Armstrong Boulevard Interchange)
Existing at-grade intersections located along U.S. Highway 10 from the City of Anoka to the City of Ramsey are major safety hazards for pedestrians, commuters and businesses alike. A substantial portion of U.S. Highway 10 in the City of Ramsey runs parallel to a set of Burlington Northern Santa Fe (BNSF) train tracks. In the event a train passes through the City of Ramsey during a time of emergency, public safety personnel are physically cut-off from U.S. Highway 10; and are unable to respond. Over the past two decades, increased traffic along both U.S. Highway 10 and the BNSF train tracks has pushed this public safety issue to the forefront.
Construction of a grade-separated interchange located at U.S. Highway 10/ Armstrong Boulevard in the City of Ramsey has been identified as the first major step to improve safety along U.S. Highway 10. To date, the $35M Armstrong Interchange project has received over $28M in dedicated funding; with remaining portions expected to fall into place by year-end 2014. Bidding for this project is expected to be completed by winter 2014-15. Construction is anticipated to begin spring of 2015.
Background (Easements)
Anoka County is the "project manager" for the Armstrong Interchange Project. The Armstrong Interchange project requires Anoka County to acquire property (for ROW and improvements), permanent easements (for permanent drainage, ROW, etc.) and temporary easements (for construction staging, temporary drainage during construction, etc.).
Attached to this case is correspondence from Anoka County related to two HRA owned properties. Anoka County is requesting one permanent public easement on the property located on the NE corner of Sunwood Drive and Armstrong Boulevard for drainage purposes. Anoka County is requesting two easements (one permanent and one temporary) on the property located SE of Sunwood Drive and Armstrong Boulevard.
Background (Process)
Per State Statute 117.042, Anoka County has the authority to acquire (or condemn) real property for the Armstrong Interchange Project. Due to the aggressive project timeline, Anoka County has officially began the process of condemnation with the Ramsey HRA and other effected property owners to allow for spring construction to commence.
Anoka County has completed final design for the Armstrong Interchange Project. In doing so, a number of property acquisitions, permanent easements, and temporary easements required for the project have been identified (including the three easements outlined in this case). Anoka County has officially notified and provided a written offer to the City for all requested easements on HRA owned property. Anoka County has also provided the City with copies of market value appraisals for all easements. Additionally, Anoka County has began the process of condemnation to ensure spring groundbreaking for this project. Attached to this case is all relative correspondence, notifications and information.
Moving forward, the Anoka County will acquire the proposed easements on HRA owned property. However, how that transaction will schematically transpire depends on what direction (alternative) the HRA chooses. See next section for details.
Notification:
NA
Observations/Alternatives:
Adopt attached resolution and accept offer from Anoka County for easements on HRA owned property (staff recommendation)
This would allow Anoka County to acquire needed easements outside of a legal condemnation process (known as "direct purchase"). This would allow the Armstrong Interchange Project to move forward efficiently. The City would receive market-rate compensation for all easements.
Do not adopt attached resolution and do not accept offer from Anoka County for easements on HRA owned property
If the City doesn't wish to move forward with accepting this offer, Anoka County would continue the process of legal condemnation (which is guided and authorized by State Statute 117.042 referred to as eminent domain). The City does have the ability to appeal the County's valuation (i.e. offer price). The City would have the ability to get a second market appraisal on the proposed easements. The City does have the ability to appeal the "public" need for said easements. Lastly, as indicated by Anoka County, if the City has any special requests, objections, questions or suggestions related to this process, they would be happy to respond; and attempt to find a resolution. The condemnation hearing for this project is December 30, 2014.
This would allow Anoka County to acquire needed easements outside of a legal condemnation process (known as "direct purchase"). This would allow the Armstrong Interchange Project to move forward efficiently. The City would receive market-rate compensation for all easements.
Two potential drawbacks to the proposed easements have been identified by Staff:
(1) The easement on the NE corner of Sunwood Drive and Armstrong Boulevard is permanent and takes up a significant portion of prime real estate for future development. Staff expressed this concern with Anoka County and they have indicated the County would allow the stormwater pond to be reconfigured and/or relocated in the future; depending on the needs of a future developer. Examples: the pond may be reconfigured and utilized as an aesthetic feature for the property; or, the space may be needed for parking/building and a stormwater basin with stormwater pipe connection to Lake Ramsey may be created to maximize use of site. Attached to this case is correspondence from Anoka County. Language will be included in the Armstrong Project Joint Powers Agreement (JPA) to formalize said commitment. With the response from Anoka County in mind, Staff does not feel this issue remains a concern.
(2) Temporary easement on LOT 1 Block 1 takes up a notable portion of prime real estate for development through December 31, 2017 (about three years). This will reduce the marketability of this property in the short term. Staff had a conversation with Anoka County regarding this easement. It is very likely this temporary stormwater pond will be removed before December 31, 2017. However, Anoka County is not interested in shortening the term of this easement (in case the project is delayed). When considering the time it takes a development project to be completed; and the unknown amount of time before a developer will come forward and purchase this property (LOT 1 Block 1); Staff believes the risk of conflict with future development/land transactions is temporary and can be overcome. However, a risk does exist. Lastly, it should be noted, this temporary pond will be removed upon completion of the Armstrong Interchange. It is anticipated, completion of the Armstrong Interchange will maximize value and demand on this property.
(1) The easement on the NE corner of Sunwood Drive and Armstrong Boulevard is permanent and takes up a significant portion of prime real estate for future development. Staff expressed this concern with Anoka County and they have indicated the County would allow the stormwater pond to be reconfigured and/or relocated in the future; depending on the needs of a future developer. Examples: the pond may be reconfigured and utilized as an aesthetic feature for the property; or, the space may be needed for parking/building and a stormwater basin with stormwater pipe connection to Lake Ramsey may be created to maximize use of site. Attached to this case is correspondence from Anoka County. Language will be included in the Armstrong Project Joint Powers Agreement (JPA) to formalize said commitment. With the response from Anoka County in mind, Staff does not feel this issue remains a concern.
(2) Temporary easement on LOT 1 Block 1 takes up a notable portion of prime real estate for development through December 31, 2017 (about three years). This will reduce the marketability of this property in the short term. Staff had a conversation with Anoka County regarding this easement. It is very likely this temporary stormwater pond will be removed before December 31, 2017. However, Anoka County is not interested in shortening the term of this easement (in case the project is delayed). When considering the time it takes a development project to be completed; and the unknown amount of time before a developer will come forward and purchase this property (LOT 1 Block 1); Staff believes the risk of conflict with future development/land transactions is temporary and can be overcome. However, a risk does exist. Lastly, it should be noted, this temporary pond will be removed upon completion of the Armstrong Interchange. It is anticipated, completion of the Armstrong Interchange will maximize value and demand on this property.
Do not adopt attached resolution and do not accept offer from Anoka County for easements on HRA owned property
If the City doesn't wish to move forward with accepting this offer, Anoka County would continue the process of legal condemnation (which is guided and authorized by State Statute 117.042 referred to as eminent domain). The City does have the ability to appeal the County's valuation (i.e. offer price). The City would have the ability to get a second market appraisal on the proposed easements. The City does have the ability to appeal the "public" need for said easements. Lastly, as indicated by Anoka County, if the City has any special requests, objections, questions or suggestions related to this process, they would be happy to respond; and attempt to find a resolution. The condemnation hearing for this project is December 30, 2014.
Funding Source:
NA
Recommendation:
Adopt attached resolution and accept offer from Anoka County for easements on HRA owned property. See section above for details.
Action:
Adopt Resolution #14-10-219 Approving Sale of Permanent and Temporary Easements over Ramsey HRA Owned Property
Attachments
- Res #14-10-219
- Overview and Concept Map
- Email from Anoka County
- Parcel 6 Correspondence from Anoka County
- Parcel 6 Warranty Deed Easement and Memorandum of Agreement
- Parcel 8 Correspondence from Anoka County
- Parcel 8 Warranty Deed Easement and Memorandum of Agreement
- Policy for the Reimbursement of Land Proceeds and Tax Increment for TIF 14 COR
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Bruce Westby | Bruce Westby | 10/09/2014 10:44 AM |
| Kurt Ulrich | Kurt Ulrich | 10/09/2014 03:08 PM |
- Form Started By:
- Patrick Brama
- Started On:
- 10/06/2014 09:49 AM
- Final Approval Date:
- 10/09/2014