Agenda - Council Work Session - 03/02/2010

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expenses are paid through the RALF program. The City of Ramsey has been tffrontingtf the expenses associate with the relocation of businesses thus far with the understanding these costs will be reimbursed by MnDOT at the time of construction. · Demolition is also a factor in the acquisition process. Nearly one-half of the properties acquired have involved demolition of existing on-site structures. The cost for demolition has most often been included as part of overall acquisition expenses, versus a requirement placed on the property owner. {In the case of ICO, demolition expenses are built into the purchase price in lieu of additional compensation for the structures that were determined to be of similar value to that of demolition costs.) The state and federal laws surrounding acquisition by a public agency have been put in place largely due to former practices when property owners were taken advantage of and were not fairly compensated for their land. Moreover, long-term transportation planning efforts, as important as they are, can hold land-owners hostage for many years until adequate funding becomes available. The RALF program is one tool that can help individuals make business decisions in a way that minimizes the feeling of limbo. It is also one that requires negotiations that reach a balance between the desire to acquire the property at a value that is acceptable to the seller and one that is justifiable to the state and within current market rates. It is important to recognize that while the acquisition process is fairly straightforward, the motivations and circumstances associated with each property owner and property are unique. A great deal of communication, information sharing and working with numerous agencies for various approvals is required throughout the entire process. The Tinklenberg Group has the knowledge and experience to deal with the varying degrees of issues that can arise, and understands the steps necessary to address and resolve matters in an efficient and timely manner. Throughout the course of acquisitions The Tinklenberg Group has worked with MnDOT and the Metropolitan Council to discover new methods and opportunities to enhance the RALF program, streamline acquisition processes and identify opportunities to maintain tax base to the community while continuing to acquire needed land. As an example, appraisals are conducted thoroughly to avoid the need for seeking an tfAdministrative Settlement" on top of the appraised value as part of the negotiation process. In addition, MilDOT is working to identify available funds to conduct a tfcorridor-wide" Phase 1 Environmental Review rather than completing the work on a case-by-case basis which would save significant public dollars. Upon final acquisition of the two properties in the pipeline (EZ Auto andlCO), the City will have acquired 22 parcels totaling nearly $17 million along the corridor. This total is equivalent to more than one-third of the properties necessary for future transportation improvements. This is a tremendous accomplishment and has put the TH 10 corridor on the map in terms of how a community can successfully implement corridor preservation strategies. More importantly, the program serves as a vehicle to demonstrate good-faith efforts to mitigate impacts transportation improvements in this corridor will have on businesses and residents in the ar~a. The Tinkl.enberg Group appreciates the ability to represent the City of Ramsey in this way and takes great pride in the fact that the process has reinforced the positive role city government can play in working with members of the community to proactively plan for, understand and accomplish change. 4