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CASE # ' <br />CONSIDER RIGHT OF WAY PLAN FOR VARIOLITE STREET <br />EXTENSION INTO THE COR <br />By: Tim Himmer, City Engineer <br />Background: <br />Over the past year staff has been approached on separate occasions by two property owners that <br />currently reside along this future north-south corridor for information about the status of this <br />project: A case to consider the acquisition of Lot 1, Block 1 PINEVIEW ESTATES 2xD <br />ADDITION was discussed by both the Public Works and Finance Committees last summer, and <br />it was the consensus of each that the City should not be actively purchasing property for this <br />project until a funding source, alignment, and schedule was developed. Staff was directed to <br />initiate a process to begin preparation of a right of way plan for State Aid submittal and <br />consideration, which could result in a funding source for future acquisitions along this corridor. <br />The PW Committee discussed potential alignments of such a plan on September 15, 2009 and the <br />following issues were identified for additional research: <br />• Could the City utilize State Aid funds to acquire properties over time and lease them back <br />to the homeowners? <br />• Are the residents in the area interested in selling? <br />• How much would potential acquisitions cost in today's market? <br />• How could we best limit direct access onto any future roadway through this area? <br />Staff was directed to gather additional information on these items and report back to the <br />committee so an alignment could be chosen, contact could be made with the appropriate <br />residents, and a right of way plan could be developed and submitted to MnDOT to review. <br />Observations: <br />This roadway project was added to the City's State Aid system in 2003 and has been in the <br />Capital Improvement Program (CIP) since 2004. Currently it shows proposed funding of $1.7M <br />from Sate Aid, beginning with $700,000 for acquisition in 2011. In reviewing the potential <br />alignments discussed with the PW Committee last summer the acquisition costs are estimated <br />substantially higher than this amount (see attached). <br />Staff has discussed this matter further with the Metro State Aid office of MnDOT and <br />received the attached a-mail in response to our inquiry. They are agreeable to utilizing State <br />Aid funds for the required acquisitions along the corridor once they have had the opportunity <br />to review and approve a right of way plan submitted by the City. If the City is able to buy <br />properties in advance of construction and negotiate leases and or income generated from those <br />properties those proceeds must be used be worked back into any future project costs and could <br />not be utilized for any other purpose. <br />Staff can prepare a right of way plan, based upon Council direction on a chosen alignment, <br />and submit to MnDOT for response. Such a plan would need to show a proposed alignrent, <br />grades, typical section and proposed right of way limits. Since a concern was raised regarding <br />resident interest in selling their properties, a neighborhood meeting could also be scheduled to <br />outline the City's intended approach to implementing this roadway connection. Attached are <br />