Agenda - Council Work Session - 12/07/2010

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CC Work Session Date: 12/07/2010 By: Tim Himmer Engineering /Public Works Item #: 2. d. Information Title: Consider Acquistition of Necessary Right -of -Way for the Potential Future Extension of Variolite Street Background: Over the past several years staff has been contacted on numerous occasions by a few property owners that currently reside along the City streets that would serve as the future alignment of a north -south local collector road through the center of the City and connecting to the COR. They are interested in any information about development and preservation of this corridor, as it has recently been discussed by the Council as the Variolite Street extension, and they continue to request a status update for the project. This topic has been discussed several times over the past year at the Public Works Committee, Finance Committee, and City Council in work session; all of which determined that while the City should be preserving the corridor as part of its long range transportation goals, we should not be actively advancing this project until the need is there; based upon traffic and /or development pressure. It was also discussed that we should not be purchasing any property for this project until a funding source, alignment, and schedule are developed. During the initial review period staff was directed to investigate a process that would initiate the preparation of a right of way plan for State Aid submittal and consideration. Such a plan would determine the proposed alignment and feasibility of constructing the roadway extension; and once approved by MnDOT would result in a funding source for future acquisitions along this corridor. Many alignment scenarios were considered by the various committees but they were ultimately narrowed down to a few potential options (see attached). A public open house was held on August 12, 2010 to introduce the residents of the area with the project, provide them with background information, communicate the long range transportation goals of the City, listen to their thoughts and ideas, and gather feedback on the various alignment options. Over 100 citizens attended the meeting; with 53 people signing the attendance sheet, and 22 comment cards and /or e -mail responses received. At Council work session on September 14, 2010 Council directed staff to keep the project in the City's Comprehensive Plan but to move the alignment consistent with that shown in the Capital Improvement Program (CIP), such that it follows the existing right -of -way to the extent feasible (see attached minutes, and comprehensive plan & CIP maps). Since that meeting one resident has continued with their request for the City to acquire their property. They feel that there may still be an opportunity to proceed with property acquisition from willing sellers at this time and requests the Council consider a process that may take advantage of the current economic condition to preserve this corridor, because (as their letter states) they were "approached by a City Councilman and told that the City would not be opposed to purchasing individual properties at this time." Staff is looking for some clarification and /or consensus from the Council on this matter. They also have concerns about disclosure issues should they choose to list their property for sale, and what impacts that would have on the marketability of their property (see attached correspondence). Regardless of the alignment option chosen for the ultimate project this property would be impacted. Based upon previous direction, with regard to the Variolite Street extension it seems premature to be considering property acquisition at this time unless an alternative funding source can be secured. Without a pre- approved right of way plan at the state level acquisition of land cannot commence utilizing State Aid funds, and reimbursement for such acquisitions that the City undertakes in advance of that approval are non - reimbursible. Council Action: