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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. 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. 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: