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<br />CASE # 3 <br /> <br />CONSIDER ACQUISITION OF RIGHT-OF-WAY FOR HELIUM STREET <br />EXTENSION THROUGH PROPOSED GAD'S PRAIRIE DEVELOPMENT: <br />By: Breanne Daines, Associate Planner <br /> <br />Background: <br /> <br />In May of 2006, an application was made to develop seven, detached townhome units on <br />a parcel at 14520 Nowthen Boulevard. The plat received preliminary plat approval in <br />August of 2006, contingent upon satisfaction of Anoka County Highway Department's <br />concerns. In May of 2007, a new developer came forward with a final plat application <br />that generally conformed to the preliminary plat. By this time, the County had submitted <br />comments regarding the proposed development, and indicated their concerns. The City <br />Council expressed significant concerns with allowing an access onto County Road 5 in <br />the proposed location, and directed the developer to work with the adjoining property <br />owners to obtainaccess to 146th Avenue via the proposed Helium Street. After meeting <br />with the adjoining property owners, preparing appraisal reports, and offering to purchase <br />the land, the applicant was rejected by both ofthe adjoining property owners. <br /> <br />Observations: <br /> <br />The City Council directed staff to analyze the possibility of acquiring the right-of-way, <br />the costs associated with the acquisition and road construction, and the capability of <br />assessing back to property owners. <br /> <br />Based upon the response received from the developer of GADS Prairie the acquisition of <br />the right-of-way would require the use of eminent domain. This process requires <br />obtaining 'appraisal reports, making an offer based on the appraisal, and possible appeals <br />by. the property owners. The estimated cost of the land acquisition is approximately <br />$40,000.00. ($100,000 per acre X .4 acres). These costs do not include any legal costs <br />associated with the condemnation proceedings, which could be as high as $20,000 to <br />$25,000 if all three property owners dispute the appraised value and appeal to a <br />condemnation commission. <br /> <br />Construction of Helium Street could begin when the right-of-way is successfully <br />acquired. The estimated cost of the street construction would be approximately <br />$150,000.00 (with $35,000.00 of contingency costs). Based on the City Charter, Section <br />8.4.4, the City Council cannot assess property owners for a "public improvement" project <br />ifthe project is petitioned against by more than 50% oftl1e property owners. <br /> <br />In this case, it is not. anticipated that the two other property owners will consent to being <br />assessed for the cost of the construction of the road. Therefore, the cost of acquisition and <br />construction of the road will be the responsibility of the developer and/or the City, if <br />eminent domain is utilized to purchase the property. The developer of GAD's Prairie has <br />expressed a willingness to contribute to the cost of acquisition and construction, but <br /> <br />. 7 <br />