Agenda - Council - 10/09/2007 - Laserfiche WebLink

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CONSIDER ACQUISITION OF RIGHT -OF -WAY FOR HELIUM STREET EXTENSION THROUGH PROPOSED GAD'S PRAIRIE DEVELOPMENT: By: Breanne Daines, Associate Planner Background: CASE # In May of 2006, an application was made to develop seven, detached townhome units on a parcel at 14520 Nowthen Boulevard. The plat received preliminary plat approval in August of 2006, contingent upon satisfaction of Anoka County Highway Department's concerns. In May of 2007, a new developer came forward with a final plat application that generally conformed to the preliminary plat. By this time, the County had submitted comments regarding the proposed development, and indicated their concerns. The City Council expressed significant concerns with allowing an access onto County Road 5 in the proposed location, and directed the developer to work with the adjoining property owners to obtain access to 146t Avenue via the proposed Helium Street. After meeting with the adjoining property owners, preparing appraisal reports, and offering to purchase the land, the applicant was rejected by both of the adjoining property owners. Observations: The City Council directed staff to analyze the possibility of acquiring the right -of -way, the costs associated with the acquisition and road construction, and the capability of assessing back to property owners. Based upon the response received from the developer of GADS Prairie the acquisition of the right -of -way would require the use of eminent domain. This process requires obtaining appraisal reports, making an offer based on the appraisal, and possible appeals by the property owners. The estimated cost of the land acquisition is approximately $40,000.00. ($100,000 per acre .X .4 acres). These costs do not include any legal costs associated with the condemnation proceedings, which could be as high as $20,000 to $25,000 if all three property owners dispute the appraised value and appeal to a condemnation commission. Construction of Helium Street could begin when the right -of -way is successfully acquired. The estimated cost of the street construction would be approximately $150,000.00 (with $35,000.00 of contingency costs). Based on the City Charter, Section 8.4.4, the City Council cannot assess property owners for a "public improvement" project if the project is petitioned against by more than 50% of the property owners. In this case, it is not anticipated that the two other property owners will consent to being assessed for the cost of the construction of the road. Therefore, the cost of acquisition and construction of the road will be the responsibility of the developer and/or the City, if eminent domain is utilized to purchase the property. The developer of GAD's Prairie has expressed a willingness to contribute to the cost of acquisition and construction, but —283—