Item Coversheet

7.A.5.


Shakopee City Council
November 19, 2019


FROM:Michael Kerski, Director of Planning & Development
TO:Mayor and Council Members
Subject:
Authorization for use of eminent domain for certain ROW and land to construct new road between Shenandoah and County Highway 83 to be called Unbridled Avenue.
Policy/Action Requested:
Resolution No. R2019-125 authorizing staff to continue to negotiations but to also allow the use of eminent domain to acquire the necessary property, ROW and easements for the construction of a new road.
Recommendation:
Approve Resolution No. R2019-125 approving the possible use of eminent domain for construction of a new road, to be called Unbridled Avenue, that will be constructed between Shenandoah and County Highway 83.
Discussion:

This road has been planned for several years as part of the redevelopment of this area.  It will serve as a critical east-west connector for the area and been designed to be part of Scott County's reconstruction of County Highway 83.  It will be used as a detour route when County Highway 83 is under construction. Final plans and bidding will take place this winter with construction in Spring 2020.

 

Plans are past 60% and the final alignment has been completed.  Staff has been working with Lake Washington Partners for many months on these properties.  One is a complete take and the other is a perpetual easement that will also provide the owner with a new access to a parcel that currently has no access to County Highway 83 and is land locked.

 

The city retained Integra Realty Resources to complete appraisals for both parcels.  The fee simple parcel was appraised at $597,000 and the partial take was $54,000 since there is some benefit to the property owner with a newly constructed entrance.  Staff has worked with the owners and offered an additional ten percent if the city does not have to go through the condemnation process since there would be costs on both sides. 

 

The owners are contemplating a counter offer to the city, and are aware that we will be seeking condemnation authorization.  If staff is able to come to terms, the condemnation will not be needed.

Budget Impact:
ATTACHMENTS:
Description
Resolution
Exhibit A
Cost summary