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HomeMy WebLinkAbout2004 02-02 City Council Manager Workshop PacketAGENDA CITY COUNCIL/MANAGER WORKSHOP Monday, February 2, 2004 Maplewood Room, City Hall 5:00 p.m. A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA D. NEW BUSINESS County Road D Improvements West of TH 61 (TH 61 to Highridge Court) -- City Project 02-08 -- Review of Acquisition Agreements for Project Implementation E. FUTURE TOPICS 1. Sidewalk Study-Overall City Plan F. ADJOURNMENT City CounciUManager Workshop 02-02-04 AGENDA ITEM D1 AGENDA REPORT TO: City Manager FROM: Charles Ahl, Director of Public Works/City Engineer SUBJECT: County Road D Realignment Improvements (West of TH 61 to Highridge Court), City Project 02-08: Review of Acquisition Agreements for Project Implementation DATE: January 28 2004 Introduction A public hearing has been called for February 9, 2004 to receive input on proceeding with the improvements west of TH 61. A number of acquisition negotiations are required to make this project workable for all parties involved. The intention at the Work Session is for the City Council to review with staff the issues of these agreements so that the Council has a better understanding of the project before the public hearing. Background On September 8, 2003, the city council conducted a public hearing on the realignment/ improvement of County Road D east of Trunk Highway 61 from immediately north of Venburg Tire's building to the Hazelwood/County Road D intersection and then along existing County Road D from Hazelwood to Southlawn Avenue. The city council approved the project and construction began in December 2003 on that segment. Included within the study of those improvements was consideration of realignment of County Road D to the west of TH 61. Those improvements were placed on hold pending resolution of property owner issues. On November 10, 2003, the city council received a petition from Trout Land, LLC, who purchased the former Frattalone property north of Gulden's restaurant. Trout Land, LLC also has a purchase agreement with the Prokosch family on the north end of the project, making Trout Land, LLC the owner of 95 percent of the project area. They are requesting that the city proceed with the improvements for realignment of County Road D. The council adopted a resolution receiving the petition and authorizing preparation of a preliminary report. The preliminary report identifies project costs and financing, along with necessary right of way and additional improvement considerations. Venburg Tire Relocation: The right of way acquisition process for the County Road D Project, east of TH 61, necessitates the relocation of the Venburg Tire business. Venburg Tire has a tentative agreement to relocate to the Gulden's restaurant site. City staff has been working with both Gulden's and Venburg Tire to facilitate this relocation as part of the right of way process, as well as a business retention program. On November 24, 2003, the City Council reviewed a proposed lot subdivision plan for the future Gulden's -Venburg site. On December 22, 2003, the City Council approved the agreements for the acquisition of the Venburg Tire business as well as a lease with Mercon Corporation, the operator of the Venburg Tire business, a relocation agreement with Mercon, and an agreement with Guldens for relocation of the Mercon business to the Gulden's site. Exhibit #7 of the Preliminary Report shows the proposed frontage road and local improvements needed for the relocation. City Council Work Session Agenda Background County Road D, West of TH 61 -Acquisition Agreement Review Page Two City staff and consultants, in developing plans for the reconstruction and realignment of County Road D between TH 61 and Hazelwood Street (City Project 02-07) reviewed the need for the acquisition of some or all of the existing Venburg Tire property on the east side of TH 61. The current plan for the Venburg Tire site includes the acquisition of the entire parcel. City staff has had numerous discussions with representatives of Venburg Tire to determine alternatives to allow for the acquisition of the necessary property and to allow Venburg Tire to continue to operate in the City of Maplewood. Venburg Tire has expressed an interest in moving their business to the west side of TH 61 to the Gulden's restaurant site. The existing Gulden's restaurant site is approximately 4.31 acres in size. Gulden's would subdivide their lot to create a 1.71-acre parcel on the north side of the property for Venburg Tire. Gulden's restaurant would continue to operate on a 2.50-acre parcel on the south side of the property. The city is proposing to acquire a 0.10-acre portion of the property for the construction of County Road D. It is also planned that a 0.25 acre portion of the Kami property north of Gulden's will be acquired by Gulden's/Venburg. Some city improvements are proposed to accommodate the Venburg Tire relocation to the Gulden's site. The city will be constructing County Road D west of TH 61 along the northern portion of the Gulden's property (City Project 02-08). The County Road D project is proposed to include the construction of a frontage road along the west side of TH 61 to accomplish the following: Provide access to Guldens, the proposed Venburg Tire site, and the adjacent vacant LaMetry property from the new County Road D alignment. Allow for the closure of an existing Gulden's driveway access to TH 61 south of the proposed County Road D intersection. Provide a continuation of the existing frontage road on the LaMetry property south of the Gulden's site. The frontage road would be constructed as a part of the County Road D improvements, but would be owned and maintained by the property owners. Cross easements would need to be executed among the property owners to allow joint usage of the frontage road. The cross easements would be required as a part of the approval of the lot subdivision plan. The frontage road, while accommodating access to the existing restaurant and the new Venburg Tire site, has a public purpose in that closure of the driveway to Gulden's restaurant and the revision to Gulden's restaurant are compensable items related to right of way acquisition. The frontage road also provides for an improved intersection operation on County Road D. Finally, the frontage road assures access to the area properties for benefiting improvement costs. McDaniel/LeMetry Property: The city will also be constructing and acquiring regional storm drainage facilities for the project area as a part of the public improvements. These storm drainage facilities will accommodate the storm water storage and treatment requirements for the Gulden's/Venburg site as well as all property north to County Road D. No on-site storm water ponding is proposed as a part of the Gulden's/Venburg site plan. The regional storm pond was constructed by the Toyota -LeMetry improvements and is currently on property owned jointly by Steve McDaniel of Maplewood Toyota and Richard LeMetry of LeMetry Auto Body. City Council Work Session Agenda Background County Road D, West of TH 61 -Acquisition Agreement Review Page Three An agreement has been reached with Mr. McDaniel and Mr. LeMetry that allows the City to acquire the regional ponds for the roadway and development improvements, while keeping their property in compliance with the Shoreland Ordinance. Two agreements have tentatively been reached involving the property owned by Mr. McDaniel and Mr. LeMetry. First, they will sell the back portion of the property behind Gulden's restaurant to the Kami Corporation. The City will purchase a portion of the regional pond on the back portion of this parcel. The remainder of the pond will be dedicated to the City for $1. In exchange, Mr. McDaniel and Mr. LeMetry will: • Provide the City will right of access for the frontage road construction. • Sign an agreement for the closure and relocation of the access to TH 61. • Provide an easement agreement for construction and installation of a storm water pipe across the remainder of their land. Kami Property: A separate development agreement will be executed with the Kami property ownership group. Kami has agreed to dedicate the right of way for the County Road D alignment at no charge to the City. In exchange, the City will agree to remove its interest in the property between the frontage road and TH 61, just north of Guldens. The proceeding necessary to allow this to occur is called a Proceeding Subsequent. This tract of land has been encumbered for roadway purposes since the 1930's. When the Highway Department realigned TH 61 in the 1950's, the adjacent ownership became further clouded. The acquisition of the roadway rights was such that the underlying property owner has not been identified since that point. Because the property has had a roadway function since then, there has been little, if any, need to clarify ownership, although records indicate that no one has paid property taxes on the land since the 1930's. With the realigned roadway, the frontage road can be abandoned and the property becomes valuable land to the adjacent property owner. The Exchange Agreement between Kami and the City will accomplish this task. Additional Development Agreements will be necessary between the City and Kami for right of way on the Prokosch Property (the northern portion of the site) for right of way and easement acquisition, grading agreements and drainage acquisition costs. Sketch Plan Issues A setback variance will be required to address the requirement fora 350-foot setback for automotive-related uses from residential property. The proposed plan meets the 350-foot setback requirement from existing developed residential property along Duluth Street. The plan does not meet the 350-foot setback requirement from the undeveloped residential zoned properties immediately west of the realigned County Road D. These issues were reviewed with the Planning Commission and City Council in November and December. A review of these assumptions is an important part of the development process for the right of way acquisition phase and the willingness of the developers and property acquisition agreements. This assumption will be reviewed with the City Council to insure a comfort level before the Public Hearing. Sketch plans for proposed development of the Guldens/Venburg Tire site; the McDaniel/LeMetry site; and the Kami site will be presented at the Workshop. These are just concept plans for discussion. Final documents will be submitted for review and approval in February and March 2004. City Council Work Session Agenda Background County Road D, West of TH 61 -Acquisition Agreement Review Page Four The Planning Commission reviewed the site details of the Guldens/Venburg plan at their meeting on November 17, 2003. In general, the commission is supportive of the site details, although they suggested the need for screening as a condition of the 350-foot variance. The commission supported the idea of business retention for the Gulden's restaurant and Venburg Tire businesses and supported the idea of the combined uses on the site. Finally, the Planning Commission suggested that the TH 61 corridor is known for automotive-type uses and envisioned that automotive uses would be likely on this western side of TH 61 as the property developed. Voting Requirement: When a project is initiated by petition of not less than 35 percent in frontage of the real property abutting the streets named in the petition by the property owners, a resolution ordering the project to be constructed may be adopted any time within six months of the public hearing by a simple majority of the council (Minn. Stat. 429.031). This voting requirement is different from acouncil-initiated project in that the resolution ordering the project to construction must be adopted by 4/5 of all members of the council under that project scenario. The mayor has declared a potential for a conflict of interest on this western side improvement. The property owner is aware of the mayor not voting and requested that the council, since they will have only four voting members that would all need to vote affirmative to proceed under the council-initiated process, use the petition process which requires a simple majority to proceed. Proiect Consideration The preliminary report for Segment No. 2 of the County Road D Realignment Project identifies the particular improvements proposed for the area of the petition. The total estimated cost of the improvements is $2,321,400. Approximately 50 percent of the project cost is proposed to be paid with assessments, with the remainder paid by Municipal State Aid Street (MBAs) funds and through a contribution from Ramsey County. There are no tax dollars from the general fund or debt service proposed for this project. An outside note on the benefit of project: The likely property tax increase of these three proposals is estimated between $25 and $35 million. A summary of the various right of way, easement and legal considerations for this project will be presented to the city council in this work session. Various properties are proposed to exchange owners with the city as facilitator. The public hearing will be the final approval phase of the project before staff proceeds to execute many of these exchanges. All costs are within the original budget estimated for the overall improvements in 2002. Recommendation No action is recommended by the City Council as part of this Work Session. The City Council will be asked to approve proceeding with the project at the Public Hearing on February 9, 2004. RCA Attachments: Letter and Petition from Kelco and Trout Land LLC Letter from City Engineer to Jim Kellison of Kelco Real Estate Preliminary Report (previously provided to the Council) 7300 Hudson blvd. Suite 247 K ~ Oakdale, D9N 55128 LCD orree «s~~ ~3o_zo~o Fak:~651i730-2055 Real Estate Development Services October 16, 2003 Mr. Chuck Ahl Director of Public Services City of Maplewood 1830 East County Road B Maplewood, MN 55109 RE: Trout Land, LLC Petition for Improvements Dear Chuck: Please find enclosed a letter from Kami, Inc. requesting the City to proceed with the requisite process to complete the improvements for the new alignment of County Road D across the Trout Land, LLC property. We recognize that there are still issues that are to be determined with respect to the Prokosch property and other adjacent neighbors; however, we feel it is in the best interests of all parties to at least move this process forward. Although I believe the City and Jon Horn have been doing an excellent job, time is starting to erode and we need to be making forward progress. You or your staff, or Jon Horn may contact me directly with any questions regarding this matter. Respectfully yours, ames E. Kellison President Enclosure C: Gonzalo Medina/Kami, Inc. Jon Horn/I{imley Horn KAMI, INC. Real Estate Investments 2695 Town Lake Drive Phone: (651) 702-3860 Woodbury, MN 55125 Fax: (S51) 702-3855 October 15, 2003 City Councii Members City of Maplewood 1830 East County Road B Maplewood, MN 55109 Dear Cauncil Members We, the undersigned Qwners of not less than 35% of the frontage of the real property abutting the proposed new alignment of County Road D in that area west of Highway 61 and its continuance northward to tie-back into the existing County Road D, hereby petition that such street and utility improvements be made by the City of Maplewood pursuant to MN Statutes, Chapter 429. The improvements being petitioned for are to be in basic accordance with the Feasibility Study and Report for County Road D Realignment, City Project No. 02-07, 02-08 as prepared by URS Corporation. The property owned by petitioner and affected by these improvements is legally described on the enclosed survey (Exhibit "A"). The proposal improvements would generally conform to the preliminary engineering plan by URS Corporation enclosed as Exhibit "B". Thank you for your consideration in this matter. We look forward to working with the City of Maplewood on this improvement which will benefit not only adjacent landowners, but the entire City of Maplewood. Respectfully yours, Gonzalo Medina Trout Land, LLC /tm Enclosures ---, I I '~ .~: i .-_ ~ x- ~ - ~-;~ i I _.:Lp i ~ ,~ C z s ~ n ~ ~ A D1 m ~ m~ N .~ ~k ~-l1~IT''~,,, -- _ .. ~ ~ ~ i r -~ E _ ~\ ~ ... i ~ i ~ ~ sot°~ e'ss^E ~~got.tt ~~ ~~ ... ~ I I P PIPELINE EASEMENT j ELECTP.1~ i pp~_ NG 1148862 ~ pOC. N0. 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I,.~. ~.. r , , ,m,~ r ,r;,-, ' . rr r ' ' ' ' r ~ r r .,r,.( i I~ ,rr -~~ n r COUNTY ROB '~' ; ~' ~ TEAL ICsT9MEN ~, ,r,r r, ,~,~~ 5ECa1"1ETiT 2/~ ''~ '~ CITY PROJEt ... r, ~ r r r I CITY PROJEt r i '; ~~ EXHIBIT 8 ~~ !-\ ~' TogetYeer 1Ne Can October 30, 2003 a ~ -ate Mr. Jim Kellison Kelco Real Estate Development Services 7300 Hudson Boulevard Suite 245. Oakdale, Iv1N 55128 Re. County Road D (West} Improvements City of Maplewood Project 02'-08 Dear Mr. Kellison: As discussed at our meeting on Friday, October 24_, 2003, we have reviewed assessrrrent and right-of--way acquisition issues for the proposed construction of CountyRoad D west of TH 61 Specifically, we liave reviewed these~issues as they relate to theKami and Prokoseh properties The following is an outline of a plan that the City would be willing to consider to address the issuesthat we discussed last Friday." Theplan is based upon the assumption that Kami would. acquire the Prokoseh properly: Kami Property 1. Kami agrees to execute an Exchange Agreement including the following provisiops: • The City will pursue the vacation ofits easement interests in excess right-of--way along the west side of TH 61, and will, on behalf of Kami, undertake a proceeding subsequent process to allow Kami to obtain Certificate of Title to the excess TH 61 right-of--way property. 'Phis would include the excess TH 61 right~of--way directly abutting the Kami property. • In return for the vacation of the TH 61 easement and. the proceeding subsequent efforts, Kami will dedicate to the City the right-of--way required for the construction of new County Road D throu4h the Kami property. Tlus includes approximately 111,560 square feet of permanent right-of-tivay and 83,000 square feet of temporary easement. The actual right-of--way and easement areas may change based upon the final alignment of the roadtivay. • Kami will also dedicate to the City a triangle shaped parcel beau een the proposed County Road Dright-of--way and the north line of the Gulden's property to allow for I~~PARTMENT of FIiBLIG WORKS 65i-770-4550 F,qx: 651-748-3089 r-.~rv nr nn .: n~~~.,,...... - scorer". ~~.-_.._.__. ,-,-.-.-,-- "-------- _._, _.-.~__. Mr: Jim Kellison Page 2 October 30, 2003 the construction of a frontage road in this area: The estimated area for this dedication is approximately.0.5 acres. v • Kami agrees to total assessments for this property of $658,806 for roadway; storm drainage, sanitary sewer and watermain improvements. The assessments will be levied over a 1~-year term at an.interest rate of 6.0%. 2. The developer.will perform the mass grading required for the construction of County Road D. We will require that the roadway subgrade be graded to within 0.5 feet of established roadway profiles and cross-sections. 3. The City will provide a full driveway access to new County Road D at a location approximately 450 -feet. west of TH 61. This access will-serve the. Kami property on the north anal the Gulden's property on the south: The proposed dm eway location has been determined based upon sight distance issues on County Road D and the need to provide adequate spacing for the queuing of vehicles at the County Road D and TH 61 intersection. 4. -The City will waive the requirement for storm-water ponding on the property. ;The City will .construct storm sewer along County Road D and will provide ser~•ice stubs for runoff from the Kami property. The specifics of the storm sewer design will need to be worked. out as plans are developed forthe Kami property. Prokosch Property 1. The City will purchase the right-of--way required for the construction of County Road D at a cost of up to $4.25/square foot.. The total estimated areafor the right-of--way acquisition is approximately62,000 square feeC. Any necessary temporary construction easements will be dedicated to the City at no cost. 2. The storm water ponding easement along the west side of County Road D will be dedicated to the City at no cost. The total estimated area of this easement is approximately 1.25 acres. The actual easement area may change based upon the final design of the storm water pond. We are requiring the dedication of this easement is xeturn for the waiver of the storm water ponding requirement on both the Kami and Prokosch properties. 3. The developer will perform the mass grading required for the construction of County Road D. We will require that the roadway subgrade be graded to within 0.5 feet of established roadway profiles and cross-sections. ~Ir. Jim Kellison Page 3 , October 30, 2003 ~. The total assessments to this property will be $283,836 for roadway, storm drainage, .sanitary sewer and wateririain improvements. The assessments will be levied over a 15-" year term at an interest rate of 6.0%. 5. ~ The-City will pay a lump sum amount of $25,000 to facilitate the lowering of the existing BP pipeline through the project site. Coordination of the lowering work with BP would be the responsibility ofthe developer. 6. The City willpay a lump sum amount of $100,000 for the mass b adin~ required for the construction of County Road D. Please. review this proposal and let me know if it is acceptable or you have any suggested changes or additions. You may call either me or Jon Horn if you have any questions or you need. additional information. Sincerely, CITYOF LEWOOD ,~- ~ ~- R. Charles AhI, P:E. Director of Public Works/City Engineer cc: Jon Horn/Kimley-Horn