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
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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