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Home My WebLink About6.o. Acquisition of Easement - Parcel 15, Safe Routes to SchoolI:\City Clerk\Agenda Items\Approved Items\6.o. Acquisition of Easement - Parcel 15, Safe Routes to School.docx EXECUTIVE SUMMARY City Council Meeting: April 5, 2016 AGENDA ITEM: Acquisition of Easement - Parcel 15, Safe Routes to School, Engineering Project 0180 AGENDA SECTION: Consent PREPARED BY: Patrick Wrase, PE, Director of Public Works / City Engineer AGENDA NO. 6.o. ATTACHMENTS: Parcel Figure, Agreement, Administrative Settlement Request, Memo to City Engineer APPROVED BY: ddj RECOMMENDED ACTION: Motion to Authorize Payment to Robert H. Dupre and Rita Balkowitsch Dupre (Parcel 15) and Authorize Signatures on Administrative Settlement Request for Temporary and Permanent Easement BACKGROUND: At the February 1, 2016 City Council meeting, authorization was given to present offers for temporary and permanent easements needed to complete the Safe Routes to School (SRTS) project. An agreement has been made with Robert H. Dupre and Rita Balkowitsch Dupre at 14385 Cameo Avenue (Parcel 15) for the property shown on the attached parcel figure. On behalf of the City, WSB has been negotiating with Robert and Rita Dupre to acquire temporary and permanent easements for the SRTS project. The City is acquiring 552 sq. ft. of temporary easement and 205 sq. ft. of permanent easement. The original offer presented to the Dupres was $10,300, which was detailed as $1,000 for permanent easement, $100 for temporary easement, and $9,200 for damages. The offer was based on the appraisal prepared by Kelly Lindstrom dated December 30, 2015. During discussions, it was discovered that additional landscaping and organic raised bed garden would be impacted on the property. The Dupres have also requested compensation for severance damages of their property. The appraisal did not consider severance damages because the permanent easement is on average a 3 foot strip along the southern property line. After the original offer of $10,300, the Dupres counter- offered at $30,000+ for the easements and damages to their property. Per City staff’s consent, a verbal counter was offered at $20,000 to try and reach a settlement. The verbal offer of $20,000 was detailed as $1,000 for permanent easement, $100 for temporary easement, and $18,900 for damages. The damages incurred with the Dupre property are unique to this property compared to the neighboring properties that are also affected by the SRTS project. After lengthy discussion and negotiation, Robert and Rita Dupre have agreed to settle at $25,000. The costs for the eminent domain process are approximated to be $55,000+ if a settlement is not reached. Staff is recommending that Council authorize payment outlined in the attached Administrative Settlement Request as follows: Parcel ID Name Address Amount 34-18200-01-090 Robert H. Dupre and Rita Balkowitsch Dupre 14385 Cameo Avenue $25,000.00 2 SUMMARY: Staff is recommending that Council authorize payment as provided by the agreement to Robert H. Dupre and Rita Balkowitsch Dupre for temporary and permanent easements and compensation for appraised damages as proposed in the above motion. Staff also requests Council authorization to execute the Administrative Settlement Request. Parcel #15 - Robert Dupre and Rita Balkowitsch-Dupre 16 Parcel Sketch MEMORANDUM OF AGREEMENT City of Rosemount Safe Routes to School ProJect Fee Owner(s}: Robert H. Dupre and Rita C. Balkowitsch-Dupre Parcel: 15 Tax PID(s): 34-18200-01-090 On this 17th day of March, 2016, Robert H Dupre and Rita C Balkowitsch-Duore, husband and wife, the owner(s) the"Owner(s)")of the above-described parcel of property located in County of Dakota, State of Minnesota(the Property")and the Cify of Rosemount(the"City") enter into this agreement(the°Agreement"}, It is hereby acknowledged and agreed upon between the parties that: 1. The Owners have executed and delivered a conveyance af easements to the City of Rosemounf(the Ci. 2. The Owner(s)have been fumished with the approved estimate of just compensation for the property acquired and a summary statement of the basis for the estimate. The Owner(s) understand that the acquired property is for use in connection with the constructing several pedestrian safety improvements. 3. The Owner(s)understand and acknowledge that the agent for the City has no direct, indirect, present, or contemplated future personal interest in the Property or in any benefits from the acquisition of the Property. 4. That in full compensation for the conveyance of said property, the City shall pay the Owner(s)the sum of Twentv-Five Thousand and 00/100 dollars($25,000.00)for the easement(s). 5. Owner{s) understand that the following are contingent upon the City's receipt of all necessary mortgagee consents, if any, and on City Council approval: a. Memorandum of Agreement b. Permanent Easement c. Temparary Easement d. Payment 6. In the event of a clerical error, Owner(s), agree to cooperate in correcting the error including but not limited to re-signing all documents. 7. Additionally: The Owner(s}and the City have agreed to the following: Remove the large mature deciduous tree within the easement area located on the south western corner of the property. City will maintain the sidewalk along their southern property line parallel to 144'h Street West. City will not start construction on Owner's property until after June 1, 2016. It is understood and agreed that the entire agreement of the parties is contained in this Agreement and Easement Document dated March 17, 2016 and that these documents and agreements include a11 oral agreements, representations, and negotiations between the parties. remainder of this page left blank intentionally] 474695v2 DDS RS215-3 t, y Date: /7 / By: ; e amin Barker,Agent for the City of Rosemount BY:I 'ti. Robert H. Dupre i^?7P.1 '''"'By: 'v.v Rita C. Balkowitsch-Dupre 474695v2 DDS RS215-3 540 Gateway Boulevard Burnsville,MN 55337 Tel: 952-737-4660 Fax: 763-541-1700 ADMINISTRATIVE SETTLEMENT REQUEST Date: March 17, 2016 To: Patrick Wrase City Engineer City of Rosemount From: Ben Barker, Right of Way Specialist SUBJECT: Request for Settlement Project Title: Rosemount Safe Routes to School Project Parcel ID: 15 Parcel Address: 14385 Cameo Avenue West, Rosemount, MN 55068 PID: 34-18200-01-090 The proposal presented to Robert and Rita Dupre was in the amount of$10,300.00. Robert and Rita Dupre counter-offered at $30,000.00 plus for the easements and damages to their property. During discussions it was discovered that additional landscaping and an organic raised bed garden would be impacted on Robert and Rita Dupre's property. Robert and Rita also requested compensation for severance damages of their property. Our appraiser did not consider severance damages because the permanent easement is on average a 3ft strip along the southern property line. After lengthy negotiations, we reached an agreed settlement amount of$25,000.00 for the impact on their property. This is an increase of$14,700.00 from the initial proposal. A settlement in the amount of$25,000.00 is recommended. This settlement is fair to both the City of Rosemount and the owner. Rosemount's Original Certified Value: $10,300.00 Total Administrative Adjustments: $14,700.00 SETTLEMENT TOTAL: $25,000.00 This settlement has been approved by: on 2016. Equal Opportunity Employer wsbeng.com