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ITEM 5.1 70th StreetOtsCITe OF kro MINNESOTA V DEPARTMENT INFORMATION Request for City Council Action ORGINATING DEPARTMENT: REQUESTOR: MEETING DATE: Legal City Attorney Andy MacArthur March 24, 2014 PRESENTER(s): REVIEWED BY: ITEM #: City Attorney City Administrator Lori Johnson 5.1 AGENDA ITEM DETAILS RECOMMENDATION: Council approve resolution authorizing commencement of Eminent Domain proceedings in order to insure acquisition of easements for the 70th Street Project, scheduled to commence construction this Fall. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No. No. BACKGROUND/JUSTIFICATION: The City Council previously ordered appraisals of the subject properties and approved the amounts in those appraisals as offers to the affected properties. Those offers were made in writing and City staff has met with a significant number of the affected property owners. In order to let the bid for this Project during this year, the City must have in hand by signed easement or by Court order all necessary property to complete the Project. A petition for condemnation cannot be presented to the Court until 60 days after the written offers are made. That time will expire in mid- April and the City can then serve the petition on the property owners and schedule a hearing in this matter. When exactly the hearing will be held is partially dependent upon the Court schedule. The initial hearing is for the purposes of proving that the Project is for a public purpose and that the property is needed within 90 days. Condemnation Commissioners are also appointed at this hearing. The proposed resolution authorizes the City Attorney to proceed with eminent domain but also directs staff to continue to negotiate with the property owners over the easements. The Project has already incurred many delays and we are attempting to move the Project along so that some construction can occur this year. SUPPORTING DOCUMENTS: X ATTACHED ❑ NONE • Proposed resolution MOTION: (Please word motion as you would like it to appear in the minutes. Motion to approve Resolution No. 2014-18 authorizing the commencement of Eminent Domain for the 70th Street Project. BUDGET INFORMATION FUNDING: BUDGETED: ❑ YES 70th Street Funds o No ACTION TAKEN CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO. 2014-18 RESOLUTION AUTHORIZING EMINENT DOMAIN PROCEEDINGS TO OBTAIN EASEMENTS FOR CITY PROJECT NO. 2014-170"' STREET AND A PORTION OF CSAH 37 WHEREAS, the City of Otsego has sought and received federal funding for a portion of that Project identified as City of Otsego Project No. 2014-1 which includes construction of new roadway, improvement of existing roadway as well as construction of a bike trail from the western edge of the Plats of MARTIN FARMS and REMINGTON COVE to the intersection of CSAH 37 and Odean Avenue; and WHEREAS, the City ordered and had prepared appraisals for damages to the nineteen (19) affected parcels (Exhibit A) which were duly approved by the City Council and were offered in writing to the affected property owners; and WHEREAS, City staff has met with and discussed these offers with the affected property owners; and WHEREAS, the property owners have been provided sufficient time to review and respond to said offers; and WHEREAS, it appears that certain of the property owners wish to proceed to a Commissioner's hearing in the matter; and WHEREAS, the City must either acquire all of the parcels by negotiation or by eminent domain prior to letting a bid on the Project; and WHEREAS, in order to complete a portion of the Project this year the City needs to acquire the property subject to the statutory ninety day "quick take"; and WHEREAS, the City staff will continue to negotiate with the property owners during the course of eminent domain proceedings in order to acquire the property through negotiation, if possible. NOW, THEREFORE IT IS RESOLVED by the City Council of the City of Otsego, Wright County, Minnesota as follows: 1. The City Attorney is directed to initiate proceedings in eminent domain under Minnesota Statute 117 in order to obtain the easements needed to construct Otsego City Project No. 2014-1. 2. The City Attorney and City staff are directed to continue negotiations with affected property owners in order to try and acquire the property by negotiation and purchase. ADOPTED this 24th day of March, 2014 by the Otsego City Council. MOTION TO ADOPT the Resolution made by Council Member and seconded by Council Member IN FAVOR: OPPOSED: CITY OF OTSEGO Jessica Stockamp, Mayor Tami Loff, City Clerk 2 EXHIBIT A Parcels 4,5,6, 8,9,10,11,12,13,16,17,18,1921,22,23,24,25,26,27,28,31 and 32 Otsego Road Project No. 2014.