ITEM 6.2B Right of way acquistionOP0 ts-
eTY o
MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORGINATING DEPARTMENT:
R ..... .....
EQUESTOR; MEETING DATE;
Legal
Andy MacArthur, City Attorney March 11, 2013
PRESENTER(s):
REVIEWED BY: ITEM M
I
City Attorney
6.213
AGENDA ITEM DETAILS
RECOMMENDATION:
Council approval of attached proposal from Nagell Appraisal & Consulting to appraise easements and
r!Rht of wav needed for the 701h Street oroiect.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
Yes. I No.
BACKGROUNDwuSTIFICATION: The City Council has determined that the City will proceed with the construction
and reconstruction of 70th Street in 2014. Federal money will be utilized for the project. The City cannot
award a bid for the project until it has acquired all required right of way and easements. Due to the fact
that federal money is involved, the City must follow all federal and state requirements for property
acquisition. Appraisals are required of all of the affected parcels prior to acquisition by the City.
City staff met with Bill Waytas of Nagel[ Appraisal & Consulting to review the parcels, and at that time
requested that he draft a proposal setting forth costs for the necessary appraisal work for the project for
City Council approval. The City has used Nagell In the past for a number of City projects. Attached to this
RCA is the Nagel[ proposal for the project. The project presents a number of different kinds of
appraisals, ranging from simple strip takings to more complex takings. In addition to the appraisals, the
City Planner must submit a short report on each parcel or groups of parcels relative the Comprehensive
Plan and zoning. These reports are a necessary part of the appraisal.
The City desires to negotiate agreements with all of the affected owners without proceeding to eminent
domain. However, the City must have adequate time to complete eminent domain proceedings prior to
actual construction of the project if it becomes necessary. For this reason, the following schedule for
easement and right of way acquisition is proposed;
May to June, 2013- receive and review appraisals and present them as offers to the affected property
owners
June to August, 2013- negotiate easements and right of way with property owners
September, 2013- Council authorizes eminent domain for any properties not settled at that point- 90
day quick take notice are sent to property owners who have not settled- condemnation filed with Court
September- December, 2013- City holds initial court hearing on condemnation and presents order for
quick take, appraised amounts submitted to the Court- Court appoints condemnation Commissioners.
January- December, 2014- Project is constructed and City schedules condemnation hearings for a
remaining parcels not settled.
It is important that the City orders the required appraisals as soon as possible in order to facilitate the
time- line as set forth above.
SUPPORTING DOCUMENTS: X ATTACHED ❑ NONE
Nagell Appraisal & Consulting Proposal
MOTION: (Please word motion as you would like it to appear in the minutes.)
Motion to Approve the proposal by Nagell Appraisal & Consulting to complete all necessary appraisals
for the 70th Street project.
BUDGET INFORMATION
FUNDING: BUDGETED: ❑ YES
NA o NO
ACTION TAKEN
7616 Wayzata Blvd. #116
Minneapolis, MN 66426
Established in 1968
City of Otsego
Attn: Andrew MacArthur, City Attorney
3601 Thurston Avenue North #301
Anoka, MN 55303
Minneapolis: 952-544-8966
St. Paul 651-209-6159
Central Fax 952-644-8969
March 5, 2013
RE: Appraisal of 20 +/- properties (real estate only)
Along 70tt' Street NE (generally between O'Dean and MacIver Avenue NE)
Otsego, MN
Dear Mr. MacArthur:
Thank you for your interest in obtaining appraisal services regarding the property(s) above. Per our
conversation, you indicated appraisal report(s) with the following research and analysis is needed.
Report Use: For eminent domain purposes regarding partial strip acquisitions for a road improvement
project (going from gravel to a paved road (western portion will be a new road where there was none).
Value Type: A reasonably supportable before and after opinion of current market value (as is) as it relates
to Highest and Best Use per Uniform Standards of Professional Appraisal Practice will be provided. It does
not appear at this time that most of the existing homes will be adversely impacted, therefore, only the land
value will be provided. If upon inspection it is determined the house will be impacted it will be included in the
value. The fee below represents the overall average parcel rate which recognizes some parcels are more
involved than others.
Property Description: There are about 20 +1- parcels in the project.
Contact for access City to provide owner contact information.
Scope of Report: (1) View the property and neighborhood. (2) Report the physical and/or economic factors
that could affect the property. (3) Appropriate research, collection, verification, analysis and viewing of
pertinent market data will be conducted. The sales comparison approach to value will be applied. (4)
Report findings and conclusions.
Report Format: A Summary Report (narrative format) will be used. It has a summary of statements of the
data, analysis and conclusions. Appropriate photos, maps and exhibits are included. Two hard copies of
the report provided.
Fee: The average fee is $1,500 per parcel. City named above of responsible for payment in a timely. Any
testifying and preparation are extra and billed at $150 per hour.
Due Date; Appraisal report(s) can be completed beginning May 15 through June 15, 2013 if signed
confirmation is timely. You will let us know which parcels are to be done first.
Information needed by the appraiser: Individual aerial parcel sketches with overlay showing the
acquisition areas. Provide the square foot of the acquisition areas less any prescriptive easement area.
Cross section maps and temporary easement areas with start and finish dates for the project. Staking the
project prior to inspection.
Our company has 13 employees and has been in business since 1968 and has sufficient knowledge,
experience, education, resources and/or contacts for information, methodology and knowledge support to
competently complete this assignment. Neither the employment to make the appraisal, nor the
compensation for it, is contingent upon the appraised value. If you agree to the above terms, please sign
below and return by fax or mail. If you have any additional questions, please do not hesitate to contact me.
Sincerely,
Signature
William R. Waytas, SRA, CRP
Certified General 4000813, MN Date
www.calinagell.com