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Home My WebLink AboutItem 06.pMay 1, 2015 Item No. PROPOSAL FOR ACQUISITION AND RELOCATION SERVICES FOR COUNTY ROAD 50 PROJECT May 4, 2015 City Council Meeting Proposed Action Staff recommends adoption of the following motion: Move to accept the proposal from Wilson Development Services for Acquisition and Relocation Services for the County Road 50 Project. Passage of this motion will result Wilson Development Services being retained to work with property owners of the nine properties along Co. Rd. 50 purchase agreements and eligible relocation benefits. Overview City and County staff have been meeting with the eight owners of the nine properties that have been identified for either partial or total acquisition for the planned expansion of Co. Rd. 50 in 2017. Appraisals are currently being prepared on a number of these properties. Because of the number of the acquisitions and relocation benefits that these property owners will be eligible for, City and County staff are recommending that Wilson Development Services be retained to coordinate this acquisition and relocation negotiation process. Both the City and County have used Wilson Development Services in the past for acquisition and relocation services. The firm has a long track record of working with public agencies including cities, counties and MnDOT on public acquisitions. Wilson is proposing a price per unit of $2,500 for acquisition services, $3,000 to $3,300 per unit for relocation services, and $3,500 per unit for land swap negotiations with a not -to -exceed total amount of $41,100. This cost will be shared with the County paying 55% and the City paying 45%. City and County staff will provide guidance and review of any proposed settlements and all proposed property purchase agreements will be subject to City Council approval. County staff has reviewed the proposal and recommend approval. City staff briefly reviewed this approach to possible acquisitions and relocations at the April 27' Council Work Session. Staff recommends approval of the proposal from Wilson Development Services dated April 30, 2015. Primary Issues to Consider • Does this represent the most efficient approach to property acquisition and relocation for this project? City and County staff feel that it does. Supporting Information • Pro osal front' 'Icon Devel, ent Services LLC for Co. Rd. 50 Project dated April 30, 2015 David L. Olson, Community and Economic Development Director Financial Impact: $ 18,495 Budgeted: Y/N Y Source: State Aid Funds Related Documents: Envision Lakeville Community Value: Diversified Economic Development 0 1-11 L 0 DEVELOPMENT SERVICES LLC MEMO Date: April 30, 2015 To: David Olson City of Lakeville Community & Economic Development Director From: Dan Wilson Re: City of Lakeville Acquisition & Relocation Proposal County Road 50 Project OFFICE 952.448.4630 800.448.4630 FAX 952.448.,4676 510 N. CHESTNUT STREET SUITE 200 CHASKA, MINNESOTA 55318 WWW. WILSONDEVELOPMENTSERVICES.COM Thank you for the opportunity to submit the following proposal to provide acquisition and relocation assistance to you for the County Road 50 Project. Wilson Development Services, LLC is a 34 year old licensed real estate brokerage providing real estate acquisition and relocation assistance to public agencies and nonprofit organizations throughout Minnesota. We are known for our ability to deliver projects on time within budget, even under the most trying situations. We believe that we have demonstrated our ability to be the alternative to the condemnation approach. See our website (www.wilsondevelopmentservices.com) also for a full description of our qualifications and expertise for delivering successful projects. Project Understanding The City is planning to extend the County Road 50 improvement project that will include partial strip acquisitions as well as total acquisitions. The total acquisitions will present an opportunity to set the stage for a potential redevelopment project in the area of Kenwood Trail and Icenic Trail. Our role would be to assist you as the Community and Economic Development Director, implement both the road and redevelopment project. Our role for the road side of the project will be primarily implementation oriented where as our role in the potential redevelopment land swap may be more as an advisor to you. Property owners have general awareness of the pending project and relationships have been established with some property owners. 4-30-15 DML Acquisition and Relocation Work Load Total Take Acquisitions — Occupied Relocation 2 pc. Tharaldson 20028 Kenwood Trail Roller 20042 Kenwood Trail Johnson 20078 Kenwood Trail Wetschka 20086 Kenwood Trail Total Take Acquisition — Vacant Emond 20157 Icenic Trail Wetschka 20116 Kenwood Trail Partial Acquisition — Land Swap McDonald 20094 Kenwood Trail White Funeral Harrison Scope of Services: 20134 Kenwood Trail 10213 196th Way West Residential/Owner occupied Residential/Owner occupied Residential/Owner occupied Commercial Commercial / No relocation Residential / No relocation Residential Commercial — Eyecare Funeral Home Commercial — Dental Relocation TBD, if any Relocation TBD, if any Relocation TBD, if any Relocation TBD, if any All services will be in compliance with the Uniform Real Property Relocation and Acquisition Act of 1970, as amended, MnDOT Right of Way Manual, and Minnesota Statute 117.52. We will attend a project start-up meeting with the City and Right of Way team to.discuss process, communication with City, project background. Specific Tasks: 1) Acquisition a) Meet with the property owners to introduce the project, acquisition, and residential relocation b) Complete Field Title Report c) Prepare and present written offer d) Review appraisal e) Negotiate settlement with City guidance and review f) Assist City Attorney draft a purchase agreement g) Prepare an administrative settlement in the event that the purchase price exceeds the offer, for City review and approval h) Maintain property owner contact log and acquisition file for audit i) Closing and Deed preparation will be done by others 3) Relocation a) Meet with owner/tenants to discuss relocation rights & benefits, process to obtain payment and owner needs and preferences b) Search for comparable replacement housing and complete Comparable Replacement Housing Study C) Prepare and deliver Notice of Relocation Eligibility, Notice of Comparable Housing, and Notice to Vacate d) Replacement Unit - Decent Safe Sanitary Inspection 4-30-15 DML e) Work with owner's realtor and mortgage company, proceed to replacement unit closing with differential payment, incidental closing costs, and mortgage interest rate differential f) Prepare all claims with reasonable documentation g) Maintain property owner contact log and file for audit Proposal Price: Note: Tharaldson has 2 parcels — priced as one 2015-2016 Charge Rates Price per Unit # of Parcels Total Acquisition $2,500 7 $17,500 Relocation -owner occupied (4) $3,000 4 $12,000 Relocation —Tenant (2) $3,300 2 $ 6,600 Land Swap $3,500 $ 3,500 Subtotal $39,600 Postage &Travel LL500 TOTAL Maximum Not to Exceed $41,100 Note: Tharaldson has 2 parcels — priced as one 2015-2016 Charge Rates Principal $140.00/hr. Associate $120.00/hr. Office Manager $ 95.00/hr. Mileage IRS Rate Postage At Cost Copies .20 We only charge for services and time actually provided. There is an expectation that the owners are cooperative and not underwater on their mortgage. We assume that all parcels will proceed at the same time. Not included in the above: • Condemnation & relocation appeals. Assistance available on a time & material basis as directed by City Attorney 4 -gals DML