HomeMy WebLinkAboutItem 06.j
Date: Item No.
RIGHT-OF-WAY ACQUISITION LOAN FUND AGREEMENT FOR THE PURCHASE OF
REAL PROPERTY LOCATED AT 17395 KENWOOD TRAIL
Proposed Action
Staff recommends adoption of the following motion: Move to a Right-of-Way Acquisition Loan Fund
(RALF) agreement with the Metropolitan Council for the acquisition of real property located at 17395
Kenwood Trail
Overview
The above property is the former Burger King restaurant located on Kenwood Trail adjacent to the
northbound off-ramp at I-35 and Co. Rd. 5/50. In 2004, the City officially mapped the ultimate I-35 and
Co. Rd. 5/50 Interchange which identified the entire Burger King Property would be needed for the future
interchange.
The City Council approved a purchase agreement Burger King Corporation for the purchase price of this
property for $700,000 on November 21, 2016. The purchase agreement is contingent on the Metropolitan
Council’s approval of the City’s RALF application and the completion and acceptance of a Phase I
Environmental Study. Both of these contingencies have been satisfied.
The Metropolitan Council approved the City’s application for up to $750,000 at their December 14, 2016
meeting. This will cover the purchase price including closing costs, and appraisal, Phase I Environment
Review and legal costs incurred by the City. The RALF program is a no interest loan program with no
repayment due until the interchange project is constructed. County staff has indicated they will enter into
a Joint Powers Agreement to reimburse the City 55% of this property acquisition when the interchange
project is programmed into the City and County CIP. Staff recommends approval of the attached RALF
Loan Agreement.
Primary Issues to Consider
• What is the public purpose of this proposed acquisition? It will result in the removal of blighted
buildings and provide the necessary right-of-way for future interchange improvements
Supporting Information
• Right-of-Way Acquisition Loan Agreement
c: Chris Petree, Public Works Director, Zach Johnson, City Engineer; Brian Sorenson, Asst. Co. Engineer
Financial Impact: $750,000 Budgeted: Y☐ N☒ Source:
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Diversified Economic Development
Report Completed by: David L. Olson, Community and Economic Development Director
January 3, 2017
RALF Loan Funds