HomeMy WebLinkAboutItem 06.fDecember 18, 2017 Item No.
RESOLUTION AUTHORIZING FUNDING FOR BUILDING DEMOLITION AND
ACQUISITION OF PROPERTIES LOCATED AT 17395 KENWOOD TRAIL, 9210 – 202ND
STREET WEST, AND 7385 181st STREET WEST
Proposed Action
Staff recommends adoption of the following motion as part of the Consent Agenda: Move to
approve a resolution authorizing funding for building demolition and acquisition of properties
located at 17395 Kenwood Trail, 9210 202nd Street West, and 7385 181st Street West.
Overview
The City of Lakeville acquired the Burger King property at 17395 Kenwood Trail in 2017, the
Scheffler property at 9210 202nd St W. in 2016, and the 7385 181st Street W. easement in 2017 (to
be used for a new public road, Glanshaw Ave, between Cedar Ave Park and Ride and Avonlea
apartment project), as previously approved by Council. Both the Burger King and Scheffler
properties had structures requiring demolition, and in both cases, there were unanticipated issues
uncovered during the demolition process (specifically, unforeseen underground tanks that needed
to be removed), which required additional costs. The project costs are being finalized on all three
projects, and staff is requesting Council authorization for funding of the costs.
Primary Issues to Consider
• Funding Source (see resolution)
• The original amounts approved by Council and the updated cost estimates for the
Burger King and Scheffler properties are shown below. Costs for mowing grass are
planned to be funded by the General Fund (until projects on these properties are
completed) and estimates for such 2018 maintenance costs are included below.
Burger King Property (17395 Kenwood Trail):
Anticipated Funding Source
Original amounts
approved by
Council
Current cost
estimates Difference
Property purchase 750,000 736,403 (13,597)
Demolition 32,500 52,596 20,096
Ongoing maintenance - 600 600
Total 782,500$ 789,599$ 7,099$
Scheffler Property (9210 202nd Street West):
Anticipated Funding Source
Original amounts
approved by
Council
Current cost
estimates Difference
Property purchase 360,964 360,964 -
Demolition 49,990 81,171 31,181
Ongoing maintenance - 1,778 1,778
Total 410,954$ 443,913$ 32,959$
Supporting Information
• Resolution
Financial Impact: $ Budgeted: Y☐ N☒ Source:
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Jerilyn Erickson, Finance Director
1.3M Various Funds
CIP
CITY OF LAKEVILLE
RESOLUTION NO:
RESOLUTION AUTHORIZING FUNDING FOR BUILDING DEMOLITION AND
ACQUISITION OF PROPERTIES LOCATED AT 17395 KENWOOD TRAIL, 9210 – 202nd
STREET WEST, AND 7385 181st STREET WEST
WHEREAS, on November 21, 2016, the City Council approved the purchase of the Burger
King property at 17395 Kenwood Trail, the Right-of-Way Acquisition Loan Fund Agreement with
the Met Council on January 3, 2017, and the related demolition contract on May 1, 2017; and
WHEREAS, on April 4, 2016, the City Council approved the purchase of the Scheffler
property at 9210 202nd St W., and the related demolition contract on September 19, 2016; and
WHEREAS, on September 5, 2017, the City Council approved the easement and right-of-
way acquisition of 7385 181st St. W. (easement to be used for future public road Glanshaw Avenue)
and the related payment to the Met Council.
NOW, THEREFORE, BE IT RESOLVED
1. The final estimated costs of the Burger King property acquisition and demolition,
including environmental testing are $789,599. Anticipated funding sources are listed
below. Staff is hereby authorized to amend the 2017 and 2018 budgets and make the
appropriate transfers between funds with respect to the funding sources up to 10%
above the estimated costs.
Anticipated Funding Source Amount
Met Council Right-of-Way Acquisition Loan Fund (RALF)737,171$
Southfork TIF Funds 51,828
General Fund (for ongoing maintenance costs)600
789,599$
2. The final estimated costs of the Scheffler property acquisition and demolition,
including environmental testing are $443,913. Anticipated funding sources are listed
below. Staff is hereby authorized to amend the 2017 and 2018 budgets and make the
appropriate transfers between funds with respect to the funding sources up to 10%
above the estimated costs.
Anticipated Funding Source Amount
Southfork TIF Funds 216,565$
Dakota County Community Development Block Grants 217,396
Dakota County-Well sealing program 900
Minnesota Department of Commerce- Petrofund 7,274
General fund (for ongoing maintenance costs)1,778
443,913$
3. The final estimated costs of the easement at 7385 181st St. W. are $87,737. The
anticipated funding source is listed below. Staff is hereby authorized to make the
appropriate transfer between funds with respect to the funding source up to 10% above
the estimated costs.
Anticipated Funding Source Amount
Southfork TIF Funds 87,737$
87,737$
ADOPTED by the Lakeville City Council this 18th day of December 2017
______________________________
Douglas P. Anderson, Mayor
_________________________________
Charlene Friedges, City Clerk