DEPARTMENT: Physical Development Administration
FILE TYPE: Regular Action
TITLE
title
Approval Of Right Of Way Acquisition For Projects Included In The 2025 Transportation CIP, Authorization To Make First Offers Based On Appraised Values And Delegated Acquisition Settlement Authority
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PURPOSE/ACTION REQUESTED
Approve and authorize the Real Estate Office (REO) to make first offers, based on appraised value, for any acquisitions needed for the 2025 Transportation Capital Improvement Program (CIP) projects.
SUMMARY
Dakota County Transportation has identified the projects that will move to the right of way acquisition process in 2025. Prior to Transportation proceeding with construction of approved CIP projects, permanent and temporary easements and occasionally fee title must be acquired by the County. Independent professional appraisers are hired to determine the fair market value or minimum damage of these acquisitions to ensure the property owner receives just compensation. A second appraiser reviews the initial appraisal to verify that the appraisal meets all professional standards and requirements. The appraisal is then finalized and certified. First offers are then made to the property owner based on these reports.
State and Federal process require an acquiring authority to approve its appraised value prior to initiating negotiations with a property owner. The past practice has been for staff to submit the valuations and first offers to the County Board for approval, then staff proceed with the first offers. However, this approval process often limits the time to work with landowners to negotiate and settle, and then sign all the documents required for the transaction. As a result, the condensed time period often results in the inability to reach settlements prior to the filing of the quick-take petition by the County Attorney’s Office. The County makes every effort to settle with property owners and avoid the use of eminent domain. If the REO can send out offers as soon as the valuation reports have been finalized and certified, there will be more time to work with property owners and settle parcels without condemnation. The County Board is not delegating its authority to determine when to use county’s eminent domain authority. Staff will return to the board with any recommendations to utilize eminent domain.
The County Board has delegated some settlement authority to the County Manager for the acquisition of right of way for county projects. Resolution No. 11-241 (May 18, 2011), second resolving clause at item 13, allows for payment of $10,000 in excess of the “County Board’s approved appraisal”, but not to exceed an award by a condemnation commissioner panel. Because the approval of the appraisal will be delegated to staff, the settlement authority needs to be revised to refer to the “County approved appraisal”. Staff also recommends that that $10,000 settlement authority be raised to $30,000 to match the delegation for settlement of all other claims made by or against the county.
RECOMMENDATION
recommendation
Staff recommends the approval and authorization to make first offers, based on appraised value, for any acquisitions needed for the 2025 Transportation Capital Improvement Program (CIP) projects. Staff further recommends rescinding item 13 in the second resolving clause of Resolution No. 11-241 (May 18, 2011) and authorize the County Manager to make payments for property interests necessary for the County’s Capital Improvement Program in an amount up to $30,000 in excess of the County approved appraised value, upon determination that the payment is reasonable, prudent and in the public’s best interest, but not to exceed an award by the condemnation commissioners or court.
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EXPLANATION OF FISCAL/FTE IMPACTS
The 2025 Transportation CIP Adopted Budget includes funds for right of way acquisition. Reducing the number of parcels listed in quick-take petitions will lower the overall cost of acquisitions and positively affect project budgets.
☐ None ☒ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, to provide a safe and efficient transportation system, Dakota County is proceeding with projects included in the 2025 Transportation Capital Improvement Program (CIP); and
WHEREAS, Dakota County is the lead agency for right of way acquisition necessary in 2025 for construction to begin in 2026; and
WHEREAS, the acquisition of property interests, such as fee title and temporary and permanent easements, from private property parcels identified in Dakota County 2025 Transportation CIP projects by the County is necessary to deliver and construct the projects during the programmed year; and
WHEREAS, all valuations of the property interests to be acquired are based upon independent valuation reports; and
WHEREAS, delegation of authority to approval appraisals of value and all first offers being made to the property owners by the Director of Physical Development or their designee will allow for more time for property owners to review the County’s offers and resolved the acquisitions before eminent domain may be necessary; and
WHEREAS, in the event that timely acquisition by direct negotiation of all required parcels does not appear possible, staff will seek County Board authorization for the County Attorney’s Office to initiate quick-take condemnation of the remaining unsettled parcels;
WHEREAS, by Resolution No. 11-241 (May 18, 2011), second resolving clause at item 13, the County Board delegated authority to the County Manager to may acquisition payments of $10,000 in excess of the County Board’s approved appraisal to settle right of way acquisitions;
WHEREAS, Staff recommends that Resolution No. 11-241 (May 18, 2011), second resolving clause item 13, be rescinded and replaced with authority to for the County Manager to make payments for property interests necessary for the County’s Capital Improvement Program in an amount up to $30,000 in excess of the County approved appraised value, upon determination that the payment is reasonable, prudent and in the public’s best interest, but not to exceed an award by the condemnation commissioners or court.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Director of Physical Development or their designee to approve appraisals of value and to make initial offers based on appraised value for any right of way acquisitions needed for 2025 Transportation Capital Improvement Program projects.
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby rescinds item 13 in the second resolving clause of Resolution No. 11-241 (May 18, 2011) delegating authority to may payment for right of way acquisitions and authorizes the County Manager to make payments for property interests necessary for the County’s Capital Improvement Program in an amount up to $30,000 in excess of the County approved appraised value, upon determination that the payment is reasonable, prudent and in the public’s best interest, but not to exceed an award by the condemnation commissioners or court.
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PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: Map of Projects
Attachment: List of Projects
BOARD GOALS
☐ A Great Place to Live ☐ A Healthy Environment
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
CONTACT
Department Head: Erin Stwora
Author: Eddie Buell