DEPARTMENT: Transportation
FILE TYPE: Consent Action
TITLE
title
Authorization To Amend 2024 Transportation Capital Improvement Program Budget, Execute Joint Powers Agreement With City Of Rosemount And Advance Acquisition For Intersection Improvement At County State Aid Highway 42 And Biscayne Avenue In Rosemount, County Project 42-179
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PURPOSE/ACTION REQUESTED
• Authorize an amendment to the 2024 Transportation Capital Improvement Program (CIP) Budget to establish right of way budget for County Project (CP) 42-179 for the 2024 fiscal year.
• Authorize the execution of a joint powers agreement with the City of Rosemount to establish cost share and responsibilities for CP 42-179 advanced right of way acquisition.
• Authorize entering into a purchase agreement with KJ Walk to acquire Parcel ID 34-64851-02-040, a 1.5-acre commercial property in Rosemount, in advance of CP 42-179.
SUMMARY
To provide a safe and efficient transportation system, Dakota County and the City of Rosemount are planning improvements to the intersection of County State Aid Highway (CSAH) 42 and Biscayne Avenue in Rosemount. The intersection improvement project is the result of ongoing coordination with the City of Rosemount and Independent School District 196 regarding a proposed Rosemount Middle School at the southeast quadrant of CSAH 42 and Biscayne Avenue. County staff has participated in coordination meetings and reviews of the proposed middle school’s site plan and traffic impact analysis. The anticipated traffic generation from the proposed middle school and development growth in the area, improvements to the intersection geometry, and addition of a signal were identified. This improvement aligns with the recommendations from the County Highway 42 Management Plan (2022). The County and City coordinated on the project needs during the 2025-2029 CIP development and subsequently included the project with preliminary/final design planned for 2025, right of way acquisition in 2026, and construction occurring in 2027. The school district anticipates a fall 2027 opening.
A geometry improvement to the intersection is necessary to correct sight line and safety issues with the existing skewed intersection that is located directly adjacent to a high-speed horizontal curve. A realignment of Biscayne Avenue (see Attachment: Project Exhibit) is necessary to meet design and safety standards needed for the addition of a traffic signal. This realignment requires right of way acquisition from Parcel ID 34-64851-02-040 in the northwest quadrant. Coordination with Rosemount revealed the parcel in question had received interest from a proposed developer to install a carwash. A purchase agreement between the proposed development and KJ Walk (property owner) had not been executed yet for the 1.5-acre commercial property. County staff reached out to KJ Walk to determine if the property owner would be agreeable to working with the agencies to acquire right of way for the project. KJ Walk indicated willingness for the County to acquire the entire 1.5-acre parcel from the open market but was not interested in a partial acquisition. To ensure the property does not develop ahead of CP 42-179, resulting in a higher right of way acquisition cost, staff recommends an early acquisition of the entire parcel.
Parcel ID 34-64851-02-040 is currently listed on the open market with an asking price of $948,710, a $14.00/SF cost. County Real Estate staff analyzed recent commercial property sales in the area and determined the asking price to be a fair and reasonable cost based on recent sales of similar commercial properties. A comparison table is included below.
|
Property |
PID |
City |
Price |
Square Feet |
Price/Sq Ft |
|
Subject Parcel |
34-64851-02-040 |
Rosemount |
$948,710 |
67,763 |
$14.00 |
|
Comp 1 |
34-64854-01-050 |
Rosemount |
$931,710 |
81,878 |
$11.38 |
|
Comp 2 |
34-64853-02-010 |
Rosemount |
$958,260 |
95,825 |
$10.00 |
|
Comp 3 |
10-56732-01-010 |
Eagan |
$1,200,000 |
70,724 |
$16.97 |
|
Comp 4 |
01-11731-01-020 |
Apple Valley |
$475,000 |
24,728 |
$19.21 |
|
Comp 5 |
10-62631-01-020 |
Rosemount |
$1,310,000 |
73,994 |
$17.71 |
In order to proceed with an advanced right of way acquisition, the 2024 Transportation CIP needs to be amended to create project budget for CP 42-179 in 2024. The draft 2025-2029 Transportation CIP has right of way planned in 2026. If the Board authorizes the advanced right of way acquisition, an offer will be presented in 2024 and require the budget to be established. Sufficient funds exist within the Transportation Sales and Use Tax (SUT) account to establish a 2024 budget of $948,710 for CP 42-179. Planned dollars for right of way acquisition in 2026 will be reduced as a result. If the County Board desires discussion for an alternative offer or negotiation strategy, it can recess to a closed executive session pursuant to Minn. Stat. 13D.05, Subd, 3 (3).
The proposed improvements of CP 42-179 require a cost share from the City of Rosemount based on the County’s 2040 Transportation Plan Cost Share Policy. A joint powers agreement between the County and City of Rosemount is necessary to outline cost participation and responsibilities for advanced right of way acquisition.
RECOMMENDATION
recommendation
Staff recommends authorization for a budget amendment to the 2024 Transportation CIP Budget to establish 2024 right of way acquisition budget for CP 42-179, advanced right of way acquisition of Parcel ID 34-64851-02-040 to preserve necessary right of way for CP 42-179, and a Joint Powers Agreement with Rosemount to establish cost participation and responsibilities.
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EXPLANATION OF FISCAL/FTE IMPACTS
The 2024-2028 Transportation CIP does not include budget for CP 42-179. A budget amendment is necessary to proceed with advanced right of way acquisition, and a budget of $948,710 is recommended. County State Aid Highway 42 Management Improvements are included in the Transportation SUT eligible projects list. Sufficient funds exist within the Transportation SUT account to proceed with the budget amendment.
☐ 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 and the City of Rosemount (City) are incorporating County Project (CP) 42-179 into respective 2025 Capital Improvement Program documents; and
WHEREAS, CP 42-179 is the reconstruction and signalization of the County State Aid Highway (CSAH) 42 and Biscayne Avenue intersection and restricted access conversion of the CSAH 42 and Business Parkway intersection in the City of Rosemount; and
WHEREAS, CP 42-179 is the result of coordination with the City and Independent School District 196 for the proposed Rosemount Middle School at the southeast quadrant of CSAH 42 and Biscayne Avenue; and
WHEREAS, County staff evaluated the proposed middle school traffic impact assessment in conjunction with the County Highway 42 Management Plan (2022) and the area growth in development to determine recommendations for the improvements of CP 42-179; and
WHEREAS, CP 42-179 requires realignment of Biscayne Avenue to eliminate the skewed intersection and correct deficient sight lines and safety standards needed for the installation of a traffic signal; and
WHEREAS, the geometry improvements will require right of way acquisition from Parcel ID 34-64851-02-040; and
WHEREAS, Parcel ID 34-64851-02-040 is currently on the open market as a 1.5-acre commercial property with a list price of $948,710; and
WHEREAS, the parcel has received interest from a developer to install a carwash with intentions to build in 2025, but a purchase agreement has not been executed; and
WHEREAS, the parcel is owned by KJ Walk, who has indicated willingness to work with the County and City on an open market acquisition for the entire 1.5-acre parcel but is not interested in a partial acquisition; and
WHEREAS, an advanced right of way acquisition of the entire 1.5-acre parcel at the asking price of $948,710 is recommended to prevent the development of the parcel and higher acquisition costs in the future; and
WHEREAS, County Real Estate staff conducted a market analysis of recent commercial property sales that were of similar location and size and determined the asking price of $948,710 ($12.84/acre) to be fair and justified; and
WHEREAS, staff recommends authorization to enter into a purchase agreement with KJ Walk for Parcel ID 34-64851-02-040 at the asking price of $948,710; and
WHEREAS, a budget amendment to the 2024 Transportation Capital Improvement Program Budget is necessary to establish budget for CP 42-179 in 2024 to proceed with the advanced right of way acquisition; and
WHEREAS, sufficient funds exist in the Transportation Sales and Use Tax account to proceed with the budget amendment; and
WHEREAS, staff recommends a budget amendment of $948,710 for CP 42-179 to allow the advanced acquisition of Parcel ID 34-64851-02-040; and
WHEREAS, a joint powers agreement is necessary to establish roles, responsibilities, and cost share for the right of way acquisition with the City to ensure the project follows the 2040 Dakota County Transportation Plan Cost Share Policy.
NOW, THEREFORE BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Physical Development Director to execute a purchase agreement with KJ Walk for the advanced right of way acquisition of Parcel ID 34-64851-02-040 for a purchase price of $948,710, in accordance with County Policy and subject to approval by the County Attorney’s Office as to form; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Physical Development Director to execute the joint powers agreement with the City of Rosemount to define roles and responsibilities for advanced right of way acquisition and cost sharing for County Project 42-179, in accordance with County Policy, subject to approval by the County Attorney’s Office as to form; and
BE IT FURTHER RESOLVED, That the 2024 Transportation Capital Improvement Program Budget is hereby amended as follows:
Expense
County Project 42-179 $948,710
Total Expense $948,710
Revenue
Transportation Sales and Use Tax $948,710
Total Revenue $948,710
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PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: Project Exhibit
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 Laberee
Author: Jake Chapek