DEPARTMENT: Parks, Facilities, and Fleet Management
FILE TYPE: Consent Action
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Authorization To Enter Into Purchase Agreement And Joint Powers Agreement With Dakota County Community Development Agency To Acquire And Manage Property In City Of Hastings
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RESOLUTION
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WHEREAS, by Resolution No. 19-767 (October 29, 2019), the Dakota County Board of Commissioners approved the Vermillion River Hastings Greenway (Greenway) Master Plan; and
WHEREAS, the Greenway Master Plan includes a section of the Vermillion River between State Highway 61 and General Sieben Drive in the City of Hastings (City); and
WHEREAS, by Resolution No. 20-568 (November 17, 2022), the Dakota County Board of Commissioners approved the Land Conservation Plan for Dakota County (Plan); and
WHEREAS, the Plan includes the Vermillion River as one of 24 Conservation Focus Areas; and
WHEREAS, in 2021, the County Board approved the 2022-2026 Transportation Capital Improvement Program (CIP) budget, which included acquisition of right of way (ROW) and improvements at the intersection of Pleasant Avenue and County Highway 46 as County Project (CP) 46-50; and
WHEREAS, County staff identified a 9.97-acre property for sale located on the northwest quadrant of the intersection of Pleasant Avenue and County Highway 46 (Property) as having multiple County benefits, including a 5.02-acre Greenway Corridor that includes 600 feet of the Vermillion River, a segment of the future Greenway trail, facilitates a tunnel beneath Pleasant Avenue, and acquiring additional ROW for planned transportation improvements adjacent to Pleasant Avenue and County Highway 46 as CP 46-50 included in the approved 2024-28 Transportation Capital Improvement Program (CIP) budget; and
WHEREAS, the Dakota County Community Development Agency (CDA) is a public corporate and politic and political subdivision of the State having housing and redevelopment authority powers which allows it to acquire property for future residential development and sell non-development portions of acquired property; and
WHEREAS, County staff contacted the CDA to discuss their potential interest in acquiring the Property for future residential development and selling non-development portions of the Property to the County; and
WHEREAS, the CDA was interested in cooperating with the County and willing to acquire the Property for future residential development and supportive of selling portions of the Property for a new Greenway Corridor and additional ROW to the County; and
WHEREAS, the County, in coordination with the CDA, appraised and negotiated the purchase price of the Property with the former Property owner; and
WHEREAS, the CDA acquired the Property for $395,000 on August 18, 2023, for slightly less than the appraised value and is willing to sell 5.02 acres of the Property to the County for a Greenway Corridor at the $138,000 appraised value and sell 0.87 acres of the Property for additional ROW at the $53,000 appraised value; and
WHEREAS, the estimated closing costs are $2,000; and
WHEREAS, the CDA has been working with the City to re-plat the property to facilitate County and CDA ownership of different portions of the Property; and
WHEREAS, the County and the CDA have agreed to evenly split the recently certified city road assessments totaling $6,750 for an additional County cost of $3,375; and
WHEREAS, a purchase agreement with the CDA is required for the County to acquire portions of the Property for the Greenway Corridor and existing and additional ROW from the CDA; and
WHEREAS, a joint powers agreement with the CDA is required for the County to restore and manage the CDA-retained portion of the Property until that portion of the Property is developed or sold for development; and
WHEREAS, the Metropolitan Council (MC) staff has determined that the Greenway Corridor is eligible for 75 percent Acquisition Opportunity Fund (AOF) grant funding; and
WHEREAS, the 2024 Parks CIP budget includes adequate fund balance for the 25 percent County match required by the MC AOF program and to pay for the restoration expenses; and
WHEREAS, the 2024 Transportation CIP budget includes adequate fund balance for acquiring the ROW; and
WHEREAS, partial acquisition funding provided by the MC requires that the County Board Chair execute and the County record an Agreement and Restrictive Covenant on the property being acquired by the County for regional greenway purposes; and
WHEREAS, the final acquisition costs of the CDA property will be determined after the settlement statement is finalized and all associated acquisition expenses have been invoiced.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners authorizes the expenditure of up $196,375 to acquire 5.02 acres for a Greenway Corridor which will include a future segment of the Vermillion River Hastings Greenway; to acquire existing right of way; and 0.87 acres of additional right of way necessary for future transportation improvements to County Road 46 and Pleasant Avenue in the City of Hastings; and to pay for recently certified road assessments; and
BE IT FURTHER RESOLVED, That the County Board of Commissioners authorize the Physical Development Director to execute a purchase agreement with the Dakota County Community Development Agency to acquire property from the Community Development Agency and to execute a joint powers agreement with the Dakota County Community Development Agency to restore and manage the CDA-retained portion of the property, approved as to form by the County Attorney’s Office; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the submission of an Acquisition Opportunity Fund grant request to the Metropolitan Council for funding to acquire the Greenway Corridor and associated costs; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners authorizes the Board Chair to execute an Agreement and Restrictive Covenant with the Metropolitan Council that is required when partial acquisition funding is provided by the Metropolitan Council; and
BE IT FURTHER RESOLVED, That following acquisition of the Greenway Corridor, staff will submit the necessary forms and documentation to the Metropolitan Council to receive approximately $105,000 of reimbursement funds which will be returned to the 2024 Parks Capital Improvement Program.
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