09-11 Resolution No. 11544
RESOLUTION NO. 11544
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RESOLUTION APPROVING THE 77 STREET IMPROVEMENTS FINAL LAYOUT AND USE
OF EMINENT DOMAIN TO ACQUIRE PRIVATE PROPERTY AS REQUIRED FOR THE
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CONSTRUCTION OF THE 77 STREET/RICHFIELD PARKWAY PROJECT
WHEREAS
, the City of Richfield (the “City”) is a municipal corporation, located in
Hennepin County, Minnesota, duly organized, created and existing under and by virtue of the
laws of the State of Minnesota, with all of the powers enumerated and available to it under
Minnesota law, including the power to acquire real property for public purposes through use of
eminent domain proceedings, when it determines that doing so is necessary and for a public
purpose; and
WHEREAS,
pursuant to Minn. Stat. § 465.01, the City is authorized to exercise its
powers of eminent domain to acquire private property within or outside of its corporate limits for
any purpose otherwise authorized by law; and
WHEREAS,
in cooperation with the State of Minnesota Department of Transportation
and the State of Minnesota Metropolitan Airports Commission (collectively the “State”) and in
cooperation with Hennepin County (the “County”), the City, in the exercise of its governmental
powers as a city and as a political subdivision of the State of Minnesota, has undertaken the
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77 Street/Richfield Parkway Project for the construction of a roadway underpass to allow 77
Street within the City of Richfield to travel under Cedar Avenue/Trunk Highway 77 to and from
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77 Street located within the Minneapolis-Saint Paul International Airport property (the
“Project”); and
WHEREAS
, the Design Layout for the Project includes construction of an underpass
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connecting 77 Street on both sides of Cedar Avenue/Trunk Highway 77 (similar to American
Boulevard located south of the I-494/Trunk Highway 77 Interchange) to provide local (City of
Richfield) access to airport terminals, the Mall of America, properties on the east side of Trunk
Highway 77 and other facilities, without accessing the larger highways such as I-494 and Trunk
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Highway 77. The Project also includes construction of Richfield Parkway between 76 Street
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and 77 Street to provide access and parking adjacent Washington Park, closure of Old Cedar
Avenue to through traffic and the installation of a cul-de-sac; and
WHEREAS
, the Project requires the acquisition of fee simple absolute title of a certain
property (owned in fee) by G6 Hospitality Property LLC, a Delaware limited liability company
(the “Motel 6 Property”), located in the City of Richfield, Hennepin County, Minnesota, and
legally described as follows:
That part of the North 1/2 of the Southeast Quarter of the Southeast Quarter of
Section 35, Township 28, Range 24, lying South of the North 10 acres of said
quarter-quarter and East of the extension South of the East line of 18th Ave. So.
as laid out in the plat of “Larson’s South View Gardens Second Addition.”
Torrens Property; and
WHEREAS
, the City of Richfield was assisted by its property acquisition consultant,
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Evergreen Land Services Company, for the direct purchase of the Motel 6 Property as required
for the Project; and
WHEREAS
, the City (and its consultant) have been unable to acquire the Motel 6
Property from the owner by direct purchase; and
WHEREAS
, to facilitate the 2019 construction of the Project, the City must acquire fee
simple absolute title to the Motel 6 property described in further detail below:
Parcel Owners Hennepin County Property
Identification Number
35-028-24-44-0004
Parcel 1/Motel 6 G6 Hospitality Property
Property LLC, a Delaware limited
liability company
WHEREAS,
in 2006, the State of Minnesota enacted various eminent domain reforms
including an amendment to Minn. Stat. § 117.036 which: a) requires the City to provide the
property owner with a copy of the City’s appraisal and inform the property owner of the right to
obtain an appraisal and receive reimbursement of appraisal costs pursuant to § 117.036, b)
requires reimbursement of a property owner’s appraisal costs up to $1,500 for single family and
two-family residential property and minimum damage acquisitions (i.e. appraised damages of
$10,000 or less) and $5,000 for other types of property, and c) requires good faith negotiations
which include a good faith attempt to negotiate personally with the property owner; and
WHEREAS,
the City has complied with the statutory appraisal copy disclosure, notice of
property owner appraisal rights, appraisal cost reimbursement, and good faith negotiation
requirements of Minn. Stat. § 117.036; and
WHEREAS,
a good faith final written offer of just compensation pursuant toMinn. Stat. §
117.031 will be made to the fee owner of Parcel 1/Motel 6 Property prior to the filing of the
condemnation petition; and
WHEREAS,
the City Appraiser’s approved appraisal of value for the Parcel 1/Motel 6
Property is $4,600,000; and
WHEREAS,
Minnesota Statutes, § 117.042 provides the City with the authority to gain
title and possession to all the easement parcels following a 90-day notice period. This statute is
commonly referred to as the “quick take” statute. If a condemning authority does not utilize the
“quick take” statute, the title and right of possession to the private property parcels would only
transfer to the City following the settlement of each parcel valuation case which can extend over
a multi-year period; and
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WHEREAS, the City would be unable to advertise, receive bids and award a single
construction contract for the Project unless it utilizes the "quick take" statute. The 90-day "quick
take" procedure must be utilized: a) to allow the City to award a single and reasonably
economical construction contract for the Project, b) to meet the Project construction schedule,
and c) to coordinate the Project with State and County agencies/departments; and
WHEREAS, the City staff recommends that the Richfield City Council authorize the use
of the City's power of eminent domain for the acquisition of the Parcel 1/Motel 6 Property as
required for the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE RICHFIELD CITY COUNCIL:
1) That the City Council hereby approves the "77th Street Improvements Final Layout"
dated October 2017.
2) That the City Council authorizes the use of eminent domain for the acquisition of the
Parcel 1/Motel 6 Property as required for the Project.
3) That the City Council approves the $4,600,000 appraised value of the Parcel 1/Motel 6
Property and finds that a 90-day "quick take" is required pursuant to Minnesota Statutes,
§ 117.042: a) to allow the City to award a single and reasonably economical construction
contract for the Project, b) to meet the Project construction schedule, and c) to
coordinate the Project with State and County agencies/departments.
4) That the City Council directs City staff and the City consultants to make a good faith final
written offer of just compensation pursuant to Minn. Stat. § 117.031 to the fee owner of
Parcel 1/Motel 6 Property prior to the filing of an eminent domain condemnation petition.
5) That the City Council directs City staff and the City consultants to continue good faith
settlement negotiations with the fee owner of Parcel 1/Motel 6 Property; and, the City
Council authorizes City staff and the City consultants to take the necessary action
pursuant to Minnesota Statutes, Chapter 117, to acquire the property rights required for
Project.
Adopted by the City Council of the City of Richfield, Minnesota this 11th day of
September, 2018.
Pat Elliott, Mayor
ATTEST:
Elizabeth VanNoose, City Crerk
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