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• • CITY COUNCIL AGENDA ITEM 1E STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: November 23, 2020 TOPIC: Consider Resolution No. 20-143, Approving Stipulation and Settlement Agreement and Easement Agreement, NE Drainage Improvement Project. VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting City Council approval of the Stipulation and Settlement Agreement and Easement Agreement with the Leibel Property ownership group, regarding the NE Lino Lakes Drainage Area Improvement project. BACKGROUND In March of 2019, the City Council authorized acquisition of property by eminent domain for the NE Drainage Improvement Project. The City continued to negotiate directly with the Leibel ownership group throughout 2019. This process included coordinating efforts with a private developer interested in the balance of the property. On November 20, 2019, the City Council approved a Stipulation Agreement with the Leibel Family regarding purchase of their property. Under the agreement, the property owners concurred with public purpose of the condemnation and agreed to the amount of compensation of $438,800, but retained the ability to seek additional compensation if the developer acquisition was not completed. The court awarded possession of the property to the city in December of 2019. Since that time the City undertook a redesign of the project. Additionally, that original stipulation agreement expired in June of 2020 and the Leibel family elected to pursue compensation through eminent domain. All parties continued discussions through summer and fall. Based on discussions with the City Council in closed session, on November 9, 2020, a Stipulation and Settlement Agreement has been completed with terms acceptable to both parties. The terms of the agreement include: • City will reconvey west parcel to the property owner • Owner will convey a drainage and utility easement and temporary construction easement to City. • Owner will receive $250,000 in compensation to be distributed by the court. • The balance of funds, in the amount of $188,000, will be disbursed to the City. The City Attorney has reviewed the proposal and is recommending approval of the agreement.