11/05/2012 Council Packet - Laserfiche WebLink

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WS — Item 7 WORK SESSION STAFF REPORT Work Session Item 7 Date: November 5, 2012 To: City Council From: Michael Grochala Re: Otter Lake Road Extension Background The City Council authorized preparation of plans and specifications for the Otter Lake Road extension in March of 2012. WSB, City Engineer, is nearing completion of the plans. BRKW Appraisal Inc. was previously retained to prepare appraisals for the land acquisition necessary to complete the project. BRKW has met with property owners and is in the process of completing the appraisals. Additionally, staff has continued to meet with property owners to address issues and concerns regarding the project costs. The estimated project cost is approximately $716,000 which, after considering possible assessments and land dedication, leaves us with a funding gap of approximately $126,000. Staff has worked out a tentative agreement with MFC Properties to address $80,000 of the gap. We are still in discussion with property owners and working to identify other options to cover the remaining $46,000 of project funding. MFC Properties has stressed their need to have the project under construction in 2013. In order to meet this schedule, the city would need to move forward with land acquisition by December. While we would anticipate obtaining the land through direct purchase and /or dedication, eminent domain proceedings may be necessary. WSB has prepared a draft schedule that would provide possession of the land by April of 2015 and construction commencing in May. To accomplish this timeline, staff would be requesting council authorization to extend offers to the land owners for acquisition at the November 26, 2012 City Council meeting. Requested Council Direction Staff is requesting council comments on the proposed process and interest with moving forward on land acquisition. Attachments 1. Draft Project Schedule