HomeMy WebLinkAbout16.B. Proposed CR 16/21 Park and Ride
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CITY OF SHAKO PEE
Memorandum
CASE NO.: Not Applicable
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: R. Michael Leek, Community Development Director
SUBJECT: Discussion of Proposed CR 16/21 Park and Ride
MEETING DATE: July 1, 2008
REVIEW PERIOD: Not applicable
INTRODUCTION:
Council is asked to discuss and provide direction, both to City staff and Scott County, regarding the
City's participation in the CR 16/21 park and ride project.
DISCUSSION:
Overview:
The federal funds awarded to Scott County for the CR 21 roadway project includes funds for the
construction of a second park and ride site. The proposed site would be at the southwest comer
of the intersection of CR 16 and future CR 21. Under the federal funding agreement, the park
and ride is to contain at least 545 parking spaces. There is to be a 20% match for construction
costs, with the 20% anticipated to be covered equally by the cities of Prior Lake and Shakopee.
Under the terms of the Memorandum of Understanding entered into by the two cities and the
County (see attached), the cost of acquisition of this second park and ride site were to be paid
60% by the City of Shakopee and 40% by the City of Prior Lake.
Background:
The May 2000 Unified Transit Management Plan for Scott County (UTMP) stated as follows;
"Scott County needs to immediately begin the process of site selection and acquisition,
design and construction of a new transit center in the area south of the Bloomington
Ferry Bridge near the confluence of CSAH 18, TH 169, TH 13 and the future CSAH 21
extension. "
Subsequent to the adoption of the UTMP, with the assistance of Metropolitan Council transit
staff five potential sites were evaluated for park and ride purposes; one each on either side of
CSAH 18, a site along the proposed east-west segment ofCSAH 21 in Shakopee, and one on
either side of the north-south segment ofCSAH 21 in Shakopee.
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The evaluation by Craig LaMothe of the Metropolitan Council staff concluded that the best site
was on CR 18 south ofTH 169. Based on this evaluation, the cities of Shako pee and Prior Lake,
as well as Scott County, proceeded with the acquisition and development ofthe site that is now
the Southbridge Crossings Transit Station. This park and ride was opened for service in July of
2007.
Mr. LaMothe's evaluation showed that there was a second tier of good sites near the future
intersection of CR 16 and future CR 21. Through discussions at the Scott County Transit
Planning Team (TPT) and Transit Review Board (TRB), it was decided that it would be
beneficial to move forward with a possible site acquisition from Tollefson Development
Company Inc (Tollefson). This led to the memorandum of understanding between the City of
Shakopee, City of Prior Lake, and Scott County accompanying this report.
Based on the MOD, Scott County made an offer to Tollefson for the acquisition of the second
park and ride site. The offer was later amended to encompass the entire westerly parcel that
would be created by the construction of CR 21. Initially, Tollefson had indicated to the City of
Shakopee and the County that it wished to retain about six to eight acres for commercial
development. The Scott County Community Development Agency (CDA, formerly HRA) had
earmarked funds to acquire a portion of the property for development of an affordable, first-time
home buyer project. The parties to the MOD were then looking at the site as a mixed-use,
transit-oriented development that would also provide access to transit to adjacent areas as they
were developed for residential use.
On October 11, 2007 Tollefson sold the subject parcel to the Shakopee Mdewakanton Sioux
Community (SMSC), as well as another large parcel nearby that Tollefson had purchased from
the Shutrop family that same day.
Site Acquisition and Construction Costs:
At the time this report was written it was not clear under what terms the SMSC would make the
park and ride site available. Staff is aware that the County staff has had discussions with SMSC
staff about possible purchase of the site and possible long-term lease of the site. At this time,
assuming that the site is made available for purchase, it seems likely that it would be at a cost of
at least $ 130,000/acre. Staff believes this is the case because 1) it is the approximate value
offered to Tollefson based on a County appraisal, and 2) in the past month or so the SMSC
purchased a 9+ acre parcel nearby in Prior Lake for about that amount. However, recent land
sales activity has indicated that the softened residential building market may have reduced the
value of raw land, meaning that the $130,000/acre amount should be subject to further
investigation.
Assuming a purchase price of $ 130,000 per acre, the total and city costs for acquisition for the
alternates under consideration are set forth below.
Site Size 12.4 Acre site 9.12 Acre site
Total Cost of Acquisition $1,612,000 $1,185,600
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City of Shakopee Cost (60%) $ 967,000 $ 711,360
City of Prior Lake Cost (40%) $ 645,000 $ 474,240
Total construction costs for the park and ride site are expected to be . The cities'
share of the local match would be $ each.
Thus, the total cost to the City of Shakopee for site acquisition and construction would range
from about and
There is a potentially substantial impact of the transit operating costs. The City currently
operates van pools, a circulator service and half of the BlueXpress commuter service. The City's
total expected 2009 budget for these services is about $1.2 million. Current MVS T, fare and
other revenue projections suggest that the revenues will be less than projected expenditures for
2009 (perhaps as much as $200,000). If that is the case, the City will need to use a portion of its
transit revenue balance just to maintain current service levels. In addition, any expansion of
service (such as addition additional express buses) would have to come from the City's transit
balance. The addition of just one additional Shakopee bus could add an average of about
$204,000 per year in operating costs. Staffs long term concern about the situation is that the
City would not be in a position to continue to support expansion of service beyond a couple of
years ifthe City's transit fund balance is drawn down to the extent specified under the MOD to
fund acquisition and construction of the CR 16/21 park and ride site.
FACTORS IMPACTING CITY OF SHAKOPEE CONSIDERATION OF CR 16/21 SITE:
At the time that the cities and county decided to move forward with acquisition of both the
Southbridge Crossings and the CR 16/21 sites, it was determined that the City of Shakopee
would pay a proportionately larger share of the costs (60% versus 40% for the City of Prior
Lake). This split was largely predicated on the fact that the sites are both within the Shakopee
City limits, and the assumption that they would thereby be more readily accessible and useable to
Shakopee residents. Current use of the Southbridge Crossings site would seem to be consistent
with that assumption.
However, with respect to the CR 16/21 site, the October 2007 change in ownership of two, large
potential development parcels in Shakopee, that assumption is, at best, not a good one. While
the SMSC has not communicated to the City of Shakopee what its future plans are for those
parcels, the following seem to be reasonable assumptions;
. The SMSC-owned parcels will not be available for general residential purposes;
. The acquisition of these parcels by the SMSC severely limits the ability to design and
develop pedestrian and transit oriented developments in connection with this park and
ride site;
. As a result of the attendant reductions in residential development in this area of the City
of Shakopee, the site is likely to be more heavily used by Prior Lake and County residents
than was originally contemplated when the cost split was developed.
The changed circumstances discussed above might suggest that either 1) there should be
reconsideration of whether the CR 16/21 site is still the best site for a second park and ridge, 2)
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other sites should be explored, or 3) that the agreement related to the splitting of costs for
acquisition should be reconsidered.
ACTION REQUESTED:
Provide direction to staff regarding whether and on what terms to proceed with acquisition of the
CR 16/21 park and ride.
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MEMORANDUM OF UNDERSTANDING
FOR THE ACQUISITION OF LAND FOR A
TRANSIT PARK AND RIDE FACILITY
THIS MEMORANDUM OF UNDERSTANDING is made and entered into by and
between Scott County, a Minnesota governmental entity located at 200 Fourth Avenue West,
Shakopee, Minnesota 55379-1220 (hereinafter referred to as the "County"), the City of
Shakopee, a Minnesota municipal corporation, 129 Holmes Street Shakopee, MN 55379
(hereinafter referred to as "Shakopee"), and the City of Prior Lake, a Minnesota municipal
corporation, 16776 Fish Point Road SE, Prior Lake, MN 55372 (hereinafter referred to as "Prior
Lake") (hereinafter collectively referred to as the "Parties").
RECITALS
WHEREAS, the Parties are authorized to enter into contracts as a joint powers
organization pursuant to Minnesota Statutes, Section 471.59, and
WHEREAS, the Parties have a shared interest in planning and providing efficient transit
services to the residents of Scott County, and
WHEREAS, the Parties have, through prior undertakings, jointly participated in
completing a Unified Transit Management Plan ("UTMP") that recommends various transit
capital and service improvements for County-wide; and
WHEREAS, each of the Parties has adopted the recommendations of the UTMP in part,
in whole, or with conditions; and
WHEREAS, the Parties, through their participation in the Scott County Transit Review
Board and Transit Planning Team, have begun to plan for the development of a regional park-
and-ride facility that would accommodate 500 parking spaces with the potential to be expanded
or decked, and to plan for acquisition of a second park-and-ride site; and
WHEREAS, two sites have been identified as locations that will meet the needs for
regional park-and-ride facilities; and
WllE~AS,thesites are generally Jocated (1 ) east of Crossings Boulevartliatld east of
County i l{oad 18, .as more specifically identified and i described.in. the... attache~.F:~hibit A
(hereinafter l'eferredto .as"18/169Site"), and (2) south of county Road. 16 along the Juture
llligntllent ofCo1.111tz/Road 21 as rnore ..ii specifically identifledanddescriged .i11 tlie~att@hed
.Exhibit:s(hereinafterrefelTed to as tl1e"CR 16 Site"); and
WHEREAS, the Parties desire to participate in and share the cost of retaining an
engineering firm to design and prepare the construction specifications for the regional park-and-
ride facility at the 18/169 Site ("Project"); and
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WHEREAS, the Parties desire to. set out the terms, conditions and. cost allocation for (1)
the acquisition of both the 18/169 Site and the. CR 16Site, and (2) the design and construction of
the 18/169 Site; and
WHEREAS, the Parties hereto have concluded that the actions set forth above can best
be accomplished through a Memorandum of Understanding.
NOW THEREFORE, in consideration of the mutual undertakings and agreements
contained herein, the Parties hereby agree as follows:
1. RECITALS. The recitals contained herein and set forth above are incorporated by
reference as if fully written herein.
2. PURPOSE: The purpose of this Memorandum of Understanding is to set out the
obligations of each of the Parties to this Agreement with respect to (1) the acquisition
of land to be used for regional park & ride facilities, and (2) to solicit proposals for (a)
a consulting engineer to design and prepare construction drawings and specifications
for the facility at the 18/169 Site, and (b) construction of the Project.
3. TERM OF AGREEMENT
This Agreement shall be effective from the date of final execution by all parties and shall
remain effect through the term of ownership of the 18/169 site and the CR 16 Site, and
the development of the 18/169 park & ride facility, unless terminated earlier by the
Parties as provided herein. This agreement shall be recorded against the property(ies) in
the office of the Scott County Recorder.
4. ACQUISITION OF 18/169 AND CR 16 SITES
1. Negotiations for Land Acquisition. The Parties shall enter into negotiations for
the acquisition of the 18/169 Site and the CR 16 Site previously identified herein
as Exhibits A and B. Each of the Parties shall designate a staff member to act on
its behalf to participate in the negotiations. Parameters for the negotiations shall
be set cooperatively through the authority granted by the governing bodies of the
Parties. Final authorization for any purchase agreement for the acquisition is
subject to approval by the governing bodies of the Parties funding the land
acquisition as identified in section 4.3 herein.
It is the intent ofthe Parties to acquire the 18/169. Site. and CR. ..16Sitethrotigh
negotiated purchases; Inthe event theParti~shave not enteredintoapllfchase
agreement forthe 18/169 Site by July 5, 2006, and closed onthelatld9yAugust
1,2006, Scott CoUIlty tnay, upon approval of its Board, acquirethelanQtb}'ough
it$powetsof eminent Qqmain.
2. Title to Land and Closing Procedures.
1. 18/169 Site: Scott County and the Metropolitan Council shall hold fee title
to the property in perpetuity. Closing on the property shall be completed no
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later than August 1, 2006, and closing costs typically attributed to Buyer
shall be borne by Scott County through cooperative funding agreements with
the Met Council and MnDOT.
In the event it is determined that the site is no longer suitable for transit
purposes, the property shall first be offered to the Metropolitan Council,
provided that the Metropolitan Council reimburses the County proportionate
to its initial investment based upon the market value of the property. If the
Metropolitan Council does not desire to use the property, it shall be sold and
the proceeds of the sale divided among Scott County and the Metropolitan
Council proportionate to their respective cash contributions to the land
acquisition.
2. CR 16 Site: Prior to the execution by the Parties. or any subset of the Parties,
ofa subsequent agreement that may designate long-tenn ownership,
devdopment,Qperationand maint~nance oftheCR 16 Site, the cities of
Prior LakeandShakopee shall hold the fee title to the landjointly. In the
event it is> determined. that the property is no longer suitable for transit
purposes, the property shall first be offered to the Metropolitan Council,
provided thatthe. Metropolitan COuncil reiIIlburses the cities p~oportionate
totheir initit}l cash investments based upon the market xalpeoftheproperty.
IftheMetropolitan Council determines that it does not desirethe property,
thelanP shall be sold and the proceeds of the sale diyipedb~~weenthe City
ofPrior.L~~<and~heCity of Shakopee pf9portionate tQtheirrespective cash
contributions to tl1.e land acqui~ition.
3. Financial Obligations of the Parties for Acquisition of 18/169 Site: The Parties
shall contribute the following amounts for the acquisition of the 18/169 Site:
Metropolitan Council $ 800,000
Scott County: $1,500,000
D. Financial Obligations of the PartiesforAcquisition ofCR 16 Site. Shakopee
and Prior Lake shall work cooperatively to acquire the CR 16 Site, with
Shakopee' s contrib~tionequal to 60% of thepurchasecosts,alld Prior Lake's
contribution equal to 40% of the purchase costs. It is the intent()fSh.akopee and
Prior Lake to stl1Jctllfea purchase that will allow both cities to pay Jorthe cost of
the CR 16 Site overtime.. Final authoriz~tioll for acqpisitioll of and allocation of
Illnding forthe .CR ..16 Site is subject toapproxalby the respective city councils.
5. CONSTRUCTION OF PARK & RIDE FACILITIES AT 18/169 SITE AND CR 16 SITE
1. Request for Proposal for Engineering Design Services. The Parties, through their
participation on the Transit Review Board and Transit Planning Team, have solicited
proposals for design and preparation of final plans and specifications for the
construction of the 18/169 Site. The Parties shall share in the costs of the contract as
follows:
Metropolitan Council: $150,000
Shakopee: $ 15,000
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Prior Lake: $ 15,000
2. Duties of the Parties
(a) County. The County shall act as the administrative and fiscal agent during the
Project. Duties shall include but not be limited to providing an employee to act as
the Project Manager during the course of the Project, administer the Request for
Bid process for construction for the Project, receiving and maintaining funds,
disbursement of funds at the direction of the Parties, accounting for revenues and
expenditures, producing financial statements as necessary, and reporting as
required by local governments and state and federal agencies.
(b) Shakopee and Prior Lake. Shakopee and Prior Lake shall each seek appropriate
authorization from their respective governing bodies and authorize payment of
all amounts due, provide one employee to act as a representative in the contractor
selection; and pay the agreed upon contribution to the County within thirty (30)
days of notification by the County of the installment payment due.
(c) Metropolitan Council. The Metropolitan Council shall act an advisory resource
during the Project.
3. Financial Obligations of the Parties. At the initiative of the County, the Project
received federal CMAQ funding as part of the CSAH 21 extension project. The
federal funding requires a local construction match, and will not be available until
200912010. In order to advance construct the 18/169 Site, the County would advance
the CMAQ funding that would be reimbursed in 2009/2010 in the amount of
$1,204,800. Shakopee and Prior Lake would be responsible for the required local
construction match as follows:
Shakopee. . . . . . . . .60% of required local construction match not to exceed
$
Prior Lake. . . . . ... .40% of required local construction match not to exceed
$
4. Future Construction of CR 16 Site. Future construction of a park & ride facilities at
this location will be determined by demand and the completion of the CSAH 21
extension project. At such time as it is determined by the Parties to move forward
with the construction of the facility, the Parties will work cooperatively to determine
additional responsibilities and funding through separate agreement.
5. Maintenance and Operation of 18/169 Site. Maintenance and operation
responsibilities of the Parties with respect to the 18/169 Site, together with associated
costs, shall be memorialized by the Parties under separate agreement.
6. COUNTY AND STATE AUDIT
Pursuant to Minn. Stat. Section 16C.05, Subd. 5 (1998), the books, records, documents, and
accounting procedures and practices of the Parties relative to this Agreement shall be
subject to examination by the County and the State Auditor. Complete and accurate records
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of the work performed pursuant to this agreement shall be kept by the Parties for a
minimum of six (6) years following termination of this agreement for such auditing
purposes. The retention period shall be automatically extended during the course of any
administrative or judicial action involving the County of Scott regarding matters to which
the records are relevant. The retention period shall be automatically extended until the
administrative or judicial action is finally completed or until the authorized agent of the
County notifies the Parties in writing that the records need no longer be kept.
7. INDEMNITY
Each Party shall indemnify, defend, and save the other Parties harmless from any and all
claims, damages, lawsuits, losses, liabilities, costs, and expenses, arising out of any
negligent act or omission on the part of any Party or its contractors, agents, servants, or
employees in the performance of any of the work or services to be performed under the
terms of this Agreement. Each Party's obligation to indemnify the other under this clause
shall be limited in accordance with the statutory tort limitations provided in Minn. Stat. S
466.04 to limit each Party's total liability for all claims arising from a single occurrence,
including the other Party's claim for indemnification, to the limits provided in section
466.04.
The County shall be responsible for the professional quality, technical accuracy, and the
coordination of all services furnished by the County under this Agreement. The County
shall, without additional compensation, correct or revise any errors or deficiencies in the
County's final reports and services.
8. LIABILITY
The liability limits set out in Minnesota Statute Chapter 466 shall apply to this
Agreement. This Agreement shall not act to aggregate the liability limits of the
individual parties.
9. SUBCONTRACTS
The Parties shall not subcontract any of their obligations to be performed under this
Agreement nor assign this Agreement.
10. FORCE MAJEURE
The Parties agree that the County shall not be liable for any delay or inability to perform
this Agreement, directly or indirectly caused by or resulting from strikes, labor troubles,
accidents, fire, flood, breakdowns, war, riot, civil commotion, lack of material, delays of
transportation, acts of God or other cause beyond reasonable control of the County and
the rest of the Parties.
11. DATA PRACTICES
All Parties, their agents, employees and any of their subcontractors, in providing all
services hereunder, agree to abide by the provisions of the Minnesota
Government Data Practices Act, Minn. Stat. Ch. 13, as amended, and Minn.
Rules promulgated pursuant to Ch. 13.
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12. TERMINATION
This Agreement may not be terminated unless disposition of any property acquired has
occurred in connection with the terms of this agreement. In the event, the Parties fail to
acquire the land contemplated by this agreement, the agreement may be terminated upon
completion or termination of any contract for professional engineering services provided
for herein.
Upon Termination of this Agreement, any unused funds shall be returned to the
contributing . Parties in the same proportion that initial contributions were made.
Disbursement of funds resulting from the sale or disposition of the property contemplated
herein shall comply with the terms and conditions set forth in section 4D herein.
13. NOTICES
Any notices to be given under this Agreement shall be given by enclosing the same in a
sealed envelope, postage prepaid, and depositing the same in the United States Postal
Service, addressed to the each of the Parties at the following addresses:
Carol Becker
Scott County Administrator's Office Metropolitan Council
200 4th Ave. West 230 East Fifth Street
Shakopee, MN 55379 St. Paul, MN 55101-1634
Michael Leek Kelly Meyer
CITY OF SHAKO PEE CITY OF PRIOR LAKE
129 Holmes Street 4646 Dakota Street
Shakopee, MN 55379 PriorLake,MN 55372
14. CONTROLLING LAW
The laws of the State of Minnesota shall govern all questions and interpretations concerning
the validity and construction of this Agreement and the legal relations between the parties
herein and performance under it. The appropriate venue and jurisdiction for any litigation
hereunder will be those courts located with the County of Scott, State of Minnesota.
Litigation, however, in the federal courts involving the parties herein will be in the
appropriate federal court within the State of Minnesota. If any provision ofthis Agreement
is held invalid, illegal or unenforceable, the remaining provisions will not be affected.
15. SUCCESSORS AND ASSIGNS
The Parties, respectively, bind themselves, their partners, successors, assigns, and legal
representatives to the other party to this Agreement and to the partners, successors, assigns,
and legal representatives of such other party with respect to all covenants of this Agreement.
No Party shall assign, sublet, or transfer any interest in this agreement.
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16. EQUAL EMPLOYMENT AND AMERICANS WITH DISABILITIES
In connection with the work under this Agreement, the Parties agree to comply with the
applicable prOVISIons of state and federal equal employment opportunity and
nondiscrimination statutes and regulations.
17. CHANGES
The Parties agree that no change or modification to this Agreement, or any attachments
hereto, shall have any force or effect unless the change is reduced to writing, dated, and
made part of this Agreement. The execution of the change shall be authorized and signed in
the same manner as this Agreement.
18. SEVERABILITY
In the event any provision of this Agreement shall be held invalid and unenforceable, the
remaining provisions shall be valid and binding upon the parties unless such invalidity or
non-enforceability would cause the Agreement to fail its purpose. One or more waivers by
any Party of any provision, term, condition or covenant shall not be construed by any other
Party as a waiver of a subsequent breach of the same by the other Party.
18. ENTIRE AGREEMENT
It is understood and agreed that the entire agreement of the Parties is contained herein and
that this agreement supersedes all oral agreements and negotiations between the Parties
relating to the subject matter hereof as well as any previous agreements presently in effect
between them relating to the subject matter hereof.
19. EFFECTIVE DATE
This Agreement shall be in full force and effect when Parties sign this Agreement. This
Agreement may be signed in counterparts, each as effective as the original. The signed
Agreement, along with a certified copy of the resolution authorizing the Agreement, shall
be filed with the County, who shall notify the Parties in writing of the effective date.
IN WITNESS WHEREOF, the Parties hereto have set their hands on the dates written below.
APPROVE AS TO FORM: COUNTY OF SCOTT
By:
County Attorney/Date Title:
Date:
Attest:
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Title:
Date:
CITY OF SHAKOPEE
By:
City Attorney/Date Title:
Date:
Attest:
Title:
Date:
CITY OF PRIOR LAKE
By:
City Attorney/Date Title:
Date:
Attest:
Title:
Date:
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..
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CITY OF SHAKOPEE o I\! rftf3Lf:-.
Memorandum
CASE NO.: Not Applicable
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: R. Michael Leek, Community Development Director
SUBJECT: Discussion of Proposed CR 16/21 Park and Ride
MEETING DATE: July 1, 2008
REVIEW PERIOD: Not applicable
INTRODUCTION:
Council is asked to discuss and provide direction, both to City staff and Scott County, regarding the
City's participation in the CR 16/21 park and ride project.
DISCUSSION:
Overview:
The federal funds awarded to Scott County for the CR 21 roadway project includes funds for the
construction of a second park and ride site. The proposed site would be at the southwest comer
of the intersection of CR 16 and future CR 21. Under the federal funding agreement, the park
and ride is to contain at least 545 parking spaces. There is to be a 20% match for construction
costs, with the 20% anticipated to be covered equally by the cities of Prior Lake and Shakopee.
Under the terms of the Memorandum of Understanding entered into by the two cities and the
County (see attached), the cost of acquisition of this second park and ride site were to be paid
60% by the City of Shakopee and 40% by the City of Prior Lake.
Background:
The May 2000 Unified Transit Management Plan for Scott County (UTMP) stated as follows;
"Scott County needs to immediately begin the process of site selection and acquisition,
design and construction of a new transit center in the area south of the Bloomington
Ferry Bridge near the confluence ofCSAH 18, TH 169, TH 13 and the future CSAH 21
extension. "
Subsequent to the adoption of the UTMP, with the assistance of Metropolitan Council transit
staff five potential sites were evaluated for park and ride purposes; one each on either side of
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ride.doc
...
'"
CSAH 18, a site along the proposed east-west segment ofCSAH 21 in Shakopee, and one on
either side of the north-south segment of CSAH 21 in Shakopee.
The evaluation by Craig LaMothe of the Metropolitan Council staff concluded that the best site
was on CR 18 south of TH 169. Based on this evaluation, the cities of Shakopee and Prior Lake,
as well as Scott County, proceeded with the acquisition and development of the site that is now
the Southbridge Crossings Transit Station. This park and ride was opened for service in July of
2007.
Mr. LaMothe's evaluation showed that there was a second tier of good sites near the future
intersection of CR 16 and future CR 21. Through discussions at the Scott County Transit
Planning Team (TPT) and Transit Review Board (TRB), it was decided that it would be
beneficial to move forward with a possible site acquisition from Tollefson Development
Company Inc (Tollefson). This led to the memorandum of understanding between the City of
Shakopee, City of Prior Lake, and Scott County accompanying this report.
Based on the MOU, Scott County made an offer to Tollefson for the acquisition of the second
park and ride site. The offer was later amended to encompass the entire westerly parcel that
would be created by the construction of CR 21. Initially, Tollefson had indicated to the City of
Shakopee and the County that it wished to retain about six to eight acres for commercial
development. The Scott County Community Development Agency (CDA, formerly HRA) had
earmarked funds to acquire a portion of the property for development of an affordable, first-time
home buyer project. The parties to the MOU were then looking at the site as a mixed-use,
transit-oriented development that would also provide access to transit to adjacent areas as they
were developed for residential use.
On October 11,2007 Tollefson sold the subject parcel to the Shakopee Mdewakanton Sioux
Community (SMSC), as well as another large parcel nearby that Tollefson had purchased from
the Shutrop family that same day.
Site Acquisition and Construction Costs:
At the time this report was written it was not clear under what terms the SMSC would make the
par.i<: and ride site available. Staff is aware that the County staff has had discussions with SMSC
staff about possible purchase of the site and possible long-term lease of the site. At this time,
assuming that the site is made available for purchase, it seems likely that it would be at a cost of
at least $130,000/acre. Staffbelieves this is the case because 1) it is the approximate value
offered to Tollefson based on a County appraisal, and 2) in the past month or so the SMSC
purchased a 9+ acre parcel nearby in Prior Lake for about that amount. However, recent land
sales activity has indicated that the softened residential building market may have reduced the
value of raw land, meaning that the $130,000/acre amount should be subject to further
investigation.
Assuming a purchase price of $130,000 per acre, the total and city costs for acquisition for the
alternates under consideration are set forth below.
Site Size 12.4 Acre site 9.12 Acre site
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ride.doc
-
~
Total Cost of Acquisition $1,612,000 $1,185,600
City of Shakopee Cost (60%) $ 967,000 $ 711,360
City of Prior Lake Cost (40%) $ 645,000 $ 474,240
Total construction costs for the park and ride site are expected to be $1.97 million. Federal funds
cover 80% ofthe cost, or $1.58 million. Thus, the local match is 20%/$390,000. The cities of
Prior Lake and Shakopee would share the local match obligation equally, in other words, each
would pay about $195,000 for the local construction match.
Thus, the total cost to the City of Shakopee for site acquisition (if the site were purchased and
construction could range from about $1.38 million and $1.8 million.
There is a potentially substantial impact of the transit operating costs. The City currently
operates van pools, a circulator service and half of the BlueXpress commuter service. The City's
total expected 2009 budget for these services is about $1.2 million. Current MVST, fare and
other revenue projections suggest that the revenues will be less than projected expenditures for
2009 (perhaps as much as $200,000). If that is the case, the City will need to use a portion of its
transit revenue balance just to maintain current service levels. In addition, any expansion of
service (such as addition additional express buses) would have to come from the City's transit
balance. The addition of just one additional Shakopee bus could add an average of about
$204,000 per year in operating costs. Staffs long term concemabout the situation is that the
City would not be in a position to continue to support expansion of service beyond a couple of
years if the City's transit fund balance is drawn down to the extent specified under the MOU to
fund acquisition and construction of the CR 16/21 park and ride. site.
FACTORS IMPACTING CITY OF SHAKOPEE CONSIDERATION OF CR 16/21 SITE:
At the time that the cities and county decided to move forward with acquisition of both the
Southbridge Crossings and the CR 16/21 sites, it was determined that the City of Shakopee
would pay a proportionately larger share of the costs (60% versus 40% for the City of Prior
Lake). This split was largely predicated on the fact that the sites are both within the Shakopee
City limits, and the assumption that they would thereby be more readily accessible and useable to
Shakopee residents. Current use of the Southbridge Crossings site would seem to be consistent
with that assumption.
However, with respect to the CR 16/21 site, the October 2007 change in ownership of two, large
potential development parcels in Shakopee, that assumption is, at best, not a good one. While
the SMSC has not communicated to the City of Shakopee what its future plans are for those
parcels, the following seem to be reasonable assumptions;
. The SMSC-owned parcels will not be available for general residential purposes;
. The acquisition ofthese parcels by the SMSC severely limits the ability to design and
develop pedestrian and transit oriented developments in connection with this park and
ride site;
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. As a result of the attendant reductions in residential development in this area of the City
of Shakopee, the site is likely to be more heavily used by Prior Lake and County residents
than was originally contemplated when the cost split was developed.
The changed circumstances discussed above might suggest that either 1) there should be
reconsideration of whether the CR 16/21 site is still the best site for a second park and ridge, 2)
other sites should be explored, or 3) that the agreement related to the splitting of costs for
acquisition should be reconsidered.
ACTION REQUESTED:
Provide direction to staff regarding whether and on what terms to proceed with acquisition of the
CR 16/21 park and ride.
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MEMORANDUM OF UNDERSTANDING
FOR THE ACQUISITION OF LAND FOR A
TRANSIT PARK AND RIDE FACILITY
THIS MEMORANDUM OF UNDERSTANDING is made and entered into by and
between Scott County, a Minnesota governmental entity located at 200 Fourth Avenue West,
Shakopee, Minnesota 55379-1220 (hereinafter referred to as the "County"), the City of
Shakopee, a Minnesota municipal corporation, 129 Holmes Street Shakopee, MN 55379
(hereinafter referred to as "Shakopee"), and the City of Prior Lake, a Minnesota municipal
corporation, 16776 Fish Point Road SE, Prior Lake, MN 55372 (hereinafter referred to as "Prior
Lake") (hereinafter collectively referred to as the "Parties").
RECITALS
WHEREAS, the Parties are authorized to enter into contracts as a joint powers
organization pursuant to Minnesota Statutes, Section 471.59, and
WHEREAS, the Parties have a shared interest in planning and providing efficient transit
services to the residents of Scott County, and
WHEREAS, the Parties have, through prior undertakings, jointly participated in
completing a Unified Transit Management Plan ("UTMP") that recommends various transit
capital and service improvements for County-wide; and
WHEREAS, each of the Parties has adopted the recommendations of the UTMP in part,
in whole, or with conditions; and
WHEREAS, the Parties, through their participation in the Scott County Transit Review
Board and Transit Planning Team, have begun to plan for the development of a regional park-
and-ride facility that would accommodate 500 parking spaces with the potential to be expanded
or decked, and to plan for acquisition of a second park-and-ride site; and
WHEREAS, two sites have been identified as locations that will meet the needs for
regional park-and-ride facilities; and
WHEREAS, the Parties desire to participate in and share the cost of retaining an
engineering firm to design and prepare the construction specifications for the regional park-and-
ride facility at the 18/169 Site ("Project"); and
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\ ........ ...~JD~~~,\the<Rarties...de~iretoseloutthe.tertns,conditiohsandcostallocation for.(l)
the.acguisition;.of:b.Qtl1the18r169.Siteandthe{JR16Site"and (2) the design and construction of
the 18/169 Site; and
WHEREAS, the Parties hereto have concluded that the actions set forth above can best
be accomplished through a Memorandum of Understanding.
NOW THEREFORE, in consideration of the mutual undertakings and agreements
contained herein, the Parties hereby agree as follows:
1. RECITALS. The recitals contained herein and set forth above are incorporated by
reference as if fully written herein.
2. PURPOSE: The purpose of this Memorandum of Understanding is to set out the
obligations of each of the Parties to this Agreement with respect to (1) the acquisition
of land to be used for regional park & ride facilities, and (2) to solicit proposals for (a)
a consulting engineer to design and prepare construction drawings and specifications
for the facility at the 18/169 Site, and (b) construction of the Project.
3. TERM OF AGREEMENT
This Agreement shall be effective from the date of final execution by all parties and shall
remain effect through the term of ownership of the 18/169 site and the CR 16 Site, and
the development of the 18/169 park & ride facility, unless terminated earlier by the
Parties as provided herein. This agreement shall be recorded against the property(ies) in
the office of the Scott County Recorder.
4. ACQUISITION OF 18/169 AND CR 16 SITES
1. Negotiations for Land Acquisition. The Parties shall enter into negotiations for
the acquisition of the 18/169 Site and the CR 16 Site previously identified herein
as Exhibits A and B. Each ofthe Parties shall designate a staff member to act on
its behalf to participate in the negotiations. Parameters for the negotiations shall
be set cooperatively through the authority granted by the governing bodies of the
Parties. Final authorization for any purchase agreement for the acquisition is
subject to approval by the governing bodies of the Parties funding the land
acquisition as identified in section 4.3 herein.
2. Title to Land and Closing Procedures.
1. 18/169 Site: Scott County and the Metropolitan Council shall hold fee title
to the property in perpetuity. Closing on the property shall be completed no
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later than August 1, 2006, and closing costs typically attributed to Buyer
shall be borne by Scott County through cooperative funding agreements with
the Met Council and MnDOT.
In the event it is determined that the site is no longer suitable for transit
purposes, the property shall first be offered to the Metropolitan Council,
provided that the Metropolitan Council reimburses the County proportionate
to its initial investment based upon the market value of the property. If the
Metropolitan Council does not desire to use the property, it shall be sold and
the proceeds of the sale divided among Scott County and the Metropolitan
Council proportionate to their respective cash contributions to the land
acquisition.
3. Financial Obligations of the Parties for Acquisition of 18/169 Site: The Parties
shall contribute the following amounts for the acquisition of the 18/169 Site:
Metropolitan Council $ 800,000
Scott County: $1,500,000
5. CONSTRUCTION OF PARK & RIDE F ACILITmS AT 18/169 SITE AND CR 16 SITE
1. Request for Proposal for Engineering Design Services. The Parties, through their
participation on the Transit Review Board and Transit Planning Team, have solicited
proposals for design and preparation of final plans and specifications for the
construction of the 18/169 Site. The Parties shall share in the costs of the contract as
follows:
Metropolitan Council: $150,000
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Shakopee: $ 15,000
Prior Lake: $ 15,000
2. Duties of the Parties
(a) County. The County shall act as the administrative and fiscal agent during the
Project. Duties shall include but not be limited to providing an employee to act as
the Project Manager during the course of the Project, administer the Request for
Bid process for construction for the Project, receiving and maintaining funds,
disbursement of funds at the direction of the Parties, accounting for revenues and
expenditures, producing financial statements as necessary, and reporting as
required by local governments and state and federal agencies.
(b) Shakopee and Prior Lake. Shakopee and Prior Lake shall each seek appropriate
authorization from their respective governing bodies and authorize payment of
all amounts due, provide one employee to act as a representative in the contractor
selection; and pay the agreed upon contribution to the County within thirty (30)
days of notification by the County ofthe installment payment due.
(c) Metropolitan Council. The Metropolitan Council shall act an advisory resource
during the Project.
3. Financial Obligations of the Parties. At the initiative of the County, the Project
received federal CMAQ funding as part of the CSAH 21 extension project. The
federal funding requires a local construction match, and will not be available until
200912010. In order to advance construct the 18/169 Site, the County would advance
the CMAQ funding that would be reimbursed in 2009/201 0 in the amount of
$1,204,800. Shakopee and Prior Lake would be responsible for the required local
construction match as follows:
Shakopee. . . . . . . . .60% of required local construction match not to exceed
$
Prior Lake...... ...40% of required local construction match not to exceed
$
4. Future Construction of CR 16 Site. Future construction of a park & ride facilities at
this location will be determined by demand and the completion of the CSAH 21
extension project. At such time as it is determined by the Parties to move forward
with the construction of the facility, the Parties will work cooperatively to determine
additional responsibilities and funding through separate agreement.
5. Maintenance and Operation of 18/169 Site. Maintenance and operation
responsibilities of the Parties with respect to the 18/169 Site, together with associated
costs, shall be memorialized by the Parties under separate agreement.
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6. COUNTY AND STATE AUDIT
Pursuant to Minn. Stat. Section 16C.05, Subd. 5 (1998), the books, records, documents, and
accounting procedures and practices of the Parties relative to this Agreement shall be
subject to examination by the County and the State Auditor. Complete and accurate records
of the work performed pursuant to this agreement shall be kept by the Parties for a
minimum of six (6) years following termination of this agreement for such auditing
purposes. The retention period shall be automatically extended during the course of any
administrative or judicial action involving the County of Scott regarding matters to which
the records are relevant. The retention period shall be automatically extended until the
administrative or judicial action is fmally completed or until the authorized agent of the
County notifies the Parties in writing that the records need no longer be kept.
7. INDEMNITY
Each Party shall indemnify, defend, and save the other Parties harmless from any and all
claims, damages, lawsuits, losses, liabilities, costs, and expenses, arising out of any
negligent act or omission on the part of any Party or its contractors, agents, servants, or
employees in the performance of any of the work or services to be performed under the
terms of this Agreement. Each Party's obligation to indemnify the other under this clause
shall be limited in accordance with the statutory tort limitations provided in Minn. Stat. S
466.04 to limit each Party's total liability for all claims arising from a single occurrence,
including the other Party's claim for indemnification, to the limits provided in section
466.04.
The County shall be responsible for the professional quality, technical accuracy, and the
coordination of all services furnished by the County under this Agreement. The County
shall, without additional compensation, correct or revise any errors or deficiencies in the
County's final reports and services.
8. LIABILITY
The liability limits set out in Minnesota Statute Chapter 466 shall apply to this
Agreement. This Agreement shall not act to aggregate the liability limits of the
individual parties.
9. SUBCONTRACTS
The Parties shall not subcontract any of their obligations to be performed under this
Agreement nor assign this Agreement.
10. FORCE MAJEURE
The Parties agree that the County shall not be liable for any delay or inability to perform
this Agreement, directly or indirectly caused by or resulting from strikes, labor troubles,
accidents, fire, flood, breakdowns, war, riot, civil commotion, lack of material, delays of
transportation, acts of God or other cause beyond reasonable control of the County and
the rest of the Parties.
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11. DATA PRACTICES
All Parties, their agents, employees and any of their subcontractors, in providing all
services hereunder, agree to abide by the provisions of the Minnesota
Government Data Practices Act, Minn. Stat. Ch. 13, as amended, and Minn.
Rules promulgated pursuant to Ch. 13.
12. TERMINATION
This Agreement may not be terminated unless disposition of any property acquired has
occurred in connection with the terms of this agreement. In the event, the Parties fail to
acquire the land contemplated by this agreement, the agreement may be terminated upon
completion or termination of any contract for professional engineering services provided
for herein.
Upon Termination of this Agreement, any unused funds shall be returned to the
contributing Parties in the same proportion that initial contributions were made.
Disbursement of funds resulting from the sale or disposition of the property contemplated
herein shall comply with the terms and conditions set forth in section 4D herein.
13. NOTICES
Any notices to be given under this Agreement shall be given by enclosing the same in a
sealed envelope, postage prepaid, and depositing the same in the United States Postal
Service, addressed to the each of the Parties at the following addresses:
Carol Becker
Scott County Administrator's Office Metropolitan Council
200 4th Ave. West 230 East Fifth Street
Shakopee, MN 55379 St. Paul, MN 55101-1634
Michael Leek Kelly Meyer
CITY OF SHAKOPEE CITY OF PRIOR LAKE
129 Holmes Street 4646 Dakota Street
Shakopee, MN 55379 Prior Lake, MN 55372
14. CONTROLLING LAW
The laws of the State of Minnesota shall govern all questions and interpretations concerning
the validity and construction of this Agreement and the legal relations between the parties
herein and performance under it. The appropriate venue and jurisdiction for any litigation
hereunder will be those courts located with the County of Scott, State of Minnesota.
Litigation, however, in the federal courts involving the parties herein will be in the
appropriate federal court within the State of Minnesota. If any provision of this Agreement
is held invalid, illegal or unenforceable, the remaining provisions will not be affected.
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15. SUCCESSORS AND ASSIGNS
The Parties, respectively, bind themselves, their partners, successors, assigns, and legal
representatives to the other party to this Agreement and to the partners, successors, assigns,
and legal representatives of such other party with respect to all covenants of this Agreement.
No Party shall assign, sublet, or transfer any interest in this agreement.
16. EQUAL EMPLOYMENT AND AMERICANS WITH DISABILITIES
In connection with the work under this Agreement, the Parties agree to comply with the
applicable provisions of state and federal equal employment opportunity and
nondiscrimination statutes and regulations.
17. CHANGES
The Parties agree that no change or modification to this Agreement, or any attachments
hereto, shall have any force or effect unless the change is reduced to writing, dated, and
made part of this Agreement. The execution of the change shall be authorized and signed in
the same manner as this Agreement.
18. SEVERABILITY
In the event any provision of this Agreement shall be held invalid and unenforceable, the
remaining provisions shall be valid and binding upon the parties unless such invalidity or
non-enforceability would cause the Agreement to fail its purpose. One or more waivers by
any Party of any provision, term, condition or covenant shall not be construed by any other
Party as a waiver of a subsequent breach of the same by the other Party.
18. ENTIRE AGREEMENT
It is understood and agreed that the entire agreement of the Parties is contained herein and
that this agreement supersedes all oral agreements and negotiations between the Parties
relating to the subject matter hereof as well as any previous agreements presently in effect
between them relating to the subject matter hereof.
19. EFFECTIVE DA T.€
This Agreement shall be in full force and effect when Parties sign this Agreement. This
Agreement may be signed in counterparts, each as effective as the originaL The signed
Agreement, along with a certified copy of the resolution authorizing the Agreement, shall
be filed with the County, who shall notify the Parties in writing of the effective date.
IN WITNESS WHEREOF, the Parties hereto have set their hands on the dates written below.
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APPROVE AS TO FORM: COUNTY OF SCOTT
By:
County AttorneylDate Title:
Date:
Attest:
Title:
Date:
CITY OF SHAKOPEE
By:
City Attorney/Date Title:
Date:
Attest:
Title:
Date:
CITY OF PRIOR LAKE
By:
City AttorneylDate Title:
Date:
Attest:
Title:
Date:
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