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RESOLUTION AUTHORIZING THE PURCHASE OF A PERMANENT EASEMENT FROM VERSO MINNESOTA WISCONSIN LLC FOR PUBLIC RECREATIONAL, WALKWAY, AND TRAIL PURPOSES.
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CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into the purchase agreement, substantially the same as the agreement attached as Exhibit 1, with Verso Minnesota Wisconsin LLC authorizing the purchase of a permanent easement for public recreational, walkway, and trail purposes in an amount not to exceed $50,000, payable from Fund 450-030-5530 (capital improvements, finance, improvements other than buildings, cross city trail phase II), Project CP450-CCity 0595TR.
FURTHER RESOLVED, that the proper city officials are hereby authorized to execute all documents necessary to effectuate the acquisition of the easement from Verso Minnesota Wisconsin LLC.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the City to pay up to $50,000 from the half and half tourism tax fund for investment in the St. Louis River Corridor to Verso Minnesota Wisconsin LLC (“Verso”) to acquire a trail easement to allow 2017-2018 construction of a segment of the Cross City Trail. An aerial view of the easement area is attached as Exhibit 2.
The approved Cross City Trail Mini Master Plan prescribes construction of the trail along the river from the Wade Stadium area to the park at the heart of the Irving Park neighborhood. The prescribed route crosses the Verso property in question. The attached Exhibit 3 depicts the segment of the Cross City Trail to be constructed in 2017 and labels each of the three real estate transactions necessary to allow construction to proceed.
The trail easement area is the critical spot that large trucks serving Verso presently depend upon to be able to turn-around for loading and unloading. To enable continued truck service to the plant, Verso has conditioned sale of the easement on commitments that the City and MNDOT will take three interrelated actions to enable trucks to turn around in adjacent areas:
1. MNDOT will sell adjacent property to Verso;
2. The City will vacate an adjacent portion of the Recycle Way road right-of-way;
3. The City will cover all of the costs for Verso to acquire MNDOT property and improve it to enable trucks to turn around. The scope of the improvements is attached as Exhibit 4.
The purchase price for the easement shall be set so as to precisely cover costs for Verso to acquire and make necessary improvements to adjacent property. The price shall be calculated as follows:
1. The purchase price paid by Verso, which shall be equal to fair market value as determined by MnDOT, to acquire from MnDOT the land highlighted in green on the attached Exhibit 5.
2. The purchase price paid by Verso, which shall be equal to fair market value as determined by MnDOT, to acquire from MnDOT any land adjacent to or underlying the portion of Recycle Way highlighted in purple on the attached Exhibit 5.
3. A mutually agreed upon dollar amount, intended for Verso to improve and extend its existing parking lot adjacent to, and into some or all of the areas shown on Exhibit 4, based on estimates obtained by Verso (the “Improvement Costs”). The scope of the improvements to be included in the Improvement Costs shall be mutually decided by Verso and City.
Though the final purchase price for the easement will be finalized at a later date, it is anticipated that the cost for VERSO to acquire MNDOT property will not exceed $30,000.00 and the cost to improve and extend VERSO’s parking lot will not exceed $20,000.00, for a maximum purchase price of $50,000.00. This resolution authorizes the city to pay up to $50,000.00 for this easement.
In further consideration of the easement, the city agrees to maintain the trail or other improvements within the easement area, as well as provide a reasonable amount of vegetation, fencing, and signage to limit use of Verso’s adjacent property.