04-11-2006 Council Work Session Packet

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TO: Mayor Peterson and Council Members FROM: Ron Moorse, City Administrator �� DATE: April 5, 2006 SUBJECT: Driveway Easement in Dakota Rail Corridor for Crystal Bay Road Properties Several properties on Crystal Bay Road use a driveway that is in the Dakota Rail Corridor right-of-way for access. Although this driveway has been used for many years, the properties do not have a legal right to use it. As the Hennepin County Regional Railroad Authority (HCRRA) now owns the Dakota Rail Corridor, they have jurisdiction over the driveway. The HCRRA has agreed to provide an easement to the City that enables the driveway to continue to be used. The cost of the easement is $84,879.81. The cost of the easement is to be allocated to the benefiting properties. There are a number of issues related to this cost allocation. These include whether the costs should be allocated on a per-unit basis or a linear foot basis,whether a portion of the cost should be allocated to the City,whether all parcels that abut the driveway benefit from the driveway, and whether the cost should be assessed to the properties over a number of years. It is important for the council to discuss these issues prior to meeting with the affected property owners. There are seven properties along the driveway. The width of the properties along the driveway varies, with one property being a double lot. If the easement cost was allocated on a per-unit basis, each property would pay $12,125. If the cost was allocated by linear foot, the cost per property would vary widely, due to the large differences in the width of the lots adjacent to the driveway. The City has generally allocated the cost of sewer projects on a per-unit basis rather than on a linear foot basis, so that properties pay the same amount, regardless of how wide the lots are. Some of the early projects were assessed partly on a per-unit basis and partly on a linear foot basis. The City has a water line that runs parallel to the driveway, on the north edge of the driveway. The driveway is the only means of accessing the water line to perform maintenance and repair activities. This raises the question of whether the City should pay a portion of the easement cost. If the driveway was privately owned,and the City needed an easement for access to the water line, the City would compensate the property owner for an easement. On one of the properties, the house is located closer to Crystal Bay Road, has its access from Crystal Bay Road, and does not use the driveway for access. If the owner of this property was to object to an assessment for the easement, it may be difficult to show that the driveway easement would provide a substantial benefit to this property.