2005-07-14 Lachman Ave Extension,~ ,,.,,~
~4 ~~ ~
:.. F -~ ~~pn~~n~, i~~e.
July 14, 2005
Mr. Larry Kruse
City of Albertville
5975 Main Avenue NE
P.O. Box 9
Albertville, MN 55301
Re: LaBeaux Station Development
Lachman Avenue Extension
Dear Larry:
{
~9
> ~4
~'f~,~'
Please find our position regarding the topic that we discussed at our meeting on Tuesday, July
12, 2005 at City Hall with Mark Kasma of Bolton & Menk regarding the extension of Lachman
Avenue through Cascade 11's Land Company, Inc.'s (Cascade II) property bordered by 57th and
CR19 (LaBeaux). As you know, Terra Development, Inc. (Terra) is representing Cascade II and
have cooperated with Albertville's interest in having Lachman extend through this property.
Originally, the City of Albertville did not represent that Lachman Avenue would extend through
our property and in fact, our earlier concepts did not include a Lachman Avenue extension at all.
This request came from our discussions with staff and we have explored a number of options for
its ultimate location. The location of Lachman Avenue approved is where the city desired to
have it located through our property.
The Lachman Avenue extension and the costs associated with it have been made the
responsibility of Cascade II and Terra. These costs are further escalated beyond just the costs
of the road improvements as we lose the opportunity to add square footage to the property for
development due to the ROW associated with Lachman Avenue. This development also loses
square footage due to the utility easement going through the property.
At our meeting regarding the Lachman Avenue extension, it was communicated to me that the
city would like to charge additional costs tc our development for the extension of Lachman
through the Barthel's property to the North. Option 1 and Option 2 (attached) represent an
additional cost of either $137,592 or $156,884 to our project. In essence, we are being required
to pay for all the Lachman Avenue improvements through our property and additionally a portion
of the improvements through Barthel's property.
Our objections to this proposal include but are not limited to:
• Cascade II is currently required to pay for the complete Lachman Avenue extension
through our property (estimated at $87,840), as well as, any necessary hydrant
relocation and possible power pole relocation due to the roads location
• Cascade II is being asked by the city to split costs with Barthel's based upon the premise
that we are benefiting from the extension of Lachman to the North. There are many
more parties benefiting from the road extension, including the City of Albertville.
• Cascade II is losing property to develop due the road extension
Our current estimate for the Lachman Avenue improvements through our property is:
Earthwork - $15,180
Utilities - $31,250
Curb & Gutter - $10,360
Bituminous - 31050
Total $87,840
Our first response to this request is that we are not interested in participating in the costs for the
road extension through Barthel's property; however, in the spirit of cooperation please find the
following alternatives and options to your proposals that you should consider.
1. Cascade II could still complete the construction of Lachman Avenue through our
property and pay for improvements (valued at $87,840)
2. If Cascade II is being asked to participate in the costs on the Barthel property then the
Barthel's should participate in the costs associated with the Lachman Avenue extension
through our property (50/50 or $43,920 to both parties)
3. More parties should participate in the costs for Lachman through the Barthel property, as
well as our property. This would help to reduce or offset the costs proposed for the road
extension and may allow the road to proceed quicker.
4. Cascade II is willing to sell the Northeast corner of our property to the City of Albertville
estimated at 16,400sf for $82,000 to help offset the costs for the Lachman improvements
(see attachment).
In summary, Terra Development, Inc. representing Cascade II requests that an alternative
proposal be drafted for our review. This alternative proposal should include any of the
above alternatives described.
Our current schedule for LeBeaux Station development is to submit for final plat by the end of
July for approval at the September 6, .2005 council meeting. Grading and utility work is
anticipated to begin immediately and construction of the first retail building would begin in
October 2005.
Call with any questions that you may have.
nceref
T H. Brown
Vice President
TH B/tb
enclosures
C: Chuck Christian
Bill Christian
OPTION 1
LACHMAN AVENUE (LABEAUX STATION TO 60TH STREET NE}
ASSUMES WEST SIDE OF BARTHEL'S PROPERTY IS BUILDABLE
STREET COST $330,000.00
STORM SEWER COST $28,000.00
TOTAL IMPROVEMENT COST $358,000.00
BARTHEL FRONT FOOTAGE 229 LF
WETLAND FRONT FOOTAGE 756 LF
TOTAL STREET FRONT FOOTAGE 985 LF
FRONT FOOTAGE COST = $358,000 / 985 LF = $364 / LF
BARTHEL COST = 229LF X $364 / LF = $83,356
WETLAND COST = 756 LF X $364 / LF = $275,184
ASSUMES WETLAND COST = 50% BARTHEL AND 50% CASCADE II
CASCADE II COST = $137,592
BARTHEL COST = $137,592 + $83,356 = $220,948
~~ ,
OPTION 2
LACHMAN AVENUE (LABEAUX STATION TO 60TH STREET NE)
ASSUMES WEST SIDE OF BARTHEL'S PROPERTY IS NON- BUILDABLE
STREET COST $330,000.00
STORM SEWER COST $28,000.00
TOTAL IMPROVEMENT COST $358,000.00
BARTHEL FRONT FOOTAGE 123 LF
WETLAND FRONT FOOTAGE 862 LF
TOTAL STREET FRONT FOOTAGE 985 LF
FRONT FOOTAGE COST = $358,000 / 985 LF = $364 / LF
BARTHEL COST = 123LF X $364 / LF = $44,772
WETLAND COST = 862 LF X $364 / LF = $313,768
ASSUMES WETLAND COST = 50% BARTHEL AND 50% CASCADE II
CASCADE 11 COST = $156,884
BARTHEL COST = $156,884 + $44,77y = $201,656
ARCNiTEa
i2a n
Mtnne
0
0
rn
i~n
0
rn
0
0
0
wwv
.~.-
[`
r,~
~: ~`y,
L~ ----