07-0409R


RESOLUTION AMENDING RESOLUTION 06-0449 RELATING TO HIGHWAY 53 RECONSTRUCTION AND INCREASING COST BY $400,000.

BY COUNCILOR JOHNSON:

     RESOLVED, that the proper city officials are authorized to execute and implement an agreement substantially the same as that on file with the city clerk as Public Document No. ____________, between the city, St. Louis County and Minnesota department of transportation, which agreement amends the agreement authorized by Resolution 06-0449 pertaining to property acquisition for the Highway 53 reconstruction, increasing the amount by $400,000 for a new total of $1,900,000; payable from the Permanent Improvement Fund 411, Agency 035, Object 5530, and would be reimbursed from the city’s municipal state aid construction account, Project PI0391TR.


STATEMENT OF PURPOSE:  This resolution will authorize an amendment to Resolution 06-0449, passed June 26, 2006. The original resolution authorized proper city officials to enter into a joint agreement with MnDot, St. Louis County and the city of Duluth for property acquisition associated with the reconstruction of a segment of Miller Trunk Highway (T.H. 53). The cost proposal for the initial resolution for property acquisition was based strictly on estimated property values on a square foot basis and did not include any condemnation associated costs. Upon completion of property appraisals, the fair market value of some of the properties was higher than estimated. This amendment also changes the scope of work that Minnesota department of transportation will be providing by commencing and completing condemnation proceedings on properties that are unwilling to settle for the fair market value of said property. This amendment is needed to cover the increased value of the properties to be acquired and will be compensation for all condemnation proceedings regardless of their outcome in court. Funding for these services will be from the city’s municipal state aid construction account.