09-362CITY OF SAINT PAUL
COUNCIL FILE NO. G�I' �� a�
�
FINAL ORDER BY �
FILE O. AE2009-01
VOTING WARD 1
In the Matter of acquiring the property rights needed for the Pierce Butler East Extension Project, Phases I and
II, between Grotto Street on the west and Western Avenue on the east, for the public purpose of extending
Pierce Buder Route easterly to Phalen Boulevard (see attached map). Properties rights to be acquired include:
630 Pierce Butler Route — total acquisition (Phase I)
Southerly portion of BNSF Railway property between Dale St. and Anxudel St — permanent easements (Phase I)
388 Como Avenue — total acquisition (Phase 2)
under Preliminary Order _ approved
The Council of the City of Saint Paul has conducted a public hearing upon the above improvement, due
notice thereof having been given as prescribed by the City Charter; and
WHEREAS, The Council has heazd all persons, objections and recommendations pertaining to said
proposed improvement and has fully considered the same; now, therefore, be it
RESOLVED, That the Council of the City of Saint Paul does hereby order that the above-described
improvement be made, and the proper City officers aze hereby directed and authorized to proceed with the
improvement; and be it
FURTHER RESOLVED, That the Council hereby determines the real estate required for this
improvement to be fee simple, absolute and easements as described above, and the City officers and City
Attomey are hereby authorized and directed to take all actions necessary to acquire said real estate by direct
purchase or eminent domain, including quick take; and be it
FINALLY RESOLVED, That the Council hereby determines that the real property rights required for
this improvement be as described above, and that the proper City officers submit a report to the City Council for
the purpose of the Council's making an award of damages for the interest acquired on said real property rights.
COiTNCILPERSONS Adopted by Council: Date ��Ot�C� tf
Yeas Navs
� Bostrom
�/ Carter
_� Harris
� � � n .� Helgen
,i Lantry
� Stark
r/ Thune
Certified Passed by Council Secretary
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Mayor
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DepartmenUOffice/Council: Date Initiated:
FS -FinancialServices �,,,�-09 Green Sheet NO: 3067517
Contact Person & Phone: DeParhnent Sent To Person InitiaVDate
BNCeEnp21b2kt � 0 mancialServ�ces BruceEn elbzekt �
266-8854 � 1 nncfl Ma -Erickson
�' 2 ' Clerk Ci Cierk
Must Be on Council Agenda by (Date): Number
O7 /APR-09 For .
Routing
Doc. Type:0it1ER (DOESNT FIT ANY Order .
CATEGORI�
E-DocumeM Required: Y
Document ConWCt: BNce Engelbrekt
ContactPhone: 266-8854
Total # of SignaW re Pages _(Clip All Lowtions for Signature)
Action Requested: �
Approve Final Order to acquire property rights for the Pierce Butler East Exteasion Project, Phases I aud II, for the puipose of
extending Pierce Butler Route easterly to Phaien Boulevazd. (See attached map.)
Recommendations: Approve (A) or Rejed (R): Personal Service Contracts Must Answer the Following Questions:
Planning Commission 1. Has this person/firm everworked under a contract for this depariment?
CIB Comm'Rtee Yes No
Civil Service Commission 2. Has this perso�rm ever been a city employee?
Yes No
3. Does this person/firm possess a skiil not normally possessed by any
current city empioyee?
Yes No
Explain all yes answers on separate sheet and aMach to green sheet.
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
The City Council must approve a Final Order to authorize city staff to purchase the property rights listed in the FO resolu6on. Two of
the tluee properties would be acquired as total takes, one would require a pemianent easement. These properties are directly in the
alignment of the proposed extended roadway and must be acquired by the City.
Advantages If Approved:
The acquisition work for the project may go forwazd.
DisadvanWges If Approved:
None, but the properry owners will lose their properties in exchange for fair market valued paid by the City per state and federal law.
Disadvantages If Not Approved:
The acquisition work cannot proceed.
- - --- - - - -- -- -----
Total Amount of $5,000,000-00
Transaction: CostlRevenue Budgeted: Y
Fu�diny source: Municipal State Aid qaivity Numner: Public Works project funds
Financial lnformation:
(Explain)
March 4, 2009 4:31 PM Page 1
(�l'�le a-
Si3MMARY OF ENGINEERING RECOMMENDATIONS
Pierce Butler East Extension
Grotto Street to Phaten Boulevard
Right-of-Way Acquisition
Report Prepared — 03/03/2009
Public Hearing to be scheduled — 04/01/2009
PROJECT:
Acquire right-of-way for the proposed East Extension of Pierce BuUer Route.
INITIATING ACTION:
This project is recommended in the City Council-adopted Thomas-Dale (District 7) Small
Area Plan and is being implemented by the Department of Public Works.
PROPOSEDIMPROVEMENTS:
It is proposed to ea�tend existing Pierce Butler Route from Grotto Street, approximately
two blocks east of Dale Street, connecting it to Phalen Boulevazd. at the east end. The
new road alignment would generally run south of and pazallel to the Burlington Northern
Santa Fe Railroad alignment and along existing Empire Drive connecting the ea�isting
Pierce Butler Route to Phalen Boulevard. creating a continuous east-west street
connec6ng the Midway azea to the East Side.
PROPOSED RIGHT OF WAY ACQUISITION:
The right-of-way that is proposed to be acquired is 630 Pierce Butler Route (Golden
Globe International Mazket), the southerly portion of the BNSF property between Dale
Street and Arundel Street, both a part of Phase 1 of the proposed project, and 388 Como
Avenue (formerly known as A-1 Auto), Phase 2, as shown on the attached map.
ADVERSE EFFECTS:
Construction of the Pierce Butler East Extension will require acquisition of the properties
at 388 Como Avenue and 630 Pierce Butler Route and relocation of the businesses
located there. The City of Saint Paul will provide relocation payments and services to
owners of acquired properties in accordance with the Uniform Relocation Assistance and
Real Properties Acquisition Policies Act of 1970, as amended and required under state
law.
TIME SCHEDULE:
The property acquisifion will begin in the spring of 2009 and may continue through early
2010. Construction is anticipated to begin in the early spring of 201 l.
�� ' i
COST ESTIMATES:
Right of Way
�
Construction
Project Total
ESTIMATED RINANCING:
Federal TEA-21
State Bonding
City MSA
Assessments
Project Total
$5,000,000
$0
$5,000,000
$0
$0
$5,000,000
$0
$5,000,000
SOURCE OF ADDITIONAL INFORMATION:
For additional information, contact Eriks Ludins, at 266-6204.
SUMMARY AND RECOMMENDATION:
The Department of Public Works believes that this is a necessary and worthwhile project
and the Engineering Recommenda$on is for approval of the project and acquisition.
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LELAND J. FRANKMAN
(6t2) 375-1600
Christopher Coleman, Mayor
City of St. Paul
Office of the Mayor
390 City Hall
15 Kellogg Boulevard West
Saint Paul, MN 55102
Melvin Cartes, III
Councilmember
City of St. Paul
310-A Ciry Hall
15 Kellogg Blvd., West
Saint Paul, MN 55102
Lee Helgen
Councilmember
City of St. Paul
320-A City Hall
15 Kellogg Blvd., West
Saint Paul, MN 55102
Russ Stark
Councilmember
City of St. Paul
310-D City Hall
15 Kellogg Blvd., West
Saint Paul, MN 55102
LELAND J. FRANKMAN
— ATTORNEYS AT LAW—
2000 U.S. BANK PLAZA
220 SOUTH SIXTH STREET
MINNEAPOLIS, MN 55402
(612) 375-1600
FAX (672) 335-3572
EMAIL: UFMNIaw@aol.com
HARRV A. FRANKMAN
DIRECT DIAL(6l2)605-1035
AL50 ADMITTED IN FLORI�A
May b, 2009
Dan Bostrom
Councilmember
City of St. Paul
320-B City Hall
15 Kellogg Blvd., West
Saint Paul, MN 55102
Pat Harris
Councilmember
City of St. Paul
310-C City Hall
15 Kellogg Blvd., West
Saint Paul, MN 55102
Kathy Lantry
Councilmember
City of St. Paul
320-C City Hall
15 Kellogg Blvd., West
Saint Paul, MN 55102
Dave Thune
Councilmember
City of St. Paul
310-B City Hall
IS Kellogg Blvd., West
Saint Paul, MN 55102
Re: Yermolenko-388 Como Avenue South
Public Hearing to be Held by the City Council of the City of Saint Paul
May 6, 2009-E�tension of Pierce Butler Route
49-3G �
Deaz Mayor and City Council of the City of Saint Paul:
I represent Capitol Car Company and its owner Gennadiy Yermolenko. The City of Saint Paul
desires to take the property mentioned above for the extension of the Pierce Butler Route despite
the fact that the City cannot show the requisite necessity for condemning the property. The
funds have not been allocated for this acquisition, either. Even though the City has a"desire" to
extend the Pierce Butler Route, the City must show that is going to need the property now or in
the near future. The subject property is not even in Phase I of the Project. The City cannot
simply "stockpile" properties while it looks for funding and while it considers various options.
See Regents of the University of the University of Minnesota v. Chicago and Northwestern
Transportation Company, 522 N.VJ. 2d 578. (Minn. App. 1996)
The $5,000,000.00 estimated by the City for acquisition of these properties is not a realistic
number, and if one does a proper analysis of the value of these businesses and their relocation,
$50,000,000.00 is a more realistic number. The City has not gone through a complete review of
the costs of condemnatlon of not only my client's property, but of the other properties that need
to be condemned. Minnesota Law also mandates relocation of tenants in the area. I have
represented landowners for over 40 yeazs, and it is very likely that the acquisition cost, of a
single property alone could be over $5,000,000.00.
My client has operated a business down the street from the subject location for years, and he has
the respect and support of the citizens of District 7. The Planning Commission on Apri124, 2009
held a public hearing and approved the enlargement of a nonconforming use on the property. He
has sbown that he and the neighbors oppose this project. They are wondering why the City is not
looking at alternative routes that do not impact productive taxpayers of the City. The most
sexious concern is that the City by its own admission is trying to stockpile properties for a price
below market value for a project not fully developed or funded
LJF:af
V y t 1y u s,
Leland J. Fr n
cc: Gennadiy Yermolenko
,
D9-3��
May 6, 2009
St. Paul City Council
Public Hearing
15 West Kellogg Blvd.
St. Paul, MN 55101
In 2005 the District 7 Planning Council submitted an Area Plan that
expressed a desire to see Pierce Butler Route extended from Dale St. to 35E.
In August of 2007 the City Council adopted that plan in to the City's
Comprehensive Plan. At no time was the current proposed route, running
through Daisy Haung's business (630 Pierce Butler), ever presented to you
or to the community. For over 6 years the original route always went along
the tracks to the North of Ms. Haung's business.
Public Warks has claimed that they came to a conclusion to change the route
� in early 2007. I have spoken to the District 7 employee and the resident that
sat on the task force that convened at that time. They claim that no
conclusion had been made and that they were promised a full community
meeting before the project moved forward. Public Works lost its staff
person, in charge of this project, and it lay dormant for almost a year.
In that time, Ms. Haung was never told that the city was interested in her
properiy. In that time, she expanded her business from a warehouse to a full
retail grocery store and mall. She created space for merchants and
restaurateurs totaling 55 families. To do this she spent months securing City
building permits, licenses, and a parking variance. Not once did any of the
city employees involved in those processes ever teli Ms. Haung that her
endeavor was futile. She pored millions of dollars into a business and a
community that needed her inspiration. Now, less than 6 months later, we're
here discussing the demolition of her dream. And don't think for a second
that it is about money. Those 55 families that started their small businesses,
within her mall, put their lives on the line. Sure they might be adequately
compensated, but then where do they go? They have already found a home
and wish not to leave.
Down the street at 388 Como the same thing was happening. Mr.
Yermolenko bought an ugly, run down building. He had a vision to replace
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it with something more pleasing to the eye and that also generated more
employment for our community. The site was in bad shape. He spent
thousands of dollars cleaning it up and demolishing the dilapidated building.
He also was required to pull pernuts for this clean up and demolition.
Again, not once did anyone at the city mention your future plans. Sure he
xnight be adequately compensated, but then what. How long will Frogtown
stare at a huge empty lot, producing nothing, but dust?
I love watching St. Paul Neighborhood Network.
Recently, I was inspired by the discussion of the 3M site. The wark that the
Port Authority and you are doing there is amazing. I saw maps, plans, 3D
computer images with city staff from multiple departments, developers, and
community residents a11 working together towards a vision_ Most important,
I saw options and a chance to choose what they wanted.
The neighborhood does not blame Public Works for the lack of
communication on Pierce Butler. The Transportation Engineers are doing
the best they can with the resources they have been given. But, that leads
me to a question and the point I axn here to make. "Where is the rest of the
City on this project?"
Transportation Engineers are very good at building roads; width, depth, and
length. Whatever is in the way, it's just that, in the way. They laiow how to
move cars and trucks from one place to another with efficiency and ease.
Frogtown has grown accustom to that process. In the 1990's Dale Street
was widened. Businesses were destroyed and it became a lot more difficult
to cross the street. Trucks seem to love it and speed through our
neighborhood in large volumes.
C`uirently we are debating Light Rail Transit on University. Lord only
knows what that will do. But the money is there to spend, so we spend it.
We understand that Public Works has found some money to expand Pierce
Butler. Unfortunately, it is only enough to connect the road to Dale Street
and finish at Arundel Street. This will dump traffic deeper and more directly
into Frogtown neighborhood streets. This also falIs a block short of 388
Como, which will be taken in hopes that some day you will find enough
money to finish this proj ect. Not to mention, the fact that fuushing this
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project also means demolishing Veolia Waste Management, one of our
largest employers and home to our annual community clean up.
Back to my question: "Where is the rest of the City?" Once you take our
successful businesses, what replaces them? How do we l�ow that this
project will not just be another line dividing Frogtown from the rest of the
city?
The resident's interest in this road was always simple. "Create a connection
that will reduce the truck traffic in our neighborhoods." Not only does this
plan not deliver on that hope, it creates a future for Frogtown that makes it a
place to drive though rather than stop in.
Don't start this ball rolling today. Take a step back. Money always seems
to come and go. But I promise you; there will be more money. Good
money. Funding that can be collected for a project that unifies Frogtown
around something grand. Frogtown's history and pride is too important to
just follow the money, so let's work on something that brings us stability.
Thank you.
Respectfully submitted by:
Tait A. Danielson Castillo
Executive Director
District7 Planning Council
533 N. Dale St.
St. Paul, MN 55103
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