Memo - Shady Oak Road Improvement ProjectPublic Works Department
Memorandum
To: Honorable Mayor and Members of the City Council
Copy: Jim Genellie, City Manager
From: Steven J. Stadler, Public Works Director
Date: April 21, 2011
Subject: Shady Oak Road Improvement project — Status Update
Currently, per County Board direction, County Transportation has been pared down the
project to the minimum in order to accomplish the traffic needs. The project cost is now
$20.4 million and there is $7.28 million in Federal funds available (must be spent by
2015). The estimated City share of the project cost is $2.8 million. Our current CIP has
$1.3 million budgeted against this project.
Unfortunately, the revised design plan leaves the current commercial buildings without
parking along Shady Oak Road. It is doubtful that any of the businesses could survive
with the loss of the convenient, visible, pull-up parking right at the front doors. The
VFW will also lose some of their existing parking and needs more parking for their big
events. Mayor Maxwell and City staff has met with each of the Hopkins commercial
property owners with the exception of the Suburban Square property. The meetings
were held to update the owners on the status of the project design and schedule and
listen to the owners concerns. The problem for the business owners is that the front
parking is mostly on County ROW and it is extremely doubtful that damages offered to
the property owners will be sufficient to compensate for the business loss. If the owner
rejects the County's offer, the business owner could file with the Condemnation Court
for loss of going concern in an attempt to be compensated for the business damages.
The County has stated that there is a total of $3 million available for Hopkins and
Minnetonka from Community Works for redevelopment. We are hoping the money
could be used for business retention costs, as well. The cities will have to put a plan
together that qualifies for the Community Works funds and that would be supported by
the County Commissioners. Minnetonka and Hopkins staffs are scheduled to meet on
May 6 to discuss strategies.
In order to keep the project on schedule the County will want to get an executed
Cooperative Agreement from each city by the end of the calendar year. This
agreement will commit the city to an agreed upon share of the right of way acquisition
costs, typically 50% per County policy.
Staff will have the new design layout at the Work Session.