City of Oak Creek

Common Council Report

Meeting Date: February 7, 2006

Item No.:

Recommendation:  Authorize the Mayor to enter into a “Memorandum of Understanding” submitted by the WDOT for the Opus development on E. Oakwood Road and S. Howell Avenue, once Amendment 2 to Oakwood Crossings is executed.

The attached document has been under development since 2001.  Its approval clears the way for improvements to the intersection at E. Oakwood Road and S. Howell Avenue and the installation of traffic control lights.

By entering into this memorandum of understanding (MOU) the City is agreeing:

1) To be responsible for all required improvements and to make all necessary cash contributions.

2) To acquire necessary ROW if the developer cannot acquire it.

3) To require larger developments on the SW Quadrant (MMSD (et al)) to submit a Traffic Impact Analysis (TIA) to the WDOT. 

Discussion Item 1:  Once conceptual approval is reached on the “MOU” an amendment to Opus’ development agreement will need to be drafted and approved that transfers the City’s responsibilities to the developer.  While some of these changes are simple, the guarantee of a $200,000 payment (eight plus years in the future) could be more challenging and is without precedent.

Discussion Item 2:  ROW will be needed on all four corners of the intersection to complete improvements.  The exact amount of land needed will be unknown until the WDOT approves plans for the intersection, which follows the engineering, which follows the approval of the “MOU”.  It is estimated to be tenths of acres on each corner.  Opus will dedicate the needed land on the NW corner.  I have talked to MMSD and the SW corner is not likely a problem.  Opus has approached the owners on the NE and SE corner and has indicated willingness to discuss the matter.  Will the City need to use eminent domain to fulfill their “MOU” obligation?

Discussion Item 3:  If development on the MMSD land requires a new or enlarged access to Highway 38, this “MOU” item is has no impact, since by State authority WDOT can require the completion of a “TIA” and all required improvements.  Under this “MOU” the City would agree to require, from larger developments who do not require access modification, a “TIA” be submitted to WDOT.  At the present time, we are researching whether the developer or City would be obligated to the required improvements identified by the “TIA”.

Prepared and approved by:

Wayne St. John, P.E.

City Engineer

Fiscal review by:

Beverly A. Buretta, CMC

City Clerk

T:\Shared\WPFILES\CCREPORT\2006\Opus North WDOT MOU.doc