Board approves permanent easement, joint powers and grant application for Chaska trail on CCRRA corridor

The Carver County Board, sitting as the Carver County Regional Rail Authority (CCRRA), approved documents to convey a permanent transportation easement to the county, finalized a stipulation of settlement, authorized a joint powers agreement and directed county staff to apply for Metropolitan Council park acquisition opportunity funding to support construction of a trail on the former Union Pacific corridor through Chaska.

County staff described the corridor background: Carver County and Scott County acquired the railroad corridor years ago; portions were paved and a separate Chaska-led project will construct a multi-use trail from Athletic Park through town to the East Creek Diversion Channel. Staff said the CCRRA would retain ownership of the land while granting a permanent transportation easement to the county for trail construction and operation; responsibilities for maintenance, operation and repair would be allocated to the county and Chaska under a joint powers agreement.

Why it matters: county staff said making the county the easement grantee was necessary because only the county is eligible to receive Metropolitan Council park acquisition opportunity grant funding; the funding can cover up to 75% of the easement value. Staff reported a prior grant application for parcels 2 and 7 secured a 75% grant share of roughly $1.6 million matched by an in-kind CCRRA contribution; the second-phase parcels (1,3,4,5 and 6) have an appraised easement value of about $1.8 million, and the county could receive up to roughly $1.3 million (75%) in grant funding if approved.

County staff said the appraisal used the "across-the-fence" method and noted that CCRRA's in-kind contribution had already matched prior grant funding. The board authorized recording the permanent transportation easement, executing a stipulation settlement agreement, approving the JPA that transfers CCRRA's operation and maintenance obligations to the county, and allowing the county to apply for the fiscal year 2026 Metropolitan Council park acquisition opportunity grant. The board also authorized an in-kind donation equal to 25% of the fair-market value of the easement as a match if grant funds are received.

Commissioners asked whether grant funding was guaranteed; staff replied the Metropolitan Council fund is allocated on a first-come, first-served basis and that the county would break parcels into smaller segments or reapply in a later cycle if full funding were not available. Commissioner Lynch asked whether the county could be "stuck holding the bag" if grant money failed to materialize; staff said the conveyance and grant request were structured to be contingent on grant award and that options exist if funding is partial or delayed.

The board approved the consolidated motions in a single vote: "motion by Lynch and a second by Uterman... Those opposed, motion passes." Staff said they were close to receiving the grant disbursement for the first phase and will proceed to record documents and finalize the JPA.

Ending: County staff said the next steps are to record the easement documents, finalize the JPA, submit the FY2026 park acquisition opportunity application and, if the grant is awarded, to move forward with trail construction and assume associated maintenance obligations.