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Forest Lake council approves grant agreement to acquire land for regional drainage greenway
Summary
Council voted to authorize execution of a $5.7 million state grant agreement to acquire property and design a regional drainage and greenway corridor (referred to as the Judicial Ditch project) to manage stormwater and flood risk at the headwaters of the Rice Creek Chain of Lakes.
Forest Lake City Council authorized execution of a grant agreement to accept a roughly $5.7 million state appropriation to acquire property and fund design for a regional drainage system and greenway along the Judicial Ditch corridor.
City staff described the project as a strategic opportunity to acquire land at the headwaters of the Rice Creek Chain of Lakes, consolidate stormwater management in a connected corridor, reduce downstream flood risk and improve water quality. Tim Olsen, water resources engineer with Bolton & Menk, presented concepts showing how regional wetland and greenway features could replace multiple, smaller stormwater ponds and create a continuous amenity and flood-storage area.
Amanda (city staff, grant lead) explained the grant agreement with the Minnesota Department of Natural Resources and related state budget/management offices: the $5.7 million appropriation is intended to cover property acquisition and engineering, and some costs already incurred by the city are eligible for reimbursement. She warned council members that properties acquired under the grant will carry deed restrictions requiring the land be used for the project for a minimum period (33.5 years was cited), and that the DNR requires the city to demonstrate completion of the agreed scope by June 2028 to avoid clawback risk.
"Whatever we propose for our scope...you must complete," Amanda said, stressing the need to be precise in what the city agrees to purchase. Staff said the grant exhibits were drafted to give flexibility in how acquisition and engineering budgets are allocated, but the final scope must be achievable within the grant timeline and restrictions.
Council discussion covered likely acreage and ownership: staff said the middle focus area the city now proposes to prioritize should be acquirable within the appropriation, and estimated there are only three to four property owners in that mid-block section (several parcels). Staff said appraisals and right-of-way acquisition processes would be used as with other public purchases and that closed sessions would be used to discuss offers. Amanda advised that because the city is a government buyer, courts treat negotiations differently under eminent domain law and appraisals would be required.
Council member concerns included whether the city would be compelled to use eminent domain and whether buying the land would remove developable acreage from the tax base. Staff replied they expect to pursue voluntary acquisitions and that the project could be phased if holdouts emerged; designs can accommodate open-channel or piped interim conditions where necessary.
Staff said the city anticipates Rice Creek Watershed District and other partners would help implement construction, and other funding sources (MPCA resiliency grants, Clean Water Fund, Ducks Unlimited, etc.) could be pursued for later construction once design and acquisition are complete. The council approved the grant execution by voice vote; no specific vote tally was recorded in the meeting transcript.
The grant funds design and acquisition only; no construction was authorized. Staff will pursue appraisals, property discussions, and a phased plan to present back to council and to the watershed district and potential grant partners for implementation funding.
