5 - Correspondence with Timothy Bray, Mn/DOT Project Manager

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MEMORANDUM OF AGREEMENT Between City of Pequot Lakes and Minnesota Department of Transportation In the spring of 2002, the Minnesota Department of Transportation (Mn/DOT) began to officially study the four-lane expansion of Trunk Highway (TH) 371 from Nisswa to Pine River. This included the portion that now lies within the city limits of Pequot Lakes. At that time Mn/DOT embarked on the process of developing an Environmental Impact Statement (EIS) required by State and Federal Law. The Draft EIS (DEIS) outlined five alternatives that were studied, three of which had direct impacts on the City of Pequot Lakes. Alternative 2 proposed that the future highway stay on or very near the present TH 371 alignment. Alternatives 3 and 4 proposed that the new TH 371 alignment be an easterly bypass of the business district of Pequot Lakes. During development of the Final EIS (FEIS), the City of Pequot Lakes was heavily involved in the discussion and determination of the preferred alternative. This included a number of the hearings and open houses intended to solicit public input related to the proposed alternatives. On February 3, 2004 the Pequot Lakes City Council voted and passed a resolution to support the through-town option or Alternative 2 as defined by the DEIS. This action finalized the alignment preference with regard to Pequot Lakes and allowed Mn/DOT to move forward with the environmental documentation process including the development of a FEIS alignment. On January 7, 2005, the FEIS was approved and on March 9, 2005 the Record of Decision (ROD) was signed by the Federal Highway Administration (FHWA). This established Alternative 2 as the preferred and accepted alternative for the TH 371 alignment. This action by the FHWA concluded the environmental documentation process required by State and Federal law. Since the signing of the ROD, Mn/DOT and the City of Pequot Lakes have worked very closely to further develop the details of the through-town alignment to a point where it eventually would meet both the needs of the City and the standards required by Mn/DOT. A final layout that met these criteria was being developed when on June 6, 2006 the Pequot Lakes City Council voted and passed a resolution to change their position regarding the through-town alignment associated with the four-lane expansion of TH 371. The new resolution established a portion of Alternative 4 or an easterly bypass option as the City's new preference.