HomeMy WebLinkAbout4.f. Discussion of Strese Relocation Issues t f
CITY OF ROSEMOUNT
EXECUTIVE SUMM�RY FOR ACTION
PORT AUTHORITY MEETING DATE: DECEMBER 21, 1993
AGENDA ITEM: DISCUSSION OF STRESE RELOCATION AGENDA SECTION:
WORK SESSION
PREPARED BY: JOHN MILLER, AGENDA NO.
ECONOMIC DEVELOPMENT COORDINATOR 4.F.
ATTACI�2ENTS: SMITH LETTER TO FABEL DATED APP VE .
10-18-93 , ATTORNEY CLAIM, PROP. RESP. TO SMITH ,�
Bradley Smith, an attorney for the firm representing Olga and David Strese,
has written to Tom Fabel, special port authority counsel, regarding the
discontinued condemnation of the Strese property on South Robert Trail .
Smith wants more rnoney. He' s looking for:
1. Approximately $900 in legal fees that somehow were not on the
original invoice.
2 . About $1500 for undocumented time and expenses in relocation
costs.
3 . And, $6300 in lost rent for Olga Strese.
In the draft response, the port authority' s attorney notes that the second
and third items are not reimbursable expen.ses under law but agrees to pay
the first claim. I discussed some of the items in the attorney bill with
Grossman, such as the six minutes spent in "Receipt and Review of Lease
between Olga Strese and Rosemount Ice. . . for use of well. ° We both
considered asking about that and other items. Unfortunately, the port
authority would likely have to reimburse the attorneys for their
documentation and explanation of the items, it gets to be a downward
spiral . In conclusion, we agreed that while a certain amount of
satisfaction would be gained in this exercise, it would probably end with
the port authority actually paying more than the $907 . 00.
Unless I hear to the contrary from you, I will direct the attorney to send
the draft respanse to Smith.
RECOI�SENDTD ACTION: Discussion item.
PORT AUTHORITY ACTION:
` F;�OM I:I NDQUI ST & VENNUMN (TUE) 12. 07' 93 17.32/ST. 16:35/NQ. 35604�3740 P l�/?�
S�VERS�N� V{�ILCQX c�iL S�TELAON� �.A. R�C�i v E tl
Q C T 2 0 1�9 3
LARRY S SEV�RSUN A PRbFFSStqNAL ASSOCiA7TOfY
J,aMES F.SHE�AON ATT4RNEY$AT LA W K�NETH R,H A t,�.
!.PnTRICK w�LCpX 5COTT D.JOHNSTON
MiCiiaEL G,DOUGHERTY' G4Q MInWAY iVATfQNAL BANK BUILAIhfG ��R�M.SOLFEST
tii1CHw�L,E M041ENDA 7300 WFST IA7rH S'TREET �.MN�'r('E M,MARGARt7
APp�.E vA1.f.EY_MiNNESdTA 55i2a EDWiN R,HOLMES
. . _ BRAb►.,�Y SMITH
• • (612)432-313(] DANtFf M.SH�RfAAN
SHARQN K.HILiS
.. TE�,EFAX NUMBER 432-3780
UF�oUNSFL:
1DHN�,VUK�LICH
october 18, �.9g3 '
Mr. Thamas ,L. Fabel
Lindquis�� •& vennum
4204 IDS Center
80 South 8th Street •
Minneapolis, Minnesata 554Q2-2205
R�: Rosemount Port Authority_�,.:Stres� Praperty
Our-f i�le- #31�09-•10 9�4 4 -
Dea'r Mz. �Fab�I.":� " . � • �- _" " = .
zn �lay a� this year, MiGhae7. Dougherty af this o�fice forwasd�d to
you a summary of legal fees incurred by Qlga Strese izz connection
with the c�ndemnat�on. He indicated that David Str�se wau�d be
subrnitting a separat� znvozce for his t�.mE. Z am enclosing that
in.voice with this Zetter, togeth�r with an addi,tionaZ invoice for
attozneys' fees not previous�y submitted relating �.o the
aondemnation and Mr. Strese�s relocat�,on. wQuld you Q].ease remi.t
th� sums r�ferenced in Mr. Strese's Atfidavit by check payable to
Mr. Strese and please ze.mit the sums payabl..e foz attozneys' �e�s to
David Stres� and fihis firm. A detailed br�akdown of the attorneysf
fe�s xs encl�s�d. for ycuz refe=�nce.
Add�tional3.y, th� own�r of the,property, plqa Stzesr, was unable to '
lease the property unt�l January 16, 1993, du� to the proposed
P�rchas� and u].timately, the ecn�iemnation of the propexty. The fa�r
rental value is esti.Tna.ted ta be $1,OOQ.,pp �� mon,th. We aace
ther�for� alsa r�questing zeimbuzsement of this loss from Ju1y 7,
1992, th� date of ap,praval of the condemnatinn proceedings, unti�.
Ja�usry 16� 19�3 , ar 6.3 mdnths, �otaling $6,30t?,pp, Wauld yau
pleas� ra_mi.t a check ir� that amount payaY�le to Oiga Stzese.
Thank you for your attentioz� in those matters_
Very truly yours,
SEVE , WZLCOX � SH�L , P.A. '
�--�=-_—
a ey Smith
BS/P3k
Enc_
cc: David Stres�
INDf�IDUnL nT1VRNEYS nLSO LIC&MSED M(OWA.WISCOIiSW.CAUP�tNfA OR taF.BRr.SKn
^t�RTtflm 2�nt P�to�trr uw sP�+usr.Msnn
� F��iOM LINDQUIST t� VENNUMN (TUE) 12. U7' 93 17;31/ST. 16:35/Na. 35604�37411 P 11/23
BTREBE PR9PERTY
REOLJEB'1' FOI2 !,2'TORN�3Y BEE6 1�TD RELOCATZON CLAYM
. i
_ +
' FnOM LINDQUIuT � VENNUMN (TUE) 12, 117' 93 17:32/ST. 16:35/N0. ��60483740 P 15/23
�avid StreBe
Gondemnation artd Relocation
Time a.rtd Exper�e�s
Trooking for land
Cannon Fslls 5 hours
Randolph 4 hours
Sciota To�cnship 3-1/2 hvurs
Wetertos�m 6 hours
Man.kato g hours
Waterford 8 houzs
Dundas 3 hours
Noxth�ield 7 hours
New M�rket 3-1/2 hours
W�bater 5-]./2 hours
Farmington Z hours
briving t�.me ].00king for
reJ.ocation �,0 hours
Phone caZls and meetin�s •
Harry Wi�.cox -= 6 ca11s 3 ht��.xrs
Ed MeMenomy -- m�et�.ng 1 hour
ph�ne call 3/4 hour
Joan Anderson 3�� hour
Johrf Edwards -- 2 calls 3/4 hour
, Don S�.n�ell 1 hour '
' John Mill.er -- � on-site meetir�.ga 2-1/2 houxs
10 call.s 5 hou.rs
- State Auditar -- 3 call� 2 hours
- Stephe�n Ji1k -- meeting I hour
8�,11 Mawe 1 hour
2 Sciota town maet�.ngs 5 hours
Lee Sm�th -- HRi� -- 3 m.e�t�.ngs 3-112 hours -
4 ca7.la 3 hours
3 Pox�t Authority me�tir�g� 3-�1/2 hours
V�rn N+�PPe�r -- 2 meetings 2 hours
EDA meet5.n� 2 hours �
State r�loeation adv�.sor--MN�p{aT i hour ,
Stste relocati.on supervi$or 2 hours
� Attoir'r�eys -- Dan Sher�dan o�r
Michsel Dougherty 14-1/2 hours '
Tota1 time 121-3l4 hours�
3C 4t 1��..s h nn T.
Gasoline �or travel ��.,217-50
�atai areloaat�an e —��d?.�n
xpenses
' FkOM LINDQUISi & VENNUMN (TUE) 12. 07' 93 17:33/ST. 16:��/N0. 3560483740 P 16/?3
David Stre�e hereby �ertifies that the toregd�.ng e�enees
c+rere incurred relati.ng te the condemnatian proeeedin�s in
Dakote, Courity Min,nesota Di,striet Court Flle No. 19--G2-g2-
8762.
� �
Subscribed David rese
ax�d swo to
befoz�e me this ,� 1
day of
19Q3 Dav d Strese.
. .
Natary publ
. ��BRAAiFY SMITH
.0 ttar�r Puet�C-�0�90�'#
OAKGTA CC�N1Y
-n�m�.+ru+e.r�r.��a.�
;
' FkOM LINDQUIST & VENNUMN (TUE1 1�. U7' �� 17:33/ST. 16:35/N0. 35�04�3740 P 17/23
Strese, t71gaJCand�mnat�.on � Fi�.e No. 31a9-I.09�4�.
DatE Hnurs D_escri tion Fees
12�1$�92 •la Receipt and Revi�w of Lease $ 9. �0
Between plga Strese and Rosemount
Ice (Dave Stres�) for Use o� WeZl
12/Q8/92 .30 Coz�sul� with Paul Stier Re: 40. 50
Exten�ion of Purchase Agzeement
1/20/93 _20 Consu].t with �i.Snyder Re: Cantract 9.00
tor De�d
2/01/93 .30 Consuit with �om Fa.bel Re: May 1 4Q.S0
Relocatian Date
2/01/93 .�0 Gon.ter�nc� with Dave Strese Re: 54.00
Cdnworth L�tter
2/01/93 _70 Carrespondence to Tom Fabel, 94.50
2/Q1/g3 .50 Consult with Curt Fritsch Res 67.50
State Auditor
2/0�/93 . 30 Consult with David A2�.geyez Re: 44.5D
Apaiogy faz Canwor�h Le�ter
2I03/93 1,5p Confezence wi�th Olga and Aave 202.54
S. Re: Negotiation v. Mediation
2/03/93 _�p Consuit with Tom Fabe1 Re: 54.�0
2j19/93 Coademnation Status and Mediation
•�a CotisuTt with 1�av� Str�se R�: �p,5p
Purchase Amount
2��3�93 • 30 Conference wzth MGD, Olga Fte: Sa�.e Z7.00
vf Land
3�22�93 1.50 Spec�.al AnalysisJReseareh Attorn�y �,3g.p0
fees ar�d casts incurred in
Gondemnation Act�.on
3/2Z/93 .2Q Conference W�th Dav� Strese 18.00
3/�5/93 .2p �onfe�ence with Dave Re: Attorn�y Zg,pp
Fees
,
riiO�I LINDQUI uT & VENNUNIN (TUEa 1�, 07' 93 17:�3/uT. 1 G:3,�i/N0. 35604��740 P 1 Q/�3
4/14/93 . 25 Conference with Dave Sttese Re:
zt�mizatian of Time and �2�Sa
Relat�d to Candemnation ��nses
5/10/g3 .70 Correspondenc� to Torn Fabel Re:
Invoice fQ= L�gal Fees Re: Z01. 50
Condernnation +
Totaz: ��~
9'7�4.5 0
;
�
. FROM LINDQUIST&UENNUM 12, 15, 1993 15� 11 N0, 10 P, 2
420AIOS CcM�e M Dcavcq
� - � AO SOUTM E16lITN STREET LINpO(yi$T.VENNU►1&GNPoS7ENBEN �
MwNBAPOLIB.b1aqJE8OTA 554p2-220$ G001TIef Srneg7.BUrte 212$
LINDQUIST &VENNUIVI T�8'�"�,1 �.�,�.�,
F+vi:612•3743207 Ta.cr►anE;303�573�990Q
ATT�iNEYS AT I�1W
� MN1 Gf06�i19►1 . . . . � .
612j371.3247
� �� . �� �� �•,a,q��'��.
��/� ��
December 22, 1993
Mr. Bradley Smith
SEVERSON, WILCOX & SHELDON, P.A. .
500 Midway Nationa]. Bank Building
7300 West 147th Street
Apple Valley, Minnesota 55124
Re: Rosemoun.t Port Authority - Strese Property
Dear Mr. Smith:
This Ietter responds to your Octaber 38, 1993 letter
concerning amounts claimed by o2ga and David Strese in connection
with condemnation proceedings cammenced by the City of Rosemount.
As you know, on February 8, 1993 , the Port Authority authorized
dismissal of the proceedings.
Pursuant to Minn. Stat. § 117. 195, when condemnation
proceedings are discontinued or dismissed by a petitioner, the
property owner may recover from the pet.itioner "reasonable costs
and expenses including attorneys' fees. " In State by Head v.
Savage, 255 N.W. 2d 32, 38 {Minn. 197"7) , the Minnesota Supreme
Court held that the phrase "reasonable costs and expenses
including fees of counsel" recoverable under Minn. Stat. §
11'7. 161 means "charges which the landowner incurs and which he
is obligated to pay out of pocket by reason of the condemnation
proceeding to establish the measure of just compensation, as -
litigation expense, ar in: preparation for taking of the
property. �� Under this definition, the Savage Caurt disallowed
" (t� ime spent by the lendowner or an 'employee of the landowner
occasioned by the condemnation proceeding. . .be�ause it does not
result in an actual cash expenditure. . . .�� Id.
1The Savage Court construed Minn. Stat § 117.16 which, in
1971, was repealed and replaced by Minn. Stat. § 117. 195. Savage
continues to be instructive, however, based on the Court's
abservation that .Minn. Stat. § 11?.16 and Minn. Stat. § 117. 195
are "substantially similar.�� Like Minn. Stat § 117.195, Minn.
Stat. � 117. 16 gave landowners the right to recover ��costs and
expenses including fees of counsel" in discontintzed condemnation
proceedings.
' 'F�OM LINDQUIST&UENNUM 12, 15, 1993 15: 12 N0,10 P, 3
LINDQt1IST &VENNUM ,-� :�-._.
���'�,�=�'-
December 22 , 1993 ` :
With respect to the iz�voice related to 1ega1 fees incurred
by olga Strese in connection with the condemnatian proceedii�gs,
the Port Authority has reviewed these- fees,and agrees that fees
related to the condemnation proceedings, . in .the amount of
$907. 00, are compensable under Minn. Stat § 117. 195.2 This
xeimbursement amount -is in addition to .the $4,876. 50 which the
Port Authority has already paid for legal fees incurred by Olga
Strese.
Because time claim�d by David Strese in connection with the
condemnation proceedings and the claimed -losses in rental,
proceeds were not cash outlays and according to Savage are not
compensable expenses; the Port Authority .is not obligated to and
wi21 not pay amaunts claitned for these items.
Unlike time spent in connection with; condemnation-related
meetings and activity, David Strese may ,bQ. eligible for
relocation assistance. to reimburse him for. time spent searching
for a replacement location. In order to determine whether Mr.
. Strese is eligible for relocation assistance, we will need
�nformation concerning the dates. Mr. Strese conducted searching,
the total time spent in connection with ;each search, and a
description of act�,vity which occurred during each of the
searches. Finally, we need documentation .of mileage driven in
connection with searching.
As stated above,.. ths Port Authority has authorized an
additional payment for Olga Strese's .legal' fees in the amount of
$907. 00. We will forward our recommendations to the Port
Authority concerning rel.ocation assistance for David Strese upon
receipt of the requested documentation. -
° very truly yours,
LINDQUIST: & VENNUM
Ann K. Grossma»
cc: John Miller
Thomas L. Fabel
David A. Allgeyer
2Itemized fees for which the Port Authority is not
responsible include conferences �on� February , l9, 1993 and February
23, i993 related to the Port Authority's. ",offer to purchase the
Strese property subsequent to dismissal of .the condemnation
proceedings. _