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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. _