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HomeMy WebLinkAbout4.g. Halbert Relocation Claim � ! CITY OF ROSEMOUNT EXECUTIVE StTi�SARY FOR ACTION PORT AUTHORITY MEETING DATE: DECEMBER 21, 1993 AGENDA ITEM: HALBERT RELOCATION CLAIM AGENDA SECTION: WORK SESSION PREPARED BY: JOHN MILLER, AGENDA N4. ECONOMIC DEVELOPMENT COORDINATOR 4 .G. ATTACffi�iENTS: DEC. 7 LETTER FROM GROSSMAN TO APPR D B : MILLER, UNDATED LETTER FROM HALBERT T0 GROSSMAN, PROPOSED DRAFT TO HALBERT Debra Halbert, as president of A & G Autobody, has written to port authority special counsel, Ann Grossman, regarding the relocation payment made to A & G. She wants more money. Attached are cogies of the cor�espondence for your review. Also attached is a draft ot a response to Ms. Halbert as prepared by Ms. Grossman. In the draft Ms. Grossman explains that if A & G wants to change its claim, it must produce documentation. It appears A & G does not want to do this and as a result, there is really nothing to consider through the official appeal process. Here you have at least two options: l) pay Halbert and A & G an additional $26, 661.05 to satisfy their dema.nds, 2) direct Ms. Grossman to continue to ask for the documentation of the claims. Unless I hear to the contrary, I will ask Grossman to send the proposed correspondence. RECON�IENDED ACTION: Discussion item. PORT AUTIiORITY ACTION: ' FnOM I,INDQUIST & VENNUMN (TUE) 12. 07' 93 17:26/ST. 16:3�/N0. 3�60483740 P 2/23 �oo ios a� w o� eo soum E�h 8*�r I.moaueC ve+au.&C� �,dlpwQ►pp{�g,MMMIR�OfA 65�2',�205 6Ao 17M STI�Ei'.BVPnt 2171 LI1��C�,UIS'� &,VENNU� "����'��" �,`��' Fn�e Bt2,41'!3�/ �� qTf�G AT L+4w ANN K Q�rIN1 67^�71-324T D�cember 7� 1993 BY TELECOP�ER Mz. John Mi�1r�r City of Rose�aount Port Authority 2875 - I45th Street in7est P,O. Bex 510 Rosemount, Minnesota 55068--�510 Dear Jdhn: Thls 1C?tte� t��ilS�itB the dOGU1QEA�5 WE: d3,5cuS5C�d eaX1].�r this afternoon. A few notes concerning matters addres�ed in the dacuments to7.�.o�r. �.. A � � Autobody, Inc. Eielocation C7�$im. Debr� Halbert has mz�de eleaz her �ntez�t not to prova.de paid invoices and rece].pts to document actua7. expense� incurred in connectian with A � G's self-move, including actual storage exp�nses- Without this documentatic�n, i.t is impossib�e tc� t��l whether A & G's actua�. expenses exce�fl th.e $z0 r aQ0 "f J�Xed pdy2�eTlt in lieu of actual expenses" which A & G has a7.ready received. '�k�.erefore, we recammend that th� Port Authority deny A & G's c�.aim for actual relocation eXpenses as submitted. Dena.al of the c��im as submi.tted will activate A � G's appeal x'i+gbts. In her Nove�nber 16, 1993 letiter, Halbert comp�.ains that, because A & G �.s not a qo�.ng concer�n, eontractars wi�.l nQt extend eredit to �eady the Li.tchf�eld Zacation for business. Halbert makes specific re�erence te es�'pens�s fox wi��.ng, i.nstallat�.on of a spz�nkle� system, zvnning air lines, adverti.sement and telephone i.nstal�.ation, expens�s which, to th� extent the expenses are reasaz�able and nec�asaz-y, ar� reimbursabie r�establ i.shm�r�t casts. I:E A & G cannot make payment �ar �k�ese expenses and 'the cantract�rs w�.11 not extend credit, the Port Authority can, unde� app7.icabl.e re�ocation regulativns, authvri.ze advanc� payment. Authori2aticn of advanc� reestab].ishm�nt . payments could pravide a way to r�solve the A & G relocat�on issue short of appeal and, poss�bly, litigat�on, �s consistent with r��.ocatioz� regulati.ons and may be seen as a fa�z app=oach to the problem descra.bed by Ka�b�rt in h�r rec�ent �etter. I£ the � port Authcrity de�ides to autharize advance reestab�xshment payments, however, we recammend that such authpr�zation bc� conditioned on (�.) A � G's provisi.on o� binding contracts for the w4rk, and (2} proof that actual moving and starage expenses i.ncur�ed so far plus any claimed advance reestablisk�ment paym�nts exceed the $20,Oo0 which has already been paid. ' Fhuh� ZINDQUI�"T � VENNUMN (iUE) 12. 07' 93 17,27/ST. 1F�:�5/N0. 35604�3740 P ;�/L3 ��IDC,ZUIST 8c VT�TNUM - December 7, 1993 -._...".�----- - -._ . Page 2 � /�F, � _r, . . . � . . . . 2. etrese Property - Request for Atto=bey �ees an� Reloca�kian Ciaim. O�a�S�rese's lawyer has subzni.tted an invofce �ox� attorney fees. Based on Minn. Stat. � 1�7.195, the Port Authority is obligated to pay attorneys fees relat2d to COx7deTnnatidri prr�ceedings which are later dxsm�ssed. In ou= apinion, the Port ,$����i,�y's��od�i�tidn=:d;oes- nat ext�nd to consultativns related to 't,�-i�,e Pozt Authority�s offer to puxchase th� Stres� pzoperty, and w� r�commertd that the Port Autharity �efuse to pay these amou�ts. You will see that pavid Strese wants the Port Authority to pay for_ clai�ed �.osses• in re�tal praceeds and his tx�me spent in �ae���.g�;,- �etc.: r�3.•at�ed to �2�e-•crtmd�mnativn proceedings. Based c,�;,th� State_ by Head v. Savag� case, Strese is only �nti�tled ta reimbursement �or aut-of-pocket ex�enses, and Ke recommend that the Fort �iuthaae•a.ty deny tZ�is part o:f the strese claim. Strese ivav be entitled t4 r�imbuzsement far th� t�.me he s�ent Iooking. for a z�ep�acement location, but only for time expended between the date xn December, 1992 wk�en the streses received a. relocatian noti.ce and the date in F�bruary, 1993 wk�en the condemnatin praceedings were dismissed. our praposed 3.etter to the Streses' attorney requests dacumentat�.on to determine �h.���i,_ if a�y,: of the time �x�ended in searehing �s reimbursable. 3. Peer service �gteemeat. ' , r- �a•• lvo��e:. This ag�ceement �s unchang�d except for the last I.irie in parag�ap�i 4 whi.ch xequires Peer to p�ovide documentation related �o,,��r��,��s_�ra��aea under the contzact. PZease aall me With any guestion� yQu �ai.ght hava abaut the attached documents or the i.nformation in this �.etter. Csnce the Port eut�o��ty has taken_ acti.on on the matters d�.scussed above, p].ea.se let me know wh�ther revisions tc� the letters or agreement are aecessarY• �,. . . . __ _ : . � . . . . . Very trul:y yours, LINDQUIST & VENNUM . .�- � f ���'��`''�'�+'dZ� G�•�/ Ann K. Grassman cc. David A. Al�geyer � rFcOM LINDQliIST & VENNUMN (TUE) 12. 07' 93 17.27/ST. 1�:35/N0. 35604$3740 P 4/?3 �.1�� i ): ,(, �` �•_ . , r'i-�. _ � r. , _ " - — =�+ - — - . . _ ,... . , _ '. . . . . _. _ !'�� ^�.G,r . . • . . . . G... . _ . . . . � ' " ' � . . . . . . . �.C. _ �.+ c_'L I:.a�. _C�t r:c r � • -- y i • _ • • c•. � . . .. C. �A � J�v �� i� f���'G._ . . A�/GvQ�.I arGiCL �J... .. " � �... 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L�S�{� �.or��rc� ��„�� �+.u�.., �St�C�c�'' � FROM LINDQUIST&VENNUM 12, 15, 1993 15� 13 N0, 10 P, 4 4200(DS C.ENTER IN DEt�1VEA SO SWTM E�GHiil STREEI' LIMDOINS�.VENNUMA 8 CFIRISTENSEN � MINNEAPO113,�IIIMM�R,BATA rj$d02.22Q5 600 17Tl1 S7PEFT.$LMTE 2125 LINDQUIST &VENNUM t�°72."'.�„ �,.�,���.�,�„ FA7t:6/2-37t-9247 T�;3p3.b73,5gpp ATTORNEYS AT LqW ANN K GROSSWiN 612i37t�2<7 y/�/C"'�� ��� 1..��r-�� n% � ; December 22, 1993 Debra Halbert, President A&G Autobody, Inc. 15543 Cornell Trail Rosemount, Minnesota 55068 Re: Re�ocatjan CZaim of A&G Autobody, Inc. Dear Ms. Halbert: This responds to your Novamber 16, 1993 letter concerning the claim of A&G Autobody, Inc. ("A&G'�) _for actual relocation expenses. Based on your decision not to submit paid invoices and receipts to: (1) document actual expenses 'incurred in connection with A&G's relocation, and (2) to verify these expenses exceed the $20, 00o amount which A&G has already been paid,l the Port Authority has denied your claim, as submitted. As set forth in my letter of Octaber 20, 1993, under applicable regulations, A&G is not entitled to reimbursement for its reasonable and necessary actual relocation expenses unless A&G provides paid invoi�es or receipts to� dacument the amount of its expenses. Documentation is also necessary to canfirm that ' actual expenses for items such as storage,2 `paint transportation, telephone instailation, stationery printinq and 1The $20,000 payment was based on A&G's initial eieetion to ' accept a fixed payment in lieu of actual moving and related expenses, and actual and reasonable reestablishment expenses. Under applicable regulations, $20,000 represents the maximum fixed payment which can be made to a displaced business. 2We have advised you that storage must be approved in order to be eligib2e for payment. To date, A&G:has fafled to provide any information concerning the storage facility used, the length of time for which it is requesting reimbursement for storage or, most important, verification that it is actually incurring storage expenses. ' FROM LINDQUIST&UENNUM 12. 15. 1993 15: 14 N0, 10 P, 5 - .X December 22 , 2993 �'��f� Page 2 . reestablishment costs3, when added to the reimbursement to which A&G is entitled far its self-move,a exceed $20, 000. Your November 16, 1993 letter suggests that, with respect to certain moving and reestablishment expenses, you are unable to provide paid invoices to document these expenses because A&G is not in a position, at this time, to pay for the services. Regulations which govern payment of relocation benefits do provide that, when necessary to reduce or avoid a hardship, an agency may issue advance payments "subject to such safeguards as are appropriate to ensure that the objective of the payment is accomplished. " 49 C.F.R. § 24.206{c) . . As stated above, eligibility for further relocation payments, including advance payments, is conditioned on documentation that reasonable and necessary: actual moving costs (including costs related to packing and moving to and out of storage, for which you can claim $13,.002.40) and reasonable and necessary relocation expenses (to a maximum of $i0,00oj exceed the $20, 080 payment A&G already received. . Acceptable documentation inciudes contracts for signing, stationery printing, etc. which .specify the work to be done and costs of the work. If A&G provides such documentation, the Port Autharity would be willing to cahsider advance payment for expenses which it determines are reasonable and necessary and which exceed the � $20, 000 payment already made to A&G. Zf you wish to seek approval . of advance relocation payments as outlined above, or if you have questions concerning the process for requesting advance payments, please contact Jacquelyn Wentworth at 4725 Excelsior Boulevar�, Suite 240, Minneapolis, Minnesota 55416. Ms. Wentworth's telephone number is 929-0044. If you wish to immediately appeal the Port Authority�s denial of A&G's supplemental claim, please let me, ,know at your earliest canvenience, but no later than February 22, 1994. 3As you know, $10, 000 is the maximum reimbursement which can be made for reestablishment expenses. 4A&G need net document actual expenses incurred in cannectivn with packing :and moving to and out of storage. These expenses are valued at $13,002.40, which.`is the amount af the packing and moving bid obtained by the Port Autharity. . � �FROM LINDQUIST&VENNUM 12, 15. 1993 15�15 N0, 10 P, b �r.r•:a ��.��-=a � December 22, 1993 Page 3 very txuly yours, LINDQUIST & VENNUM Ann K. Grossman cc: John Miller bavid Allgeyer Jacqueline Wentworth .