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 $26, 661.05 to satisfy their dema.nds, 2) direct Ms.
Grossman to continue to ask for the documentation of the claims. Unless I
hear to the contrary, I will ask Grossman to send the proposed
correspondence.
RECON�IENDED ACTION: Discussion item.
PORT AUTIiORITY ACTION:
' FnOM I,INDQUIST & VENNUMN (TUE) 12. 07' 93 17:26/ST. 16:3�/N0. 3�60483740 P 2/23
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LI1��C�,UIS'� &,VENNU� "����'��" �,`��'
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ANN K Q�rIN1
67^�71-324T
D�cember 7� 1993
BY TELECOP�ER
Mz. John Mi�1r�r
City of Rose�aount Port Authority
2875 - I45th Street in7est
P,O. Bex 510
Rosemount, Minnesota 55068--�510
Dear Jdhn:
Thls 1C?tte� t��ilS�itB the dOGU1QEA�5 WE: d3,5cuS5C�d eaX1].�r
this afternoon. A few notes concerning matters addres�ed in the
dacuments to7.�.o�r.
�.. A � � Autobody, Inc. Eielocation C7�$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
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� 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
.