Loading...
HomeMy WebLinkAbout12.f. Consideration of Relocation Payments for Armory PropertiesV CONWORTH, INC. 4725 Excelsior Blvd. Suite 200 Minneapolis, MN 55416 (612) 929-0044 January 22, 1993 John R. Miller Economic Development Coordinator Rosemount Port Authority 2875 145th Street West P.O. Box 570 Rosemount, MN 55068-5010 Subject: Advance Relocation Payment for Dakota Small Engine Service Dear Mr. Miller: Attached you will find the documentation for the above business. At this time the owner, John Anderson, is requesting that the Rosemount Port Authority make available to him his first month's rent and the $3,450.00 that is needed for him to start remodeling the replacement site. We feel that this is a prudent request in that Dakota Small Engine Service has documented costs of $10,410.00 to date. Another reason is that thiswillexpedite his displacement from the site as soon as March 1, 1993, and would demonstrate to everyone that relocation is in deed going to happen. Please note that any advance payment that you do give to Dakota Small Engine Service will be deducted from their final relocation claim. We will be submitting that claim when we have obtained. all the documentation necessary. We appreciate your consideration of this request, and Mr. Anderson will be contacting you next in order to at least receive his first month's rent. I have informed him that the other payment would probably not be made until after the February 1,1993, date. Sincerely, Jacquelyne Wentworth Owner/Consultant sl Redevelopment Acquisition/Relocation TRINEBAEK CONSTRUCTION I" To, $a P�40,"Xd ' uo- Pd io a ;?.2 WO-14�. a !_ t aid `. aA � 0A, -,ww t,U` a 3 l2' Gt c� 64"SIA tyd AAdq /�'P' r i aw/ Gv�y -felt s2 c�iG�s ��� �d la.�-, i•�, �' 6.900. d0 tt-" 3520 Trails End Road Eagan,?" -N (612)454-6053 B E STE R BROS. .:, Locnt_ ANh Wort n \Ntr r - AL+, IN - !AN' t t• -t l December 10, 1992 f r l `1 ^.451.1018 MINN, 135075 f"rix 612.451.7963 Dakota Small Engine Service 13965 South Robert Trail Rosemount, MN 55068 Dear John: Thank you very much for the opportunity to give you an estimate. The estimated price to move your business within the city of Rosemount is $2574.50. The price includes any packing materials, labor, equipment, and transportation of goods needed to complete the job. Again, thanks for your consideration. If you have any questions, please don't hesitate to call. Sincerely, BESTER BROS. TRANSFER AND STORAGE COMPANY INC. Paul A. Lentz -� Sales Manager PAL/ds CONWORTH, INC. 4725 Excelsior Blvd. Suite 200 Minneapolis, MN 55416 (612) 929-0044 February 4, 1993 John R., Miller Economic Development Coordinator Rosemount Port Authority 2875 145th Street West P.O. Box 570 Rosemount, MN 55068-5010 SUBJECT: Lump -Sum Relocation Payment for Richard Battaglia and Rick's Auto Repair 13975 S. Robert Trail Rosemount Armory Site Project Dear Mr. Miller: On behalf of Mr. Battaglia I am making a formal request for an undocumented relocation payment. This claimant is proposing to the Rosemount Port Authority that they make him a lump -sum payment of $59,000.00, which would cover all of his business relocation, residential relocation, and immovable fixture payment. This owner is unable to package his relocation and acquisition into a lump -sum because there is another co-owner of the property involved. This is the reason why Mr. Battaglia is asking for lump -sum agreement for relocation purposes only. Such an agreement is allowable under the law, as long as the claimant has been fully informed of his rights and signs an agreement to the amount negotiated. Please be advised that Mr. Battaglia has found a replacement site for which ;he needs to find a downpayment in order to secure the property. it would be most beneficial to both the Port Authority and this business owner to expedite his relocation and clear the site, by at least making him an advance payment of $30,000.00 to insure his purchase of the new site which is in Rosemount. Rick's Auto Repair has been on-site for over 14 years, and is very interested in staying in the Rosemount area. If the Port Authority'can help this business/residential owner in obtaining a new site, much of the frustration and animosity that has been generated would be alleviated. Redevelopment Acquisition/Relocation I Mr. John Miller February 4, 1993 Page 2 Please note that Conworth, Inc. could formulate either a statement of agreement or a relocation claim if the Rosemount Port Authority wishes that to happen. We are open for questions, concerns, and discussion regarding this matter, and wanted to bring it to your attention so that it might be discussed at the coming Port Authority meeting. We appreciate your attention to this matter, and will cooperate in any way possible to expedite this advance. Sincerely, /� t � Jta uelyn� Wentworth er/Consultant sl cc: Jerry Brill Rick Battaglia CONWORTH, INC. MEMO TO: Port Authority Chairperson Dunn Commissioners Anderson, Carroll, Edwards, McMenomy, Sinnwell, Wippermann FROM: John Miller, Economic Development Coordinator DATE: February 5, 1993 RE: Jackie Wentworth's Update on Relocation Activities and Concerns Please read the attached for Conworth's insight to the armory relocation. dw attachment C 0 #.1 IF 10 S At TIP% Loo STATUS REPORT TO: John Miller and Members f the Rosemount Port Authority FROM: Jacquelyne Wentworth DATE: February 3, 1993 SUBJECT: Relocation Activities and Concerns We have now met with all businesses which will be relocated by the Armory Site Project, and have been extensively involved in the concerns and alternatives which have been presented by some of these firms. The following is an estimate of the relocation claim exposure that the Rosemount Port Authority might expect. Please note that these estimates are being done without aid of actual moving bids, and so might differ somewhat. we are using our experience to forecast these figures, and are utilizing the Uniform Relocation Act Regulations as our guidelines in establishing what items are compensable. Name Business Relocation Claims A & G Autobody A & M Building Supply Dakota Small Engine Service Reno's Pizza Rick's Auto Repair Tourdot Upholstery Rental Realty Claims Richard Battaglia Al Monk Dale & Karen Tourdot Residential Relocation Claims Richard Battaglia Range of Relocation Benefits Low High $20,000.00 $20,000.00 $12,000.00 $20,000.00 $13,000.00 $16,000.00 $13,000.00 $20,000.00 $15,000.00 $20,000.00 $14,000.00 $20,000.00 $ 500.00 $ 1,200.00 $ 500.00 $ 1,200.00 $ 500.00 $ 1,200.00 $20,500.00 $30,000.00 CONWORTH, INC. Miscellaneous Al Monk Storage TOTAL $ 500.00 $109,500.00 $ 1,500.00 $151,100.00 Again, please be aware that these figures are just tentative and to give you some idea of what the Port Authority's exposure will be in relocating these different businesses. It does, not reflect any amount of payment for immovable fixtures which would be paid to the owners on a depreciated value schedule. These items are those not specifically considered in the valuation of the real estate. It also must be said that if the Rosemount Port Authority does purchase these fixtures, they then do not need to pay for disconnecting, moving, and reconnecting the items. The estimates also do not represent any acquisition costs to the Port Authority for the real estate. We hope that these figures will be helpful to you in forecasting a proposed budget for the project. We realize that there are always changes in budgets once they are made, and want you to be as fully informed as you can be so that decisions can be made. One of the important determinations that can be made by the Rosemount Port Authority is that perhaps the Agency would want to pay relocation benefits in excess of the law. As long as you are not being Federally funded and treat everyone in the project uniformly, it is possible to make relocation payments in excess of the State and Federal law. This is one way in which Rosemount can give incentives to the businesses to vacate the property in a timely fashion, as well as aiding in the public relations for the project, and finally minimizing court costs. In our combined over fifty years experience we have not found the amount of animosity and frustration that has been evident in all of the entities involved in this project. Because of this, we are very concerned that each and every relocation might end up not only going through appeal, but through the court system. In order to avoid this type of situation as much as possible, it may be to the Authority's advantage to be creative in handling these businesses. Such creativity could be things like advance payments in order to make sure that people are able to confirm the rental or purchase of their replacement site, as well as get started on remodeling the new site so that they can move promptly. It is most important that the Authority be cognizant of the fact that even though these are smaller businesses, we are talking about the livelihood of several different families, and want to alleviate undue hardship any way we can as is stated in the relocation regulations. In light of these considerations, it might be prudent to set up a system whereby advance payments can be made to the claimants as soon as sufficient documentation and/or agreement has been obtained. This does not preclude a formal relocation claim being submitted when all the paper work is in. However, the Agency can make a lump -sum CONWORTH, INC. settlement with those owners that might be involved. Any or all of these methods might be utilized if the Port Authority is determined to have the site vacated by May 1, 1993. As far as Strese Oil is concerned, we understand that the Port Authority has decided not to purchase this property at this time, -and Conworth, Inc. has rescinded the 90 -Day Vacate Notice that was previously sent. It is a concern of ours that CDBG funds were to be used in the purchase of this property, and just want to remind you to take a look at your agreement for those funds so that the Port Authority does not have any difficulties with the Federal Government because of changing the status of the property. As is always, we will look to John Miller for direction as to when to send out notices or the rescinding of notices when the Port Authority acts. We have been in contact with Mr. Strese, and he is very dismayed about what has happened as you are aware. Conworth, Inc. is certainly open to meet with you if there are any other concerns or questions that may arise from this or any other activities for which we are responsible. * A & G Autobody, Inc. has previously submitted a claim for $50,808.00 to the Port Authority which has been denied and is going to be appealed. Conworth, Inc. has recommended payment of $20,000.00 as prescribed by the regulations and documented by this firm. CONWORTH, INC. DRAFT WAIVER OF RELOCATION BENEFITS I, the undersigned, acknowledge that I met with Jacquelyne Wentworth, a representative of Conworth, Inc., on several occasions. Ms. Wentworth explained to me that, in the event the Rosemount Port Authority acquires my business/residence located at 13975 S. Robert Trail, Rosemount, Minnesota, I would be entitled to certain relocation benefits in addition to the amount of money being paid to me to acquire my business/residence. These benefits include: Residential Payments 1. A payment for my actual reasonable moving and related expenses or, if I preferred, a fixed payment, based on the number of rooms I furnish. 2. If I owned and occupied my residence for at least 180 days prior to the initiation of negotiations, and I buy a decent, safe and sanitary replacement house, I may receive a replacement housing payment to cover the following costs: a. If I must pay more to buy a replacement home than I receive for my present home, then I am entitled to be compensated for the difference. b. Compensation for incidental closing expenses such as recording fees, title insurance premium and transfer taxes. C. If I finance the purchase of a new house at a higher interest rate than I am paying on my present house, then I will be entitled to compensation for the additional interest costs. 3. 1 will also be entitled to a list of comparable safe, decent and sanitary replacement homes. Business Payments 1. Rick's Auto Repair is eligible to receive a payment for the actual reasonable cost of moving its business. This includes transfer charges, searching expenses, reestablishment payment, and other related expenses incurred by the business. 2. Or, if Rick's Auto Repair meets certain other eligibility conditions, it may elect to receive a fixed payment in lieu of a payment for actual moving costs that is based on its average annual net earnings. The minimum fixed payment is $1,000.00; the maximum is $20,000.00. CONWORTH�IN C. . 1. Finally, it was explained to me that the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 entitles me to these relocation benefits, and if I sign this agreement, I will be waiving those relocation benefits. After having these benefits explained to me I agree to waive these benefits. In signing this agreement I acknowledge that no threats have been made to me, either expressly or by implication. If, after signing this agreement, I attempt to collect any other relocation benefits, I will have to prove that, contrary to what I am agreeing to in this document, my waiver of relocation benefits was not entered into voluntarily. This agreement is conditioned upon the Rosemount Port Authority paying me $59,000.00 for all my residential relocation and business relocation payments and immovable fixtures. If this commitment to me is not fulfilled, the agreement is null and void. Date I, Jacquelyne Wentworth, representing Conworth, Inc. and the Rosemount Port Authority, acknowledge that I explained the relocation benefits to Richard Battaglia, that he appeared to understand the terms and conditions of the waiver, that no threats, expressed or implied were made to him during the negotiation process, and he entered into this agreement freely and voluntarily. By Date CONWORTH, INC.