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.