HomeMy WebLinkAbout4.a. Consideration of Relocation Payment to Mr. Arlyn Cope/ Repairs, Inc. i
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CITY OF ROSEMOUNT
EXECUTIVE S'[]bIblARY FOR ACTION
PORT AUTHORITY COMMISSION MEETING DATE: OCTOBER 19, 1993
AGENDA ITEM: CONSIDERATION OF RELOCATION AGENDA SECTIONd
PAYMENT TO MR. ARLYN COPE OLD BUSINESS
PREPARED BY: JOHN MILLER, AGENDA�� �
ECONOMIC DEVELOPMENT COORDINATOR �
ATTACI�NTS: SEPT. 7 CORRES. FROM ANN GROSSMAN APPROVED BY:
NON-REPURCHASE AGREEMENT WITH REPAIRS, INC. ,
REQUEST FOR RENTAL AGREEMENT FROM JOHN
WIEDERHOLD DBA SOUTHERN MOTORS
The attached agreement between the Rosemount Port Authority and Repairs, Inc. ':requires
that Repairs, Inc. vacate the property at 14390 South Robert Trail by October 14, 1993.
Repairs, Inc. has done that.
The agreement also states that the port authority will pay Repairs, Inc. $20,000 upon the
move from the property. In addition, the approximately $12,000 held in rent �scrow by the
port authority is to be paid to Repairs, Inc. upon relocation of the businessiin
Rosemount.
While it may or may not have been the intent to make both payments contingent ;upon a move
to another location in Rosemount, the language in the agreement actually requiires that
only the escrow money is affected by this and the requirement that the move ° ' . .comply
with all applicable city codes, regulations and zoning requirements. " In this regard, it
would appear that:
1. Repairs, Inc. is entitled to its $20,000 payment.
2. Upon receipt of verification from building inspections, planning, and erlgineering
that Repairs, Inc. has met all city code requirements and upon receipt qf a 12 month
lease for the new location, Repairs, Inc. would be entitled to receive �he
approximately $12,000 rent escrow.
There are however two problems. First there is the issue of vacating the property. While
Repairs, Inc. is gone from 14390 South Robert Trail, its tenant, Southern Motqrs, is still
there. In addition, Southern Motors has asked that it be able to rent space �rom the port
authority as outlined in the attached letter. If the port authority leases space to
Southern Motors, it's safe to judge that Repairs, Inc. has with its tenant vac�ated the
site and payment of $20,000 can be made to it. On the other hand, does the pqrt authority
then become liable for relocation payments to Southern Motors. I have discus�ed this with
Mr. Miles, the port authority attorney, and he should be requested to address 'the issue at
your meeting.
The second issue concerns the rent escrow. City inspection and planning peop];e will
advise the port authority when Repairs, Inc. has met all code requirements at 'its new '
location. At that time, I will bring the issue of repayment of the rent escraw to you for
your consideration.
RECON�lENDED ACTION: Motion to reject the request to rent spac� in the
Repairs, Inc. building as submitted by Southern Motors based on possible
liability for relocation costs.
Motion to authorize payment of $20, 000 to Repairs, Inc. upon va;cation of
the property at 14390 South Robert Trail by its tenant Southern Motors.
PORT AUTHORITY ACTION:
FR7M LINDQUIST&UENNUM 10. 13, 1993 15: 16 NA, 17 P, 2
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. :LINDQUIST &VENNUM . T�:e,��,�„ oe�,���
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ATSCw�Ys AT LAw ' .
`i. MRi K GR06Si�LW
r�d1?J3)'13217 _
_ _ - . September 7, 1993
� BY TEL�COP{ER
__ . . Mr. John Milier ..
City of Rosemount Port Authority
_. _. _._ _:_... _ Economic Developrnent Coordinator
� 2875 145 Street West �
� - . � Post 4ffice Box 510 � . J
;_ ,
.�-.-.--..Rosemount, MN 55068 . �
�.. .. _
. �` .:. :.
Re: Repairs, Inc. Proper#y Vacation Date �
� Dear John: .. � �
- - - - Attached to this letter, piease`find a copy of the AprNl.,i 4, i 993 agreement bet�ween
Repairs, lnc. and the Port Authoriiy under which the Pork Au#hority agreed to �pay
_ Repairs, inc. $20,000 upon the move of Repairs, Inc:from the property described in
� the agreement. .
_ . � Paragraph 8 provtdes that Repairs, Inc. must vacate the property by October i 4, 1993
or within sixty days of its receipt of written notice:to'-vaca�e,ihe premises, whi�hever
• ,
� date is earlier. This means.fhat.thie.last possible date Repairs� Inc. can occu�py the
. � property is October 13; 1993. , . .
Please contact me should you need additional information:'
_
� ' Sincerely�
� = �
G�� -�-�.-�.�...��z�.�,.�/
AKG:pae �
Ann K.�Grossman
Attachment � � '
_cc: David A. Allgeyer
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• FR�M LINDQUIST&VENNUM 10, 13, 1993 15: 17 N0, 17 P, 3
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- T8T3 I�GBEE�T is mad� ar►�i +�nter�d' intn thi� t�d�jy of _
---.:-. .. Apri3, 1993 by a�d between Repairs, Ir�c.', a Minn�sota �
ao�poration, and the Rvse.�wunt Part Authorf.ty, a nevelapment
Agency. �
.._- _ AT�iEFt�AB i - _ `
1. on Feb=uasy 5, �991, the �tase�aottn� �conamic
Devel.opment Authority purcha�ed, from Repa,irs, Inc. , the laxvd in
Rosemcunt, MiririeSOCa located at i'4390 and 144�0 South Robert�
. Trail and l�gally de6cri.bed as. Pcllows: i .
• " AUDITOR'S SUBpxVI5�4Id N0.- 1
part o�:.7,ot�4 ce�meric i ng ,��!S f eet north of Ce�iter '
Section 29, Township 7.1�, Rar�c�e 119. �ast 196'� feet
Noxth �.10 f��t�: West 296 f���� Sou'rh 1�.0 �eet, to
. bec�inning; _ .
`; ___ 2. Repair�, �n�. retained an optf.on ta r�purcha�e! the
- property described. abdye.`. 4n February 2, �1993, Repairs, Inc.
�'`- ---�-`--"----� informed the ROs.emount Port Autharity �/k/a/ Rosemour�t Econoinic
� - Development Authority of its int�nt ta exercise i.ts repuz�ha�e
` option;
- - 3. The Rcse�aount Par�'Authori.ty ,wants ta r�develop the :
• property described .above anci.wishes �o aaquire cleax title �b the
_ property through negotxation and without x��sort to its pawer o�' :
. . __
. eminent domain;
.
4. The above-named p�Se� c�es�,xe ta compxom�,se and �
settle al2 oP their ditPerences wi�h respec� �o the property'
:
_ described above.
... . . . . ,
.
�tow ��Box�, it is agreed by a�d�betwesn the parties `
hezeto as tollor�s: '
_ . .
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- ... 5. Tb@ .Rosemount port Authority Will. pay Repa�.rs, Znc.
$20,00� upon the move of Repairs, Inc. frotd �he above-descrilaed
property; : .
6. On the cond�tion that Repairs, Yri�. relocates �
within the city o� Ros�mr�unt, Repairs, �nc. wi11 also be ent�.tled
to retain the approximd�ely 512,800 h�ld in a rent escrow fn� the
property. To be entitled to r�lccation paymehts under this
_ __ . paraqraph, re2ocation. must be ot the business o� Repairs, In�. as
it now exists, such relocation must be within th� city vf
Rosemount, the re2ocatfan s�,te mu�t ba leayec3 by Repairs, In�.
tor at least one year dr purcha�ad, and Repairs, Inc. must cc�mply
_
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- FR�M LINDQUIST&UENNUM 10, 13, 1993 i5: i8 N0, 17 P. 4
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_: 4 _. _ with a12 applic�b].ar City codes, regul�tiarus and zoning
req�irament�.
rV 7. Unt�,l Repair�, rnC: ya�ates the property, the tersns
a` :
.
: o�' i.ts lease wf I7. remain the saYae except ,�hat Repai�� xno. wi21
-�- - not be liable ax ab3igated to make rent pay�aents;
_ 8. �n consideratfon of �he toregofnq, kepafrs, Inc.
. _
ac�ees ta relfnquish a�ny and ai� right ta,repurcha�e the property
describea above, ta vacate..the" property wi:thin six months of �he
date oF tbis ag�eeanent or within sixty (60)' days oP its recea.pt
of written notice to Vacate the p�rem�.�es �rom the Rosemount por�
� Authority, whic2�aver date .�.s. earlier,'.�2�d to take a►11 actidn
_ _.:..
_ � neaessary to cause arty subiessors to va�ate tne propezty with�.n
_ . _:._ -,---. __ trie time period d��cribed a�bove i . ...., ..,_..... .- .
... . . . .. . . ... , .. . _ . ..... ..._.. . ... . .
_ -. 9. R�pairs, znc. further aqrees tc release and torever
_
- discharge the Rosemount Por� Authority from mny and sil
ob].igations re].ated; ta r�3ocatior� or reestablishment of Repairs,
,_ �nc. and to assum� and be�r 'so�.e r�spons�.I�i2i�y �ar payments far
...` :�._.:. moving and relate� expenses and reestablishment experises, �f any,
to which sublessor� on th� property may, be entitled under sta�e
:. - . ,.
" or federa]. ].aw;
, . . ;
- --------------- l0. The. tarms cf thi� settlem�nt agr�ement are '
contractua]. and.not a m�re reci��Z.. Th� .sol� ��srn�dy �or a
�� - C3dfined hreach oE this :agrea.m�nt' sha21 bQ ;an action to enforce
the aqreeme»t;
],�.. �he undersign�d paxti.es state that they have fu11y
. read the foregoing Aqreement in its enti.rety a�nd �hat they hava
�-�---"T-" -��� - been fully advised by �hei� counsel with respact thereto, and
� that each of theta know and underst�r�d the �c�r�t�nts c�� this
_ ..._.__ agreement, and sigre the same ms their aw� ��Ce� ac� and deed.
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� REPA2R3, ZNC. �CSY,�O T AUTHClR�'1`
, , ,• .
___ BY: " _ ' �� . . BY` - '
Its Z� �. ex'sa
° AND '' - _ ' .= -
_ I . ecut�ve ' Yeetor
_ � �C� ���.�
_ : _ : APR 1 a 1993 ;
CL.ERK'S OF�1G�.
CITY OF RQSEMOUhtr
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