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HomeMy WebLinkAbout2. Closed Executive Session - Strese LitigationDAKOTA COUNTY November 16, 1992 Mr. John Miller City of Rosemount 2875 145th Street West P.O. Box 510 Rosemount MN 55068 RE: RELOCATION ISSUES Dear John: Housing & Redevelopment Authority 612-423-4800 2490-]4>rh St. W. • Rtlscmaunt, D1N 55063 • T.D.D. 612.423-8152 -FAX612-423-8180 Enclosed is a summary of relocation issues for each of the businesses located in the "Armory Site", along with an estimate of some of the costs likely to be incurred in moving them. Actual moving expenses are difficult to estimate without knowing the site they are to move to. In many cases, their re-establishment expenses are likely to exceed the $10,000.00 maximum specified in the Uniform Act. This means that the business owners will likely incur out-of-pocket expenses that will not be covered by relocation benefits, unless sites can be found for them that are already well suited for their type of business. Availability in the Rosemount area of suitable locations for these businesses to relocate to has been a problem that I have not been able to deal with successfully. To undertake an extensive search and help each business owner deal with local codes, ordinances, and regulations would require much more time than I can make available and still maintain my normal workload at this office. This fact, and the difficulty that I have experienced in coordinating communications with the various parties involved in your redevelopment projects, leads me to conclude that neither the Port Authority, City staff, nor the business owners are being well served by the existing contract arrangement between this office and the Port Authority. My recommendation to you is that the City or Port Authority seek out and contract for the services of a private consultant or consulting firm to handle the relocation activities you intend to undertake. Such a consultant would be able to dedicate the time needed for this project, work more closely with City staff, and perhaps also assist you in your acquisition of the properties. "AN EQUAL OPPORTUNITY Eiv1PLOYER" -2 - Reducing the number of people involved in representing the City in dealing with the property and business owners might help improve the communication between City Hall and the owners. Alternatively, if you choose to handle more of the direct relocation and acquisition negotiations yourself, or have other City staff do so, this office can provide guidance or advice on applicable regulations and rules, outside of any fee or contract arrangement. Please let me know what you would prefer to do. I can provide you with information on consultants or with contacts to other parties who might be able to make referrals if you so desire. Sincerely, Lee Smith Community Development Supervisor LS:kmg Enclosure A & G AUTOBODY - Renter If the business actually moves, a replacement site could require extensive modification to meet current State licensing requirements. Paint booth, ventilation systems, and liquid hazardous waste traps would have to be up to strict current PCA standards. The owners feel that move to a different city would cause them to lose considerable business at a time when their business is already down due to economic conditions. No replacement site in Rosemount has been located, unless the site at 42 & 3 (SE corner) is bought and offered by some other party. As renters, they do not want to attempt to buy this site themselves. They are interested in a fixed payment. Their net for 90 & 91 averages out to be somewhere between $37,000 and $50,000 depending on what expense items are counted as actual income to the owners. Therefore, they would receive a maximum of $20,000, according to Uniform Act rules. Actual moving expenses would almost certainly exceed the $10,000 maximum for re-establishment expenses plus the cost of physically moving their property. Dakota Small Engine — Renter Would like to move to another Rosemount location as this is where the bulk of his business originates. Highway 3 frontage is preferred, or another visible location. Re-establishment expenses could be considerable depending on the site that this business moves to. For example, the owner would like to locate in the quonset building south of Fluegel's elevator, but City building codes and zoning ordinances would require extensive interior and exterior modification to this building to allow the change of use. The expenses would likely exceed $10,000, if the city would agree to pay the cost of improvements to a rental property. A fixed payment would likely be well below $20,000, as the business is fairly new and just becoming established. It is doubtful that the owner could bear any significant out-of-pocket expenses to relocate and stay in business. Reno's Pizza - Renter The owner indicates that his business is centered in Rosemount and would like another location in town with good visibility. He will effectively lose considerable equipment if he moves due to Health Department regulations requiring replacement if he expands or moves. Estimated cost of replacement equipment (used) is $8,000. This and the timing of the move are of vital importance. He does not think he could survive any significant down time. However, as he has a 2-1/2 year lease remaining at this current site, he may not be able to plan a move until the property has been acquired by the P.A. Actual moving costs $10,000 + for re-establishment expenses 10-15 actual moving and related considering the loss of equipment. Have not discussed fixed payment in any detail. Risk's Auto Repair- Owner Owner would like to stay in Rosemount if a site with reasonably good visibility and access could be found. Moving to a new site 2 will trigger some substantial requirements for site improvements in © order for him to keep his dealer license. The state requires physical separation of the dealer/repair aspects of the business. Moving to another city will mean: a)loss of patronage b)increased costs of operation. Actual moving expenses would most likely exceed the $10,000 re- establishment expense limit. Physical costs of moving will be site -dependent. There may be some equipment losses in a move - his lift, for example, is built-in at current site. Fixed payment has not been discussed in detail. Tourdot Upbolster - Owner Moving expenses will entirely depend on the site selected for replacement location. Space for storage of furniture and convenience for pick-up and delivery are concerns. Cost of operation will most likely be higher almost anywhere, as current building is paid off. Mr. Tourdot has said he will not decide regarding a business move until the acquisition of the property is settled. A & M - Owner Relocation should not be a significant item as there is little or no equipment, inventory or furnishings at the site to be acquired. Owner does have some personal property stored at the site. Acquisition is the driving issue with this owner. CITY OF ROSEMOUNT PORT AUTHORITY REGULAR MEETING A G E N D A NOVEMBER 17, 1992 5:30 P.M. 1. CALL TO ORDER 2. ADDITIONS/CORRECTIONS TO THE AGENDA 3. CLOSED EXECUTIVE SESSION STRESE LITIGATION 4. WORK SESSION A. Discussion of Small Business Development Center Services with Bob Macauley from Dakota County Technical College B. Review of Acquisition/Relocation Services C. Discussion of Draft 1993 Port Authority Budget 5. ADJOURNMENT