HomeMy WebLinkAbout6.c. 1988 Community Development Block Grant Program . . .
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Agenda Item 6c.
TO: MAYOR, CITY COUNCIL, CITY ADMINtSTRATOR
FRUM: vEAN JUHNSUN, DIRE(:TOR UF COMMUNtTY UEVELOPMENT
DATE: (3CTOBER 12, 1989
SUBJ: OCTnBER 17, 1989 AGLNDA 1TEM bc.
PHIL'S BOUY SHt)P/AAA AUTO SAL�'ACE
Nearly two years aga, the City Council auchorized staff to apply for Cammunity Development Block
Grant (CDBGj fnnding for the acquisition and relocation of Phil's Body Shop1AAA Auto 5alvage.
Tlus action was largely in response to the earlier request from PhiPs Body Shop to erect a new
buitding on the propecty to house a modern spray paint booth. The request far the addition to the
non-conforming use was denied.
DakoEa County receives entitlernent funcis from lhe Department of Housing and Urban Development
(HUD). Counties with an excess af 20�,(l00 population are "entilled" to CDBG funding from HUD
on an annual basis. The county has set up districts where funds are dis[ributed each year.
Rosemouni is included in a district made up of the cities of Lakevilte, Farmington, Hastings and
Rosemaunt.
Our dis[rict has elected to split ihe funding available between the cities. Rather than utilizin� a
relatively small amount of funds each year, two cities share lhe �unds every other year. In the 19£i8
program, Hastings and Rosemaunt submitted proposals co spli� the pot. In 1989, Lakeville and
Farmington shared the funding.
Based upon the fuads that becarne available ta Rosemaunt and Hastin�s in 1988, it was evident that
the acquisition and relocation of both Phii's Body Shop and AAA AuCa Salvage was not possible,
without considerahle subsidy from the City. Since that time we have concentrated on the acquisition
and relocation of AAA Auto Salva�e. The Council is weil aware of the activities that have Ied to the
zoning changes and site pian review and subsequznt conscructian of the new AAA Auto Salvagc facility
on lt�th Street.
While the proeess has been a tang one, 1 think lhe objectives �f ihe program will soon be realiced.
We set out [o remove an increasingly blighting influenee in an expanding residential neighborhood,
With the relocation of the salvage business, the property will be returned to its p�re-1972 zoning
ordinance conformance. The remaining buildings were canstrucced prior to ].972 and the only business
remaining will be Phil's Body 5hop.
Attached is the agreement between the Cily and all parties invoived in current business and properry
ownerships. The mobile home has atreaciy been rernaved and the agreement calls for the remava! of
the large AAA Auto Salvage building. The fencing on top of the berm along B�cardi Avenue wiH
also be removed. Some of the automobites have already been removed and the salvage bosiness on
the site will cease on November 1, 19$�, The balance af all clearance activities wilt be completed by
Jun� ], 1�89.
The fortnal step in this process is ln approve the attached agreemeni. A portion of the funding wiH
be released immediately and the balance upon success('uI complelic�n of the requirements in the
agreement. Staff recommends approval of the agreement and authorization of the signatures thereon.
It is appropriate thai we have Gnally reached this stage. In another rnonth we'll be mee[ing with
Dakota Caunty to discuss our intenti�ns [or the 1y90 CDBG prugram. It is no secret that HUD and
the County have been nudging us t� complele the 19�38 pro�ram. Whi(e two years would seem an
adequate time Eo resolve the issues a[ Piiil's/AAA, we havc ac�ually bc:en dealing with lhis "problem"
since Ehe early 1980s. It is fair to say that the issue has been touchy aver lhe years. In recent
months, hc�wever, all parties have w�rked �ael! togcthcr ta reach an amicab{e soluti�n.
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AaRBEMENT
AGREEMENT made this day of , 1989, by
and between the CITY OF 120SEMOUNT, a Minnesota municipal corpo-
ration (�City�') , and GERALD P. ANDERSON, JAMES R. ANDERSON,
JOHN A. ANDERSON, PHILLIP J. ANDERSON a/I�/a PHTLLIP JOHN
AN�ERSON, and his wife MARIE A. ANDER50N ajk/a MARIE ANDERSON,
("Seller�) .
RECITALS
1. Seller owns and operates an auto saivage bu�siness known
as AAA Auto Salvage, 2025 130th Street West to 2595 160th Street
West, in Rasemount, Minnesata, legally described as fo2laws (�the
subject propertyNj :
Section 21, Township 1i5, Range 19, East 241.7 feet of the
South 391.7 feet of the Northwest Quarter, except the North
60 €eet of the South 93 feet of the East 50 feet, exc�pt
road, Dakota County, Minnesota.
2. The auto salvage business is a nanconforminq use.
3. The S$ller desires to relocate the auto salvage business
and the City wants the noncor�forming use terminated.
NOW, THEREFORE, the parties agree as follows:
i. Purahase.
A. Purcha�e of Buildi.ngs. The C3.ty hereby purchases
from the Seller and the Seller hereby �ells to the City for
$i2,500.00 the €ollowing described buildings located on the
subject praperty described above: 70' x 40' warehause, l0' x 51'
mobile home. The d�mensions of the buildings are approximate. On
or befare June 1, 1990, the Seller shall remove the buildings,
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footings, slabs, and the like, and the cantents of the bui3dings
from the sub�ect property and properly dispase of them aff-site
at Seller's cost. The buildings may not be burned on-site and
aemoiition aebris may not be buried on-site. The Seller shall
pramptly fill in any excavations on which the buiidings were
relocated.
B. Title. The Seller represents to the City that it
has fee title to the buildings referred to above free and c2ear
of any mortqages or liens.
C. Discannecting Utilities. On or before June 1, 1990,
the Seller shall disconnect from the buildings all telephone,
gas, electric, and other utili.ties.
2. T�rminatfon of Husiness, On or before November 1, 1989,
Seller shail permanently cease and desist fram the operatian of
an aut� salvage y�rd on the prnperty �bove described. By June ].,
1990, Seller �hall remave all site screening on the berm alt�ng
Bacardi Avenue, inventory, equipment, salvaged cars, parts, and
the like from the subject property.
3. Relocation.
A. Seller hereby deciares that the City's purchase of
the property is taking place at the request of the Seller and
made prior to any acCion whatsoever by the City which would
indicate an intent to acquire the property, and that prior to any
action by the City to purchase the proper.ty, Beller intended to
sell the property on public market.
B. Seller hereby acknowledges their eligibility for
relocation assistance, services, payments and benefits uncler the
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Uniform Acquisition Relocation Assistance and Real Property
Acquisition 12egulations of the Surface Transportation and Uniform
Relocation Assistanae Act of 1987. Below are the specific
benefits the 3elier is eligible to receive:
f�) paY�►�nt for Actual Reasanable Moving and
Related Expenses.
(aj Transportation af the displaced persan and
personal property. Transportation casts fnr a distance
beyand 54 miles are rtat eligible, unless the City
determines that the relocation beyond 50 miles is
justified.
{b) Packinc�, crating, unpacking, and uncrating
af the personal property.
(cj Storage of the persor�al praperty for a
periad not to exceed twelve {12j months, uniess the City
determines that a langer period is necessary.
(d} Insurance for the replacement value of the
, property in cannection with the move and necessary
storage.
(e) The replacement value of the progerty
l�ast, stole», or damaged in the process of moving (not
through the fault or negligence of the di�placed person,
his agent or employee) where insurance covering such
1ass, theft, or damage is not reasonably available.
(f) Other mavinq-relatec� expenses that are nat
listed as ineligible, as the City determines to be
reasonable or necessary, or;
(2) Fixed Paym�nt €or Moving Expenses as fc�l3ows:
A displaced business may be eiigibie to choose a fixed
payment in lieu of the payments far actual mov3.ng and
related expenses, and actual reasanable reestablishment
expenses. Such fixed payment except for payment to a
nonprofit organization, shall equal the average annuai net
earnings of the business, as computed in accordance with
paragraph (5) of this sectior�, but not less than $1, 000 nor
more than $20,U00. The displaced business is eligible for
the payment if the City determines that:
(a} The business owns or rents personal
property which must be moved in connection with such
displacement and for which an expense would be incurred
in such move; and, the business vacates or reloaates
from its displacement si�e.
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(b) The business cannot be re3ocated without a
substantial loss of its existing patronage (client or
net earnings) . A business is assumed to meet this test
unless the City determines that it will not suffer a
substantial loss of its existing patronage.
{cj The business is not part of a commercial
enterprise having more than three (3) ath�r entities
which are not being acquired by the City, and which are
under the same ownership and engaged in the same or
similar business activities.
(d) The business is not aperated at
displacement dwelling solely for the purpase of re»ting
such dwelling to others.
(e) The business is not operated at the
displace-ment site solely for the purpose of renting to
others.
(f) The business contributed materially to the
inaome of the displaced person during the two (2)
taxable years prior to dispiacement, and;
(3) Reestablishment Expenses. In addition to
either of the above payments, a busi.ness may be eligible to
rece:�ve payment, not to exceed $10,000, for expenses
actually incurred in relocating and reestablishing such
small business, farm, ur nonprafit organization at a
replacement site.
(aj E13.gibie Expense�z Reestablishment
expenses must be reasanable and necessary, as determined
by the City. They may include, but are not limited to
the following:
1. Repairs ar impravements to the
replacement of real property as required by Federal,
State, or local law, cade, or ordinance.
2. Madifications to the replacement
praperty to accommodate the business operation or
malte replacement structures suitable for conducting
the business.
3. Construction or installation costs,
not to exceed $1,500.00 for exterior signing to
advertise the business.
4. Pravision of utilitie� from right-of-
way ta improvements on the replacement site.
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5. Redecoration ar replacement af soiled
or worn surfaees at the replacement site, such as
paint, panelling, or carpeting.
S. Licenses, fees, and permits when not
paid as part of moving expenses.
7. Feasibility surveys, soil testing, and
ma-rketing studies.
� 8. Advertisement o� replacement location
not to exceed $1,500.00.
9. Professional services in connection
with the purchase or lease of a replacement site.
10. Estimated increase aosts of operation
during the first two (2) years at the r�placement
site, nat to exceed $5,000.00, for such items as:
a. Lease ar rental charges;
b. Personal or real property taxes;
c. Insurance premiums; and
d. Utili�y charges, excluding impact
fees.
11. Impact fees or one-time assessments
for anticipated heavy utility usage.
12. Othez items that the City considers
essential ta the reestablishment of the business.
#. Disclosure and 7�cknowl�dqmsnts.
A. Seller is aware that the City wishes to buy the
property described in paragraph 1(A) of this Agreement without
the use of eminent domain. �
B. Seller understands that they are not under the
threat of eminent domain and unless they reaah a voluntary
settlement with the City, the acquisition will not proceed now or
in the foreseeable future.
C. Seller understands that the praperty identified in
paragraph 1 of this Agreement has been appraised by the City and
the total value determined for the property is $12,500.00.
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D. Seller has voluntarily subm�.tted an offer ta sell
this property to the City.
E. SeZler has met with a representative of the City and
the Dakota County Housing and Redevelopment Authority, and has
discussed relocation assistance and paym�nts provided under the
above described regulations.
F. Seller understands that they cannot be required to
sell this property ta the City unless they are given relocation
assistance and payments �s are stated abave and Seller
understands that these payments could exceed $80,100.00 for
actual moving expense payments (based on moving bid from Tri-
State Salvaging and Recycling) , plus additional eligible expenses
outlined above and up tq $10,000.00 for reestablishment expenses
as outlined abave.
G. Seller declares that they have read this Agreement,
that they are being represented by legal counsel on this matter,
and that they have entered into this Agreement valuntarily.
H. Seller agrees the tatal amount they shall be paid by
the City for the subject property described in paragraph 1 and
far relocation and reestablishment expenses is to be $74,000.00.
This amaunt involves $12,500.00 for the sub�ect property and
$61,500.00 for the above described rel+�cation and reestablishment
expenses.
5. Payxent. Payment by the City to the Se11er shall be
made as fallows:
A. $40,000.00 at the time this Agreement is executed;
and
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B. $34,UUO.OU when the buildinqs have been removed and
the Seller has complied with the terms and conditions of
this Aqreement.
IN WITNESS WHERE4F, this Agreement has been executed by the
parties the day and year first above written.
CiTY OF ROSEMOUNT
HY:
Rollan Hoke, Mayor
AND
Steghan Jilk,
AdministratorJClerk
GERALD P. ANDERSON
JAMES R. ANI3ERSON
JOHN A. ANDERSON
PHILLIP J. ANDERSON,
a/kJa PHILI.IP JOHN ANDERS�N
MARIE A. AIJDERSON,
a/k/a MARIE ANDER�ON
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. � ♦ . . �, . . . . . � . . . � . � . .
STATE OF MINNESOTA )
( ss.
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this
day of , 1989, by Rolian Hok�, �Iayor, and by
Stephan Jilk, Admin stratorjClerk of the City of Rasemount, a
Minnesota �nunfcipal corporation, on behalf af the corparation and
pursuant to authority granted by its City Council.
NOTARY PUBLIC
STATE OF MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this
day of , 1989, by Gerald P. Anderson.
N�TARY PUBLIC
STATE OF MINNESOTA )
( ss.
COUNTY OF )
The foregaing instrument was acknawledged before me this
day of , 1989, by James R. Anderson.
N�TARY PUBLIC
STATE �F MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrum�nt was acknowledged before me this
day of , 1989, by John A. Anderson.
NOTARY PUBLIC
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STATE �F MINNESOTA )
( ss.
COUNTY OF )
The foregoing instrument was aeknowledged before me this
day af , 1989, by Phillfp J. Anderson a/k/a
Phillip John Anderson, and his wife, Marie A. Ander�on aJk/a
Marie Anderson.
NOTARY PUBLIC
DRAFTED BY:
Grannis, Grannis, Farrell
& Knutson, P.A. -
403 NorweSt Bank Building
161 North Concord Exchange`
South St. Paul, MN 55075
(612) 455-1661
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