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MAYOR <br />Bill Blesener <br />COUNCIL <br />Rick Montour <br />John Keis <br />Michael McGraw <br />Shelly Boss <br />515 Little Canada Road, Little Canada, MN 55117 -1600 ADMINISTRATOR <br />(651) 766 -4029 / FAX: (651) 766 -4048 Joel R. Hanson <br />www.ci.little-canada.mn.us <br />MEMORANDUM <br />TO: Mayor Blesener & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: April 8, 2011 <br />RE: Relocation Payments for B2 Turn Lane Project <br />With the acquisition of the Hostess Outlet Store (IBC Sales Corporation) and the mobile home units, the <br />City is required to address relocation payments pursuant to state statutes. These documents will finalize <br />our relocation requirements for the Hostess Outlet Store and the 4°i of four mobile homes. <br />The first document is a Final Relocation Claim Agreement between the City and IBC Sales Corporation. <br />It provides for the payment of $12, 910.48 for moving expenses and for a $50,000 payment for <br />reestablishment costs. It also documents that these payments will constitute the full and final payment <br />of all eligible relocation expenses. <br />In the attached letter from Mr. Jon Morphew, our relocation attorney, he does an excellent job of <br />explaining why it makes sense to approve these payments to ensure we avoid future costs that could be <br />claimed if they ever reestablish the Little Canada operations on a "permanent" basis versus the current <br />"temporary status ". I also reviewed these documents and analysis with the City Attorney, and he agreed <br />with the approach. In fact, he stated it should allow us to finalize the condemnation case. <br />The second relocation issue involves the mobile home formerly owned by Timothy Dinneen. The <br />payment of $15,000 is essentially for "replacement housing ". Mr. Dinneen is purchasing another unit <br />with Terrace Heights. He was assisted by North Heights Lutheran Church in securing and renovating <br />the unit. This payment will close out this matter as well. Mr. Morphew has provided appropriate <br />documentation regarding the basis for this payment. <br />Staff recommends approval of the relocation payments to IBC Sales Corporation and Timothy Dinneen <br />as presented. <br />1 <br />