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Mr. David M. Childs 2 June 1982 Page Two The cost of this service was not identified in our proposal dated 4 May 1982. The reason for this omission was the uncertainty as to the type, extent or number of relocations which will be required. This was identified as Stage IV of our work program. It can be expected .that a residential relocation would cost $400. The range on business relocation would be at minimum $500 to an unspecified amount. This range exists due to a small, one-man shop requiring minimal effort. At the other end of the scale, a major commercial enterprise would demand considerably more work. To be noted, however, is that the greater the number of similar type relocations, the less the cost will be for the individual case. (2) (b) Who will be responsible for handling acquisition activities? Is the cost included in the fees as presented? Response: Mr. Daniel Wilson, with the support of David Licht, will be the individuals responsible for property negotiation and the drafting of purchase options and agreements. It would be expected that the City Attorney would contribute a limited amount of time to this task in finalizing formal agreements and contracts. Northwest's fees for property negotiation and acquisition activities were included in the fees presented. Fees to be charged by the Dorsey firm or other legal counsel whom the HRA might choose are not accounted for. (2) (c) Who will be responsible for handling appraisals? Is the cost included in the fees as presented." Response: Under legal requirements, two appraisals of property will be made. The HRA will select one appraisal firm and the property owner a second. The HRA is responsible for both appraisals and could expect to contribute $300 to $400 to the property owner's appraisal. This again is, however, contingent upon the property and activity being analyzed. Typically, appraisal firms are contacted for bids on the work involved. Northwest will handle the preparation of the request for such proposals and assist the HRA in the possible interview and selection process.