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HomeMy WebLinkAboutEDA April 7, 1998 . , , / , I " / CITY of ANDOVER EDA Meeting - Tuesday, April 7,1998 Call to Order - 7:00 PM Discussion Items 1. Commercial Auto SettlementlPark Update 2. Charles Mistelske Relocation Benefits Other Business Adjournment , , / '\ , J , I / CITY OF ANDOVER REQUEST FOR ECONOMIC DEVELOPMENT AUTHORITY ACTION DATE: April 7, 1997 AGENDA SECTION ORIGINATING DEPARTMENT Discussion Item - EDA Meeting Administration Richard Fursman ITEM NO.1. Commercial Auto Settlement BACKGROUND: Staff will be presenting the Economic Development Authority with Commercial Park Plan review and update and settlement terms on the Mistelske matter. The City is waiting on TKDA for Feasibility Report numbers and a settlement offer from Mistelske. It is anticipated that the EDA will be meeting in a closed session to discuss the settlement offer by Mistelske. If the Feasibility Report appears to be in order, staff will be recommending the plans and specifications be ordered for the project. \ , j " CITY OF ANDOVER REQUEST FOR ECONOMIC DEVELOPMENT AUTHORITY ACTION / DATE: April 7, 1997 AGENDA SECTION ORIGINA T1NG DEPARTMENT Discussion Item - EDA Meeting City Attorney William Hawkins ITEM NO.2. Charles Mistelske Relocation Benefits REQUEST: The Economic Development Authority is requested to approve a relocation benefit of $27,500.00 to Commercial Auto. The City recently concluded research regarding previous relocation benefits Commercial Auto Parts would be entitled to for the blue building located at the comer of Jay Street and Bunker Lake Boulevard. Our review indicates that Commercial Auto Parts has been paid one month storage at the rate of $2,500.00 per month. Under the Uniform Relocation Act they would be entitled to eleven more additional months of storage for an additional payment of $27,500,00. We had attempted to pay Commercial Auto Parts $20,000.00 last summer but an agreement could not be reached as to who would receive the money because of the pending marriage dissolution action, It is our recommendation at this time that the Council authorize payment of the amount of $27,500.00 to conclude the storage cost portion of the relocation benefits claim on this site. A copy of our letter to Mr. Mistelske's attorney summarizing this history is also included. \ j LAW OffiCES OF William G. Hawkins and Associates WILLIAM G. HAWKINS BARRY A. SULLIVAN Legal Assistant T AMMI J. UVEGES 2140 FOURTH AVENUE NORTH ANOKA. MINNESOTA 55303 PHONE (612) 427-8877 FAX (612) 421-4213 March 25, 1998 Kirk A. Schnitker, Esq. SCHNITKER & ASSOCIATES 2300 Central Avenue NE Minneapolis, MN 55418 Re: Commercial Auto Dear Mr. Schnitker: The purpose of this letter is to try to clear up any confusion that may exist regarding storage costs which may be due Mr. Mistelske as relocation benefits for the storage building property. It is my understanding that Mr. Mistelske is requesting twelve months of storage at the rate of $2,500.00 per month. Initially, the City paid Mr. Mistelske as relocation benefits $14,357.00. This claim included $11,857.00 for moving costs and $2,500.00 for the first month of storage, that being June of 1996. Thereafter, the City denied further storage costs. A contested case hearing was held before Assistant Anoka County Attorney Dan Klint. Mr. Klint ruled that the City owed Mr. Mistelske $20,000.00 in storage costs for June of 1996 through June of 1997. He further ruled that a claim on the remaining four months was premature. Subsequently, the City was prepared to pay $20,000.00 in accordance with this ruling. However, the litigation in the dissolution action prevented further payment. Consequently, the City has paid $2,500.00 representing one month of storage costs. The City is prepared to pay the balance of $27,500.00 forthwith. If this is your understanding, please advise and we will have the City issue a check in the amount of $27,500.00 made payable to you and Mr. Mistelske forthwith. If this is not your understanding or if Mr. Mistelske feels that this does not Kirk A. Schnitker March 25, 1998 Page Two adequately satisfy the storage costs portion of his relocation claim for that property, please advise. Thank you for your attention to this matter. Ancere , ~~~~~1keY BAS/tju cc: Sean Ingvalson Richard Fursman