5.6. SR 06-12-2000'~ity of
River
M£MOP. ANDUM
Item #5.6.
TO:
FROM:
DATE:
SUBJECT:
Mayor & City Council
Pat Klaers, City Administrator
June 12, 2000
Update on Deschenes Relocation
As I am sure the entire City Council knows, the city has been going through
the eminent domain process to obtain ownership of the Deschenes property
for the extension of the sewer, water, storm sewer, and street components of
the east Elk River public improvement project. The city has had its attorneys,
real estate appraisers, and relocation experts involved in this process to
ensure that the Deschenes are treated fairly and also to ensure that no more
than the appropriate amount of public funds are spent on this acquisition for
the public improvement project.
A commissioner's hearing has determined the value of the land and
immovable fixtures and this ruling, which was very close to the city's
estimate, is being appealed by the landowners, George and Carol Deschenes.
The other costs in this process include the searching for suitable replacement
sites, moving costs, and reestablishment expenses for the three existing
businesses (Industrial Grinding, Industrial Grinding Manufacturing, and A&
M Charter Services) and the moving costs and a rent differential payment for
the residential tenants (Mike and Annette Deschenes). About five months
ago, the city formally offered George and Carol Deschenes and Mike and
Annette Deschenes $72,050.02 for all of the above-noted expenses. This offer
was based on statutory maximums for certain expenses, bids received from
moving companies, and relocation estimates from the consultants. After a
series of discussions, meetings, and negotiations, the city has reached
agreement with George, Carol, Mike, and Annette Deschenes for a total
package payment of $76,000.
Staff recommends that the City Council take formal action to accept this
negotiated settlement for all of the above-noted expenses. As an aside, the
council should note that all of the businesses and tenants will be off the site
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
Memo to City Council
June 12, 2000
Page 2
by June 23, 2000, so that there will be no delay in the public improvement
project.
Recommendation
It is recommended that the City Council accept the negotiated settlement in
the amount of $76,000 for George and Carol Deschenes and Mike and
Annette Deschenes for all estimated relocation costs associated with the
businesses and residential tenant.