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