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Shakopee City Council
November 19, 2019
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| | | | | | | | | FROM: | Michael Kerski, Director of Planning & Development | | TO: | Mayor and Council Members |
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| | | | | | | | Subject:
Increase in costs for relocation of existing tenants located on the Sweeney property. | | |
| | | | | | | | Policy/Action Requested:
Authorize a change in the budget by increasing relocation costs from $100,000 to $160,000 and $12,000 for moving costs.
Project is currently budgeted at $840,000 for 2019 with an additional $100,000 in 2020 and $600,000 in 2021. New budget number for 2019 would be $912,000. | | |
| | | | | | | | Recommendation:
Approve Resolution No. R2019-124 authorizing a change in the overall project budget for CIP PR-19-002, increasing the relocation costs by $72,000 from the Park Development Fund for a total 2019 budget of $912,000 and authorize representatives to execute necessary payments for relocation and moving costs. | | |
| | | | | | | | Discussion:
The city is required by State and Federal regulations to relocate tenants using standard housing replacement formulas. At the time of the original budget, we did not have information on tenant's incomes. The city retained WSB's relocation experts to meet with each tenant and evaluate their incomes and possible rent differentials. Several of the tenants are considered low income or specialized populations that require additional financial support for relocation assistance.
The city's goal is to have the property vacated by the end of this year so that properties can be secured for winter. Two of the current houses would be demolished in Spring 2020. The historic Schroeder home (1880) will be restored/rehabilitated at a later date.
Terracon has completed an environmental assessment of each building. The Schroeder house actually tested negative for any hazardous materials. Terracon is in the process of completing testing along the Minnesota River and on an additional out-building. | | |
| | | | | | | | Budget Impact:
Transfer an additional $72,000 from Park Development | | |
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