1h. Approve Request for Advance Payment, Dinner Theatre
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952,227,1100
Fax: 952,227,1110
Building Inspections
Phone: 952,227.1180
Fax: 952,227.1190
Engineering
Phone: 952,227.1160
Fax: 952,227,1170
Finance
Phone: 952,227,1140
Fax: 952,227,1110
Park & Recreation
Phone: 952,227.1120
Fax: 952,227,1110
Recreation Center
2310 Coulter Boulevard
Phone: 952,227.1400
Fax: 952.227,1404
Planning &
Natural Resources
Phone: 952,227,1130
Fax: 952,227,1110
Public Works
1591 Park Road
Phone: 952,227.1300
Fax: 952,227,1310
Senior Center
Phone: 952,227.1125
Fax: 952,227.1110
Web Site
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TO:
Todd Gerhardt, City Manager
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Laurie Hokkanen, Assistant City Manager JJ:~
FROM:
DATE:
March 12, 2010 O~
Advance Payment Request, Chanhassen Dinner Theatres
SUBJ:
PROPOSED MOTION
The City Council approves the attached request for payment.
BACKGROUND
As a part of Chanhassen Station, the City acquired the Chanhassen Dinner Theatre Scene
Shop and land. Under state law (Uniform Relocation Regulations), the City is obligated
to make certain payments, including up to $50,000 for rent differential and re-
establishment expenses.
The City has given the Dinner Theatre a deadline of April 23 to vacate the Scene Shop.
They are close to signing a lease, and the terms of that lease require some pre-payment of
rent. Evergreen Land Services, the City's relocation consultant, has prepared the
attached request for advance payment to help facilitate the Scene Shop's timely
relocation.
The City estimates that relocation expenses for the Scene Shop will total approximately
$100,000. The signifigant remaining expenses is for moving costs. Any remaining
payments will be submitted for separate consideration.
RECCOMENDA TION
Staff reccomends the City Council approve the request for advance payment.
ATTACHMENTS
1. Request for Advance Payment from Steve Carlson, Evergreen Land Services
2. Relocation Agreement, International Theaters Corporation
G:\Admin\LH\TIF\TIF #10 Chan Station\CDT request for advance payment.doc
Chanhassen is a Community for Ufe - Providing for Today and Planning for Tomorrow
Evergreen Land Services
413! Old Sibley Iv\emorial Highway, Suite 201
,vlhl 55122
Tel: (651) 882,0200
Fax: (65'1)
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LA ND
SERVICES
COMPANY
March 11, 2010
Laurie Hokkanen
Assistant City Manager
7700 Market Boulevard
Chanhassen, MN 553 17
.\ pprai"al,. Acqurltj,.:m
:and Relooation Specdali$'\$'
SUBJECT: Advance payment request for re-establishment expenses for the relocation of
Chanhassen Dinner Theatres scene design shop.
Dear Ms. Hokkancn:
The above-referenced business has requested that The City of Chanhassen provide them with an
"advance" relocation payment of $50,000.00 to help facilitate their new lease at the replacement
site for the theatres scene design shop, as well as build-outs needed at new space to
accommodate the business.
The Uniform Relocation Regulations allow a displacing agency to make a partial relocation
payment "in advance" of the move and written relocation claim being filed, to help the displacee
avoid financial hardship and to facilitate the move. Any amount paid "in advance" will be
deducted from the total eligible benefits clue when a written, documented relocation claim is
submitted to the City of Chanhassen.
By this letter, I recommend that the City of Chanhassen issue an advance relocation payment in
the amount of $50,000.00 payable to the Challhassen Dinner Theatres.
I \\lould appreciate your processing this request for relocation advance partial payment at your
earliest convenience. I can pick it up and deliver it to the business to obtain a receipt for the
relocation file.
Thank you for your assistance! Please feel free to call me at 651-882-0200 if you have any
questions.
Steven Carlson
Relocation Manager
RELOCATION AGREEMENT
THIS RELOCATION AGREEMENT ("Agreement"), dated the'}~ day of
iJ~ , 20~ by and between the CITY OF CHANHASSEN, a Minnesota
municipal corporation ("City") and INTERNATIONAL THEATERS
CORPORATION, a Minnesota corporation ("Tenant").
RECITALS
A. The City is acquiring property from Bloomberg Companies, Inc. ("Seller")
in accordance with the terms of a Purchase Agreement between Seller and the City for
the construction of a transit station ("Purchase Agreement"), for the property legally
described in Exhibit A, attached hereto and incorporated herein ("Property").
B. Tenant leases from Seller a scene shop located in the northwestern portion
of the Property ("Scene Shop") under a month to month tenancy.
C. As part of the acquisition, the City desires to terminate Tenant's lease
effective March 1,2010;
D. The City is obligated to provide certain relocation services and other
benefits to Tenant pursuant to the Uniform Relocation Assistance Act (the "Act") and
other applicable law. Seller has been advised of its rights and payments that Tenant may
be eligible to receive pursuant to the Act.
E. Tenant acknowledges it has sought and received the advice of legal
counsel and has been specifically advised as to relocation, moving, reestablishment, and
other costs that may be available to the Tenant under the Act.
F. Tenant and City desire to enter into this Agreement to confinn their
understanding of the Tenant's lease termination, release, sale and assignment of any
claim for any relocation benefits and/or other relocation costs due or payable to Tenant,
whether pursuant to the Act or otherwise.
NOW, THEREFORE, in consideration of the mutual promises, covenants and
agreements hereinafter contained and for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties, for themselves, their successors
and assigns, agree as folJows:
1. Relocation Payment. The City will pay for Relocation Benefits under the Act
resulting from the City's acquisition of the Scene Shop under the terms of the Purchase
Agreement and termination of Tenant's Lease effective March 1,2010, estimated at One
Hundred Thousand and no/100 ($100,000.00).
2. Tenant's Acknowledgements.
a. Effective as of the date hereof, Tenant hereby acknowledges Seller has
consulted a relocation specialist and the Relocation Payment provided hereunder includes
a negotiated amount and full payment for Relocation Benefits and any and all amounts
required under the Act and any other applicable state and federal eminent domain
provisions with respect to the City's acquisition ofthe Scene Shop and termination of the
Tenant's Lease effective March 1,2010, including any portion ofthe Scene Shop located
on property abutting the Property identified under the terms of the Agreement.
b. Tenant releases and discharges the City, its officers, employees, agents,
s1;lccessors and assigns, of and from any and all liability can claims, at law or in equity,
and under any state or federal law, for additional relocation expenses or real and personal
property taken, including damages, interest, and costs, arising out of or in connection
with the acquisition of the Property.
c. Tenant acknowledges that it received notice of the need to vacate the
Property more than 90 days prior to the March 1,2010 lease termination date.
3. Effective as of the date hereof, Tenant hereby sells, transfers and assigns to the
City any benefits, payments, claims or other rights due or payable to Tenant pursuant to
the Act (or other federal or state law provisions) with respect to Tenant's Lease of the
Property.
4. Tenant acknowledges that it has freely assigned such rights of its own volition.
5. Tenant acknowledges that it has assigned such rights with full knowledge of the
specific relocation benefits to which it would otherwise be entitled.
6. This Agreement may be executed in any number of counterparts, each of which
shall be an original, but all of which together shall constitute one instrument.
IN WITNESS WHEREOF, this RelocationAgreement has been executed by the
parties hereto as of the day and year first above written.
TENANT:
INTERNATIONAL THEATERS
CORPORATION
I!Iidffi\! p~
By:
2
STATE OF MINNESOTA )
)ss.
COUNTY OF tf~li1r1(P;h )
The foregoing instrument ~CTackno~edfed before me this l..,!rJ day of
NovCyy.b~ , 2009, by &Is ~~ ~._ ~ -to'\, the ,P.rtsc~+- of
~-krf'\""+'C/~CA.llhek+V5 c,rf~r",--hc'" , a Cor 0 "'-='~ on its behalf.
~~"""".;<yvv .
MARK H. ANDERSON
NOTARY PUBLIC-MINNESOTA
My Commission Expires Jan. 31, 2011
And:
or
STATE OF MINNESOTA
COUNTY OF La'i'-J'er
)
)ss.
)
~ The foregoing ins~ent was acknowledged before me this \4-\.n. day of
~be.r ,2009, by \\1o~A ~r~ and\0Cld&(NArd+ , the
Mayor and City Manager of the City of Chanhass , a Minnesota municipal corporation,
on its behalf.
"
~
KIM t MEUWISSEN ,
Notary Public-Minnesota
My Commission Expires Jan 31, 2010
3
EXHIBIT A
Le2,al description of Property:
That part of Bloomberg's Property, City of Chanhassen, Carver County, Minnesota
described as follows:
That part of the Northeast Quarter of the Northwest Quarter of Section 13, Township 116,
Range 23 which lies North of the Northerly line ofthe Chicago, Milwaukee, St. Paul and
Pacific Railroad Company's main track center line as now laid out and established, East
of the plat of Frontier Cinema Addition, lying West of the Westerly line of Highway 101
and South of that part of the No!ilieast Quarter of the Northwest Quarter of Section 13,
Township 116, Range 23, described as follows: Commencing at a point on the North line
of said Section 13, distant 312.0 feet West from the North 1/4 comer thereof; thence
South at right angles to said North line 33.0 feet to the actual point of beginning; thence
continuing South along the last described course 94.66 feet to the Southerly r/w line of
Highway 101, thence Southeasterly along said Southerly r/w line a distance of 12.58 feet
along a curve concave to the Southwest, having a delta of 2 degrees 33 minutes 55
seconds and a radius of 281.00 feet; thence South 38 degrees 51 minutes 39 seconds East
a distance of235.02 feet; thence South 56 degrees 58 minutes 06 seconds West a distance
of 197.68 feet; thence North 88 degrees 06 minutes 20 seconds West, parallel with the
North line of said section, a distance of 354.91 feet thence North 1 degree 11 minutes 04
seconds East a distance of 76.15 feet; thence West parallel with said North line 311.88
feet; thence North parallel with the West line of said NE 1/4 of the NW 1/4 a distance of
319.03 feet to a point 33.0 feet South of the North line of said Section 13; thence East
parallel with said North line a distance of 675.18 feet to the point of beginning, Carver
County, Minnesota.
To be platted as Lot 1, Block 2 and Outlot B, Chanhassen Transit Station, City of
Chanhassen, Carver County, Minnesota (consisting of approximately 76,605 square feet),
as shown on the preliminary plat for the Chanhassen Transit Station, prepared by Kimley-
Horn and Associates, Inc., dated October 19, 2009
[Exact legal description pursuant to Commitment for Title Insurance and in accordance
with the survey and plat as provided hereunder to govern].
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