Title/Name/Summary
Randy's Market-Tenant Payout
History
As part of the acquisition of the Orland Plaza, the Village of Orland Park is required to pay for relocation costs for affected businesses. The Village follows regulations in accordance with the Uniform Relocation and Real Property Acquisition Policies Act of 1970. The Village has finalized the relocation costs for RJH Stores, Inc. dba Randy’s Market, which was located at 14250 S. Ravinia Avenue. Randy’s chose to close their business and liquidation was completed on August 23, 2011.
The Federal Uniform Relocation Act defines how payment must be made when a business chooses to close in lieu of relocation. This is defined as a direct loss of tangible personal property (DLP) claim. The eligible payment amount for a claim for a DLP is computed as follows:
The value in place for continued use as determined by a personal property appraiser, less proceeds from sales if any,
Or
The estimated cost to move and reinstall the personal property not to be moved, whichever is less.
Randy’s Payment
Based upon the current law, Randy’s is entitled to a payment of $603,149.73. This is the lesser amount of the Estimated Relocation cost versus the Value in Place Cost. The Village was also required to pay for the costs of goods not sold minus the 25% markup. The inventory purchased was donated to the Orland Park Township Food Pantry. In determining this amount, the Village worked with Annette Favia Relocation Consulting Services and obtained written appraisals and two separate cost estimates for relocation.
Mr. Dave Withers (partner/butcher) has indicated a desire to reestablish a small meat market in the area, but has not identified a location yet. If he does choose to reestablish he would still be eligible to claim the maximum $10,000 reestablishment expense and a maximum search fee of $2,500. Mr. Withers will have 18 months from August 23, 2011 to reestablish.
On September 19, 2011 The Development Services & Planning Committee voted 3-0 to reccommend to the Village Board of Trustees approval of a relocation payment in the amount of $603,149.73 to RJH Stores, dba Randy’s Market.
Financial Impact
Funds for this expenditure are budgeted in the Main Street Triangle TIF Fund.
Recommended Action/Motion
I move to approve a relocation payment in the amount of $603,149.73 to RJH Stores, dba Randy’s Market.