Title/Name/Summary
Kosnar Payout Approval
History
As part of the acquisition of the Orland Plaza, the Village of Orland Park is required to pay for relocation cost 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 Kosnar’s Drugs, Inc. dba Kosnar Liquor Inc, which was located at 9624 W. 143rd Street. Kosnar closed for business on February 28, 2011 and did not reestablish at a replacement site.
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 that will not be moved. 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.
Kosnar Payment
Based upon the current law, Kosnar is entitled to a payment of $44,517.30. This is the lesser amount of the Appraised Value in Place ($65,315) versus the Estimated Relocation Cost ($44,517.30). 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. Kosnar has requested that payment be made in two checks, one payable to his attorney, Mr. Steven Viz in the amount of $14,839.10 and the remaining amount payable to Kosnar Drugs, Inc. in the amount of $29,678.20.
On June 20, 2011, the Development Services and Planning Committee voted 3-0 to recommend to the Village Board of Trustees approval of a relocation payment in the amount of $44,517.30 to Kosnar Drugs, Inc, to be split between two payments, one payable to his attorney Mr. Steven Viz in the amount of $14,839.10 and one payable to Kosnar Drugs, Inc. in the amount of $29,678.20.
Financial Impact
Funds for this expenditure are budgeted in the Main Street Triangle TIF Fund.
Recommended Action/Motion
I move to approve the relocation payment in the amount of $44,517.30 to Kosnar Drugs, Inc, to be split between two payments, one payable to his attorney Mr. Steven Viz in the amount of $14,839.10 and one payable to Kosnar Drugs, Inc. in the amount of $29,678.20.