Title/Name/Summary
Tenant Relocation Claims
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 of Orland Park will take title/ownership of the Orland Plaza on February 14, 2012. As such, it is important that relocation claims are finalized for the existing businesses still located at the Plaza.
The Village of Orland Park has worked with Annette Favia, relocation consultant, to finalize estimated relocation payments for each of the existing businesses. Given the short timeframe left until February 14, 2012, staff is requesting pre-approval of payments to the tenants, based upon Ms. Favia’s estimates. Each of the estimates received, include the lesser amount for bids (usually 2 or 3) received, which is consistent with federal guidelines. A spreadsheet summarizing the total estimates is attached for your review.
Staff is requesting approval of the total estimated relocation amounts, including pre-payment of 50% of costs. This is consistent with previous relocation claims already approved by the Village Board of Trustees. Actual costs will be documented by the Village, prior to additional payments being made. Additional costs not reflected in the estimates include moving insurance, professional services, search fees (maximum of $2,500), reestablishment fees (printing), and tenant build-out (maximum of $10,000). These additional fees will be paid upon receipt of actual documented costs.
Individual Tenant Relocation Claims
Bloomingfield Florist - $163,127/$81,563.50 (50% payment)
Creative Cabinetry - $87,926.96/$43,963.48
Knitting, Etc. - $19,176/$9,588
Miroballi Shoes - $78,929/$78,929 (See explanation below)
Norman’s Cleaner’s - $143,444.80/$71,722.40
Syman’s Jewelers - $23,684.76/$11,842.38
Tri-City Electric - $18,565/$9,282.50
Storage Unit - Low - $1,750
Storage Unit - Erich - $1,000
Miroballi Shoes - Additional information
The Board approval request for Miroballi shoes, in the amount of $78,929, includes only the costs to move them into storage, until construction of their new building is completed. There will be an additional relocation claim in the future that will include the cost to remove them from storage and reestablish Miroballi at their new permanent business location. This additional claim will need to be approved by the Village at a later date. Staff is recommending paying 100% of the initial moving expenses into storage at this time.
The Development Services and Planning Committee recommended approval (3-0) on December 19, 2011.
Financial Impact
Funds for this expenditure are budgeted in the Main Street Triangle TIF Fund.
Recommended Action/Motion
I move to approve the estimated total relocation payments for existing tenants within the Orland Plaza, as outlined, plus additional eligible costs for insurance, reasonable and necessary professional services, replacement printing, search fees up to the maximum $2,500 and tenant build out improvements up to the maximum $10,000. I also move to approve advance payment of the eligible costs for each of the existing tenants, as outlined.