04-0065R

RESOLUTION APPROVING SETTLEMENT OF CLAIM OF LAKELAND DELIVERY SERVICE, INC., IN THE AMOUNT OF $17,481.18.

BY COUNCILOR STOVER:

RESOLVED, that the proper city officials are authorized to pay to Lakeland Delivery Service, Inc., the amount of $17,481.18 in full and final settlement of the claim which arose out of the relocation of Lakeland Delivery Service, Inc., which relocation occurred as part of the acquisition of the Baxter Building, formerly located in Lincoln Park, by the city of Duluth; payment to be made from Self Insurance Fund 0610.


STATEMENT OF PURPOSE:  As part of the Michigan Street realignment project, the city acquired a property known as the Baxter Building. At the time of this acquisition, Lakeland Delivery Service, Inc. was a tenant of the building. The Baxter Building was targeted for demolition; thus, Lakeland Delivery Service, Inc., was required to relocate its business operations. Those operations were relocated to its present location on West Superior Street.

The city is obligated under both state and federal law to pay relocation benefits. Federal regulations control and dictate the relocation benefits available. The city has carefully reviewed every item of relocation benefit requested by Lakeland Delivery Service, Inc.

The city of Duluth has investigated this claim and verified that the relocation benefits request are eligible expenses pursuant to federal regulations. The civil division of the city attorney's office recommends this settlement.