Council authorizes termination of TDM Salons lease, approves relocation payments under federal and state law

The Roseville City Council on June 2 authorized a termination of the lease with TDM Salons LLC for its InShops retail center space and approved relocation payments required under the federal Uniform Relocation Assistance and Real Property Acquisition Act and the Minnesota Uniform Relocation Assistance Act.

City Manager Pat Trojgen and staff explained that the city purchased the property in 2018 to secure the site for municipal services and possible future campus redevelopment. Under the federal and state relocation laws, the city commissioned an appraisal of the tenant’s leasehold improvements. The appraisal and related calculations produced a compensation total of $143,760 for removable trade fixtures and improvements plus a $50,000 fixed payment in lieu of moving and reestablishment costs, for a combined payment of $193,760.

Tredgen said the tenant ceased operations on May 31 and had removed movable equipment; appraiser work was completed in January and staff said the tenant had accepted the payment terms. City staff told council the relocation payments will be funded from sales-tax revenue (with short-term general-fund cash flow to be reimbursed when sales tax collections begin in July). The city will perform a final walkthrough of the vacated premises before executing the termination agreement.

Council member Graf moved and Council member Bauer seconded authorization to enter the termination-of-lease agreement and issue the relocation payments; the motion passed unanimously.