Blaine approves relocation payments for tenants at 10500 Nassau Street amid property sale

The Blaine City Council approved relocation assistance agreements Monday for two businesses occupying 10500 Nassau Street as part of a pending city purchase of the property.

City staff told the council a signed purchase agreement had been received from the seller and that city and the seller negotiated relocation assistance so the sale could close. Director Thorvig said the seller requested that existing tenants be compensated for relocation expenses as a condition of sale; the seller declined to contribute, so staff negotiated directly with the tenants and proposed capped relocation payments.

Under the agreements presented to council, Wheeler Racing would vacate by July 31, 2025, and receive relocation assistance not to exceed $140,000, with $100,000 to be paid within 10 days of execution and further costs audited and reimbursed up to the cap. Clark Gaskets would vacate by June 30, 2025, and receive up to $40,000, with $10,000 payable upon vacating and additional audited expenses reimbursed up to the cap. Thorvig said both tenants had reviewed and executed the agreements pending council approval.

Thorvig and the city attorney explained those payments would likely come from EDA funds or from excess bond proceeds related to the redevelopment project; they said general taxpayer levy dollars would not be used. City Attorney said negotiations were contentious and that the seller insisted tenants be “taken care of” to close; he added staff sought seller participation but the owner refused to contribute.

Council Member Larson spoke in opposition, saying she did not support the city paying relocation costs and that prior nearby property purchases had not included such payments. She argued the landlord should be responsible and that the amounts here were far higher than other relocation assistance the city had provided. Other council members said the payments were necessary to finalize the sale and to avoid delays to the redevelopment schedule.

The council voted to approve the relocation agreements and authorized the city manager and mayor to execute the documents. Staff said approval would allow the purchase to close and preserve the developer’s 2025 schedule.