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<br />REQUEST FOR COUNCIL ACTION <br />Date: 6/2/2025 <br />Item No.: 7.e. <br />Department Approval City Manager Approval <br /> <br /> <br />Item Description: Consider Approval of Termination of Lease Agreement for TDM <br />Salons LLC <br />1 <br />2 Background <br />3 In 2018, the City of Roseville purchased the Lexington Shoppes commercial property at <br />4 2777 Lexington Ave., where Roseville's License and Passport Center is located. The <br />5 property was initially purchased to own the building where the License and Passport Center <br />6 had leased for many years. As part of exploring options that occurred between 2019 to <br />7 2022 for a new Maintenance Operations Center, this property was included as part of the <br />8 overall redevelopment. <br />9 <br />10 At the time of purchase, there were several commercial tenants with leases with the <br />11 previous owner of the property that were transferred to the City. One of the tenants, TDM <br />12 Salons, doing business as Salon 27, has given notice to the City that they will be closing <br />13 their business on May 31, 2025 due to the project. <br />14 <br />15 As the City owns the property and will be displacing the hair salon as part of the new <br />16 Maintenance Operations Center project, the City is responsible for financial relocation <br />17 assistance under the Federal Uniform Relocation Assistance and Real Property Acquisition <br />18 Act and the Minnesota Uniform Relocation Assistance Act (the "Uniform Acts"). <br />19 <br />20 Based on the Uniform Acts, a fixture appraisal was conducted to place a value on all <br />21 immoveable trade fixtures and improvements. Based on that appraisal (Attachment 1), the <br />22 City will be required to pay TDM Salons $143,760 for the immoveable trade fixtures and <br />23 improvements. In addition, TDM Salon is eligible to receive a fixed payment in lieu of <br />24 moving and reestablishment costs in the amount of $50,000 as prescribed by the Uniform <br />25 Act. As a result, the City will be paying TDM Salons $193,760 as part of the relocation <br />26 settlement. <br />27 <br />28 To formalize the transaction and end of the lease with TDM Salons, the City Attorney has <br />29 drafted a Termination of Lease Agreement that formalizes the termination of the lease and <br />30 outlines the responsibilities of the City regarding the payments to TDM Salons under the <br />31 Uniform Acts. (Attachment 2). <br />32 <br />33 Policy Objectives <br />34 The construction of a new Maintenance Operations Center and License and Passport <br />35 Center and dance studio will allow the City to continue to provide needed and valuable <br />Page 1 of 2 <br />Qbhf!:2!pg!385 <br /> <br />