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Merino’s costs city $468 a day
by Jennifer Reece
Reporter
HUDSON - The city is paying
the owners of Merino’s Beer
and Wine downtown $468 each
day until the building is completed
and ready to reopen for business.
If the project is completed
by the end of this week, the
total cost to the city of the
move, which includes construction,
relocating and loss of business
expenses, would be about $218,000.
The construction of the project
is behind schedule, city officials
said at Tuesday night’s City
Council workshop meeting.
According to the original agreement
between the city and Merino’s,
the actual closure of the business
due to the move was estimated
to be between 30 and 50 days.
So far, the city owes Merino’s
for more than 80 days of lost
business.
City staff told Council that
four structural items and one
architectural problem have held
up the process of getting the
building completed.
City Engineer Dave McCallops
said the project is expected
to be completed Nov. 19, but
noted the occupancy permit may
not be issued on that same date.
Council members Tuesday expressed
dismay at the amount of money
the city is being asked to pay
out, and the length of time
the project has taken.
“It just seems to me that this
is going very slowly,” said
Council member John Jeffers.
Council President George Roth
said the project seemed like
a good idea when the contract
was signed, but added it has
gone on for too long.
“We need to bring this to a
short conclusion,” Roth said.
Council member Dan Williams
said he did not remember that
the city had agreed to pay the
Merino’s $468 each day the building
was not finished after the initial
30 days, but acknowledged the
city’s only other recourse may
have been to take the property
by eminent domain.
As of Nov. 3, the city owed
Merino’s $30,420 - $234 for
the first 30 days of construction
and $468 for each day beyond
that timeframe. As of Nov. 3,
the city owed the Merinos’ for
50 days at the latter rate.
Those amounts are being paid
to accommodate for lost business
revenue established when the
city negotiated a contract with
Merino’s, city officials said.
To date, the city is expected
to owe about $145,860 to Ver-Dick
Builders for the Merino’s relocation,
according to figures provided
by the city.
Most of another $27,500 has
already been paid to Klier Structural
Movers for moving the structure
to its new site.
In addition, the city has paid
$1,840 to the Merinos’ accountant
for negotiating the agreement.
Another $420 is owed for moving
inventory.
The city also owes the Merinos’
$4,789 for loss of business
prior to the actual move, and
$1,160 for advertising related
to the reopening, according
to city leaders.
The Merino’s building was moved
from its previous location on
North Main Street in mid-August
to its new home on First Street.
The structure was rotated 90
degrees and moved approximately
300 feet.
The historic portion of the
building actually serves as
the second floor at the new
location.
The building could not stay
on Main Street because of a
road extension needed to tie
into the downtown redevelopment
project, city officials said.
The new location includes new
electricity and plumbing, as
well as a new bathroom with
handicapped accessibility.
E-mail: jreece@recordpub.net
Phone: 330-688-0088, ext. 3145
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