Can these files be stored in a different location than my "C:\Users\Mike\AppData\Local\Temp" folder.
No. The TEMP folder is designed to hold such temporary files. All your applications store temporary data in the special TEMP folder.
You can change the location of the TEMP folder per user via the Windows control panel.
Note: Since many applications use it, and many applications store short-lived files there, TEMP should be on your fastest disk.
If you are concerned about disk space usage (probably not, in these days) you can setup a scheduled task that cleans your TEMP folder when you shut-down Windows.
Or run the Windows disk cleanup utility often.