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<br />Special City Council Minutes <br />October 17, 1991 <br /> <br />Page 2 <br /> <br />---------------------------- <br /> <br />e <br /> <br />Discussion was held by the Council regarding the Elk River Associated <br />Investors' investment in the Industrial Park. Councilmember Kropuenske <br />indicated that the investors are borrowing money to pay taxes on the <br />land. <br /> <br />Bill Rubin, Economic Development Coordinator, indicated that if it is <br />the Council's decision to purchase the property, top priority should be <br />gi ven to recapturing the City money invested in the Industrial Park <br />property. <br /> <br />Mayor Tralle indicated that the City has made a commitment to keep Elk <br />Ri vel' from becoming a bedroom communi ty. He indicated that the Ci ty <br />Council must be cognizant of the tax base and that the labor market <br />needs to be developed in Elk River. He stated that it may he a risk <br />purchasing the Industrial Park, but felt the City could be set behind <br />if the property is not purchased. He further indicated that if the <br />City is going to be competitive in the economic development field, <br />purchasing the property should be pursued. <br /> <br />e <br /> <br />Jerry McChesney questioned whether the City would be willing to buy his <br />industrial property. He stated that he originally purchased the plat <br />from the Elk River Associated Investors. Jerry McChesney indicated <br />that if the City Council is considering purchasing the industrial land <br />from the Associated Investors, they should also consider purchasing <br />industrial land from other property owners. Councilmemher Kropuenske <br />indicated that there is a difference in that the Elk River Associated <br />Investors is a nonprofit organization and the other industrial property <br />owners is in the business of making a profit. <br /> <br />Mr. McChesney indicated that he and other industrial land owners have <br />been ignored by the City. He stated they were completely ignored in <br />the Elk River brochure and that the Elk River Industrial Park was the <br />only industrial site mentioned. <br /> <br />Mayor Tralle apologized to Jerry McChesney for neglecting to mention <br />his Industrial Park and other industrial land in the City's brochure. <br />He directed staff to look at the cost 'of reprinting the insert <br />regarding the Industrial Park. <br /> <br />Councilmember Holmgren stated that the advantages of purchasing the Elk <br />River Industrial Park outweigh the disadvantages. He indicated that <br />land values are continuing to rise in the City of Elk River and feels <br />that the City would not lose money by purchasing the property. <br /> <br />Councilmember Schuldt stated that he would not like to see the City use <br />the revolving loan fund monies to purchase the Elk River Industrial <br />Park. He stated that if the City decides to give the land away, the <br />money used from the revolving loan fund would not be recaptured. He <br />stated that the purpose of this fund is to help others. <br /> <br />e <br /> <br />COUNCILMEMBER HOLMGREN MOVED TO PURCHASE THE ELK RIVER INDUSTRIAL PARK <br />FROM THE INDUSTRIAL PARK ASSOCIATED INVESTORS FOR $210,000 AND DIRECTED <br />STAFF TO PROVIDE POSSIBLE FUNDING OPTIONS, FOR THE PURCHASE OF THE <br />