01-14-1991 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes January 14, 1991 Page 4 e 15.2 HRA Meetin~ Discussion Commissioner Schuldt stated that the HRA met and discussion was held regarding the use of HRA funds. He indicated that HRA funds can be used for the demolition of the old creamery and stated that there was a possi bil ity that the HRA could play a role in the development of certain sites within the City of Elk River. Commissioner Holmgren stated that he would like to see the HRA use the money to purchase blighted homes. The EDA Committee recessed at 8:10 and reconvened at 8:23. 12. Jenne Site e John Lichter, City Environmental Consultant, stated that after testing the Jenne site property, it was concluded that there is contamination on the property. He stated that the contamination came from a tank located under the Cinema Professional building. Mr. Lichter stated that the water that was tested exceeded the allowable limit for drinking water. Because the water is not used for drinking water, he approached the State and informed them that it would be very costly to pump and treat this water for no benefit. He indicated that MPCA was in agreement with his conclusion that no action is required on this site other than to remove or fill the tank. Mr. Lichter indicated that a petro fund application is being prepared which would reimburse the City 90% of the costs for work on this issue. Rob VanValkenburg, owner of the Cinema Professional Building, stated that he would appreciate the City paying the remaining 10% of the testing costs. He indicated that a case could possibly be made regarding exactly where the contamination came from and further stated that the cost of filling the tank will be about $1,000, which he will have to incur. The EDA discussed the counter-offer made by Dan Anderson, representing Irma Jenne, for the Jenne property. It was indicated by Commissioner Tralle that the Jenne property was valued by White Dove at $112,400 and that the same property was valued at $75,000 by Shenohan and Associates. Commissioner Kropuenske indicated that the City's original offer of $109,540 was a realistic offer. Chairman Gongoll stated that he agreed with Commissioner Kropuenske in that the original offer of $109,450 is still a fair offer. City Attorney, Tim Keane, indicated that the contamination issue will affect some of the buyers and that it could reduce the number of potential purchasers. e Commissioner Holmgren stated that neither appraisal shows 1989 or 1990 sales for comparison. He indicated that the Assessor's Office has increased all commercial values on Main Street by 5%. He indicated that he felt it would be fair to add an additional 5% to the City's offer.