05-10-1999 EDA MIN - Laserfiche WebLink

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EDA Minutes May 10, 1999 Page 2 . 7. Brown/Kirkeide Purchase Paul Steinman indicated that the city has been negotiating with the Browns and Kirkeides for the purchase of their property as it relates to the East Elk River project. Pat Klaers, City Administrator, indicated that Bud Storm of Evergreen Land Services has reached an agreement for the city and the EDA to purchase LeRoy and Ruth Brown's property in east Elk River. The City Administrator reviewed the provisions included in the purchase agreement for the Brown property. Paul Steinman indicated that it is imperative that the closing on the property be prior to July 1, 1999, to preserve the EDA's property tax exemption for payable 2000. The City Administrator indicated that a price has not been negotiated for the Kirkeide property. He noted that although it would be in the best interest of the city to purchase the property, it is not essential for the development of the project that the property be purchased at this time. It was the consensus of the EDA that city staff should continue negotiating for an agreeable purchase price for the Kirkeide property. COMMISSIONER BENDER MOVED TO AUTHORIZE THE PURCHASE AGREEMENT OF THE BROWN PROPERTY PER STAFF RECOMMENDATION. COMMISSIONER MOTIN SECONDED THE MOTION. e Commissioner Klinzing indicated that she felt it was not necessary to purchase the property at this time. She stated that she would vote against the motion. Commissioner Thompson questioned if there was a lease on the Brown property to allow farming of the land. The Brown's attorney, Craig Haus, indicated that there is a lease on the property which allows the land to be farmed for the next few years. Paul Steinman indicated that staff should check to see how the farming affects the tax exempt status of the property. It was the consensus of the EDA that the burden of working out the farming lease for the property should be resolved by the Browns and not the city. THE MOTION CARRIED 6-1. Commissioner Klinzing voted against the motion. 8. Community Venture Network Program Paul Steinman recommended that the EDA proceed to join the Community Venture Network Program at a total cost of $3,950 per year. He explained the benefits of the program. President Dwyer indicated his concern regarding the quality of the companies involved in the program. He suggested that the EDA join for 3 months with a quarterly review to determine whether the EDA should join for the next 3 months. COMMISSIONER THOMPSON MOVED TO JOIN THE COMMUNITY VENTURE NETWORK PROGRAM ON A QUARTERLY BASIS WITH A REVIEW AT THE END OF EACH QUARTER. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 7-0. e