05-26-1999 EDA MIN - SPECIAL - Laserfiche WebLink

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e SPECIAL MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL WEDNESDAY, MAY 26, 1999 Members Present: President Dwyer; Commissioners Thompson, Klinzing, Gongoll, and Motin Members Absent: Commissioners Farber and Bender Staff Present: Paul Steinman, Executive Director; Pat Klaers, City Administrator; Sandy Peine, City Clerk President Dwyer called the special meeting of the Economic Development Authority to order at 5:05 p.m. President Dwyer explained that city staff was given direction by the EDA and the City Council to continue negotiations for the purchase of the Kirkeide property in relation to the east Elk River project. It City Administrator Pat Klaers presented an update regarding the city's negotiations to purchase the Kirkeide property. He indicated that he felt it was in the best interest of the city to have the property under the EDA ownership for the purpose of developing the property into a business park. He explained that Bud Storm of Evergreen Land Services has appraised the property and that the Kirkeides have verbally agreed to a purchase price of $224,000. He further explained that the property was appraised as residential based on the highest and best use of the property. The City Administrator stated that funding would ultimately come from Tax Increment Financing District No. 19, however, short term funding would be provided by the development fund. Commissioner Klinzing questioned the purpose of the environmental investigation. Bud Storm explained that the property is undergoing a phase one environmental investigation based on the drinking water filtering system. She further questioned whether the city would be protected from environmental issues if it purchases the property prior to the environmental clean up. Bud Storm indicated that the purchase agreement protects the city from environmental liability. COMMISSIONER GONGOLL MOVED TO PURCHASE THE KIRKEIDE PROPERTY AT $224,000 WITH THE CONDITION THAT THE CITY BE PROTECTED AGAINST ANY ENVIRONMENTAL LIABILITY. COMMISSIONER THOMPSON SECONDED THE MOTION. Commissioner Klinzing indicated she is not in favor of purchasing the property as she does not believe it is imperative that the city own this property at this time. THE MOTION CARRIED 4-1. Commissioner Klinzing opposed. .