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. . . aty Council Minutes November 6, 2006 Page 3 MOTION BY COUNCILMEMBER FARBER AND SECONDED BY COUNCILMEMBER GUMPHREY TO APPROVE THE 2006 LEAGUE OF MINNESOTA CITIES INSURANCE TRUST PROPOSAL AT A COST OF $333,628, WITH NO CHANGE TO THE $2,500 DEDUCTIBLE. MOTION CARRIED 4-1. Councilmember Dietz opposed. Councilmember Farber asked if the $25,000 cost was anticipated in the 2007 budget. Ms. Johnson stated that the fee will be charged to the Building Division budget and will be covered by Building Permit fees. 5.2. Request from Habitat for Humanity Vance Zehringer, President of the Sherburne County Chapter Habitat for Humanity, presented a request to the Council to consider an offer to purchase the city-owned vacant lot at 1217 5th Street NW. He explained that a $112,000 grant has been offered by Thrivant Financial, with a condition that they secure a lot by January 15, 2006. Mr. Zehringer stated that the Sherburne Chapter proposes to pay up to $30,000 for the lot. Councilmember Gumphrey asked how they normally obtain lots. Mr. Zehringer stated that the first lot was donated by Jerry Minor and the second one was donated by the Northwest Builder's Association. Councilmember Motin stated that he was not inclined to accept an offer of 40 percent less than market value for the lot. Mr. Zehringer stated that the lot is relatively small and a buyer would be limited as to the size and type of house that could be built on it. He noted that if they do not secure a lot by January 15th, the grant will go to St. Cloud. Councilmember Dietz stated that its was his understanding that the Libr.uy Board was counting on obtaining full price for the lot, and he felt that the offer needs to be closer to the $50,000 price. Councilmember Gumphrey stated that he felt Habitat for Humanity was a good organization and he will be willing to donate the lot. Mayor Klinzing concurred, stating that the homes that have been built by them fit well in the neighborhoods where they are located. She stated she would support a reduction in the price of the lot. Councilmember Farber stated he supported the $30,000 offer for the lot, and that he felt the $20,000 difference would have little impact on the new libr.uy construction budget. Mayor Klinzing agreed that the $20,000 was not a "make or break" issue with the libr.uy. She stated that it is a small lot and may be on the market a long time. MOTION BY COUNCILMEMBER GUMPHREY AND SECONDED BY COUNCILMEMBER FARBER TO ACCEPT THE OFFER OF $30,000 FOR THE PROPERTY LOCATED AT 1217 5nI STREET NW BY HABITAT FOR HUMANITY. MOTION CARRIED 3-2. Councilmembers Dietz and Motin opposed. 5.3. ECONAR Acceptance of Conditions