HomeMy WebLinkAboutEDA MIN EXEC 04-02-12ECONOMIC DEVELOPMENT AUTHORITY (EDA)
MINUTES OF T HE E EIE SESSION
,114PRIL 2, 2012 F 1110111TIAL
The (executive session) closed meeting was called to order at 6:40 I)m by President-Gary Peterson.
Members Present: Bruce Nawrocki, Tarnmera Dielini, Gary Peterson, Donna Schi-nitt, Bobby
Williams and Gerry Herringer.
Staff Present: Walt Fehst, Scott Clark, Sheila Cartney, and Shelley Hanson.
Clark instructed the Commission members on executive session protocol and members were read for
recording purposes.
Clark told members that the owners of the property at 3919-27 Central Avenue had been in contact
with him and have submitted a letter of intent to sell the property to, the City as presented to the
members.
Clark reviewed the possible funding sources, the advantages of purchasing this piece of property on
our main corridor, as well as the details of their offer in regards to taxes, leases, and relocation
expenses. He told members that the owner has stated this is a firm proposal and they want an answer
immediately in order to make decisions if the City is not interested.
QuestLons/Cornments from Members.
Nawrocki thought this price was quite a bit more than the last time we were negotiating for this
parcel. Clark explained the last negotiations included the base price, plus interest costs, relocation
fees for two businesses (not one), and possibly buying out leases. '".I"hat would have brought the total
cost to within $30,000440,000 of the figure being proposed now. Nawrocki disagreed and stated we
could have continued leasing out the spaces and collected revenue on the prior negotiation. Clark
said that may be true, if the City was able to keep the tenants. The other factor to consider is if there
are tenants, it could not be fully designated a tax exempt parcel.
1-lerringer asked if we could continue leasing to the grocery store tenant. Clark advised against it
because of the cost for maintenance and upkeep since the building is old and is in need of repair. The
revenue from the one business Would not be enough for maintenance, taxes, and insurance on the
parcel. Herringer stated he was not necessarily in favor of buying it tearing it down, and letting it sit
vacant for an undetermined period of time, but that he is more fearful of what will happen to the
building if left as is. tie is concerned that it will continue to deteriorate and would not attract the type
ol'businesses we want along Central Avenue.
Schmitt felt there is definitely potential for a larger development lf'we obtain this parcel, but there is
also a bigger risk. She thinks the City should have a vision for the parcel before taking the action to
purchase it.
Nawrocki said this still leaves the corner piece as an obstacle ior any new development. Clark said
that an interested developer will have to work that Out.
Dichin said she is not happy with the proposed price and the need for an immediate decision, but she
has concerns if the City does not act on this opportunity, what type of` businesses this site could
attract. She thinks it is important for the City to control this site and any future development as it is
such a key piece on Our main corridor. Diehrn also approved the more formal letter of intent that was
prepared by our legal counsel as it focuses on the title and environmental issues more than the
documents submitted by the seller,
Fchst stated he thinks the City should move forward with this purchase and looks forward to working
with developers to improve the site.
Williams said he thinks this is a better time to purchase this property than it was two years ago. He
said the economy is starting to show signs of improvement and hopes the City won't have to sit on
the parcel too long. Flerringer agreed with him. Williams then asked if the City would be responsible
for relocation fees if the building is vacant at the time of purchase. Clark told him that according to
our legal counsel, we could be held responsible because we are a governmental body purchasing the
property versus a private developer.
Schmitt noted that the letter of intent included language that said the "Seller is not aware of any
environmental contain i nati on...", Clark stated staff had already caught that and that language would
be corrected prior to it being signed.
Nawrocki wanted the record to show that he is not in favor ol'purchasing this property. He thinks the
City is already too far in debt and should be more cognizant of spending the taxpayeCs money.
Motion I)j, Diehin, seconded b.111 llerringer to accel),t the letter qfintenl pr(-,,�vared by our legal counsel
.1b• the purchase ol'3 919-3 92 7 C I entral Avenue NE and to authorize execution o
/ an crgreerarcarat by the
Preshlent and.Exectilive Director. Roll (Aill., Ayes- Diehm, Ilerringer, Williams, Peterson
Nqys: Schmitt and Ncni�rocki MO TIO N PA&V. D.
The Executive Session was adjourned at 7:35 pm and the regular meeting was re-convened.
Respectfully submitted,
ai,F IU,L-M
Shelley Hanson
Secretary