Minutes - Council - 02/19/2008 - Special

Home

Councilmember Dehen stated at $1.8 million - isn't it cheaper to pay him rather than $1.6 million and if we take it early we are adding another $78,000 a year. So that times 5 = $390,000 - it costs us more money if we are not taking it now. Councilmember Look stated that he said he would not sell it for $1.8 million - he feels there more value in the conditional use permit. The CUP runs with the land - there's value there but it's not a value that can be appraised. He sees this as a pretty good deal for Mr. Bury. There would be a $780,000 net gain to him taking $78,000 a year times 10 years. $1.7 million or 6 percent - that's $105,000 a year - we are getting $35,000 back in taxes but it will cost us three quarters of a million if we carry this for 10 years. That's a lot of money to pay - $1.7 million - eat the interest - give him $780,000 and 10 years of rent free and making $35,000 to $50,000 a year besides. Councilmember Strommen stated that we directed staff to continue with this. Now we are rehashing the price again and we have already given direction on this twice. I am not willing to have twice said go forward and now pull back to discuss the price again. She did not feel Council should ask staff to renegotiate as we have told staff to go forward at this number. Councilmember Look stated that we are negotiating - we have not taken a vote on it. We need to know all the dollars involved in this. He inquired about bonding. Mr. Goodrich replied there will be no bonding - this would be internal borrowing starting in 2009. Other enterprise funds will be able to pay their share. Councilmember Look commented that there is not just the $1.7 million - there is value to the CUP . We have not talked about the money we will pay back or the interest on the money we could have earned. Mayor Gamec stated that if we did not realize all these factors, we did not do a very good job. He noted that this discussion will be continued following the joint meeting with the Planning Commission. Mayor Gamec recessed the Special City Council meeting at 7:30 p.m. in order to conduct a joint meeting between the City Council and the Planning Commission. Mayor Gamec reconvened the City Council Work Session at 8:48 p.m. Case #3: Consider Confirmation of Direction Given in Closed Session Held on 1/12/08 1) The Possible Purchase of the Bury and Carlson Property for a Future Public Works Facility (discussion continued) Motion by Councilmember Olson, seconded by Councilmember Look, to table action on considering the possible purchase of the Bury and Carlson property for a future Public Works facility and direct City staff to prepare a spread sheet showing the real cost of this transaction by Special City Council Meeting /February 19, 2008 Page 6 of9