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<br />industrial area and there is already an outside storage user there. In theory there could be a better <br />use there. However, when looking at the large picture Mr. Perkins was a user that was on a <br />highly visible spot, and rather than push him out of the City, the City made a concerted effort to <br />try to keep him here and help him expand. Mr. Perkins went from a metal building to a new large <br />building and made a commitment to the City to stay here. Mr. Sullivan stated he is asking <br />acknowledgment of what Mr. Perkins has done and to try to make it work for him. Mr. Perkins is <br />saying that he needs this to make his business function. <br /> <br />Member Kiefer requested clarification that in the near term there is not the intent for building <br />expansion or employee expansion. Economic Development Coordinator replied not for the <br />business, but the building has two bays and there could be potential with the tenant. <br /> <br />Member Strommen questioned if selling a portion of the property would make the value of the <br />remainder of the site more or less desirable, and whether or not there would be a chance of <br />recouping the loss on this portion when the remainder of the site is sold. Economic Development <br />Coordinator Sullivan indicated the effect on the value of the remainder of the parcel will likely <br />be a wash. He noted the ability to vacate the adjacent roads and that a 10,000 square foot <br />building with the ability to expand to 20,000 square feet will be the likely user on the remainder <br />of the parcel. <br /> <br />Community Development Director Miller verified that the portion of the lot proposed to be <br />purchased by Mr. Perkins is not a buildable lot in and of itself and indicated this lowers the value <br />of the parcel. <br /> <br />Member Strommen left the meeting at 8:33 a.m. <br /> <br />Member Kiefer noted that the justification of the write down on the price is the buildability of <br />the lot and retention of an existing business; it is not additional building or tax base. <br /> <br />Economic Development Coordinator Sullivan noted there is the potential for job growth with the <br />second bay in the building; however, this has not been indicated by Mr. Perkins. <br /> <br />Chairperson Riley expressed concern that condemnation proceedings had commenced on <br />property that was used for outside storage and this would sell that property at a cheaper price for <br />outside storage as well. Economic Development Coordinator Sullivan noted there could be <br />another business located on the remainder of the parcel. <br /> <br />Chairperson Riley inquired about the cost for an appraisal. Economic Development Coordinator <br />Sullivan replied the cost would be approximately $1,500. <br /> <br />Chairperson Riley questioned if the property was purchased by the City at a price higher than fair <br />market value. Economic Development Coordinator Sullivan replied in his opinion the City paid <br />more than fair market value for the property. <br /> <br />Economic Development Authority/April 10, 2008 <br />Page 8 of 14 <br />