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09/26/06
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09/26/06
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Meetings
Meeting Document Type
Minutes
Document Title
Finance Committee
Document Date
09/26/2006
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<br />Mr. Boike stated he has offered before if the City would like to take the property they need and <br />map that out he would be interested in looking at keeping the rest of it. He was told that was not <br />realistic. <br /> <br />Chairperson Strommen indicated there needs to be consideration of the other significant needs <br />coming up for the City, including the total bonding picture and long range fiscal impact. <br />Councilmember Elvig was unable to attend this meeting and expressed his concern to her about <br />constraining other opportunities, and how this purchase would affect that. <br /> <br />Mr. Boike stated he is willing to work with the City and provide an avenue to secure this land. If <br />the City does not have the money and the purchase is this important there are a lot of ways to go <br />about this. They should get something on the table to hold this land so the City has more time to <br />plan; if the City decides one year from now that they do not want the parcel they can do <br />something about that. He suggested the City could partner with him until they want to purchase <br />the land, which would allow them to secure the parcel. Mr. Boike stated the City wants the land <br />and expects him to spend 10 to 15 years waiting for a decision to be made. He worked in the <br />corporate world for 30 years in commercial property management. Meetings are good if they are <br />productive and something comes out of it, instead of just spinning their wheels. They can make <br />this happen; it does not take much to get it going. He suggested Mr. Norman be given the time <br />he requested to find the needed funds to get this crucial piece of property in the City's court. <br /> <br />Mr. Tinklenberg noted the Council previously discussed an idea of an option amount that would <br />apply to the purchase price should the City decide there is a way to finance the parcel after six <br />months. There are options that are up in the air and will become clearer in January. It may be <br />that by negotiating an option agreement that applies to the ultimate purchase price, that it will <br />give the City some time to see what kind of options may be available in the spring when some of <br />this sorts out. <br /> <br />Councilmember Jeffrey asked how much time is suggested to work with the Boikes. <br /> <br />City Administrator Norman replied six months. He explained the time he needs will not satisfy <br />the Boikes, as they would probably want something now. Once there is the option of port <br />authority better options could be presented for consideration. An option agreement could be <br />discussed with the Boikes and brought back within the next few weeks. <br /> <br />Councilmember Jeffrey indicated he is concerned about what the option agreement would look <br />like. He would like to understand more about Mr. Boike's suggestion to partner with the City. <br /> <br />Consensus of the Committee was to direct staff to bring back further information at a Council <br />work session regarding what an option agreement or partnership would look like on this parcel. <br /> <br />Councilmember Pearson stated Mr. Boike needs to be told if the City will be proceeding with <br />this purchase. He expressed his support in exploring a partnership with Mr. Boike. <br /> <br />Mr. Boike expressed his interest in working with the City. He stated if he has no choice other <br />than selling the land to an investor they may not be as friendly with the City. <br /> <br />Finance Committee / September 26, 2006 <br />Page 7 of8 <br />
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