Minutes - Council - 10/23/2007 - Laserfiche WebLink

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Mayor Gamec: aye Councilmember Dehen: aye Councilmember Elvig: aye Councilmember Look: aye Councilmember Olson: aye Councilmember Jeffrey: absent Councilmember Strommen: absent Motion carried. Case #7: Authorize Execution of Purchase Agreement with Ace Solid Waste on the Sale of Lot 1, Block 4, Gateway North Industrial Park Plat 2 Economic Development Coordinator Sullivan stated that the. City Council directed staff at the September 25, 2007 meeting to get an appraisal on the property and have further EDA review. He stated that the EDA met on October 18, 2007 and recommended that the City sell the property for the price of $286,000, which exceeds the appraised value on the property. He stated that originally the property was purchased by the City for $315,000 in 2005 and included the building, a ground scale and 33 feet of right of way that is not being sold. He stated that Ace Solid Waste has plans to construct a 12,000 square foot building for a transfer station or shop. Mayor Gamec asked if this would be under a TIF agreement. Economic Development Coordinator Sullivan stated that the parcel is in the TIF district so revenue will go into TIF, but Ace has not asked for any additional assistance on the prope~. Councilmember Elvig briefly reviewed the discussion at the EDA. He stated that if the City decided to sell the property on the open market it would cost approximately $100,000 for marketing and incentives for businesses. He stated that the offer is $80,000 above the appraised value and reminded the City Council that the City received grant money to clean up the property. He stated that with Ace Solid Waste, the City has an existing business that wants to stay and expand their business. Councilmember Look thanked Mr. Berkopec of Ace Solid Waste for giving a tour of their facility. He stated that Ace had been interested in this property prior to the City stepping in and purchasing it. He stated that there were also demolition costs to tear down the building of $42,500. He stated that he assumes the City had an appraisal done before it purchased the property originally, and has a hard time believing that just 2 years later the appraisal amount is so much different. He stated that in looking at the costs outlined by Economic Development Coordinator Sullivan, he feels the City owes it to the taxpayers to recoup what costs the City has put into the property. He stated that Ace was willing to pay a higher price earlier and thinks the City should get at least $327,300 for the property which would allow the City to break even. Councilmember Dehen stated that he also has difficulty with this issue. He stated that he understands that the clean up was completed with grant money and that there was right of way City Council /October 23, 2007 Page 14 of21