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

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acquired, but he struggles with the huge disparity in the appraisals. He stated that he would like the City to at least get the value of the land plus the money it put in to clean up the site. He stated that both the building and the scale on the property were not assets, but liabilities. Economic Development Coordinator Sullivan reviewed the 2006 County value of the property, which stated that the land was worth $66,200 and the building was worth $248,100. He stated that Ace is not purchasing a building and their offer is approximately $5.50 per square foot. He stated that he has not seen industrial land be sold for anywhere near that amount and he thinks the price Ace has offered is fair. Councilmember Look stated that the building needed to come down regardless of who purchased the property. He stated that he agreed with Councilmember Dehen that the building was a liability and had no realistic value. He stated that City parachuted in and purchased the land and now Ace is .looking to pay less than they were originally willing to pay before the site was cleaned up. Economic Development Coordinator Sullivan stated that he is not aware of what deal Ace may have had with the previous owner. Councilmember Olson stated that anytime a property is cleaned up, it needs to be marketed the way it is now and must be marketed based on the appraisal of its value now. City Attorney Goodrich stated that the City Council should be aware that because of the absence of 2 Councilmembers, any vote tonight on this or any other item requires 4 affirmative votes to pass. City Administrator Ulrich clarified that there could be an item that has a 3 to 2 vote, however, it would not officially pass because there are 2 Councilmembers absent. Motion by Councilmember Elvig, seconded by Councilmember Olson, to table action to Authorize the Execution of a Purchase Agreement with Ace Solid Waste on the Sale of Lot 1, Block 4, Gateway North Industrial Park Plat 2, until there is a full City Council presence. Further Discussion: Councilmember Look stated that it was unfortunate that the City had the clean up issue on this property, but reiterated that the City has $327,300 into the property that he feels the City should get. He stated that he would like to suggest that the City make an offer to Ace that they can purchase the property $327,300. City Administrator Ulrich stated'that the City took 33 feet of right of way and if the land is valued at $5.00 per sq. ft., that would be valued at $30,000, which would bring the price down to $297,300 if the City took that out. Councilmember Elvig stated that no one has considered the grants and if they are taken out it would put us below the $286,000 that Ace has offered. Councilmember Elvig urged the City Council to keep in mind what it would cost the City to market this property to other businesses. Councilmember Dehen stated that his understanding of the function of the EDA is to encourage job creation in the City. Councilmember Dehen asked how many jobs would be created with the new building planned by Ace. Councilmember Elvig stated that depending on the type of building they construct it will either be 1 or 4 new employees. Councilmember Elvig stated that he feels it is important to remember that if Ace cannot add on to their existing facility, they may City Council /October 23, 2007 Page 15 of 21