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

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need to leave the City and then the City would have. 87 less jobs in the community. Councilmember Elvig stated that part ofthe EDA's function is to help existing businesses grow and maintain their businesses. Mayor Gamec stated that he thinks this property will be hard to market to other businesses because of the proximity of the train tracks and the vibrations. Mike Berkopec of Ace Solid Waste stated that in June 2003 they made a contingent offer to St. Paul . Terminals to purchase this land for $310,000 and the counter offer was $350,000. Mr. Berkopec . stated that he feels the offer of $286,000 is a fair offer and feels the appraisal confirms that. Mr. Berkopec stated that he thinks their offer is high enough given everything that has happened to the property such as the right of way acquisition. Mr. Berkopec reiterated that the bottom line is that he believes $286,000 is a fair offer. Councilmember Dehen stated that Ace was willing to pay $310,000 previously. Councilmember Dehen stated that he feels it is difficult to rely on the appraisals and for him, this does not pass the "P.D." test. Councilmember Dehen asked if Ace had an appraisal in 2003 for the property. Mr. Berkopec stated that they did not have an appraisal done in 2003 but he noted that they also did not purchase the property. Mr. Berkopec stated that, from his perspective, these are two different pieces of property. Mr. Berkopec stated that the appraisal for this property is $205,000. Mayor Gamec stated that the property had to be cleaned up and he feels it is worth it for residents to have the site cleaned up. Mayor Gamec stated that he feels the City knew it would not get its money back in this situation. Councilmember Elvig stated that he is not interested in "taking a bath" on the property, and does not think that is what is happening. Councilmember Look asked Mr. Berkopec if back in 2003 when Ace had offered $310,000, someone offered to come and take down the building at no cost to him, that he assumes this would have pleased Ace. Mr. Berkopec stated that he was being asked to recall things that he cannot exactly remember. Mr. Berkopec stated that the front portion of the building did not necessarily need to come down, but does not know where the discussion would have gone. He noted there was no absolute plan that the building needed to come down. Councilmember Look stated that the City Council was not going to come to an agreement tonight and asked if Mr. Berkopec would be willing to negotiate and pay $310,000 for the property today. Mr. Berkopec reiterated that he feels $286,000 is a fair number. Motion by Councilmember Dehen, seconded by Councilmember Look, not 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. Motion died. Voting Yes: Councilmembers Dehen and Look. Voting No: Mayor Gamec and Councilmembers Elvig and Olson. Absent: Councilmembers Jeffrey and Strommen. Motion by Councilmember Look, seconded by Councilmember Dehen, to make a counter offer to Ace Solid Waste for a purchase price of $310,000 for Lot 1, Block 4, Gateway North Industrial Park Plat 2. Motion carried. V oting Yes: Mayor Gamec, Councilmembers Look, Dehen, Elvig, and Olson. Voting No: None. Absent: Councilmembers Jeffrey and Strommen. City Council/October 23, 2007 Page 16 of 21