08-25-2014 ED MINSpecial Meeting of the Elk River
River Economic Development Authority
Held at the Elk River City Hall
Monday, August 25, 2014
Members Present: President Tveite, Commissioners Burandt, Dwyer, Motin and Provo
Members Absent: Commissioners Westgaard and Wilson
Staff Present: Jeremy Barnhart, Deputy Director, Community Operations and
Development
I . Call Meeting to Order
Pursuant to due call and notice thereof, the meeting of the Elk River Economic
Development Authority was called to order at 5:30 p.m. by President Tveite.
2. Consider 07/21/2014 Agenda
Moved by Commissioner Motin and seconded by Commissioner Dwyer to approve
the August 25, 2014, agenda.
• Motion carried 5 -0.
3.a Consider Acquisition of Lots I and 2, Block I, Fox Haven Commercial by
Donation
3.b Consider Budget Amendment
Mr. Barnhart presented the staff report on acquiring the Fox Haven commercial lots in
exchange for paying the property taxes of $79, 387.77. Mr. Barnhart noted that through
preliminary due diligence investigation, one of the lots held a farmhouse that was burned
down, and the rubble appears to have been backfilled into the foundation. There is some
concern that chemicals and asbestos might be present, but this wouldn't be known until
more investigation can be completed.
Commissioner Dwyer noted that the city's share of the past due taxes further reduces the
acquisition costs.
Motin questioned which lot held the farmhouse. Mr. Barnhart noted he expects to find out
at the completion of the environmental assessment.
Commissioner Provo questioned what our liability is, if the remediation comes back at an
excessive level. Mr. Barnhart noted that there is a risk. Mr. Barnhart stated he anticipates
the remediation costs to be minor, and under the fair market value of the properties.
•
Commissioner Motin noted that the remediation might be our responsibility, as a previous
owner of the parcel. 0
President Tveite questioned whether a limit should be placed on the mitigation costs.
Commissioner Motin questioned the timeline to mitigate the issue. Barnhart stated he hopes
to be able to provide this information in September or October.
Motion by Commissioner Dwyer and seconded by Commissioner Provo to approve
Resolution 14 -04, accepting the donation of Lots 1 and 2, Block 1, Fox Haven
Commercial. Motion carried 5 -0
Motion by Commissioner Motin and seconded by Commissioner Dwyer to amend
the budget, moving $83,000 from the fund reserves to finance the acquisition of Lots
1 and 21 Block 1, Fox Haven Commercial. Motion carried 5 -0.
4. Adjournment
There being no further business, Chair Tveite adjourned the meeting of the Elk River
Economic Development Authority at 5:45 p.m.
Minutes prepared by Jeremy Barnhart.
Dan Tveite, EDA President
Tina All ard, City Clerk
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