EDSR MEMORANDUM 05-26-1999 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
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MEMORANDUM
TO: Economic Development.Authority
FROM: Paul T. Steinman, Director of Economic
Development
DATE: May 21, 1999
SUBJECT: Special Meeting for Consideration of
Kirkeide Purchase
The Kirkeides have verbally agreed to a purchase price of$224,000. At the
last EDA meeting it was discussed that the city/EDA's final offer would be
$220,000. Staff is prepared to recommend proceeding with the purchase at a
price of$224,000. The verbal agreement includes that the Kirkeides would
vacate the property by July 1, 1999.
• The property is currently undergoing a Phase I environmental investigation
and if issues are discovered that require extra dollars in cleanup and/or
demolition, such costs would be deducted from the final purchase price of the
property. If there are environmental issues that cannot be discovered until
demolition takes place on the property, then staff would recommend a certain
percentage of the purchase price be escrowed until a final determination of
these costs is available.
Staff will provide additional information on this issue at the meeting.
Additionally, Bud Storm of Evergreen Land Services and City Administrator
Pat Klaers will be available to discuss this issue further.
Please call me if you will be unable to attend this meeting.
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13065 Orono Parkway • P. O. Box 490 • Elk River, MN 55330-1743• (612) 441-7420 • Fax (612) 441-7425
Equal Opportunity Housing and Equal Opportunity Employment