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12-21-1998 EDA MIN - SPECIAL e SPECIAL MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, DECEMBER 21, 1998 Members Present: President Duitsman, Commissioners Thompson, Farber, Holmgren, Gongoll, Dwyer, and Bender Members Absent: None Staff Present: Paul Steinman, Executive Director; Sandra Peine, City Clerk; Peter Beck, City Attorney 1. Call Meetina To Order Pursuant to due call and notice thereof, the special meeting of the Elk River Economic Development Authority was called to order at 5:45 p.m. by President Duitsman. 2. Consider Agenda COMMISSIONER FARBER MOVED TO APPROVE THE 12/21/98 EDA AGENDA. COMMISSIONER BENDER SECONDED THE MOTION. THE MOTION CARRIED 7-0. e 3. Consider Resolution Authorizina Commencement of Eminent Domain Proceedinas Executive Director Paul Steinman indicated that the EDA has discussed the possibility of using its power of eminent domain to facilitate condemnation of properties which lie within Tax Increment Financing Redevelopment District No. 19. He noted that it was the previous consensus of the EDA to consider proceeding with condemnation to facilitate the overall commercial/industrial project for TIF District No. 19. Discussion was held by the EDA regarding the three properties proposed to be acquired through the eminent domain process. The properties are owned by James Mevissen, Delton and Joan Warden, and Joseph and Yvonne Kirkeide. Tony Gleekel noted that Associated Developers has tried to negotiate deals in good faith with both property owners and offers have been made slightly over the fair market value for both properties. He further noted that Associated Developers have been unsuccessful in negotiating with the property owners. Mr. Gleekel indicated that because they are unable to negotiate the sale of the property, they are requesting the EDA to consider eminent domain of the properties. Associated Developers indicated it is the party responsible for payment of all costs associated with this condemnation process, including attorney's fees. City Attorney Peter Beck reviewed the process of eminent domain. e COMMISSION BENDER MOVED TO ADOPT RESOLUTION 98-11 OF THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER AUTHORIZING THE e e e Elk River Economic Development Authority December 21. 1998 Page 2 ACQUISITION OF CERTAIN REAL PROPERTY LOCATED IN AND RELATED TO TAX INCREMENT FINANCING DISTRICT NO. 19 IN THE CITY OF ELK RIVER BY NEGOTIATION OR CONDEMNATION, THE DEMOLITION OF ALL STRUCTURES CURRENTLY LOCATED THEREON, AND THE RELOCATION OF ALL AFFECTED PROPERTY OWNERS AND TENANTS. COMMISSIONER GONGOLL SECONDED THE MOTION. THE MOTION CARRIED 6-1. Commissioner Holmgren opposed. Commissioner Bender indicated that he would like the issue to come back to the Economic Development Authority following the city's appraisal of the properties involved in the eminent domain process. 4. Other Business Craig Howse, attorney for the Brown property, addressed the EDA regarding the possibility of the EDA purchasing the Brown property. Attorney Craig Howse addressed the relocation costs and the issue of access to the portion of the property the Brown's will retain. He questioned whether the EDA feels they are proceeding in the right direction regarding the purchase of the property. He indicated that the Browns want to be certain that the EDA is still interested in owning a business park property. Commissioner Dwyer indicated that he is interested in purchasing the property if there is a fair market value as determined by an appraiser. Commissioners Bender and Thompson also indicated that they are in consensus with purchasing the property. 5. Adiournment There being no further business, COMMISSIONER DWYER MOVED TO ADJOURN THE MEETING. COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. The special meeting of the Elk River Economic Development Authority was adjourned at 6:30 p.m.