12-21-1998 EDA MIN - SPECIAL
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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.
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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.
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COMMISSION BENDER MOVED TO ADOPT RESOLUTION 98-11 OF THE ECONOMIC
DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER AUTHORIZING THE
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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.