05-26-1999 EDA MIN - SPECIAL
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SPECIAL MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
WEDNESDAY, MAY 26, 1999
Members Present:
President Dwyer; Commissioners Thompson, Klinzing, Gongoll, and
Motin
Members Absent:
Commissioners Farber and Bender
Staff Present:
Paul Steinman, Executive Director; Pat Klaers, City Administrator;
Sandy Peine, City Clerk
President Dwyer called the special meeting of the Economic Development Authority to
order at 5:05 p.m.
President Dwyer explained that city staff was given direction by the EDA and the City
Council to continue negotiations for the purchase of the Kirkeide property in relation to
the east Elk River project.
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City Administrator Pat Klaers presented an update regarding the city's negotiations to
purchase the Kirkeide property. He indicated that he felt it was in the best interest of the
city to have the property under the EDA ownership for the purpose of developing the
property into a business park. He explained that Bud Storm of Evergreen Land Services
has appraised the property and that the Kirkeides have verbally agreed to a purchase
price of $224,000. He further explained that the property was appraised as residential
based on the highest and best use of the property. The City Administrator stated that
funding would ultimately come from Tax Increment Financing District No. 19, however,
short term funding would be provided by the development fund.
Commissioner Klinzing questioned the purpose of the environmental investigation. Bud
Storm explained that the property is undergoing a phase one environmental
investigation based on the drinking water filtering system. She further questioned
whether the city would be protected from environmental issues if it purchases the
property prior to the environmental clean up. Bud Storm indicated that the purchase
agreement protects the city from environmental liability.
COMMISSIONER GONGOLL MOVED TO PURCHASE THE KIRKEIDE PROPERTY AT $224,000 WITH
THE CONDITION THAT THE CITY BE PROTECTED AGAINST ANY ENVIRONMENTAL LIABILITY.
COMMISSIONER THOMPSON SECONDED THE MOTION.
Commissioner Klinzing indicated she is not in favor of purchasing the property as she does
not believe it is imperative that the city own this property at this time.
THE MOTION CARRIED 4-1. Commissioner Klinzing opposed.
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COMMISSIONER KLINZING MOVED TO ADJOURN THE MEETING. COMMISSIONER
THOMPSON SECONDED THE MOTION. THE MOTION CARRIED 5-0.
The special meeting of the Elk River Economic Development Authority adjourned at 5:20
p.m.
L_/AA(jJ -
&mdra Peine ~ ~
City Clerk
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