The March 26, 2012 Special EDA Meeting Was Called to Order by Chair Paul Pieschel at 4:00 PM

SPECIAL EDA MEETING

MARCH 26, 2012

4:00 PM

The March 26, 2012 special EDA meeting was called to order by Chair Paul Pieschel at 4:00 PM. Those present include Pieschel, Ben Luense, Doris Weber, Steve Bryce, Ken Bishir, Mike Rothmeier, City Attorney Paul Muske, City Manager/EDA Director Mac Tilberg and City Clerk Amy Vogel. Absent was Barb Jones.

Tilberg explained that Kerkhoff Realty has been working with Overland Group LLC to locate a property for them to establish their Dollar General business. They open and operate their own stores. They have looked at several properties including the old Rangel property owned by the EDA. The EDA acquired this lot for a total of $21,500. Of this cost, the city’s capital equipment fund (411) paid for the demolition of $4,700. This is due from the EDA to the City. The farmland from Ochs was purchased for about $7,000 per acre. The blighted homes to the west of the EDA lot share a driveway. There may be a permanent utility easement needed. It is estimated that the business may have 4-5 FTE positions. This business would be open 7 days per week. One property is for sale but the EDA does not want to be involved with the demolition. Overland will have some requirements with the purchase of any lots such as a MNDOT access permit.

Motion by Luense, second by Rothmeier to offer $20,000 to Reyes with a $500 purchase option good for 180 days and propose the sale of option 2 with 1.37 acres “as is” to Overland Group LLC for $75,000 in addition to the demolition cost of the Reyes property and authorize the city attorney to respond to them. All ayes.

It was questioned what if they need more footage to the north or east. It would be brought back to the EDA. Responses will be to Kerkhoff Real Estate, agent for Overland. It was also noted that there are outstanding taxes on the Reyes property.

Luense gave a hotel update. Approval is needed for the EDA to have controlling interest. The transfer of controlling interest costs $6,000 but is now $10,000. There would be no additional fees involved with transferring the controlling interest to the EDA. The franchise license would begin again towards the 20 years at the current rate.

Motion by Rothmeier, second by Weber to place this hotel matter on the agenda for action. All ayes.

Motion by Weber, second by Rothmeier to approve Muske proceeding with the franchise agreement with Microtel. All ayes.

It was suggested to move ahead with the GO Revenue Bonds because the interest is so low. This would set the interest for the life of the bonds.

Motion by Luense, second by Bishir to adjourn at 4:47 PM. All ayes.

Submitted by City Clerk Amy A. Vogel