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MINUTES SPECIAL CITY COUNCIL MEETING DECEMBER 30, 1981 PAGE 3 Attorney Swanson brought to Council's attention the fact that if Council does not accept the American Shelter offer and proceeds with the condemnation there is no way of ascertaining what the cost of the land would be until the purchase price is set by the Commissioners. If the bid for construction .is awarded the City must obtain the build- ing site either by negotiation or condemnation and Council then runs the risk that the cost of the property could be greater than the amount budgeted. Engineer Lemberg stressed the fact that if the bid is not awarded at this time the City runs the risk of receiving much higher bids at a later date. Mayor Warkentien presented the "offer to sell" from American Shelter Corporation which was delivered to the City on December 30 by Don Swendra. The proposed purchase price was $300,000 with several con- ditions attached, which Mayor Warkentien stated he felt was unaccept- able and that no developer had the right to dictate to the City. Mayor Warkentien stated that, in his opinion, Council, at this time, must decide whether to take chances with the condemnations proceedings and award the bid for construction of the new facility. He stated he felt it was necessary to take the chance or forget the whole project. Clerk Administrator Barnes recommended that the Attorney be author- ized to begin separate condemnation proceedings to acquire the 60' right-of-way owned by the Hermes Family, in order that the City might bond for the cost of the property. Attorney Swanson informed that even though the Hermes property is added to the present condemnation (which would be less costly and would take less time than starting a separate proceeding) the City could still bond for the cost of that portion of the property..(including Tax Increment Financing). c ~~ LAND ACQUISITION DISCUSSION Mayor Warkentien moved, seconded by Councilmember Larson, to refuse AMERICAN the offer presented by American Shelter Corporation, and to proceed SHELTER OFFER with the condemnation proceedings, but leaving open the possibility of REJECTED a negotiated sale. Motion carried unanimously. Councilmember Eggert moved, seconded by Councilmember Larson, that the staff and Attorney be authorized to proceed to acquire the 60 x 472 foot right-of-way adjoining the City Hall site by condemnation. Motion carried unanimously. Mayor Warkentien moved, seconded by Councilmember Larson, that the City award the bid from Robert 0. Westlund Company at a base price of $647,000.00 plus the approved alternates, bringing the contract price to $764,239.00. Motion carried unanimously. Councilmember Larson excused. Councilmember Eggert stated he had inquired of Attorney Swanson as to whether or not the Commissioners have the right to award more than a dollar sum in the condemnation proceedings (such as the conditions set forth in the American Shelter proposal). Attorney Swanson assured that in normal construction such as the City Building, no conditions would be attached since the construction would not result in any damage to adjoining properties. CONDEMNATION OF HERMES PROPERTY COMMUNITY BUILDING PROJECT AWARDED TO ROBERT 0. WESTLUND CO.