08-08-07 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL AUGUST 8, 2007 would be back dealing with the same issues it has been over the past several years. Keis stated that he did not feel the City should pay a premium for this property. Allan noted the purchase price of $640,000, plus soil correction costs of a minimum of $110,000, brings the cost to $750,000. Montour suggested that the City may be able to lease the property. He again stated that to not buy the property will mean going back to the problems that the City has dealt with at this site. Montour agreed that the purchase price plus soil correction costs bring the cost to a premium. The City Administrator felt that the redevelopment of Ryan Industrial Park was worth exploring, but indicated that given the soil conditions in the park, redevelopment may not be feasible. Blesener agreed that the entire park would need to be redeveloped, but suggested that it may not be possible to find someone interested in the project. Blesener noted the Costco development on Highway 61, which is a poor soils area. However, in that case, the developer is dealing with bare land. Montour asked what the City's chances would be to buy the property and then sell it and recover its costs. The Administrator felt the chances were slim to none. The Administrator reported that other than the one purchase agreement that Valor had for $640,000, it was his understanding that all other offers were in the $500,000 to $550,000 range. Those offers contemplated using the existing building. Allan asked if the soils report was public information available to any future purchasers of the property. The City Administrator replied that it was. Allan suggested that any potential buyer would feel the same as the City relative to the cost for soil corrections. Montour suggested that future buyers would likely just use the existing building. Keis asked about renegotiating the purchase price. The City Administrator recommended that the City withdraw the purchase agreement based on the soils report. If Valor counteroffers, the City could consider such an offer. McGraw felt it was not the City's place to pay a premium for this property. He agreed that the purchase agreement should be withdrawn. McGraw stated that there is no compelling reason for the City to own this property if it cannot upgrade it. The City Attorney indicated that if the decision is to not proceed with the purchase agreement, his officer would submit formal notice to the property owner terminating the purchase agreement.