04-08-2002 EDA Packet - Laserfiche WebLink

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EDA Member Carlson expressed her appreciation the City staff for their diligence in this matter. EDA Member Carlson moved to approve Resolution No. 01 03. EDA Member Reinert seconded the motion. Motion passed unanimously. CONSIDERATION OF TERMINATION AGREEMENT WITH H&L MESABI Ms. Divine advised in March 2001 the Economic Development Authority passed a Resolution declaring H&L Mesabi in default on a Development Agreement and Assessment Agreement it had entered into with the Authority. The company had already purchased three acres of property in the Apollo Business Park before making a decision not to build its new facility. Ms. Divine indicated according to State Statute, all parties that enter into an Assessment Agreement must terminate the agreement by"mutual consent." Mr. Bernard Carey, President of H&L Mesabi, was advised that he must take action to terminate the Assessment Agreement with the Economic Development Authority, the School District and Anoka County, or pay taxes on a building that did not exist. Ms. Divine advised Mr. Carey is now planning to sell the three acres of land, and as a condition of sale, his attorney is requesting a Termination Agreement be executed so that when signed by Mr. Carey, there will be evidence of mutual consent. Ms. Divine stated that the agreement is consistent with the Resolution adopted in March, but the Economic Development Authority never explicitly authorized the President and Executive Director to sign such an agreement. This action makes that authorization. Ms. Divine advised it is recommended that the City Council approve the execution of a Termination Agreement with H&L Mesabi. She indicated that approval of the Termination Agreement will be considered by the Council under the Consent Agenda portion of this evening's regular meeting. EDA President Bergeson recommended that consideration of this Termination Agreement be removed from the Consent Agenda during the regular meeting of the City Council this evening and voted on separately so the record will show the Council having taken specific action on this issue. EDA Member Dahl moved to approve the execution of a Termination Agreement with H&L Mesabi. EDA Member O'Donnell seconded the motion. Motion passed unanimously.