Laserfiche WebLink
Ayes: All <br />Nay: None <br />Motion carried. <br /> <br />UPDATE ON DOWNTOWN REDEVELOPMENT AND REQUEST FOR EXTENSION OF PURCHASE <br />AGREEMENT <br /> <br />The project slated for the city-owned property on Egg Lake to be known as “Downtown Hugo” has <br />been facing delays due to the MnDNR enforcing a statewide shoreland statute requiring development <br />to be set back a certain distance from certain public water bodies. The developer, Denny Trooien of <br />Dennis Properties, LLC. has a purchase agreement to close Phase 1 of development on February 28, <br />2023 with the option to extend to July 31, 2023 with a $10,000 non-refundable earnest payment. Mr. <br />Trooien is requesting to extend the closing date of Phase 1 of development to July 31, 2023 with the <br />option to extend to December 31, 2023 with the same $10,000 non -refundable earnest payment. The <br />closing date for Phase 2 of development slated for September 30, 2026 would remain unchanged <br />with the extension. Juba stated that the requested extension would allow Mr. Trooien to adjust the <br />plan and go through the development approval process with the City Council before closing, hoping <br />to ensure that action from the DNR can be avoided. <br /> <br />Juba stated that Mr. Trooien has adjusted the development plan that would push the buildings and <br />decking 20 feet further from the ordinary high -water level of Egg Lake, but it is unclear at this time <br />whether the DNR would be comfortable with said adjustments. Commissioner Puleo asked how many <br />other development inquiries have been made for the property, and Juba stated that very few serious <br />inquiries have been made other than Mr. Trooien’s proposal. Commissioner Roberts asked about the <br />course of action of the City were to deny the request for an extension. City Administrator Bear <br />explained that if the site is developed as per the approved plans, the DNR would sue the City and stop <br />the construction. However, with the extension on closing, time is given for the City and Mr. Trooien to <br />come to an agreement with the DNR so that legal action won’t need to be taken and construction <br />with a potentially alternative plan could be completed. <br /> <br />Commissioner Denaway made a motion, seconded by Commissioner Chrun, to recommend extension <br />of the purchase agreement to the City Cou ncil. <br /> <br />Ayes: All <br />Nay: None <br />Motion carried. <br /> <br />ADJOURNMENT <br /> <br />Commissioner Denaway made a motion, seconded by Commissioner Roberts, to adjourn the meeting <br />at 6:16 PM. <br /> <br />Ayes: All <br />Nay: None <br />Motion carried. <br /> <br />Respectfully submitted. <br />Max Gort, Associate Planner