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City Council Minutes 06-11-2012 SpecialMINUTES SPECIAL WORKSHOP /MEETING — MONTICELLO CITY COUNCIL Monday, June 11, 2012 — 6:15 p.m. Mississippi Room, Monticello Community Center Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta, Brian Stumpf Absent: None Others: Jeff O'Neill, Mike Krutzig, Joel Jamnik 1. Call to Order Mayor Herbst called the Special Meeting to order at 6:16 p.m. 2. Purpose of Workshop: Discussion of proposal from Mike Krutzig regarding potential property purchase and review of development concepts related to 2.5 acre parcel Jeff O'Neill introduced Mike Krutzig and his proposal to have the City purchase a 2.5 acre piece of land from him under certain conditions. The piece of land is platted as Lot 2, Block 1 of Jefferson Commons 1 st Addition. 3. Consideration of commercial property purchase and review of development concepts as requested by Mike Krutzig Jeff O'Neill elaborated on the proposal from Mike Krutzig explaining that Mr. Krutzig would like the City to purchase the piece of land from him and hold the land for a period of time, with the condition that Mike Kurtzig could purchase this back from the City along with a return of 7 -8% plus reimbursement of taxes for the years held. If he does not find a purchaser within 24 months, the City would be free to find a buyer themselves. Jeff O'Neill noted that he had talked to Tom Kelly who would have to do further checking on which reserves might be available for the purchase. Brian Stumpf indicated that he had some ideas on funds that he would like to see used if the City would be interested in doing this. Clint Herbst explained that the City had originally owned the land and sold it to Mike Krutzig in 2005. Mike Krutzig was not able to find a developer interested in purchasing the property and this is an attempt to find a resolution to keep the property viable. Brian Stumpf noted that the City would get their money back plus interest if Mike Krutzig is able to find someone interested in the land. There was some discussion on available land and current trends in the community. It was felt that this would be a possible solution to help out Mike Krutzig and keep the land on the tax rolls and away from foreclosure. There was a question on the ability to sell the land for less than the appraised value. Joel Jamnik noted that would not be a problem. Brian Stumpf stated that he was not sure the City should pay to have an appraisal done at this time. He feels it would be safe to market it as is without getting an appraisal. Special Council Meeting Minutes —June 11, 2012 Page 1 Clint Herbst expressed some concern about the City purchasing additional property. He did receive a few phone calls when the City opted to purchase Fred's Auto property. Brian Stumpf suggested that they pass this to the Monticello Economic Development Authority (EDA) and allow them the option to consider purchasing this with EDA funds. Clint Herbst stated that he would be okay with that as the Council would not address this until the next meeting in order to give time to review all the potential costs and where the funding would come from. Lloyd Hilgart indicated that he would prefer to see this handled through the EDA. Tom Perrault and Glen Posusta also agree that this should go to the EDA. BRIAN STUMPF MOVED TO RECOMMEND SUPPORT FOR THE CONCEPT OF PURCHASING LOT 2, BLOCK 1, JEFFERSON COMMONS 1sT ADDITION FROM MIKE KRUTZIG AND SEND THIS PROPOSAL TO THE MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY FOR CONSIDERATION. LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 4 -1 WITH GLEN POSUSTA VOTING IN OPPOSITION. Glen Posusta asked who would be responsible for the property taxes during the time that the property is held. Jeff O'Neill indicated that the City would be reimbursed by Mike Krutzig for the city portion of the taxes if the property is sold and developed. Glen Posusta is not in favor of purchasing the property as he does not think it will be developed within the next two years and the City will end up with rnore land. Mike Krutzig mentioned that he has been hearing of various property transactions that lead him to believe this land will be developed within the next 24 months. 4. Adjournment BRIAN STUMPF MOVED TO ADJOURN THE SPECIAL MEETING AT 6:37 P.M. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5 -0. Recorder: Catherine M. Shuman 6*4,,gt- Approved: June 25, 2012 Attest: �Cz�lo C W istrator Special Council Meeting Minutes —June 11, 2012 Page 2