MINUTES OF THE ROLAND CITY COUNCIL

SPECIAL SESSION

JUNE 6, 2007

 

Note:  The following minutes were approved by the Roland City Council at its June 11, 2007, council meeting.

 

 

The Roland City Council met in special session with the Roland Area Development Corp (RADC) on Wednesday, June 6, 2007, at 7:00 p.m. at the deli at Anderson’s Meat & Grocery with Mayor Pro-tem Roger Fritz starting the meeting and then turning it over to Mayor Samuel Juhl at 7:01 p.m.  Council members present at roll call were Duane Canny, Roger Fritz, Bob Hanson, John Lee and Jeri Neely.  RADC members present were Lynn Schulte, MaryAnn Anderson, Mark Soderstrum and Dave Barclay.  Also present were 7 visitors and members of the community.  Council member Neely left at 7:30 p.m..

 

Motion by Lee, second by Canny to approve the agenda.  All were in favor.

 

The purpose of the joint meeting was to discuss the selling/purchasing of Anderson’s Meat & Grocery.  Chris Huening stated that there has been a delay in the SBA loan, but they have been approved for a Business Line of Credit with the Bank of America.  It will depend on the interest rate which offer they will go with, but they will have the funds in place to purchase the inventory.

 

Lynn Schulte, RADC Secretary/Treasurer, was asked if the RADC had any plans.  Lynn passed out a handout with four options, including the pros and cons of each option to those present.  The four options are:  1) have Chris obtain the financing and purchase the building directly from Craig; 2) have the RADC buy the building on contract from Craig and sell to Chris on contract; 3) have the City buy the building on contract from Craig and sell to Chris on contract; and 4) have either the City or RADC buy the building outright from Craig and rent (to own) to Chris.

 

Craig stated that he is willing to give the City, RADC and Chris the same option he was given when he opened the grocery store over 18 years ago.  He was given ten years to make monthly payments with a balloon payment at the end.  He is willing to let Chris make $600/month payments for ten years with a $6000 balloon payment at the end, as long as it is secured by the City.  He also stated that if it is charged as rent it is 100% deductible for tax purposes

 

City Attorney Tom Wynia stated that there are some problems with the City purchasing the building.  There will need to be public hearings to acquire and dispose of the building.  With RADC being a private entity, they do not have to go through all the hearings.  He also feels it would be a lot cleaner running through the RADC.

 

There was discussion on items that need to be addressed in the contract such as:   What happens if they don’t pay?  How will the payments be made?  An option for City to purchase remaining contract if store closes.  What happens if the building is damaged or demolished in a disaster?  Who will pay for the taxes?  Who will pay for the insurance?  Who will pay the pro-rated taxes?  Who will pay the revenue tax stamp fees?  Who will pay to have the abstract updated?  Craig stated that he would pay the pro-rated taxes if the purchaser paid for the revenue tax stamp fees and updating the abstract.  Chris stated that he would carry the insurance on the building, and the consensus of the council was to budget funds for the RADC to help pay for the property taxes over the ten year period.

 

Consensus of the council member is they’d like to have the RADC hold the contract with the City securing it.  Lynn stated that the RADC doesn’t have enough members present at the meeting to constitute a quorum for them to make a decision.  City Attorney Wynia will get a copy of the contract to the RADC with the City guaranteeing it so it can be reviewed by the RADC members for approval.  If approved by the RADC members, the President and the Secretary will need to sign the contract and have it notarized, then have Craig sign the contract.  Lynn will try to get the RADC’s approval before the June 25th council meeting.

 

City Attorney Wynia stated it would be a good idea for the City to have a public hearing on guaranteeing the contract.  He will provide City Clerk Frost with the necessary documentation for publication and the hearing will be held at 7:00 p.m. on June 25, 2007 at City Hall.

 

City Attorney Wynia stated that he will have the contracts ready by the end of next week for review.

 

There were no Council/Mayor comments at this time.

 

There was no public input at this time.

 

With no further business at this time, Hanson moved adjournment of the meeting at 7:53 p.m., second by Fritz.  All were in favor.  The next regular council meeting will be Monday, June 11, 2007, at 7:00 p.m. at City Hall.

 

 

_____________________________________                               __________________________________

Samuel Juhl, Mayor                                                                   Deneen Frost, City Clerk

 

Return to Roland Home Page