Freeport City Council Regular Meeting Minutes - May 1, 2006

Joint Meeting with the Freeport EDA

Freeport EDA Special Meeting

A special meeting of the Freeport Economic Development Authority was convened at 7:30 P.M. on March 29, 2006 by President Matt Worms with Members Jim Hemker, Rodney Atkinson, John Thelen, Andy Welle, Tim Hennen, and Paul Hetland also in attendance.

Also in attendance were the following: Jim Schulz, Carol Moorman, Herman Lensing, Helen Conde, Rick Neeley, Scott Hamak, Doug Sanders, Rick Strouth, Rep. Bud Heidgerken, Al Beste, and Phil Osendorf. Staff persons on hand were Paul Hetland and Joel Dasher.

The Pledge of Allegiance was said by those in attendance.

Agenda

Humbert moved and Goebel seconded a motion approving the meeting agenda. Discussion offered. Motion carried 5-0.

New Business

EDA Recommendation: Sale of Property to Whirlwind Steel Buildings

Worms opened the hearing at 7:35 P.M.

Worms gave an overview of the events regarding the Whirlwind sale since the March 29 joint meeting. In brief, Whirlwind had decided not to seek JOBZ benefits and to purchase the land at $176,000.

Hetland gave an overview of the updated spreadsheet outlining the finances of an Industrial Park Phase 2 public improvement project.

Hamak gave a detailed review of the agreements among the land owners, EDA, City, and Whirlwind. He noted that the agreement proposed included purchasing the 18 acres of land for $1.00 and that no taxes for the improvements made for the building would be abated for 2006 and 2007 providing that a minimum of $1.6 million in valuation would be obtained on the property. Due to the tax structure and timing, it was noted that very little taxes were in fact abated. Hamak also noted that the property closing would be as soon as possible and that the indemnity agreement would provide for Whirlwind's access to the property as soon as May 2. He noted that it was the intentions of all of the parties to close on property as soon as possible. He further noted that the temporary access would be completed within two weeks. Hamak briefly noted the changes in the agreements including the timeline and reporting requirements. Hamak acknowledged that the agreement was signed by Whirlwind. Hamak stated publicly to commend Whirlwind and their cooperative and professional relationship with the City. Hamak stated his approval of the agreement and recommended its passage.

Helen Conde mentioned that she enjoyed working with City of Freeport and Paul Hetland.

Representative Bud Heidgerken wanted to thank Helen Conde about the process and sent appreciation on behalf of the State of Minnesota to Whirlwind Steel Buildings and the City of Freeport.

Welle moved and Hemker seconded a motion to rescind the previously approved EDA Resolution 2006-002 approving the sale and business subsidies with Whirlwind previously approve on March 29, 2006. Discussion was offered. Motion carried 6-0. Humbert moved and Joe Hennen seconded a motion to rescind Resolution 2006-008 and 2006-009 approving the sale and business subsides with Whirlwind previously approved on March 29, 2006. Carried 5-0.

Hemker moved and Hetland seconded a motion to approve EDA Resolution 2006-003 regarding the purchase and conveyance of 18 acres of land to Whirlwind Steel Buildings. Discussion offered. Motion carried 6-0. Atkinson moved and Welle seconded a motion to approve EDA Resolution 2006-004 approving the business subsidy agreement with Whirlwind Steel Buildings. Discussion offered. Motion carried 6-0. Humbert moved and Goebel seconded a motion to approve Resolution 2006-011 regarding the purchase and conveyance of 18 acres of land to Whirlwind Steel Buildings. Discussion offered. Motion carried 5-0. Humbert moved and Goebel seconded a motion to approve Resolution 2006-012 approving the business subsidy agreement with Whirlwind Steel Buildings. Discussion offered. Motion carried 5-0.

Worms stated that he was pleased that all was going so well and appreciated the efforts of all parties involved.

Rick Neeley stated that Whirlwind President Jack Sturivant was sorry he couldn't attend the meeting, but wanted to convey his sincere appreciation of those involved in the transaction.

At 7:59 P.M. Joe Hennen moved and Goebel seconded a motion to adjourn the meeting. Motion carried 5-0. Hetland moved and Worms seconded a motion to adjourn the EDA meeting at 7:59 P.M. Motion carried 6-0.