12-02-88 Development Comm MinutesCity Development Committee
December 2, 1988 7:30 AM Lighterside Restaurant
ATTENDING: Chairman Wayne Saverud, Comittee members Clare Hafferman, Noel Furlong,
and Jim Atkinson, Ed Gallagher of Community Development and Mayor Ed Kennedy.
Valley Bank Proposal
Chairman Saverud reviewed the bid of $90,000 by Valley Bank for the parking lot
at Third & Main (Block #55, Lots 8-12). In a legal opinion prepared by City
Attorney Neier, it states that the Valley Bank bid, which was the only bid submitted,
did not meet the 90% threshold as stated in the Advertisement. Motion was made by
Jim Atkinson to recommend to Council that they not accept the proposal, Clare Hafferman
seconded, motion passed unanimously.
Ed, at W. Saveruds suggestion, polled the KDC Executive Board as to their feelings
about the offer from Valley Bank, and it was nearly unanimous to not accept an
offer unless it was at appraised value or very near to that price. Ed also had
a letter from Nupac with an estimate of excavation costs for an area of the parking
lot size. Valley Bank can negotiate with the city at a later date if they are still
interested, as the lot is 'open' to anyone interested since it was advertised for
sale. The City Council must approve the sale of the property by a majority.
Mayor Kennedy expressed his concern at losing the parking if the lot is sold and
suggested there could possibly be a land exchange with Valley of some of their
other property.
O'Neil Property (424 S. Main)
W. Saverud gave a brief history of this property and the interest of two local
firms that were contemplating buying the building and two lots, while the city
purchased the remaining two lots for parking. However, this did not happen for
a number of reasons. The O'Neil family re -approached the parking commission,
who then decided at their last meeting to offer the O'Neil's $115 000 for the
entire property. The O'Neils made a, counter-offer of $20,000, witA which the parking
commission wassatisified, (Gordon Pirrie polled the commission members) and
feel could finally address the parking problems in the South end of town.
Jim Atkinson stated he had a problem with deciding on this right now and would like
to wait until FVCC makes their offer to the city. Ed explained that if the parking
commission bought the college property at appraised value they would still have
enough funds left to purchase the O'Neil property. After much discussion -the
Committee decided unanimously to wait until the FVCC offer comes in, and they
directed the Mayor to proceed with an appraisal of the:0'Neil property.
FVCC Buildings
Ed discussed the procedures for land assemblage, demolition, and costs pertaining
to these line items. Mayor Kennedy read the minutes of Council meeting when
the Statement of Intent was extended to FVCC by Council.
After discussion the Committee decided the CDD should investigate the 'going'
rental rates so the city can decide what might be 'in line' as rent for the
college buildings until the new campus is ready
The meeting adjourned at 8:45 AM