At the October 17 city council meeting, a long discussion took place concerning the eventual purchase of the property at the former Dairy and Farm location. Councilman David Harrison was absent.
Concerning the possible reuse of the Dairy and Farm property, the city has been waiting for more information about possible pollutants on the property. City administrator Joe Hoffman spoke about a recent meeting with people from Dairy & Farm, Department of Agriculture, and others. At that meeting it was expected that it may be a year or more before the property can be given a clean bill of health. Dairy and Farm is facing significant bills associated with a clean up of the property and they want to know in the end that they will have a buyer. Dairy and Farm is liable for the cleanup.
Councilman Robert Maust insisted the west building can be split off with a survey, adding the state has no problem with pollutants on that portion of the property. This is the building that could be the future home of the National Trout Center, Tourism, and the Preston Historical Society. Maust advocated for the purchase of that portion of the property with an agreement that the rest would be transferred to the city after it gets a clean bill of health. He maintained that the Dairy & Farm board was agreeable to that kind of arrangement. Maust believes waiting for all the property to be cleaned up could delay any plans for remodel of the west building a couple of years.
Mayor Kurt Reicks said it sounded to him like the Department of Agriculture will have borings done this fall and excavations could take place next spring. Borings are to be done in the east building as there are cracks in the cement floor where chemicals and fertilizer were stored. Reicks wants the whole property to be cleaned up and salable before purchasing.
City Attorney Dwight Luhmann asked who would pay for a survey and what is the advantage of getting the west building now. Councilman Charles Sparks commented that if the east side doesn’t get a clean bill of health, we will have already spent $100,000 for the property. Reicks suggested another year or so will allow more time to raise money for the remodel.
Luhmann said he could draft a purchase agreement with a closing date a year or more from now or a closing date 30 days after the property gets a clean bill of health. Sparks said if we have a purchase agreement it will make it easier to raise money for the remodel. Reicks stated we have to make Dairy & Farm aware we intend to purchase the property. He also wants to wait until it is all salable and then buy the whole property.
Luhmann questioned whether buying the west portion now would make it possible for Dairy and Farm to walk away from the east portion.
The council approved a motion to direct Luhmann to draft a purchase agreement to purchase the whole property for $100,000 when it gets a clean bill of health from the Department of Agriculture and to contact Dairy & Farm about a possible agreement. The draft purchase agreement is to be discussed at the next council meeting. Maust voted no.
Ristau Farm Service purchase
Several items were approved related to Wayne Ristau’s plans to build a 48-foot by 200-foot building across lots 2 and 3 of the Northwest Industrial Park. The consolidation of lots 2 and 3 into one parcel was approved.
A business subsidy hearing was set for November 7 for the Ristau Farm Service project.
A request from the EDA to move $25,000 from the EDA Development Fund to the Preston’s 270 revolving loan fund was approved. The money will be available for a revolving loan to Ristau Farm Service to support the new construction of a building in the Industrial Park. The loan terms are for the $25,000 to be repaid over 10 years at 2.5% interest. The repayment will go back into the development fund. Hoffman said if possible the $25,000 loan will come out of the Minnesota Investment Fund instead. Eligibility to use this fund is very restrictive.
Other business in brief
• Approval was given as requested by the EDA to loan a total of $5,770 from the city’s 274 Small Cities Program income account to support the small cities development rehabilitation project at the Fillmore County DAC to be repaid over five years at an interest rate of 1%.
• Approval was given as requested by the EDA to transfer $4,000 from the EDA development fund into the EDA 270 revolving loan fund account to make a loan to GNR properties. A total loan of $9,000 from the EDA’s 270 revolving loan fund account was approved to GNR properties for the purchase of two parcels (129 St. Paul St. and 213 Main St. SW) to be repaid over 10 years at a 2.5% interest rate. The GNR purchase has potential to result in two new businesses which will lease from GNR properties.
• The 1991 furnace and central air equipment at the Emergency Service Building has failed. Hoffman reported two quotes which have been received. The low quote from Al Larson and Sons of $5,100 with $500 rebate was approved. This expense is to be split by the Fire and Ambulance Departments.
• Every two years the city sends out request for proposals for the city auditor. The quotes will be for 2016-17 with the second year at the city’s option. Proposals are due December 1. Hoffman pointed out the proposal will include a provision that requires the audit to be completed and delivered by May 1. If the deadline is missed, a 20% reduction in the audit fee will be made. The RFP was approved as presented.
• A joint canvassing/council meeting was set and will be held November 14 at 6 p.m.