ORTONVILLE CITY COUNCIL
COUNTY OF BIG STONE, STATE OF MINNESOTA
WORKSHOP MEETING MINUTES
DIALYSYS BUILDING-435 EASTVOLD AVENUE
MONDAY, DECEMBER 17, 2007
6:00 P.M.
CALL TO
ORDER AND ROLL CALL:
Mayor Blair
Johnson called the workshop for the Ortonville City Council to order at 6:
00 P.M. Roll call was taken with the following present: Mayor Blair
Johnson, Mike Dorry, Dan Oakes, Artie Arndt, Bob Meyer, and Nick Anderson.
Absent: John Cunningham. Staff present: City Administrator David Lang,
Administrative Assistant Susan Lundell, City Attorney Craig Ash, Also
present: Council Elect Craig Randleman, Council Elect Steve Berkner .
Media present: Mike Swenson and Sue Kaercher Blake, (Ortonville
Independent), Julie French, (KDIO Radio), Neil Speckeen,
Jim Larson, Jay Larson, Dean Dovolis, Marcy Stotesbery, Tom Scoblic, Sara
and Todd Verheul, Bob Schlieman, Scott Tibben and other interested
citizens.
DISCUSSION AND CONSIDERATION OF SECURING PERFORMANCE BOND FOR A
RECAPITALIZATION PROPOSAL:
Dean
Dovolis of DJR Architects, Inc. presented a proposal for urban design and
future development for the City of Ortonville. The proposal calls for the
City to pledge a certificate of deposit or a security bond for $5,000,000
to guarantee James Larson of Ortonville Property Partners will close and
transfer his properties to a new entity that will do real estate
development in the region. An outline of the phases of the proposed
project was presented.
Council Member Arndt arrived at the
meeting at 6:10 P. M.
The outline
also identified the development team, design team, financial partners,
economic partners, and the financial process involved. Dovolis stated the
proposed development plan could bring $50,000,000 of equity to the
region. Mayor Johnson stated goal is to have no liability to the City.
Council Member Anderson arrived at the
meeting at 6:20 P. M.
Arndt
expressed concern there could be existing liens on some of the properties
Larson owns. Dorry stated he checked at the courthouse and found16 of Jim
Larson’s properties had delinquent taxes due in the amount of
approximately $27,000. He also stated the rehabilitation of the hospital
should be the main focus of the Council and the Council should not take a
risk by providing a security bond for a private investor. He stated “it’s
a private investor’s project.”
Dovolis
reiterated the City would have no financial risk in providing the bond.
Jim Larson stated the City needs housing stock to provide for the influx
of employees with the future expansion of the power plant. Larson
addressed Mike Dorry and told him “you will love it (the project) Mike.”
Dorry replied, “Yes, I will love it but you should do it on your own.”
Larson stated he did not have the resources to do it on his own.
Ortonville
City Council Workshop Meeting Minutes December 17, 2007 Page
2 of 2
Mayor
Johnson stated the City would re-write the document so the City had no
risk. Dorry reported in checking on Jim Larson’s properties he noticed
Blair Johnson was listed as Larson’s agent of record for purposes of
notification by mail and felt this was a conflict of interest. Johnson
stated he is Larson’s accountant and has no financial interest in the
proposed project. City Administrator Lang offered to look into this matter
with City Attorney Ash.
City
Attorney Ash stated he was not sure whether or not the project would
qualify as a public purpose as required by State Law.
Neil
Speckeen asked who the new entity would be. It was explained the
financial partners would be the First Bank & Trust of Milbank, South
Dakota, Dean Dovolis, James Larson, Jay Larson, and the City of
Ortonville.
Arndt
stated he felt the project had a lot of possible loopholes which are
difficult to understand.
The meeting was adjourned by consensus
at 6:55 P. M.
APPROVED: ATTEST:
____________________
________________________
Blair
Johnson David A.
Lang
Mayor
Clerk-Administrator
