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Council approves $2.2 million Millview Drive purchase after debate over debt and transparency
Summary
The council voted to acquire 135 Millview Drive for $2.2 million using CIP funds despite concerns about long‑term debt impact and questions about recent media reports on an external purchase.
The Common Council voted Sept. 17 to approve acquisition of 135 Millview Drive at an accepted offer price of $2,200,000, using CIP funds authorized by the council.
Alderman Steiner moved the measure and Council President Borchardt seconded; the motion passed 8–1 after extended debate about debt service, TIF financing and transparency around prior closed‑session negotiations and press reports.
Alderman Palmore raised fiscal concerns, citing projections that the city’s debt levy will increase and arguing the purchase adds to long‑term borrowing. “Our debt levy is scheduled to explode in the next 5 years from 4,400,000 to $14,000,000,” he said, and warned the real‑time debt service can burden taxpayers even when projects rely on TIF increment projections.
Palmore also questioned the process and transparency after a news report noted a private purchase: “It came out in the paper on the eighteenth that John Bergstrom bought this building. So apparently, he bought it for 2,200,000, and then he's gonna sell this for 2,200,000. That seems odd.”
Other council members said the acquisition removes obsolete structures that deter redevelopment and helps assemble parcels to attract developers; supporters said the TIF increment would ultimately pay the debt service tied to the borrowing for the purchase.
Council approved the acquisition and directed staff to continue follow‑up work related to financing and development planning for the site.
