EDA approves $5,000 discount to move forward on Vonage lot sale

The East Grand Forks Economic Development Authority voted Feb. 26 to reduce the sale price of a city-owned lot formerly tied to Vonage by $5,000 to facilitate a purchase and close a protracted transaction.

Board members said the parcel has been tied up with lien releases and other delays, and some members favored a price cut to encourage sale, return the lot to the tax rolls and avoid further legal and administrative costs. Legal counsel confirmed the U.S. Small Business Administration had recorded and released liens, clearing title for transfer, and staff said they had already recorded the release and mailed copies.

The EDA voted to authorize staff and legal counsel to either prepare an addendum to the existing purchase agreement or execute a new purchase agreement reflecting the reduced price, and to proceed to closing. During discussion, staff said the earlier purchase agreements and lot pricing had varied by subdivision; members noted the city’s prior practice has been to price many lots at near breakeven.

Key figures cited in the meeting included $5,000 (the approved reduction) and a suggested replacement purchase-agreement price of $35,000; the board did not state an original, confirmed list price for that specific parcel during the discussion. City legal staff said they would draft the necessary addendum or new agreement and manage closing.

Board members emphasized they did not want the matter to return to the EDA repeatedly and asked legal staff to close the file once documents are signed. The motion passed by roll call.

Members also discussed that prior discounts on other lots had been applied in separate transactions and that sales practice for reductions has varied; staff noted the EDA has sometimes brought reductions to the City Council for final approval but that the EDA generally has authority to manage routine lot sales.