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East Grand Forks Council approves land purchase, swaps parcel with Simplot
Summary
The East Grand Forks City Council approved purchase of a Grand Forks parcel for $1,540,000 and immediately authorized a land-exchange with Simplot Global Food LLC to acquire a parcel south of Highway 2, following staff assurances from a Phase I environmental survey and ongoing due diligence on a storm-water easement.
The East Grand Forks City Council voted unanimously Oct. 14 to buy a Grand Forks parcel from the Gralin family for $1,540,000 and to exchange that parcel with Simplot Global Food LLC for property in East Grand Forks south of Highway 2.
City staff told the council the city completed a Phase I environmental survey on the East Grand Forks parcel "and that has come back clean with no findings," Mr. Hutton said during the presentation. The purchase agreement sets the Grand Forks price at $1.54 million, and the appraised value of the East Grand Forks parcel the city will receive is listed at $1,547,089; the exchange agreement also includes an additional $7,890 payment from the city to Simplot.
Hutton flagged a 30-foot storm-water easement and an active storm-water pipe that cross the East Grand Forks parcel. Staff said the easement appears to allow surface uses such as roads and parking but likely precludes buildings directly over the pipe; engineering staff said relocation in coordination with American Crystal Sugar appears feasible but will require further title and easement review during the 60‑day due‑diligence period.
City finance staff explained how the transaction will be recorded: the purchase will convert cash to a land asset on the balance sheet, reducing liquid general-fund reserves but maintaining the value as a nonliquid asset. City staff said the intent is to market the acquired East Grand Forks property for private development after closing.
At the special meeting the council took formal roll-call votes on both the purchase agreement and the land-exchange agreement; the clerk recorded affirmative votes and each motion carried.
Next steps include completion of remaining title work, continued investigation of the storm-water easement and pipe, and completion of the 60‑day due‑diligence period before final closing. The council indicated an intent to close the transactions before the end of the calendar year if due diligence is successful.
