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Council agrees to pay up to $6,500 toward Lewis Industries' legal fees for tax-abatement deal
Summary
Paynesville council approved EDAP's recommendation to contribute up to $6,500 from EDAP funds toward Lewis Industries' tax-abatement legal fees, with members asking staff to set clearer communication and retainer policies for similar future transactions.
The Paynesville City Council voted to cover up to $6,500 of legal fees for Lewis Industries related to a tax-abatement transaction, following a recommendation from the Economic Development Authority and EDAP.
Council members said the transaction had been complex and required more legal work than expected. Several members emphasized establishing clearer upfront communication and fee parameters for developers, including use of retainers for large economic-development transactions. One councilor noted the city's practice for TIF agreements commonly asks for a retainer (an example figure discussed in the meeting was $10,000).
A motion to pay up to $6,500 from the EDAP fund carried after a voice vote; one councilor recorded opposition before the motion carried. Staff were directed to define procedures to notify developers as legal costs accrue and to consider retainer policies for future agreements.
The council did not change the agreed dollar cap during the meeting; members said the measure was intended as a shared-cost approach given anticipated future tax revenues from the project.
