EDA moves to let bank take school property to speed sale, pending attorney review

GREEN ISLE — The Economic Development Authority voted Dec. 1 to pursue turning the deed for the former school property over to Corner State Bank, a move members said is intended to speed up a sale that has dragged on for months.

Chad Hollis, introduced at the meeting as president of Corner State Bank, told the board the bank can take ownership through foreclosure or a deed-in-lieu arrangement and then run the real-estate process. "I just want to keep it moving," Hollis said, urging the EDA to coordinate with the city attorney so the sale process proceeds without more prolonged delays.

Why it matters: The former school building and its associated parcels have been on and off the market through multiple listing efforts and negotiations. Board members said earlier attempts to attract buyers were unproductive and that the city has been carrying some of the costs. Letting the bank take charge, they said, should centralize marketing and reduce ongoing maintenance exposure for the city.

What the board discussed: Members reviewed two options: (1) relist the property with a broker while the city and bank negotiate, or (2) convey the deed to the bank (by foreclosure finalization or deed-in-lieu) and let the bank list and sell the property. Hollis explained Minnesota’s sheriff-sale and redemption process and noted there are timing limits during which owners may retake property by paying redemption amounts. Participants also discussed previous negotiations that sought to preserve a portion of the site — a small baseball-field parcel — with a previously discussed price in the neighborhood of $39,000 plus survey costs, estimated at about $50,000.

Board members acknowledged the difficulty of valuing a large former school property: participants referenced past appraisals and comparable sales for similar schools, and said commercial-market comparables vary widely. Multiple members said the drawn-out timeline and the city’s limited capacity to act as a long-term broker favor letting the bank take more direct responsibility.

Formal action: The EDA moved and seconded a motion to pursue option two — conveying the deed to the bank so it can market and sell the property — "pending city attorney review and to be discussed at the city council." The chair called the question and the motion carried.

Next steps: Staff will seek written guidance from city attorney Ken Jansen, notify the city council as discussed, and reconvene with the EDA if additional council direction or negotiated terms (for example, to preserve the baseball-field parcel) are required. If the bank completes a deed-in-lieu or takes ownership after a sheriff sale and an acceptable offer is made during the redemption period, the EDA and the bank will need to agree on any split of proceeds or retained parcels.

What was not decided: The board did not set a sale price, and no firm timetable for transfer or listing was provided beyond the direction to pursue the bank-led option and to get attorney guidance. Members also did not adopt a specific plan for whether the city would attempt to retain any parcels unless a negotiated price was agreed.

The EDA adjourned after completing other routine business; staff will report back to the board with the city attorney’s advice and any council action.