Council approves $400,000 purchase of 4.2-acre lot for possible public-safety building; agreement includes repurchase clause

Council approved Resolution 8-25 to purchase Lot 1 of CSM 5730 (about 4.2 acres on Park Avenue) for $400,000. Staff said the purchase is intended to identify a site for a possible future public-safety building.

Matt told the council the funding source would be proceeds from a prior sale (the city’s Dollar Tree parcel on James Street), noting there are roughly $424,000 in that fund including interest. The resolution was moved and passed by roll call; the clerk recorded "Aye" votes from Lawson, Finkler, Meyer, Reid and Rostad.

The council also approved an accompanying agreement with Olena Investments LLC (Kurt Hanson) that clears an existing restriction limiting assisted-living use. Under the conditional agreement staff described, the city may develop the site for a public facility; if the city does not use the property for city purposes or put improvements in place within five years, Olena retains a right to repurchase the parcel at the original purchase terms. The agreement also obliges the parties to coordinate on adjacent lot improvements, including streets and utilities.

Councilors asked about the funding and the scope of the agreement; staff confirmed funds are being transferred into general funds to complete the acquisition and that coordination with the seller on utility/street improvements is part of the agreement.

Ending: The acquisition passed on roll call; staff will complete the closing and return to council with implementation steps as needed.