02-19-2004 Special City Council Minutes

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SPECIAL MEETING OF THE PEQUOT LAKES CITY COUNCIL THURSDAY, FEBRUARY 19, 2004 HELD AT THE SIBLEY HALL Members Present: Mayor C. Malecha, Council Members Johnson, Bolz- Andolshek, Sjoblad, Akerson, and Pfeiffer Members Absent: Council Member Ryan Also Present: Planning and Zoning Commissioners Tom Adams, Bill Habein, Tom Woog, Karl Moon, Mark Hahlen, and Martin Nelson Staff Present: Sandra Peine, City Clerk; Dawn Bittner, Zoning Administrator 1. Call Meeting to Order Mayor Malecha called the special meeting of the Pequot Lakes City Council to order at 6:00 p.m. on Tuesday, February 3, 2004. 2. Pledge of Allegiance Mayor Malecha led with the Pledge of Allegiance 3. Finalize Financing of Liberty Tool Building The City Clerk informed the Council that the Liberty Tool closing is scheduled for Friday, February 27, 2004. She reviewed the finance costs with the Council. She indicated that the City would be entering into a lease-purchase agreement with American National Bank in the amount of 1.1 million dollars. She noted that although the term is for 15 years, the amount would be reduced upon the sale of each building the City owns, as the money received for the buildings will be applied directly to the principal. She also explained that the 1.1 million includes renovation and building improvement costs of about $184,000 and closing costs of$20,000. It also includes a payment reserve fund of$75,000 because the City did not levy to make payments in 2004. COUNCIL MEMBER AKERSON MOVED TO ADOPT RESOLUTION 04-003 AUTHORIZING LEASE PURCHASE FINANCING OF PROJECT FOR THE CITY AND ENTERING INTO LEASE WITH LESSOR COPORATION. COUNCIL MEMBER SJOBLAD SECONDED THE MOTION. MOTION CARRIED 6-0. Council Member Bolz-Andolshek requested Council authorization to hire Savage Construction at $12,500 for the firewall construction, Carl Moon at $8,000 for the electrical work, and The Door Doctor at $24,000 for the overhead doors.