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A new proposal for the sale of the half block Main Avenue lot to Hahn Family Properties was approved Monday by the Gaylord Economic Development Authority.

A committee, consisting of City Attorney Doug Nesvig, EDA president Chuck Klimmek, along with Jerry Hahn, developed the proposal at a meeting May 11.

According to Nesvig, the development is now proposed to be three to four times larger than originally planned. At first, the proposed mini-strip mall would have been 2,500 square feet, and it has now increased to 9,000 square feet.

Under the new proposal, the land would be sold to Hahn Family Properties for $1 and then they would not receive any tax increment financing. Nesvig explained that the Main Avenue lot was not in an existing tax increment financing district. It was projected that $69,800 of increments would have been collected in the life of the new district. Instead, now the city, school, and county will receive the taxes as collected.

Originally Hahn Family Properties was going to purchase the lot for $50,000 and receive tax increment financing. Nesvig felt that the change in the price was “a trade off.”

In addition, the EDA will bear all cost of soil remediation, if any is needed as a result of filling in the basements of the houses that formerly were on the property. The City will pay for all required soil borings and for the cost to remove the trees.

In exchange, Hahn Family Properties will dedicate a strip along the east side of the property, 20 – 25 feet wide, for a community sign and “sitting” park. The city will pay the cost to construct and maintain the items.

Under the previous plan, Hahn Family Properties was going to have the project completed by Dec. 31, 2007. Under the new proposal, the project completion was delayed until June 1, 2008.

Jerry Hahn of Hahn Family Properties said that as soon as the proposal was approved, he planned to hire an architect. He said that he did not want to disclose other plans for the property until a drawing is brought before the Gaylord Economic Development Authority.

Hahn indicated that he would like more street lighting on the property and a paved alley, like the rest of downtown Gaylord.

An east-west entrance is planned into the mini-strip mall, Hahn said.

Nesvig said that soil borings, until this point, have been paid by Hahn Family Properties. The soil borings were inclusive. The Hahn Family won’t know if the soil will work until construction of the footings is underway, Nesvig said.