EDA president says sale of Main Avenue lot is more than dollars and cents
June 6th, 2007Additional businesses in town and immediate tax benefits for the City. Those were among the reasons Gaylord’s Economic Development Authority (EDA) approved a new proposal for the sale of a Main Avenue lot, according to EDA president Chuck Klimmek.
Hahn Family Properties had purchased the lot (located west of City Hall) for $50,000 and was initially requesting tax increment financing (TIF). That deal was renegotiated after the Hahn Family Properties’ project grew four times larger than originally planned.
The new sale proposal, approved two weeks ago by the EDA, sold the lot to Hahn Family Properties for $1 and TIF was scratched from the deal. City Attorney Doug Nesvig labeled the change in price as “a trade off.”
The EDA’s decision drew criticism from council members Pat Pinske and Dale Breuer at Wednesday’s City Council meeting. Pinske believes Hahn Family Properties should have produced a more detailed plan before a sale was approved.
Breuer meanwhile was concerned about the sale price. He believed the lot was worth $200,000. Council member Carl Wetzel questioned Breuer’s statement saying that when the City requested bids for the lot, there were no offers above $55,000.
Klimmek told council members that the EDA’s decision was “more than just dollars and cents.” We will be adding businesses and increasing our tax base, Klimmek explained.
Klimmek also noted that in the initial proposal, the City would not have seen any tax return from the property for ten years. Now, the City will be getting approximately $7,000 per year in taxes immediately.
A 9,000 square foot mini-strip mall is being planned by Hahn Family Properties. Jerry Hahn told The Gaylord Hub that the facility will include a bakery, a gourmet coffee shop and a sandwich shop. A vendor for a third food court is yet to be determined, Hahn explained. The facility will also include retail and office space, and wireless internet access.
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