City turns down chance to buy developer’s lots
February 12th, 2009Gaylord’s City Council, last week, did not take action on a proposal to repurchase undeveloped land west of the City’s stormwater pond.
City attorney Donald Lannoye provided documentation asking the Council to authorize Schauer Law Office to present Jordan Real Estate Services with written notice of intent to repurchase the lots.
In 2002, the City entered into a development agreement with Jordan Real Estate Services. On Aug. 20, 2008, the City approved a resolution declaring Jordan Real Estate Services in default of its development agreement. There were too many vacant lots and not enough homes for sale, according to Lannoye. Jordan Real Estate Services was in direct violation of the agreement, he explained.
In November, the council approved repurchasing the undeveloped land, south of the current Meadow Wood Builders development for $33,535. This decision was made when it was believed that the repurchase could be made after Jan. 30, 2009.
Lannoye reported that the 120 day cure period on the conditions of default expired Jan. 10, 2009. After that date, the City could have proceeded to repurchase the lots by giving 15 days notice of intention to repurchase.
Lannoye warned the council that it may not be an “easy thing” to repurchase the lots. If Jordan Real Estate Services refused, it could result in further litigation with the developer, he explained. Lannoye also reminded the council that the developer has not cooperated with the City in the past.
Council member Jessica Uecker made a motion to repurchase the lots, but it died for lack of a second.
Council member Brenda Pautsch said she was not in favor of repurchasing the lots at this time. She was not willing to spend more City dollars on this development.
For more than a year, the City of Gaylord negotiated with Meadow Wood Builders which owns a 15-acre parcel of land west of the stormwater pond.
Unable to sell homes initially planned for the development, Meadow Wood Builders revised its plan to include smaller lots and smaller homes. That revised plan immediately prompted concern from the City Council and residents who already live in the development. It eventually resulted in a judge ruling in favor of Meadow Wood Builders. That decision is being appealed by the City of Gaylord.
Uecker and Pautsch were the only council members voted on the proposal to repurchase the lots. Council member Carl Wetzel was conducting the meeting in the absence of Mayor Doug Quast. Because of that fact, Lannoye advised Wetzel not to vote on this issue, according to City Administrator Kevin McCann.
Council members Pat Pinske and Chad Muchow were not present at last week’s meeting.
