CC 11-01-1988 - Laserfiche WebLink

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r . MINUTES OF THE ARDEN HILLS CLOSED COUNCIL MEETING Tuesday, November 1, 1988, 4:30 p.m. - Village Hall ~ CALL TO ORDER Pursuant to due call and notice thereof, Acting llayor Hansen called the meeting to order at 4:30 p.m. ROLL CALL The roll being called the following members were present: Acting Mayor Nancy Hansen, Councilmembers Gary Peck and . Jeanne Winiecki. Absent: Mayor Robert Woodburn and Councilmember Thomas Sather. Also present were Attorney James Lynden, Clerk Administrator Gary Berger and Deputy Clerk Catherine Iago. KEM MILLING Attorney Lynden reported to Council on the Kem Milling LITIGATION lawsuit and discussions with representatives of the Darling Company regarding this matter. Lynden advised Kem Milling representatives had expressed concern relative to statements from Councilmembers which were printed in the New Brighton Bulletin. He explained closed meeting discussions must remain confidential in order to adhere to the strict letter of the law and not breech the attorney/client privilege; he cautioned the Council not to discuss any matters reviewed in a closed meeting with members of the press. Lynden stated all issues in the lawsuit against Kem Milling are resolvable by the MPCA and Kem Milling can argue that we haven't exhausted our administrative remedies, or there is a proceeding against the MPCA, and the lawsuit is not timely and should be dismissed. He explained that Kem Milling could claim the City is bringing the lawsuit against the plant only due to the fact the City wishes to purchase the property. Lynden reviewed State Statutes which could oe ,. utilized by the plant. The Attorney reported that the MPCA has discussed taking a more active role to bring the plant into compliance. Lynden suggested Council consider holding the lawsuit in abeyance at this time and offered the following rationale: -It would enable Lynden to enter negotiations with Kem Milling to purchase the property. -It would prohibit Kem Milling from recovering attorneys fees in the event the City is charged with bringing a "bad faith" claim. -All issues could be muted by MPCA enforcement. -The MPCA has drastically changed its position regarding requiring incineration at the facility; Lynden stated it was his opinion this is due to Inspector McGinley's involvement. The Attorney explained that although the statements in the newspaper could have caused negative results, they have actually worked in a positive vein to show Kem Milling the City is willing to take any action necessary to bring the plant into compliance. . There was discussion regarding Council authorizing the Attorney to enter negotiations with Kem Milling for the City to purchase the plant. Lynden stated in checking with the Ramsey County Assessor's office the Clerk Administrator had found that Kem Milling purchased the property for $250,000.00. In talking with representatives of the plant, Lynden advised they had indicated the plant on the market in the price range of $350,000.00 to $500,000.00. The attorney for Kem Milling advised Lynden the plant was purchased for one million dollars; Lynden has requested the Kem Milling attorney provide proof the plant was purchased for that amount. Lynden requested Council consider holding the Kem Milling lawsuit in abeyance, authorizing him to enter into negotiations for purchase of the plant and set perimeters for monetary amounts the Council would consider as reasonable monies to be spent to purchase the facility. There was Council discussion regarding how the expenditure would be funded and if grant monies could be utilized to purchase the facility; Lynden stated the purchase agreement could stipulate the sale is contingent upon grant monies being received by the City. -