HomeMy WebLinkAbout2002 [05] May 24
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May 24,! 2002
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Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in speciai session
on May 24, 2002 at 9:30 AM in the St. Joseph City Hall. I
Members Present: Mayor Larry Hosch. Councilors Bob Loso, Cory Ehlert, AI Rassier, Kyle Schneider.
Others Present: City Engineer Joe Bettendorf, Dan Molitor, David Shay, Leo Beuttner, Mike GOhmanl
Mayor Hosch stated the purpose of the meeting is to consider the bid award for the construction of thJ
2002 Business Park Improvements. The matter has been tabled as one of the property owners is 1
objecting to the proposed improvement and has stated that the improvement will create an undue
hardship. Hosch stated that the project needs to be completed at this time to allow the relocation of Vie
West Steel, who is in the process of planning the construction of 67,000 square foot facility.
Mike Gohman spoke on behalf of Vie West Steel. Gohman stated that he has been working with
representative from Vie West Steel for a number of years. They have finally agreed to move forward With
a large expansion and have purchased property in the Business Park. Gohman provided the Council with
evidence that the property owner objecting to the project, Leo Buettener, has in fact been paid for a i
portion of the property and an agreement has been reached as to when the balance will be paid. I
Therefore, the claim that the property in the Industrial Park is not seiling is not factual. Gohman also
presented information that evidenced a second lot has been sold. !
Gohman stated that he cannot move forward with the Vie West Project if utilities are not available. The
proposed expansion is 3.8 Million and will add jobs to the community. The project also involves secudng
a loan from the Department of Trade and Economic Development (DTED). The loan is paid back to the
City along with the interest. After the loan is paid back, the City has a revolving loan fund, !
Bettendorf stated that the City has planned this improvement for two years and the property owner
objecting to the project was notified, In fact, the marketing agreement and development agreement
between the City of St. Joseph and Leo Buettener, identifies the cost of the improvements they are in
dispute. Bettendorf further stated that public hearings have been held and Buettner did not object.
Hosch made a motion to accept the recommendation of the City Engineer awarding the 2002
Business Park Improvement to the lowest responsible bidder, Molitor Excavating in the amount of
$ 479,797,86. This motion authorizes the Mayor and Administrator to execute the necessary I
documents for contract award. The motion was seconded by Schneider and passed unanimously.
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Attorney David Shay, representing Leo Buettner, stated that he objects to the action taken at this meeting
and reserves the right to pursue legal action baring the commencement of the project. I
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Adiourn: Loso made a motion to adjourn at 10:15 PM; seconded by Rassier and passed
unanimously,
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