Consideration and possible approval of changes to City's standard land sale and purchase agreement as requested by Offeror, Dagrow Truss.
 
Summary Minutes
Mesquite, Nevada City Council Meeting
 
Consideration and possible approval of changes to City's standard land sale and purchase agreement as requested by Offeror, Dagrow Truss. (Action)

Minutes of a scheduled meeting of the City Council held on April 11, 2006 at 4:00 p.m. at City Hall. In attendance were Mayor Bill Nicholes, City Councilmembers Bubba Smith, David Bennett, Bill Wells, Donna Fairchild, and Susan Holecheck. Also in attendance were City Manager Tim Hacker, City Engineer Allen Bell, City Attorney Christi Thunder, Planning & Redevelopment Manager Catherine Lorbeer, Public Works Director Bill Tanner, other City staff and approximately 75 citizens.

Mayor Nicholes called the meeting to order at 4:00 p.m. (NOTE: This meeting has been tape-recorded and will remain on file in the office of the City Clerk for four years for public examination.)

[7:44 PM]

Christi Thunder said she was contacted by Attorney Brian Olson regarding changes to the Dagrow Truss purchase agreement. Attorney Brian Olson, 340 Falcon Ridge Parkway, said his client entered into a lease agreement with the City back in March of 2004. They did not sign a lease agreement until almost two years later. He expressed his opinion that the 10 year restriction needs to be removed entirely. Councilmember Fairchild noted Dagrow was in default of payment approximately a year ago and had to go before the Council for resolution. She said she would be amenable to a 5 year term, but create a pause to completely strike the clause. Brian Olsen said the agreements been made and said the terms were not a part of the agreement.

Councilmember Fairchild noted that Dagrow Truss was still subject to the standard purchase agreement. Christi Thunder noted this was all negotiated in the lease, and that there was a dramatic difference from what they did on the previous item and on this item. Councilmember Bennett asked the agreed purchase price. Councilmember Fairchild said it was $9500 an acre. Councilmember Bennett noted Dagrow Truss was to make a deposit to the City by a certain date and that deposit was not paid. Christi Thunder advised they lost the option to purchase because of the default and now we have the future sale. Benjamin Barlow, Dagrow Truss, said payments were made prior to him working for them and he started in August of 2005. Allen Bell said he believed it was done in May or June of 2005. Christi Thunder said she recalled the payments being made in June 2005 and have been made ever since.

Brian Olson said his client anticipated a purchase agreement back in 2004 and never received one. He said in reviewing the minutes of 3/23/04 it seems the lease agreement and purchase agreement were both approved, but the purchase agreement never came forward. Christi Thunder said she sent a rough draft to Mr. Barlow back on 9/15/05. Councilmember Smith said he recalled the City bending over backwards on this project. He said he cannot understand how they can come before Council and ask to drop the terms of the agreement. Mayor Nicholes said Mr. Allred needed a place for his business and the City allowed him to go into the MTCC with the understanding he would have the option to purchase some land in the BLM acreage. Christi Thunder advised the Council that Mr. Olson has the desire to litigate this matter. She then asked the Council to table this matter to allow her to meet with Mr. Olson and put together a clearer timeline.

Councilmember Fairchild asked Mr. Olson if 30 days would give him enough time. Mr. Olson said he believed it would. Councilmember Fairchild moved to continue this item to May 23, 2006 at 4:00 p.m., seconded by Councilmember Wells. The motion passed unanimously.
 
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Tuesday, April 11th, 2006 - 4:00 PM
 
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