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 June 13, 2006 at 4:00 p.m. at City Hall. In attendance were Mayor Bill Nicholes, City Councilmembers Robert "Bubba" Smith, David Bennett, Bill Wells, Donna Fairchild, and Susan Holecheck. Also in attendance were City Manager Tim Hacker, City Attorney Christi Thunder, City Engineer/Economic Development Director Allen Bell, Zoning Redevelopment Manager Catherine Lorbeer, Public Works Director Bill Tanner, other City staff and approximately 50 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.)

[6:03 PM]

Christi Thunder noted this item was first heard April 11th of this year. She advised she put together a timeline of Council’s action relative to this issue and that she and Dagrow’s attorney still disagree on issues at this time. Attorney Brian Olson on behalf of Dagrow Truss said they continue to disagree on this issue. He said when his client negotiated this issue it was with the understanding the standard agreement applied. He said he recently found that the standard agreement didn’t exist at that time. Christi Thunder said she received information from Finance stating the most recent payment from Dagrow is late. She noted when she was hired in July 2005 the standard agreement was in place. Mayor Nicholes asked why Guy Allred was not in attendance at the meeting as he had requested. Mr. Olson advised Mr. Allred was not available.

Councilmember Holecheck and Fairchild both stated it was projected Dagrow would employ 20-30 local people and asked how many local people they employ. Mr. Barnum said they employ about 20 people. Councilmember Smith noted the object of approving businesses to locate in the Mesquite Technology and Commerce Center was to build vertically and they have never negotiated with anyone to flip or not go vertical. Mr. Olson expressed his opinion that it’s hard to go vertical on property the City hasn't conveyed to them. Christi Thunder said she has a letter from Mr. Olson stating his client has no intention of agreeing to a 10 year sales restriction. Brian Olson said his clients have sought financial assistance from private investors and this has caused problems with obtaining the same.

Councilmember Holecheck said she does not wish to modify the agreement. Mr. Olson said his clients are interested in moving forward with litigation. Mr. Olson said the complaint has been drafted and not filed. Tim Hacker said he thinks the City has performed. He said the City was willing to sell Dagrow the land for next to nothing and Dagrow’s attitude is doing this community a great disservice. He said the land is currently selling for over $400,000 an acre and was being sold to Dagrow for around $9,500 an acre. Mayor Nicholes asked who the owner of record is for Dagrow Truss. Mr. Olson said Dagrow Truss is a Nevada Corporation in which all shares are owned by Guy Allred.

Councilmember Fairchild moved to deny the changes to City's standard land sale and purchase agreement, seconded by Councilmember Holecheck. The motion passed unanimously.
 
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Tuesday, June 13th, 2006 - 4:00 PM
 
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