A special meeting of the Council for the City of Crystal Falls was held in the Council Chamber of the City Hall on Wednesday, April 23, 2008 at 4:00 pm Central Time.

Present: Mayor Hendrickson, Councilors Heikkinen, and Bicigo.

Absent: Councilors Valesano and Smokevitch.

Also present were City Manager Nordeman and City Clerk/Treasurer Olson.

Visitors in attendance: Attorney Ron Basso, Tim Hunnicutt, Marlene Bicigo, and Julie Melchiori.

The purpose of this special meeting was to discuss and consider issues regarding the Crystal Manor re-development.

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

Manager Nordeman began the discussion regarding the re-development of the Crystal Manor by reviewing a summary of expenses related to the building paid by the City over the past two (2) years. He asked developer, Tim Hunnicutt, how much of the nearly $61,500 of expenditures he thought could be applied to the City’s $175,000 commitment to the project. Hunnicutt felt that the architect fee expenditures of $18,200 were certainly applicable, however, the balance were simply expenses that the City would normally pay to market and keep the building in good repair until it is transferred to the new owner.

Julie Melchiori reminded the City Council that they have in fact committed to $183,000 toward the project. In addition, the City will be responsible for the parking area that carries a price tag somewhere around $200,000. She also reminded the Council that they have also committed to 50% of the asbestos remediation. On the positive side, the City can submit to MSHDA for loan relief on the parking area based on the jobs created in the commercial portion of the project. She also suggested the City appeal to the County for additional support to see the project through.

Manager Nordeman asked Hunnicutt how he felt about the City selling some of the equipment in the building to offset some the costs, i.e. the generator, kitchen equipment, and scrapping out the old boiler in the building. Hunnicutt agreed this could be done, however, not until after the closing with MSHDA.

Mayor Hendrickson suggested reusing the deck at Lincoln Park, Hunnicutt agreed that it was a good idea.

Councilor Heikkinen seconded by Councilor Bicigo moved to adjourn this special meeting of the City Council.

Motion carried.

Meeting adjourned at 5:20 p.m.