A special meeting of the Council for the City of Crystal Falls was held in the Council Chamber of the City Hall on Thursday, February 23, 2006 at 9:00 a.m. Central Time.

Present: Mayor Hendrickson, Councilors Heikkinen, and Stachowicz.

Absent: Councilors Thrasher and Valesano

Also present were City Manager Nordeman, City Attorney Lawrence, City Clerk/Treasurer Olson, Frank Groeneveld, Marlene Bicigo, Jan Huising, George Treado, Peter Nocerini, and Lynn Perry.

The purpose of this special meeting was to take action on an offer from the Iron County Human Services Board regarding the Crystal Manor building.

Mayor Hendrickson led all present in the Pledge of Allegiance.

Mayor Hendrickson seconded by Councilor Stachowicz moved that the City of Crystal Falls not accept the proposed offer to terminate the obligations of Iron County under the terms of the Lease Agreement dated 28 June 2002 upon receipt of Sixty Thousand Dollars from the Department of Human Service Iron County Medical Care Facility Board. This motion is based on the following facts and assumptions in as much as no proposal has ever been formally given to the City of Crystal Falls by either Iron County or the Department of Human Services Medical Care Facility Board:

At the Iron County Board Meeting on 31 January 2006 the County tabled a recommendation from the DHS Board to offer the City $60,000.00 in exchange for a release from all contractual obligations under the Lease between Iron County and the City of Crystal Falls dated 28 June 2002. The Iron County Board recommended a meeting between the DHS Board, City and representative of the County Board to fully explain all parties’ positions and work to a resolution acceptable to all. The meeting was set for 6 February.

On 6 February 2006 representatives of the City, Iron County Board, Chester Pintarelli, and the Iron County Housing Commission and Iron County Foundation met at City Hall and reviewed the Foundation proposal. Steve Gagne reported he would be looking for a letter of intent for a cash contribution of $100,000.00 to accompany his grant application for Manor renovation.

City officials attended the Iron County Board meeting on 21 February 2006 at which time it was suggested that the City contact DHS directly and work out the details of a recommendation to the County Board as they were not prepared to act on the $60,000.00 recommendation previously submitted.

To move the process toward further negotiations this motion is made even though the City has not received any formal offer from either the Iron County Board of Commissioners or the DHA Board.

Motion carried.

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

Motion carried.

Meeting adjourned at 9:12 a.m.