A special meeting of the Council for the City of Crystal Falls was held in the Council Chamber of the City Hall on Tuesday, February 26, 2008 at 5:00 pm Central Time.

Present: Councilors Valesano, Smokevitch, Heikkinen, and Bicigo.

Absent: Mayor Hendrickson

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

Visitors in attendance: Attorney Ron Basso, Julie Melchiori, and Robert Grell.

The purpose of this special meeting was to discuss and consider action on:

Robert Grell’s proposal to purchase Industrial Park property.

Extension of Option to Purchase the Crystal Manor bldg to Hovey Companies.

Snow removal on Superior Avenue.

Purchase of property for parking area for Manor project.

Mayor Pro-tem Valesano led the Pledge of Allegiance.

Robert Grell and Julie Melchiori clarified some questions regarding Mr. Grell’s proposal for a trucking business at the industrial park. Following this discussion it was the consensus of the City Council to direct Attorney Lawrence and Manager Nordeman to prepare a purchase agreement for the sale of Industrial Park lots #1 – 4 to Robert Grell for consideration at the March City Council meeting.

Councilor Heikkinen seconded by Councilor Valesano moved to approve the amendment to Option Agreement with Hovey Companies, LLC for the Crystal Manor building as follows:

1. An Option Agreement, dated February 17, 2007, was entered into between the City of Crystal Falls (OPTIONER) and the Hovey Companies, LLC (OPTIONEE).

2. The Option Agreement was extended to March 1, 2008.

3. The parties desire to amend the Option Agreement to permit additional extensions as agreed upon by the parties. Any request for extension shall be in accordance with Paragraph 4 of the Option Agreement.

4. This amendment shall be effective February 26, 2008.

All other provisions of the Option Agreement shall remain in effect to the extent that they do not conflict with the provisions of this amendment.

City of Crystal Falls
401 Superior Avenue

Crystal Falls, MI 49920

Telephone Number: 906.875.6647

By: _______________________________Dated:________________

Charles Nordeman, City Manager

The Hovey Companies, LLC

124 E. Washington St., Suite C

DeWitt, MI 48820

Facsimile Number: 517.669.7527

Telephone Number: 517.669.6024

By: ________________________________Dated:________________

Timothy L Hunnicutt, Vice President

Motion carried.

Councilor Smokevitch seconded by Councilor Heikkinen moved to approve the extension of the option agreement on the Crystal Manor building to September 1, 2008 per the request of Hovey Companies.

Motion carried.

Councilor Heikkinen seconded by Councilor Smokevitch moved to meet in closed session pursuant to the Open Meetings Act, P.A. 1976, No. 267, 15.268 (d), to consider the purchase of real property.

Ayes: Councilors Heikkinen, Smokevitch, Valesano, and Bicigo.

Nays: None Absent: Mayor Hendrickson

Motion carried.

Meeting temporarily adjourned at 5:35 p.m.

Meeting reconvened at 5:55 p.m.

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

Motion carried.

Meeting adjourned at 5:55 p.m.