Council Votes 3-2 For Agreement With Menard’s

Jamestown (CSi) Meeting in Special Session Tuesday the Jamestown City Council, with all members present, voted 3-2 in favor of the city entering into a Purchase and Sale agreement with Menard’s, home improvement store, with Council Members Buchanan and Kourajian voting in opposition.

Prior to the motion of entering into the agreement, a motion by Council Member Buchanan to table the agreement for three months, failed on a 3-2 vote.

A proposed contract between Menards and the city of Jamestown had been given to members of the City Council for review.

The contract outlines the responsibility of the City of Jamestown and Menard’s in the project, to bring the home improvement store to a development, which is west of R.M. Stoudt and fronting Interstate 94 the Prairie Haven Commerce Park, the land purchased from Liechty and Associates.

Developers Drew Snyder of Woodsonia and Matt Dennis of R.H. Johnson Company originally developed the plan and have facilitated negotiations between the city and Menards. He said home improvement giants, Lowes, and Home Depot also showed interest in locating to Jamestown.  He said without incentives from the City of Jamestown, the Menard’s project for Jamestown is not do-able.

Snyder of Woodsonia told the gathering of the site plan which shrinks the size of the development to 33 acres and moves it closer to R.M. Stoudt. It also cuts the cost of the project from about $8 million to about $5.7 million.

The plan calls for the city deeding a 20 acre parcel to Menard’s. Menard’s will construct a 10^th Street Southwest that will connect with 23^rd near Stoudt’s.

Three additional lots or 8-acres will be retained by the developer, to be developed into possible retail and restaurant businesses.

About 5 acres will be used for roads.

The preliminary plan calls for the project to be completed by July of 2016.

From the date the agreement is signed, there will be a 180 day period, in which additional paperwork will be handled, including a request for Tax Increment Financing, and a half percent of one percent of the sales tax generated by Menard’s will go toward their project infrastructure improvement costs, $2.4 million dollars estimated to be paid in 25 years.

City Attorney Ken Dalsted said language to the agreement was amended, for the protection of the city, and included commitments of both the city and Menard’s.

Bond Counsel, John Shockley of Onstad Twitchel outlined the firms assistance, include Tax Increment financing procedures, the sales tax rebate issue.

He said the TIF Bonds would be sold prior to the closing so funds would be available to the city, up front.

Before the vote, public comments were taken, with the council room and lobby filled with concerned citizens.

Attorney Dick Anderson represented concerned citizens opposed to the project, specifically the city’s subsidy.

A number of speakers that are in opposition represent businesses that sell many of the products and materials sold by Menard’s.

The first speaker was Collin Wegenast of Life Style Appliance of Jamestown saying that a competitor of a local business subsized by the city “is a bad thing.”

Jerry Carlson of Jerry’s Furniture was also opposed, and noted that Menard’s is paying $10 for the purchase, and $5,000 earnest money.

Mayor Andersen pointed out the R.H Johnson fee agreement will by changed and acted on by the City Council, based on reduced acreage in the project.

Businessman, and former Council Member Dwaine Heinrich said he is opposed to the city giving incentives to this or other projects. He said the contract should allow competing businesses to locate on property next to Menard’s.  Heirich pointed out that in Yankton, SD lots adjacent to Menard’s remain unsold, with the city losing a lumber yard, and is about to loose an appliance store.  Snyder pointed out that there is no Buyer’s remorse in Yankton, and the lumber yard was about to go out of business.

Jim Vandrovec said Menard’s should come in with the project with their own money, and no city incentives, specifically concerning retail, versus manufacturing.

Former City Council Member, Jim Matthiesen and the Jamestown Sears store owner said the city is “basically financing Menard’s locating in Jamestown.”

Dean Hafner, owner of Infitity Building Services spoke opposed, and noted that Menard’s hires a number of part time employees with and pays low wages.  He added the public has not been fully informed of the plans and agreement between the city and Menard’s.  The business’  accountant, Brittany Heim also spoke against the city offering incentives, and gives Menard’s an unfair competitive advantage.

Tom Tracey of Jamestown added, local competitors of Menard’s will not make as much money, so the city should offer an incentive to locally owned stores that compete with Menard’s.

Former Mayor Clarice Liechty, addressed what she called the “secrecy of this deal.,” and questioned other deals the city may have made with this purchase and sale agreement.  Mayor Andersen said the proper confidential protocol of the city business was proper under the North Dakota Century Code concerning meeting in close Executive Session. Ms. Liechty  asked that the city delay voting on the agreement until more details information is forthcoming from the city. She asks the City Council vote “no,” or table the agreement, also saying the city should not give Menard’s incentives.

David Kline spoke in favor of Menard’s coming to Jamestown concerning products and services, and it’s economic impact.

Mayor Andersen read an anonymous letter from a Jamestown contractor supporting Menard’s in Jamestown.

LeRoy Wegenast asked if Menard’s is necessary for Jamestown, as most of the products sold there is already sold in Jamestown, just not under one roof.

Doug Babb said In over 30 years living in Jamestown, he and others he knows shops outside of Jamestown, and in order to attract a large business in Jamestown, an incentive is needed. He will still rely on a local business to supply and install appliances.

Others during the meeting spoke in favor of Menard’s.

Tuesday’s meeting was shown live on CSi 67 followed by replays.

Previously

Jamestown (CSi) The Jamestown City Council will hear comments on a proposed contract between the city of Jamestown and Menards during a special meeting at 5 p.m.  Tuesday Jan 28, 2014, at City Hall.

A proposed contract between Menards and the city of Jamestown has been given to members of the City Council.

The contract outlines the responsibility of the City of Jamestown and Menards in the project, to bring the home improvement store to a development, which is west of R.M. Stoudt and fronting Interstate 94 the Prairie Haven Commerce Park.

Developers Drew Snyder of Woodsonia and Matt Dennis of R.H. Johnson Company originally developed the plan and have facilitated negotiations between the city and Menards.

The new plan shrinks the size of the development to 33 acres and moves it closer to R.M. Stoudt. It also cuts the cost of the project from about $8 million to about $5.7 million.

Also it eliminates most of the commercial lots that had been planned around the store. The contract states thay Menards would receive 20.25 acres with about 5 acres used for roads and 7.5 acres in commercial lots around the Menards location.

Jamestown Mayor Katie Andersen said the changes make the project more feasible.