The development of the I-39 Raceway in Minonk appears to have ended at the starting gates. Mayor Bill Koos said the city council does not want to give the raceway developers an extension of one year to come up with the funds needed to finance the proposed $20 million dollar project.
The City of Minonk and the I-39 Raceway Park Dvelopers have been in discussions regarding the development of a raceway facility in Minonk for the last two years. This past September, the parties signed a comprehensive Development Agreement. The Agreement established committments by both parties for the purchase of property as well as the construction and operation of the raceway. This included the City, at its expense, securing an option to purchase the necessary ground for the development.
The Agreement provided a deadline of March 1, 2007 to secure necessary financing for the project. Because the developers financing efforts for the project are not complete, the developers made a request for a one year extension. Koos said , "While many people, including city officials, continue to believe that the raceway project could be beneficial to the City, the extension request did not receive necessary support from members of the City Council. This was based primarily on the fact that the option period is of limited duration and members of the City Council are committed to taking actions which will secure one or more worthy commercial developments for the benefit of the community. As such, the City will begin marketing the property to secure alternative developments."
Koos added that despite the decision, the City's relationship with the raceway developers continues to be positive and he wishes them success as their financing for the project continue.
The Mayor thanked the community, city council members and the entire city staff for their patience, input, and support over the last two years concerning this project. He said, "Be assured that each economic development opportunity that may arise in the future will be given the City's full attention." He said that this levels the playing field. Every potential developer has an equal opportunity to pursue a development agreement with the city. Koos added that if the raceway developers can come up with the money in the future, the City will entertain their offer the same as any other potential developer.
City approves extending purchase option
The next step for the council was to approve the extension of the purchase option to buy the land from USA Waste at $3250 an acre. The original option expires March 31, 2007. The first motion approved was to agree to extend the option for another year to purchase Section Six from Waste Management for an additional fee of $10,000. The original option that expired was for $25,000. The second motion approved was to authorize the additional expenditure of $10,000 to extend the option.
Public Comments
Minonk resident Dave Uphoff asked Mayor Koos if the City planned to buy the plan or serve as a "pass through" for someone else to purchase the land. Koos said that the City does not plan to own the land but instead wants to serve as "pass through" for a developer to purchase the land for development. He said that it would be economically irresponsible for the City to buy the land without a developer in hand. Koos added that the City and the Council has learned a lot from this past experience and we will be better prepared for dealing with future developers.
In response to a question from Gene Oncken, the Mayor said that the City will not give exclusivety to any developer for any length of time. Oncken told the Mayor that it was a stroke of genius to prepare a development agreement that prevented the land from being tied up by a developer that would just sit on the land.
Mayor Koos said that the future of Minonk lies in the development of Section Six. He said, "I don't see tonight's development as a setback but rather an opportunity to go forward. We have one of the most marketable pieces of property around plus we have a TIF in place." Koos added that he learned how valuable an asset Minonk has in Section Six at a mini-summit last fall with area utility representatives. He said we have an incredible potential out there. The Mayor concluded by saying. "It's going to be an exciting time!"
Spring Cleanup Announced
City Administrator Trent Smith announced that the City's annual cleanup days will be held on May 1 and 2 which is a few days after trhe Spring City-wide Garage Sale which will be held on Saturday, April 28.