Kor Ethanol dispute comes to an end

NORTHFIELD — The Dundas City Council Monday night unanimously passed a resolution authorizing the purchase of the Kor Ethanol property from Rice County for $1, a move that will bring a months-long legal dispute between the city and the state to an end, officials say.

In February, the Minnesota Department of Revenue notified Dundas that it had officially reclaimed the Kor Ethanol property — a 2.7-acre site off Railway Street in Dundas. The site, a tax forfeiture, was deeded by the department to the city in 2005 for the construction of a government center.

But Dundas, short on funding, never built the community center, which violates the state statutes governing tax forfeitures, the state claimed.

Dundas was given 30 days to appeal the decision in district court — a move the City Council pledged to make last year if the state tried to take back the land. Days before the appeal was due, however, the city and the state struck a deal that would allow them to sidestep a court battle.

As part of the arrangement, the city agreed to let the state reclaim the property without a legal appeal. After the property is reclaimed, the state, through Rice County, permitted the city to repurchase the land for $1.

Now that the council has approved the purchase, that transaction should take place within days, City Administrator John McCarthy and Dundas City Attorney Paula Callies said.

The sale will allow the city to obtain the property with no strings attached, McCarthy said. Once the land is back in the city’s hands, the city plans to reopen the site for redevelopment.

McCarthy says he is satisfied with the outcome of the negotiations, and Callies predicted “clear sailing from here” with regards to the property.

“I’m glad to see it’s getting resolved and taken care of, and that it will now move forward,” Dundas City Councilmember John Zander said during the meeting.

WHAT’S NEXT?

The Dundas City Council approved the purchase of the Kor Ethanol property for $1 from Rice County, a transaction that should take place within days, city officials say. Once the site is back in city hands, City Administrator John McCarthy plans to reopen it for development.

source: northfieldnews