Discussions on “good relationships” versus “proper procedures” regarding a building constructed on city-owned property were highlighted during a committee meeting of the International Falls City Council this week.

Two weeks ago, a steel building appeared on city-owned property adjacent to a lot owned by Jon Gray of BorderBoxes at 312 Third Street. Kelly Meyers, city building inspector, said Gray didn’t seek a building permit before construction of the building.

“There is a possibility this was a misunderstanding,” said Rod Otterness, city administrator. “We do have a relationship with the property owner.”

During Monday’s meeting, Meyers said he had approached Gray in person Nov. 23 and explained to him the city’s procedure on filling out an application to secure a permit prior to construction of any building, including Gray’s storage shed.

“I haven’t heard back from (Gray) yet,” Meyers said Monday.

When reached at his business Wednesday, Gray confirmed that he was unaware he needed a building permit and that the structure was temporary.

“I have now filled out an application,” Gray added.

Misunderstanding or not, Councilor Cynthia Jaksa said she felt the city was being too lenient toward Gray for not following the city’s procedures and he should be held responsible for any necessary fines.

“We do have an issue that goes to fairness to other people in the city who do apply for building permits and follow proper channels,” Jaksa said.

Meyers said because of the city’s relationship with Gray, “I haven’t pushed (any penalties) like I normally would. I guess its something I should push.”

Lease expiration

However, on the other side of the issue, Otterness appeared to want to avoid any potential conflict with Gray because a lease between the city and Gray for the east side of BorderBoxes, which displays a mural painted by Bruce Trask, expired in July.

“I apologize to the committee for not being alert last July that our lease was up,” Otterness said. “Now that I am aware of it, I would like to have that conversation with the property owner about the extension of our lease for the mural, and that obviously sets up dialogue.”

In July 2007, Border State Bank, the former owner of the Third Street building, leased to the city the use of the south 50-feet of the east wall for five years. The agreement said the city was permitted to construct, repair and maintain a mural on the wall. The same agreement also said the city was to display the 50 feet of the lot next to the building, in which the city constructed Centennial Park. In 2009, Otterness said the property was donated to the city by Border State Bank.

Gray said the mural has “been mentioned in discussions” and said if he was contacted about renewing the lease with the city, he “thinks” he would do that.

Otterness told the committee he was seeking direction when having conversations with Gray about the two issues.

“I would not like the result of my communication to result in him painting over the mural,” Otterness said.

Jaksa, however, still disagreed.

“I think we should deal with these two issues separately...I don’t want to link them...we shouldn’t be trading for proper procedure here,” she said.

Councilor Gail Rognerud suggested Otterness and Meyers have discussions with Gray and if the storage building is under code, explore the possibility of leasing the portion of the lot the building sits on to Gray.

“It seems to me, we can work it out so everyone wins in this situation,” she said.