The final session to gather input on the future of the Donahue property revealed what seems to be a common sentiment.
Near the end of the meeting Wednesday, International Falls Attorney Steve Shermoen said comments made at the four meetings appear to reveal many people are angry the city is paying $90,000 in brokerage fees to Matt Donahue, a member of the Donahue family, based on a $1.8 million appraisal.
He said the anger does not seem to involve so much the city’s ownership of the land, however he said many have said it is the wrong time to put money into the property.
The Donahue family in 2009 provided the city 122 acres of land west of International Falls known as the Donahue property. A 15-point agreement calls for a walking trail and monument recognizing the family.
Several relatives of Matt Donahue attended Wednesday’s meeting and at one point held up small signs saying “Matt take it back — give $ back,” referring to an offer Donahue made earlier to take the property back and skip the final two $15,000 installments of the brokerage fees.
But Shermoen said the city cannot simply give the property back and if it sells, must go through a public bidding process. Donahue could sue the city if it violates the contract it has with him, he said.
Several people have questioned the accuracy of the appraisal and Edie Sandstrom read a letter she received from Frank Bigelow, Bigelow Appraisals, Hibbing, which said he may have appraised the property differently with additional documents.
Worst case scenario, said Shermoen, is the city gained property assessed by Koochiching County at $376,000 for $94,000 in brokerage fees and title fees.
Gail Rognerud, International Falls city councilor and president of the city’s Economic Development Commission, said she agreed with comments made asking the city not to spend money on the property.
She said there are greater spending needs in the city now, and the property, once the monument and trail are completed, should be kept for future generations to decide its use.
Several people echoed her idea, including Shawn Mason, EDA director, who agreed the city has higher spending priorities now, but the property could remain a city asset until greater opportunities for development arise.
But some in opposition to the deal said Matt Donahue made money and received a tax break on what has been called a “gift” to the city. And, they said Donahue attempted to sell the property for years.
“He’s a multimillionaire real estate tycoon and couldn’t sell the land,” one woman said. “They say don’t look a gift horse in the mouth. Well, it’s time to look in the horses mouth.”
Meanwhile, the meeting’s facilitator, Andy Hubley of the Arrowhead Regional Development Commission, said a number of potential uses have been identified in the sessions. He recommended next steps on several of the potential uses.
He said he would develop a summary of the process, enhance his recommendations and provide the materials to the EDA Advisory Board for review.
He noted people who would like to provide input can access forms at the city’s website which would be provided to him for inclusion in the report.
