Herald Journal - Enterprise Dispatch - Delano Herald Journal
Howard Lake takes next steps for grocery store
April 5, 2010

By Starrla Cray
Staff Writer

HOWARD LAKE, MN – The Howard Lake grocery store is getting so close to reality, one can almost taste it.

At the Howard Lake City Council meeting Tuesday, the council approved a purchase and lease agreement for the grocery store project.

The purchase agreement is contingent upon Ohlerdan, Inc. signing the lease, and the results of an appraisal, set for Tuesday, April 6.

The city is buying the former Gerry’s SuperValu building from Mark Custer on a contract-for-deed basis, with a down payment of $45,000.

The total selling price of the building is $423,814.

Under the agreement, the city is scheduled to pay $9,000 May 15, 2011, and $18,000 May 15 each year after, until March 31, 2015, when any remaining unpaid balance is due. The payments include a 5 percent per annum interest rate on the unpaid balance.

About $91,000 will be deposited into an attorney trust account to pay for various repairs and improvements to the property, such as roof repairs, asbestos removal, a new HVAC unit, concrete work, and electrical system improvements and repairs.

Great HVAC jobs start here.
HVAC jobs are in high demand, and the field is projected to grow 34 percent from 2010 to 2020.

“Any leftover money will go to the City of Howard Lake Voyager Fund,” City Administrator Kelly Hinnenkamp said.

The city plans to lease the building back to the owners of Ohlerdan, Inc. – Dan Cummings of Champlin and Ohler Goncharenko, who lives near Rush City.

The lease agreement states that starting Jan. 1, Ohlerdan Inc. will pay rent of $1,500 per month.

“Their plan is to buy the building from us in five years,” Hinnenkamp said.

At the end of the five-year lease, Ohlerdan, Inc. also has the option to renew the commercial lease for another five years, and the rent will be re-negotiated at that time.


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