FERGUS FALLS — At its Oct. 21 meeting, the Fergus Falls City Council authorized a contract to purchase the Westridge Shopping Center.

The mall’s disrepair, deterioration and non-payment of bills threaten the existence of four businesses. Several contingencies are in place before a provisional closing on December 31. The reported purchase price is $419,000, which is the amount owed by the current seller on the mall’s mortgage.

Four businesses – Westridge Theater (CEC Theaters), Dunham’s, Dollar Tree and a holding company for Harbor Freight share a fire suppression system with the mall and are likely to be shut down if the mall’s power supply were to be cut.

“The city’s intent in the short term is to stabilize existing businesses,” Andrew Bremseth, city administrator, said in a news release.

Long term, the vision is for the Otter Tail County Community Development Authority to take ownership and redevelop the property through public/private partnership opportunities.

The municipal council has been discussing the project since August 5. The decision is timely because one of the possibilities is to receive a grant from the State of Minnesota’s Energy Transition Fund. Otter Tail County will take the lead on the grant application in partnership with the city. The grant has a rolling deadline and funds expire as other communities receive funding for their projects.

Another possibility is that the owner’s outstanding debt to six creditors is successfully negotiated to a zero balance, or other amounts satisfactory to the City Council.

The final possibility is that the Otter Tail County CDA approves the acquisition of the property for future demolition and redevelopment. After 90 minutes of discussion between city council members and the public, the resolution to proceed was approved.

Due diligence is expected to be completed by December 6, with a closing date of December 31.

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