The former Carter Ringer building on the east end of Staples, vacant for over ten years and about to go tax forfeit, is apparently about to be purchased by the National Joint Powers Alliance.

This week the City of Staples took two separate actions to allow a potential sale to take place before the property goes tax forfeit in May.

The Staples Economic Development Authority voted late Tuesday afternoon to accept about 75 percent, or $21,786, of the amount the current owner owes the city on a 1995 loan.

The city, along with the North Central Economic Development Authority (NCEDA) and the Initiative Foundation, are each accepting less than the amount owed in order to aid the sale of the property. The other two entities are accepting 85 percent of their principal. All three loans have gone for the past several years without payment of principal or interest.

The NJPA organization, which has been looking for additional office space in the Staples community for the past several months, has made an offer of $139,000 for the building and about three acres of land.

The Staples City Council, about three hours after the EDA action, was asked to execute a satisfaction of mortgage, approving a settlement proposal and authorizing the city staff to sign the necessary documents.

City EDA director Jerel Nelsen has been working with Norbert Johnson, the building’s current owner, and the other lenders for the past several months to try to work out a way of keeping the property out of tax forfeiture.

Nelsen explained to the council that the proceeds of the sale will not cover the taxes due and the outstanding loan balances. Todd County will be receiving its full delinquent taxes of over $50,000. Johnson over the past several years had paid off his first mortgage bank loan, but quit paying on his secondary loans and his taxes.

NJPA is expected to demolish the majority of the 63,000 square foot building constructed in the early 1960s to house a garment factory, Carter Ringer. That operated until the early 1980s. A succession of owners (Pine County) operated clothing manufacturing until Johnson purchased the property and ran Midwest Garment Makers for about two years.

The NJPA purchase agreement is expected to close April 30. If taxes are not paid, the property is slated to go tax forfeit on May 10.

Both the city council and EDA actions were approved on unanimous votes. The EDA vote was 6-0, with EDA member Mark Schmitz, who is currently the acting director of the NJPA, abstaining from the vote.