PENNOCK -- Folks in Pennock are closer to having a cup of coffee in town.
The City Council from the small Kandiyohi County town that largely serves as a bedroom community to Willmar has successfully negotiated a purchase agreement to buy the town's former convenience store and gas station.
Phil's Corner closed in October 2004, leaving the town without a place to buy gas, a gallon of milk or a place for neighbors to share a cup of coffee and a doughnut.
Once the paperwork is signed -- possibly by the end of the month -- the store will get a fresh look and be leased to someone who will run the business as his own.
"We're real excited that things are moving along," said Mayor Kevin Crowley.
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Negotiating a lease with Dooley's Inc., the owner of what had been Phil's Corner convenience store, was perhaps the easiest part of the transaction.
With no private person coming forward to buy the store, the city decided to buy it. But it was discovered the city needed special legislation to allow them to make the purchase.
State law allows cities to own and operate golf courses and liquor stores but not convenience stores.
Local legislators sponsored legislation to allow the town to buy the business. The legislation, which was approved by the House and Senate, survived a veto threat by Gov. Tim Pawlenty.
Crowley wouldn't say how much the city will pay for the store until after they have closed the deal.
There has been interest by at least two parties who want to lease the building to operate the store. He said the council will review proposals presented by the potential renters.
Once the renter has been identified, the city will coordinate a remodeling plan with them. The city will pay to upgrade the building, said Crowley, but didn't want to rush in and paint the walls blue if the eventual operator wants white walls.
The city hopes to at least break even on the deal. It's hoped that eventually the business will have a private owner.
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Even though the city will own the building, it will not be tax-exempt because it is a business that will generate revenue.
Crowley said some residents have expressed concern with the city getting involved with the venture and if it will affect their taxes, but he said everyone is looking forward to having the business up and running again.
He said during the firemen's supper last week during Pennock Fun Days, he announced that an agreement had been reached to buy the store.
The announcement "got a nice round of applause from the audience," Crowley said.
