City of Wanamingo
Regular EDA Meeting
Monday December 11, 2023
6:00 P.M.
Wanamingo City Council Chambers
401 Main Street
Wanamingo MN
PRESENT: Becky Haugen, Ryan Holmes, Jim Kittelson, Laurie Musselman, Annette Fritz, and Brian Gudknecht
ABSENT: Josh Schaefer
ALSO PRESENT: Michael Boulton, Karen Masters, & Andrew Deziel – Kenyon Leader.
Brian Gudknecht called the meeting to order at 6:00 p.m.
Pledge of Allegiance followed.
ADOPT AGENDA: Fritz motioned, seconded by Kittelson to adopt. Approved 6-0-0.
CONSENT AGENDA: Kittelson motioned, seconded by Musselman to approve. Approved 6-0-0.
PRESENTERS: None
NEW BUSINESS: None
OLD BUSINESS:
Administrator Boulton provided a 2023 Economic Development for the City. 2023 saw interest rates jump significantly, slowing down residential and commercial expansion. Continued supply chain delays, shortage of labor, and high inflation continue to hurt the economy. Inflation, coupled with increase in the Fed’s rates have seen a slowing of the residential housing market. 2023 did see continued improvement throughout Wanamingo. The City has seen commercial building additions, a number of new homes, and infrastructure improvements. Reckitt Tax Increment Financing (TIF) district was decertified and will be included in the 2024 tax base. These additions and valuation increases have increased the City of Wanamingo tax base.
There were no major commercial building expansions in 2023. However, there were several minor projects. Midco installed a prefab building ($20,000) for their fiber cable network. Caseys completed interior work ($94,000). Beulkes installed a new greenhouse ($25,000). Zumbro Valley Landscaping installed a new salt/sand shed ($10,000).
In the residential side we have seen seven (7) new home building permits issued in 2023. The seven homes have a collective building permit valuation of $971,000. The seven (7) units is considered a very good year of residential growth in Wanamingo. There have also several new decks, mechanical work, new windows/doors, re-roofing’s, and other home improvement building permits in 2023. In total there have been 52 building permits with a total permit valuation of $1,758,000.
The City continues to work on the 2022 Utility Improvements Project. The new 250,000-gallon water tower project has been completed and is in warranty period. The watermain loops project still has punch list items to complete that may push into 2024. The new well house will hopefully be completed in 2024. The total cost of the project was $2.8 million. The City finalized replacement of roughly 575 water meters and/or endpoints. The project was completed between 2021-2023. The total estimated cost was $160,000. The City completed manhole work for roughly $53,000 in 2023. The City spent $69,075.95 on repairing leaking water valves, asphalt patching, and concrete replacement work in 2023. The City constructed a new park shelter at Prairie Ridge estates in 2022/2023. The total cost of the project was $41,718.13. The City constructed a new salt/sand shed in 2023. The total cost was $30,231.32.
2024 has some planned private and public work on the horizon. The City staff have been working with Jon Whitcomb of Metro East Commercial Re Inc. He purchased the 24 tax forfeited Emerald Valley II parcels from Goodhue County. Mr. Whitcomb is working with the other landowners to put together a development plan for the area. Mr. Whitcomb is working with Bolton & Menk engineering to put together plans for construction. Jason Grant Trucking is still looking at a cold storage warehouse in the industrial park. Jason Grant is held up by current high construction and interest rates. Reckitt/Mead Johnson has plans for building expansion along with traffic, parking lot, building expansion, and other outside esthetic improvements. Dollar General is purchasing the 14.8 acres along MN HWY 60 Stop lot with anticipation of constructing a Dollar General store in 2024. Casey’s plans to make additional improvements to the gas station/convenience location. There continues to be some interest in residential single-family dwellings. City Staff anticipates slowdown of construction in 2024 leading to fewer new homes. The City has been working with Zumbrota, Pine Island, Goodhue regarding a regional wastewater treatment facility. The City received $10 million from the State for predesign and land acquisition for the facility. The Cities have hired Winthrop & Weinstine lobbyist firm to help obtain State dollars for the next phase of construction. Having capacity and reliability in the water and wastewater treatment are keys to allowing for future growth and current sustainability of the community. The North Zumbro Sanitary Sewer District hinges on State funding through the bonding bill and Point Source Implementation grant to be financially feasible.
Administrator Boulton went over the 2024 proposed EDA portion of the Wanamingo budget. Administrator Boulton went over Funds 251 EDA, 306 Cenex 3rd Addition, 331 Cenex 4th Addition, and 604 Medical Center.
EDA Fund 251 Levy is set to increase from $41,000 in 2023 to $45,000 in 2024. This will help offset small additional costs to keep the fund in a positive balance. 2022 expenses were $35,976 while 2023 to date expenses are $38,600.
Debt Service 306 Levy is set to stay the same from 2023 to 2024 at $45,000. The two bond payments of debt service fund 306 split with the 2017-2018 audit and now includes debt service funds 306 (Cenex 3rd Addition) and 331 (Cenex 4th Addition). Debt Service fund 306 has a $86,487 balance at the end of 2022. The bond payments are $62,000/year through 2025. The Cenex III phase bond payments will be $67,600 in 2024.
Debt Service 331 – Levy is set to remain at $10,000 for 2024. The Cenex 4th Addition phase was separated from account 306 in 2018. The proceeds from the sale of property in 2018 to Concast will support the bond payments for the near future (7.5 years of the 13 remaining yearly payments). The yearly bond payments will be roughly $45,000 (payment is $41,900 in 2024) running through 2031. The fund had a $307,986 balance at the end of 2022. The proceeds from the sale of property in 2018 to Concast will support the bond payments for the near future (8 years of the 9 remaining yearly payments). Before 2026 the City will need to look at additional levy dollars to offset bond payments running through 2031. In 2024 the City will levy $10,000 with yearly levies reducing to $0 in 2025.
Medical Center Account 604 – There have been concerns with fund falling behind due to past vacant suites and utility reimbursements. The Medical Center suites are all full as of October 2022. The facility is projected to cash flow and have a $5,000-$8,000 cash surplus at the end of each year (depending on building capital needs). The Medical Center Fund owes the General Fund $44,121 at the end of 2022. The Council should consider a future levy of $10,000/year for 2-3 years or a transfer from other fund(s) of $25,000 to make the fund solvent (This would include $5,000-$8,000 yearly cash generated from current rent).
Administrator Boulton provided an updated regarding possible Dollar General development of the 14.8-acre parcel along MN TH 60. A couple of different versions of site plans have been drafted and refined. The public improvements include constructing Hill Avenue extension with a shared stormwater detention pond for the entire development along with bypass and turn lanes along MN TH 60. City Consulting Engineer Theobald has been working with Minnesota Department of Transportation (MNDOT) regarding access to MN TH 60. It would be problematic to request a private access with future access requests in near proximity within the City. A shared access for a City street would be both an easier ask to MNDOT and a betterment for the land to be given to the EDA/City. The City preferred an access for a public street (Hill Avenue) and not a private access. Theobald was not sure if MNDOT would require turning lanes.
Theobald, Administrator Boulton, Public Works Director Kennedy, Mayor Holmes, and City Attorney Julie Eddington – Kennedy & Grave have had meetings with Dollar General Developer (First Links LLC) and consulting engineers (Kimley-Horn). Theobald put together estimated costs to construct Hill Avenue from MN TH 60 to Beverly Street with a regional stormwater pond along with bypass and turn lanes at MN TH 60. The costs were higher than expected. Constructing Hill Avenue and a regional storm water pond were roughly $600,000 while the bypass and turn lane was roughly $400,000. MnDOT may ultimately not require a bypass lane which could save $200,000. There could be additional savings with respect to configuration of the regional stormwater pond/piping, reduced mobilization costs, and better than expected bidding. The $1,000,000 total cost would include all potential costs. The City has agreed to a cost share for the infrastructure costs. Theobald stated that the City/EDA would obtain the residual 5.19-acre lot on the East side of Hill Avenue and 4.04-acre residual lot on the West side of Hill Avenue. The City would have additional access for traffic to access MN TH 60. Boulton stated that Dollar General would benefit by utilizing the best portion of land for development and leaving the City with a flag shaped parcel on the West side of Hill Avenue. Boulton stated that a sidewalk was figured into the costs from Beverly Street to MN TH 60 on the West side of Hill Avenue. Boulton stated that the Beverly Street intersection to the property line on Hill Avenue would need to be reconstructed. A meeting has been scheduled with Goodhue County Soil and Water to discuss wetland delineation. Dollar General would like to be open late next fall. This is a short schedule and there is a lot of planning, design, and engineering work that needs to occur to meet this schedule. Gudknecht asked where the placement of the stormwater pond would be. Boulton said on the east side of the property depending on the wetland delineation process. Fritz asked what land the City/EDA would own. Boulton stated that the City/EDA would own land on both sides (5.19-acre lot on the East side of Hill Avenue and 4.04-acre) West of Hill Avenue. Boulton stated that the mechanism for sale would be in the development agreement and that the City/EDA would pay $1. Fritz asked about access. Boulton stated that access would be off MN TH 60 and Hill Avenue. Boulton stated that the City wishes to finish the infrastructure (Hill Avenue) now and not wait if Dollar General wishes to go forward. The costs will not be cheaper in the future. Fritz asked if adjacent property owners had been informed. Boulton stated that there had been discussion with a few property owners, but the information is limited. Kittelson asked when Dollar General would build. Boulton stated that they planned to exercise their purchase agreement in May/June and start building in July/August. Boulton stated that they thought they could finish construction in 90 days. Boulton stated that the infrastructure bidding would be in March with construction starting in May. Boulton stated that a preliminary development agreement would be drafted by Kennedy & Graven to ensure that Dollar General pays ½ the cost of the infrastructure. Fritz asked about Dollar General and other lighting to make sure that it doesn’t shine into adjacent residential homes. Boulton stated that he would share the concern with Dollar General. Boulton stated that the City has to work with private utilities such as Xcel Energy, Minnesota Energy, and Midco for the development.
Holmes thanked everyone for being a part of the EDA. Holmes stated that the EDA is important to the growth of the town and needs members to be active.
There being no further business Fritz made a motion seconded by Kittelson to adjourn the EDA meeting at 6:41 p.m. Approved 6-0-0.
________________________ ______________________
Brian Gudknecht, President Michael Boulton, Director
