City of Wanamingo
Regular EDA Meeting
Monday December 9, 2024
6:00 P.M.
Wanamingo City Council Chambers
401 Main Street
Wanamingo MN
PRESENT: Annette Fritz, Brian Gudknecht, Rebecca Haugen, Ryan Holmes, Jim Kittelson, Laurie Musselman, and Josh Schaefer
ABSENT: None
ALSO PRESENT: Michael Boulton and Karen Masters
Brian Gudknecht called the meeting to order at 6:05 p.m.
Pledge of Allegiance followed.
ADOPT AGENDA: Schaefer motioned, seconded by Fritz to adopt. Approved 7-0-0.
CONSENT AGENDA: Haugen motioned, seconded by Kittelson to approve. Approved 7-0-0.
PRESENTERS: None
NEW BUSINESS: None
OLD BUSINESS:
Administrator Boulton provided a 2024 Economic Development for the City. 2024 saw continued high Federal interest rates, continued slowing down residential and commercial expansion. Supply chain delays are getting better, however shortage of labor, and high inflation continue to hurt the economy. Inflation, coupled with elevated Fed’s rates have seen a slowing of the residential housing market. 2024 saw a slowdown throughout Wanamingo. The City has seen some commercial building work, a few new homes, and infrastructure improvements. The commercial work, new homes, and valuation increases will increase the City of Wanamingo’s tax base.
There were no major commercial building expansions in 2024. However, there were several minor projects. Hillcrest Center ($93,000) and Riverview Services ($33,000) completed new garages. Caseys completed additional remodel work ($14,000). The Spot Sports Pub expanded their deck ($10,000). Mead Johnson is working on a re-roofing project ($10,000). NTS Tire/Bakers completed work on the exterior of the building, including signage.
In the residential side we have seen seven (3) new home building permits issued in 2024. The three homes have a collective building permit valuation of $479,000. The three (3) units is considered an average year of residential growth in Wanamingo. There have also been a number of new decks, mechanical work, new windows/doors, re-roofing’s, and other home improvement building permits in 2024.
The City continues to work on the 2022 Utility Improvements Project. The watermain looping project was finalized in 2024. The new well house will be completed at the end of 2024. The total cost of the project was $2.8 million (including new water tower). The City has been working to reduce ground water inflow and infiltration. The City completed smoke testing all the manholes to check for leaks and cross connections. The City is wrapping up the sump pump inspection program to ensure that there are no illegal connections to the sanitary sewer system. Along with the sump pump program that City is identifying all of the water service connection locations and material. This is to eventually replace all lead and galvanized piping. The mapping of water service valve locations helps to find easily shut-offs in case of emergencies. The City spent roughly $35,000 on repairing leaking water valves, asphalt patching, and concrete replacement work in 2024. The City obtained a $3,000 grant for a new basketball hoop that will be installed at Prairie Ridge Estates park in 2025.
The City is planning on rehabbing the street shop building in 2025. The rehab work includes roofing, siding, service doors, windows, overhead doors, gutters/downspouts, ventilation system, spot concrete work, and electrical work. It is estimated to cost $210,000. 2025 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 hired engineering to put together plans for construction. Mr. Whitcomb obtained bids from three contractors. Mr. Whitcomb is working with the City to try and make changes to bring down the per lot costs and bids for 2025. 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. There continues to be some interest in residential single-family dwellings. City Staff anticipates slowdown of construction in 2025 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 in order to be financially feasible.
Haugen asked what would happen if the Wanamingo site was closed for the Kenyon-Wanamingo School District. The Kenyon-Wanamingo School District is hosting public hearing on December 9th in Kenyon and January 6th in Wanamingo. The board is set to vote on January 6th after the public hearing. Boulton stated that he hoped the school district would continue to operate the site as a school or other use rather than fully closing. Boulton stated that the Kenyon-Wanamingo School District would continue to be responsible for the site in upkeep, insurance, and utilities even if the site closed. Boulton stated that the EDA and City does not have the tax base to take on or operate the building in a repurposed format. Boulton stated that funds are limited for any assistance to repurpose the building. Boulton stated that the EDA and City finances would be limited to assisting the school district with cost sharing to hire an outside firm, such CEDA (Community Economic Development Associates), to assist with finding and applying for outside funding sources. Boulton stated that the City has other limited tools such as tax abatement or tax increment financing. Boulton stated that there are risks to the taxpayers in utilizing either of these tools. Boulton stated that a sound financial plan with a strong development agreement would be necessary. The EDA board agreed that the tax base would not support the EDA or City owning/operating the facility in a repurposed format. It was suggested that the school district obtain a quote to demolish the building. There are concerns that the facility would sit for a decade, similar to the former Kenyon school. Then it would need to be demolished, being paid for by the City and County. All options should be on the table for consideration.
Administrator Boulton went over the 2025 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 $45,000 in 2024 to $47,000 in 2025. This will help offset small additional costs to keep the fund in a positive balance. 2023 expenses were $38,600 while 2024 to date expenses are roughly $38,000, to date.
Debt Service 306 Levy is set to stay the same from 2024 to 2025 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 $78,048 balance at the end of 2023. 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 drop to $0 for 2025. 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 next seven years. The yearly bond payments will be roughly $45,000 (payment is $40,425 in 2025) running through 2031. The fund had a $275,828 balance at the end of 2023.
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 $34,441 at the end of 2023. 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). Schaefer stated that he was happy that the facility is full and has positive cashflow before capital needs. This is the best-case scenario for the facility.
There being no further business Schaefer made a motion seconded by Fritz to adjourn the EDA meeting at 6:26 p.m. Approved 7-0-0.
________________________ ______________________
Brian Gudknecht, President Michael Boulton, Director
