City of Wanamingo
Regular EDA Meeting
Monday March 13, 2023
6:00 P.M.
Wanamingo City Council Chambers
401 Main Street
Wanamingo MN
PRESENT: Brian Gudknecht, Rebecca Haugen, Ryan Holmes, Jim Kittelson, Laurie Musselman, Annette Fritz, and Josh Schaefer
ABSENT: None
ALSO PRESENT: Michael Boulton, Karen Masters, Brad Kennedy, & Melissa Meyers – Zumbrota News Record
Brian Gudknecht called the meeting to order at 6:01 p.m.
Pledge of Allegiance followed.
EDA Member Annette Fritz was administered the Oath of Office by EDA Director Boulton.
ADOPT AGENDA: Kittelson motioned, seconded by Schaefer to adopt. Approved 7-0-0.
CONSENT AGENDA: Musselman motioned, seconded by Kittelson to approve. Approved 7-0-0.
PRESENTERS: None
NEW BUSINESS: None
OLD BUSINESS:
Administrator Boulton provided a letter from Jabe Companies LLC, who are representing Dollar General, regarding development. Jabe Companies LLC/Dollar General decided not to exercise the purchase agreement with Ag Partners regarding the former 60 Stop location at 677 3rd Avenue. Dollar General did not wish to address mitigation for environment contamination at the site, no matter the scale of the work. Jabe Companies LLC/Dollar General has a purchase price by Lew Growth for 14.8 acres of commercially zoned vacant farmland along MN TH 60. Jabe Companies LLC/Dollar General only want to own a 1.5-acre parcel. Jabe Companies LLC/Dollar General propose 1.5 acres to Dollar General/Byzantine, Inc, 3 acres to the Department of Transportation, and 10.3 acres to the Wanamingo EDA. MSP Properties will perform a full survey of the property prior to closing. It is proposed that the Wanamingo EDA pay $1.00 for the sale of the 10.3 acres. Holmes stated that he had concerns with street access to the property and want to make sure there is access off MN TH 60. Boulton stated that the developer would need to work with MNDOT regarding MN TH 60 access. Holmes stated that he and Boulton had met with an environmental engineer regarding the old 60 Stop location soil contamination. There are a few simple ways to mitigate the soil contamination. However, Dollar General does not wish to purchase and develop land that has any contamination issues that involve mitigation. Dollar General prefers land that has virgin soil that has never been dug up and disturbed. Kittelson asked what the City Zoning was for the Groth land along HWY 60. Boulton stated that the land was zoned C-2 Highway Commercial. Schaefer asked where in the Groth land did Dollar General think that they would utilize and develop the 1.5 acres. Boulton stated that Jabe Companies LLC and he envisioned the 1.5 acres being along HWY 60 and the West side of what would be Hill Avenue (extended). Schaefer stated that he was excited that Dollar General had found a suitable location and will be happy to have this type of commercial business (i.e., groceries and general items) in town again. Kittelson motioned to approve the concept development plan for Dollar General, as outlined in the Jabe Companies LLC March 7, 2023 letter, providing 10.3 acres to the Wanamingo EDA. Seconded by Schaefer. Approved 7-0-0.
Administrator Boulton provided an update on the Wanamingo Medical Center renovations. The Wanamingo EDA approved a lease with Reckitt/Mead Johnson & Company, LLC in September 2022. When the lease was signed the EDA had approved preliminary renovations to the two suites in the Medical Center which were completed and paid for by Reckitt/Mead Johnson. The EDA reviewed the building permit plans at the December 2022 meetings.
Reckitt/Mead Johnson is in the middle of renovating the Wanamingo Medical Center building. Reckitt has been in contact with City Staff and Heidi Smith about renovating a smaller space in the existing Suite 2 (currently leased by Reckitt/Mead Johnson) for roughly 400 square feet. The existing suite 2 is proposed to be shrunk to 732 square feet. Suite 3 (774 square feet) and Suite 4 (1,328 square feet) are proposed be put together to make one suite – 2,102 square feet. Heidi Smith would move into new lease of new suite 2 (400 square feet) and the new lease would be for $240/month rent. Reckitt/Mead Johnson would now have new suite 3 (732 square feet) and new suite 4 (2,102 square feet). Reckitt/Mead Johnson new lease would be for $1,325/month rent. The newly combined lease dollar amounts of Heidi Smith and Reckitt Mead Johnson will not change from the current leases to the proposed new leases. However, the percentage in share of monthly utility bills will change based upon square footage. All other terms of current leases should stay the same.
Reckitt/Mead Johnson has agreed to pay for the renovations to the proposed Heidi Smith space and the space Heidi currently leases. Reckitt/Mead Johnson has agreed to pay the estimated $450 from Kennedy & Graven to update the lease agreements. The updates to the Heidi Smith and Reckitt Mead Johnson lease agreements will be presented to the Wanamingo EDA for consideration of approval at the April Wanamingo EDA board meeting.
Schaefer stated that the plan to move Heidi Smith into the front office with windows is wonderful for her. Holmes stated that the plan was great that the Wanamingo EDA will keep the same amount of monthly rent once the change is made to Heidi Smith and Reckitt/Mead Johnson’s leases. Musselman asked when Olmsted Medical Clinic (OMC) planned to open back up the Wanamingo location. Kittelson stated that OMC didn’t have the staffing to re-open right now and are working on hiring staff. Kittelson stated that the EDA has a fiduciary responsibility too, in operating the facility. Keeping Reckitt/Mead Johnson in the facility and happy is important to keep the facility operating in the black. Boulton stated that a cracked window had been turned into insurance and a quote had been obtained to repair front window at the Medical Facility by Red Wing Glass.
There being no further business Kittelson made a motion seconded by Musselman to adjourn the EDA meeting at 6:18PM. Approved 7-0-0.
________________________ ______________________
Brian Gudknecht, President Michael Boulton, Director
