Photo by Wanda Hanson
A common theme at the Lanesboro City Council meeting on July 5 was the support of local businesses. Joe Goetzke reported that the EDA has been working on a Short Term Business Interruption Loan; this loan would be available to business owners when natural disasters, pandemic or street construction interrupt their business operations. Intended to be a quick, simple loan to cover items such as utilities, rent or employee salaries. The loans would have a limit of $5,000 at 0% interest.
The council also looked at helping Sparrow Valley Properties with funding as it attempts to renovate the old Methodist Church property into nine apartments. The council is considering a $50,000 tax abatement for the property and applying for a $75,000 loan from MiEnergy. The city would procure the loan at 1% interest for seven years and offer it to the developer at 2% interest for the same time period. During the tax abatement period, the developer would not need to pay taxes on the property. The developer would be responsible for expenses incurred in getting the loan.
There was some confusion on the abatement time period. Public Finance Advisor Mike Bubany of David Drown Associates will check on the time frame. Bubany advised the council that this would still be a bond issue that would be sold to MiEnergy. He noted that a $125,000 tax abatement would show for the city. A public hearing would need to be conducted as well. Bubany will put a schedule together for the process. The council tabled the issue until their next meeting.
LEAN (Lanesboro Entrepreneurial Action Network) is the name of the new subcommittee of the EDA. New businesses will be able to access the REV road map which clearly lays out who to contact for help, resources, and banks for entrepreneurs. The EDA has secured funding in the amount of $225,000 which has enabled them to hire Cathy Enerson as its EDA director.
Alissa Oeltjenbruns of SMIF presented details of the benefits from SMIF’s work with the city of Lanesboro. SMIF works in a 20 county region and helped 1,800 businesses during the pandemic. Oeltjenbruns shared that SMIF has helped with early childhood support and the child care shortage. She reminded the council that consultant Jeff Andrews is available to mentor and help new childcare businesses.
The Lanesboro Library just received 1,000 books from SMIF. Lanesboro also received $10,000 in a COVID grant and $10,000 from an ability grant as well as paint for some buildings.
During the new business portion of their meeting, the council continued to support business as they addressed liquor licensing. At this time, the types of liquor licenses and number of licenses allowed in the city are unclear. This will be clarified by staff before work can be completed on the ordinance.
The tobacco licensing ordinance is out of date; it was suggested that the ordinance reference state statute rather than naming an age in the ordinance. Both liquor and tobacco licensing ordinances were tabled.
At this time, Lanesboro has no CBD/hemp/Cannabis sales ordinance. With the fluidity of the issue at the state level, Mayor Jason Resseman recommended just following state guidance at this time and table the subject for six months.
A local hemp grower spoke up from the audience, concerned that this tabling would affect his business. He has been selling from his farm outside of city limits, but has plans to open a storefront in Lanesboro soon. He was assured that if he was following state statutes, he would have no problems as long as he was selling from a storefront.
Still showing concern about local entrepreneurs, the council was careful to assure the public that the financing of the street and utility improvements would not result in increasing taxes in the city.
Mike Bubany presented his recommendation of the proposal from F & M Community Bank – a $570,000 bond issue at a fixed rate of 3.85%. All of the special assessments will go to this portion of debt. This requires that assessments get certified this fall. Sewer and water rates will be used to cover this with no tax increases. After ensuring no tax levy increase would be incurred, the proposal was approved.
Other business
In other business the council:
• Approved pay request #19 for the new wastewater treatment project which will soon be going online;
• Approved a change order to allow the street/utility project to be split over the next two years;
Heard from Preston Police Chief Blaise Sass that a 2022 Dodge Charger had been purchased, as well as new tasers;
• Discussed sidewalk replacements with Public Works Director David Haugen; the council will decide next month whether they will be extending sidewalks or not after researching expected costs and ADA requirements.
The next Lanesboro City Council meeting will be held Monday, August 1 at 6 p.m. in the Lanesboro Community Center meeting room. The public is welcome to attend.
Leave a Reply