At the October 24 meeting of the Chatfield City Council, an agreement for the city to purchase the current People’s Energy Cooperative site along Twiford St., between First and Second Streets, was approved as recommended by the Public Works committee.
EDA Director Chris Giesen noted the property includes several buildings, office and furniture, fenced-in outdoor storage, and a backup electric generator. Public Works will use the property for storage. In the future the goal is to sell/redevelop the property for economic purposes, once Public Works gets sufficient space elsewhere.
Terms include a sales price of $699,900 contingent on financing and a good environmental report. The agreement includes an earnest payment in the amount of $10,000. Closing should occur on or before February 1, 2023.
A hearing will be held for public comment on November 28 regarding the city council’s intention to issue general obligation bonds for the purchase of this property and to adopt a capital improvement plan.
Chatfield Center for the Arts
The city council was asked to authorize a payment of up to $95,000 to the Chatfield EDA from current reserve funds. Giesen explained the money is to be used to meet cost overruns and additional items for the Center for the Arts project. Most all of the improvements to the facility have been paid for with the $8.7million of grant funding from the state of Minnesota.
Councilor Paul Novotny said some things were missed in the whole scope of the original project. Councilor Mike Urban suggested other funding options should be explored. A resolution was approved authorizing payment to the EDA and delegating oversight to the Personnel/Budget committee to pay bills. Urban voted no.
The second issue involving the Center for the Arts regarded certain improvements related to stormwater management and the parking lot that were incorrectly installed. The improvements had to be removed and reinstalled correctly. A mistake was made setting the survey stakes. After some negotiation, the contractor that installed the improvements, removed them, and then reinstalled them did so at a cost less than the actual cost. The contractor that incorrectly set the survey stakes agreed to a cash contribution. The construction manager also agreed to a cash contribution. In order to avoid litigation, increased costs, and delays the city is agreeing to kick in $23,000. These agreements will resolve the situation and avoid litigation.
A resolution was approved detailing the above negotiated items and giving authorization for the city to pay up to $25,000 in order to assist in resolving the dispute (as to which contractor is liable for which cost to correct the improvement). Councilors Mike Urban and Dave Frank voted no. City Attorney Fred Suhler commented that there was not enough money involved to litigate the dispute in a court of law. He concluded, “It is a fair compromise from my perspective.”
Other business in brief
• Fire department officers for the next year starting on November 1 are: Chief Luke Thieke, 1st Assistant Chief Peter Erickson, 2nd Assistant Chief Cole Mckean, Captain Jill Harstad, Captain Jason Baldner, Training Officer Chris Musty, and Safety Officer Steve Schmiedeberg.
Thieke summarized last year’s calls, 67 as of today. Many calls are not due to fire. He reported the department is in good shape financially and personnel wise.
• Brian Burkholder asked that residents move their vehicles off the streets, as they are starting to sweep the streets.
• The Committee of the Whole met prior to the council meeting. Mike Bubany updated the committee on a Capital Improvements Finance Program. Long term bonding issues were discussed.
• Approval was given to submit a grant application for the amount of $10,000 to the Chosen Valley Community Foundation for the construction of a pedestrian bridge in Groen Park.
• Approval was given for Chatfield Alliance to use City Park to display 10 evergreen trees from November 4 through February 4.
• The General Election is on November 8.
• The next meeting of the city council will be on November 14.
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