Chris Giesen, representing the Harmony Economic Development Authority (EDA), attended the August 10 Harmony City Council meeting to present several matters to the council. The first matter was a commercial building rehabilitation grant for a core area in the city’s downtown business district and the second had to deal with the sale of a lot in the north industrial park.
First, Giesen explained that the EDA had been working on developing a commercial rehab program for Main Street and adjacent blocks through its Experience Harmony II strategic planning and through more recent 2021 project goals discussions.
The EDA, he said, along with community volunteers designed the program concept to address commercial rehabilitation, specifically in the downtown area.
“The basis of the discussion was that we have not done a commercial rehab program in some time,” Giesen wrote in a memo to the council. “And, even when we did, the program did not include many extensive renovations – most were cosmetic fixes that had limited lifespan (like an awning or signage).”
Giesen went on to explain that there are also a handful of buildings that are nearing the end of their structural life if major work is not taken. Several others will near this state in the next 10 to 20 years if left unfixed.
He added that some of the major fixes like brick work can cost more than $50,000 and are often not done because of the high expense. Building owners may also choose to do cheaper fixes like siding or paint rather than preserve the original look of the building.
The goal of the program, outlined in the memo, stated, “To protect and enhance the character of Harmony’s historic downtown by strategically providing funding to renew and extend the life of core downtown buildings. Thereby supporting a core feature of the Harnony community which will retain and attract businesses and residents, improve tax base, and encourage new growth throughout the community.
The EDA budgets $40,000 annually for capital improvements. This budget would be dedicated for at least three years to ensure a noticeable impact on the downtown and test the effectiveness. This approach would have zero impact on future tax levy requests.
Applications would be considered all at once in a competitive format, Giesen explained. This would allow for the most flexibility to award the most funding to the best projects. Maybe only one $40,000 project would be approved, or possibly two at $20,000.
Giesen said, within a three- to five-year period the city could have five to 10 buildings extensively repaired in the downtown that otherwise might have continued into disrepair.
Giesen pointed out that most grant projects would likely be “once in a lifetime repairs or improvements” such as tuck pointing, windows and doors. Through this program, the EDA hopes to providing funding for projects that would not otherwise happen, eliminating barriers for participation in the program and creating high-impact results.
From the practical sense, Giesen said, from the EDA perspective, there will likely be additional dollars invested into these buildings as well, making even more of an impact on the aesthetic of the downtown area.
The council approved the program, supporting the EDAs recommendation and guidelines of the program.
In the second matter, regarding the sale of the lot in the north industrial park, Giesen presented the draft of the purchase agreement with Jeff O’Connor for lot two in block two of the first addition in the industrial park. O’Connor would buy the lot to construct a warehouse with office space for his construction business. He anticipates a 2022 build.
Giesen explained, the offer is contingent on the council’s approval of a development agreement authorizing tax increment financing (TIF) and a sale price of $65,000, which is the asking price set for this lot. Of this sale price, $19,000 would be due in cash at closing and TIF will reimburse the remaining $46,000 over about 10 years.
Before a TIF district is created, a public hearing must be held to accept public comment. During Tuesday’s meeting, the EDA requested the council authorize holding that hearing, which the council set for the next council meeting on September 14. Giesen noted Mike Bubany would attend to present the TIF plan.
Other business
Jane Overstreet, a community philanthropy coordinator with the the Southern Minnesota Initiative Fund (SMIF), attended the meeting to present an overview of the services SMIF has provided to Harmony and to the surrounding communities over the past few years. She highlighted the organization’s dedication to early childhood literacy, devotion to small business development and to its support of local community foundations. SMIF is in its 35th year and is supported by the McKnight Foundation and private and corporate donors.
The council approved a liquor license for Chelsea Clausen, owner of The Bite, for wine, beer and hard liquor, including Sunday sales.
The council accepted the resignation of Chris Johnson, with appreciation for staying on staff after his retirement to provide a license for operating the waste water treatment plant. The city also approved contracting with Rick Whitney of Environmental Water Services, LLC, to fulfill that licensure requirement.
The final pay request for the 2020 street and utility project was presented by city engineer Brett Grabau from Stantec and was approved by the council.
In the building and maintenance report, City Administrator Devin Swanberg explained the committee approved $1,000 for roof repairs at the visitor center to fix some leaking issues.
The council approved the purchase of a large television to be used in the council room for presentations and name plates for each council person and staff.
In the park board report, it was noted an ADA-compliant picnic table and two benches were donated to the city. Also, the park board discussed adding more electrical outlets to Selvig Park and redoing the cement slab to expand the veterans memorial space.
In regards to the splash pad, Swanberg noted that the city had received funds to help pay for the shelter at the location and the electricity and plumbing will be run through that structure. The plan is to have the pad installed by early summer of 2022.
Jesse Grabau reported the City of Harmony Arts Board will be hosting two upcoming events: a capstone artist event for Eunice Biel at Estelle’s on Saturday, August 14, from 1:30-3:30 p.m., and a community sing at Estelle’s on Tuesday, August 17, from 6-8 p.m.
It was noted the electric car charging stations will be installed in Harmony within the next month or two. The city will need to create a city ordinance in regards to use of these stations as well as determine how billing should occur. Swanberg noted there are app-based pay systems that might be the most efficient options for the city to pursue.
The next meeting will be held on Tuesday evening, September 14, at 7 p.m.
Leave a Reply