The Mabel City Council held a special meeting on March 26 to determine financing for the proposed daycare center and a contractor to construct it.
Mayor Jim Westby said that Foresight Bank of Plainview is willing to finance the $450,000 loan to the City at 4% for three years via General Obligation (GEO) Bonds. After the daycare is completed in September, the City will request funding from the Red Light Program and pay off the loan from Foremost. The Red Light money is a federal loan at no interest or 1% interest through Mabel Cooperative Telephone Company. The council approved this financing with Gary Morken voting against it.
Prior to the vote, several questions were asked about the numbers provided by Darcy Thorson, owner of Nisse Treehouse Daycare Center in Spring Grove who will be operating and leasing the Mabel daycare from the city. Thorson was unable to be at the meeting. It was stressed that the projected revenue needs to be sufficient to ensure the city will be able to repay the loan.
The final order of business was selecting a contractor. Bids came in from three companies: Caledonia Lumber at $404,589, Tollefson Construction at $411,700 and Gingerich Construction at $489,950. After discussion, the council voted to have Tollefson Construction build the daycare center.
Typically, the lowest bid is selected, but council members Kirsten Wyffels, Liz Folstad and Terry Torkelson felt there was sufficient reason to pick Tollefson over Caledonia Lumber. Morken voted against selecting Tollefson. Mayor Westby also voted no and verbalized that he thought the city should go with the lowest bidder and not deviate from the norm.
The next regular Mabel Council meeting will be held on Wednesday, April 11 at 7 p.m. at city hall.