At the October 3 meeting of the Preston City Council, the sale of the two remaining lots in the North Industrial Park was approved. Councilman Dave Harrison was absent.
The Economic Development Authority recommended the sale of lots 2 and 3 at the discounted price of $36,000 for both lots. The land is valued at $70,000. This discounted price had been offered recently to different potential buyer. At that time the reasoning for the discount was that tax increment financing will not be available for the development of these lots. Wayne and Barb Ristau, Ristau Farm Service are now looking to buy the lots.
Ristau plans to build a 5,700 square foot building (48 foot by 120 foot) to house his farm service and custom silo business (silo equipment and electric motor repair). Ristau has a current location in St. Charles and he had let it be known without a business subsidy agreement providing the $34,000 discount on the land, he would not move forward with this project. The agreement specifies that construction must be substantially complete by October 31, 2017.
Ristau Farm Service will have eight employees and possibly one more when the building is finished. The development is expected to increase the city’s tax base by at least $7,000 beginning in 2019. The EDA determined that the project will further the economic development plans of the city and recommended the sale to the Ristaus. The offer will be good for 14 days.
Councilman Robert Maust abstained due to a conflict of interest. He said that the sale will move jobs from St. Charles to Preston. Dwight Luhmann commented that Ristau hopes to start construction this fall. Ristau wants to be able to move his business by the end of the year and have his businesses at one location.
Plow truck purchase
Jim Bakken, Public Works, explained the city has an aging fleet of plow trucks with the newest truck being 13-years-old. Another is 16-years-old and the third is 30-years-old. He recommended the purchase of a 2017 International chassis from Interstate Motor Trucks in Rochester at the state bid price of $80,833.50, This was the lowest of three bids. Bakken also recommended purchasing the equipment for the truck, including stainless steel dump body, hoist, wing, hitch, plow, sander and hydraulic controls from Universal Truck Equipment, Galesville, Wis., at the state bid cost of $81,833. This was the lowest of two bids. The total cost of the equipped plow truck will be $162,666.50.
The purchases were approved, with the money coming out of the street equipment and maintenance fund. The unit will be delivered sometime mid-2017. With the delivery of the new plow truck, approval was given for the trade-in of the city’s 2001 Freightliner truck to Interstate Motor Trucks for $14,500. The 1990 Ford will also be sold at auction at that time.
Bakken explained his plans to operate in the future with two large plow trucks instead of three plus two pick-up plow trucks. He asked the council to consider the purchase of a V-plow to replace the one on the water pick-up, which is really beat up, before winter. The purchase of an 8-foot 2-inch plow and installation from Ironside Trailer Sales at a cost of $6,113 was approved.
Other business in brief
- City administrator Joe Hoffman updated the council on the city hall exterior planned improvements. He began noting that at the last meeting, all quotes were rejected. The intention is to award the project before the end of 2016, with work to start in mid-April and be completed by June 1. A 5% “quote bond” will be required. The delay of the improvement project will not allow the mural to be unveiled during Trout Days. A separate special event to unveil the mural will be held.
There was some discussion whether or not to get quotes for the entire project with a general contractor or get quotes for the three smaller projects separately (roof, insulated stucco finish on north wall, and canopy). Maust argued that with a general contractor, there is one who is responsible for all of the projects. No action was taken. - The Minnesota Department of Employment and Economic Development has OK’d a change or expansion of the Small Cities Grant target area for the rehabilitation of rental units. It will be expanded one block to the east (between Pleasant St. and Center St.) as requested by Michelle Vrieze, CEDA. A motion to amend the target area was approved.
- Approval was given to contract with Minnesota Municipal Utilities Association, a non-profit, to provide safety coordination services for the city and utility. The city’s share of the total cost is 45% (about $6,925) and the utility 55%. Mark Hottel is the safety coordinator for 12 communities and is in Preston two days per month. He provides mandated safety training and record keeping to assure OSHA compliance. Bakken commented that Hottel does an invaluable service, an excellent job. The cost to the city is unchanged from 2016.
- Approval was given to share the cost 50/50 with the Servicemen’s Club to purchase new flags for 2017. The city’s share is $1,060. The 184 flags are replaced every other year.
- The next council meeting will be on October 17 at 6 p.m.