The Preston City Council met on May 4 via Go To Meeting. A request by two individuals to allow indoor climate controlled storage as a conditional use in the B-3 (General Business District) was again discussed. Planning and Zoning held a public hearing on the amendment on April 20, after which, the city council first discussed the proposed amendment.
Council members were in favor of adding this conditional use, but not all were in agreement on restrictions that could be imposed. Mayor Kurt Reicks insisted that he did not want mini-storage in the store fronts, but rather wanted that space available for retail or office space. He wanted to keep space available for additional retail in downtown Preston. Councilwoman Holly Zuck agreed; “We need to draw more retail into town to bring more people downtown for all of our retail businesses.” Councilman Charles Sparks agreed, but was willing to reduce the area of retail space in the front of the building. He also wanted sufficient hallway space to access storage units in the rear of a building.
Councilman Robert Maust argued the building has been empty. “I see no problem with what individuals want to do with empty buildings to get them back on the tax rolls.” Maust didn’t think they should be telling people how to lay out their building.
Language amending the ordinance was approved on a 3-2 vote (Maust and councilman David Collett voted no): Indoor climate-controlled storage. A principal permitted use must occupy at least 40% of the gross floor area of the first floor and extend along at least 60% of the first floor store front.
2019 Audit
Jason Boynton, Smith Schafer & Associates, LTD., reviewed the city’s 2019 audit. The city was given an unmodified “clear” opinion as the financial statements were fairly stated.
The general tax levy revenue represented 43% of the total goverment revenue in 2019. Local Government Aid represented 22% of the city government revenues.
The city’s general fund reserves equal 53% of annual general fund expenditures, excluding the veterans home donation and land purchase expenditures in 2019. All debt service funds are adequate and all outstanding bonds are being paid on a timely basis.
The audit was unanimously accepted as submitted.
Other business in brief
• On April 6 the city council approved a modification of the city EDA 270 Revolving Loan Fund to assign $30,000 for support to local businesses who have been impacted by COVID-19. Cathy Enerson explained that an additional $10,000 in grant funds have been offered ($5,000 from Southern Minnesota Initiative Foundation, $1,700 from Preston Area Community Foundation, and $3,300 from F & M Community Bank). The $10,000 in grant funds was accepted by the city council and will be added to the $30,000 loan fund.
Applicants will be able to use funds to make property tax and utility payments. Approval was given to make payments ($7,833) on some business owners’ behalf. Repayment begins January 1, 2021. Due to the $10,000 in grant funds, one-quarter of loan balances will be forgiven.
• A loan from the Revolving Loan Fund in the amount of $7,000 was recommended by the EDA and approved by the city council for the Sweet Shop expansion. The funds will be used to purchase a walk in cooler and related expenses. The loan will be repaid over seven years at 2.5% interest.
• Approval was given for the seasonal hire of tourism employees Ilene Edwards, Lisa Brainard and Ann Thacher.
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