At the September 12 meeting, the Rushford City Council unanimously approved a draft purchase agreement for the former Farmers Win Cooperative site in the heart of downtown. The council reviewed the proposed purchase agreement in a closed meeting before the start of the regular meeting.
According to City Clerk Kathy Zacher and a draft provided at the meeting, the focus of the purchase agreement is the contingencies. They include an inspection/due diligence period of 30 days from the effective date, subject to reasonable extension if necessary, to conduct surveys, reviews, inspections, and tests of the property. A Phase II environmental assessment would prompt the inspection, should it be recommended at the end of the Phase I assessment.
Previous offers to purchase the property required a “clean site” to avoid surprises related to unknown issues, contamination, or abatement cleanup. In the draft agreement review of the property is buyer’s discretion if necessary or advisable to obtain a No Association Determination, No Further Action, or Liability Assurance Letter, a determination from the Minnesota Pollution Control Agency (MPCA) or Minnesota Department of Agriculture (MDA). These would state that no further action is necessary to remediate or clean up hazardous substances on the property and limit liabilities associated with known contaminants. Should the city and its representatives find conditions objectionable or cannot obtain liability assurance letters from the MPCA or MDA, it can terminate the agreement and see a refund of $1,000 earnest money.
The agreement contingencies also include a right to inspect to determine the property’s eligibility for a tax increment financing district and the city’s right to enroll in state or federal regulatory programs for environmental contamination.
Should a purchase agreement be approved by Farmers Win Cooperative, the Economic Development Authority would meet about a “roadmap” on the site. “Conceptually, there’d be a communications plan on the whole process to let people know what is happening,” said City Administrator Tony Chladek.
“That’s a good idea to keep rumors down and have factual information,” added Councilor Sally Ryman.
The council also unanimously approved the proposed maximum tax levy of $1,082,255 for 2023. It represents a 6.42% increase over 2022. Residents saw no increase in 2022.
“Don’t ask me to cut it down too much,” said Zacher. “It’s pretty tight already. We’re not asking for too much money to operate. We’re actually going to be using our existing fund balances to operate.”
In addition to the increased cost of living, the city’s debt service is up $89,700 for the year due to the state-mandated Highway 30 Street & Utility Reconstruction Project. Local Government Aid, a critical piece of annual funding from the state, is up only $8,671.
City staff is budgeting money into the levy fund annually, based on historical expenditures to fund upkeep and maintenance items. On average, neither the Levy Fund nor General Fund has seen any significant increases over the last eight years. The Library Fund, which has been using down reserves for years, will see a $10,000 increase in its budget for operating expenses. Capital Projects and Fire Fund expects to have slight increases. After reviewing the budget, the city will set the final levy in December.
In the consent agenda, the council approved a microgrant for the Bluff Country ATV Club for $500. The purpose is website development, advertising, communications, and meetings for the Rim Trail Project, “a nature interpretive, low-speed ATV trail in the Rushford Peterson Valley.”
In attendance at the meeting was Coalition of Greater Minnesota Cities (CGMC) lobbyist Elizabeth Wefel. She provided details of the last legislative session and the goals of the CGMC moving forward. The group is aiming to see changes in the Local Government Aid formula, permanent funding for water needs, and funding for technical assistance grants.
Lead line mapping required by cities by September 2024 is also a focus. “There are a number of changes made that would allow homeowners to access funding. Part of our push is assistance for cities and homeowners,” said Wyfel. “Without the homeowner part, it doesn’t do any good. It’s inventory, coming up with a plan, and addressing it.”
The CGMC also continues work on childcare, housing issues, and street funding. “We want to see dedicated funding on that [street funding]. Everyone has an interest. Both parties agree it’s needed, but they don’t agree on how it’s funded,” she added. “The Minnesota constitution says the legislature has to adjourn by the third Sunday in May. It was looking promising, but things started slowing down. Quite honestly, it was painful to watch happen. The session ended with little activity.”
“The election makes it hard. The combination of the election and the hyperpartisanship makes it challenging,” Wyfel continued. “It is going to be an interesting year. We’ll have at least 47 new legislators, a competitive governor’s race, and it’s a budget year. We could be seeing a surplus again and need legislators to come forward on how to use that.”
The next regularly scheduled council meeting is Monday, September 26, at 6:30 p.m. at city hall. The public is encouraged to attend.
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