“For the longest time, lots sit there and sit there, and then all of a sudden…” noted Councilor Jim O’Donnell at the March 11 Rushford Council meeting. It was echoed by realtor Rod Darr and the party making the offer on the lot, Winona native Sean Wittenberg.
The offer for the lot at 1106 Miller Circle in the Himlie Business Park included a $37,976 price tag plus 25% of the infrastructure balance and $500 earnest money. Wittenberg is looking to finance 80% of the cost. The offer requested a due diligence period until May 31 but later provided an addendum changing that to 45 days after acceptance for due diligence. According to Darr, Wittenberg is looking to use those 45 days to evaluate costs on clearing or grading, addressing access to the lot, and zoning and project approval from the city. At any time during the 45 days, if the project appears non-viable Wittenberg can recover the earnest money and walk from the deal.
“If I can get it done sooner, I will,” said Wittenberg. “I want to expedite this as fast as I can.” The plan for the self-noted first-time developer is storage units. The total expected project cost is $500,000-600,000.
There are other interested parties in the lot, and several on the council expressed dislike for the 45-day wait. Darr also cautioned that the current wording of the addendum read that no assessments would be on the lot. Darr clarified that the city would impose no new assessments before the closing.
“If you had three other people talking about it two weeks ago, there shouldn’t really be due diligence on it,” said Councilor Leigh Volkman. “It’s clear on our part. That’s too much of an ask for a vacant commercial lot.”
The offer was also contingent on financing. Wittenberg presented an asset portfolio with the offer but did not have financing pre-approval. He later clarified he could pay for the lot with cash if needed. Darr suggested he provide credit score, assets, past credit history, and pre-approval to purchase the land.
“Our intention was to gather bids to determine project viability. I’m limited to what I can do before I get the accepted offer on the land. I need to work with an engineer to get bids to determine if the entire project is viable,” responded Wittenberg.
The council opted to present a counteroffer. The sale price, with a 25% assessment, remains the same but clarifies the assessment portion, removes the due diligence period, allows flexibility for a closing date within 60 days based on the timeline to get underwriting in place, increases earnest money to $1,000 and states that earnest money is lost if Wittenberg walks away from the sale. No additional council action is needed if Wittenberg accepts and signs the counteroffer.
In other news, the council held a public hearing regarding an ordinance to found the Rushford Housing Trust Fund. The fund ensures the city can receive state funding when available. There was no public comment, and the Economic Development Authority (EDA) recommended the city approve the ordinance. The EDA will set the criteria for the procedures for the revolving loan fund.
The EDA will transfer $150,000 from their own revolving loan fund to this new fund. It is the amount the state has allocated for this purpose for 2024. The state is still establishing its fund details at this time. The city hopes the matching funds will be recurrent.
Rushford Fire Chief Chad Rasmussen was also present at the meeting to discuss three new fire department members: Cory Potter, Travis Grant, and Caitlin Speece. Their appointments brings the department to its maximum capacity of 30 members.
During reports, the council discussed several items of notice. The new city sign is in place on the Highway 43 entrance. Public Works is currently working on boulder placement for the landscape design around the sign.
City Administrator Tony Chladek noted things are moving on one-time ambulance legislation in the state. Many are expecting plans for ongoing Emergency Medical Support funding.
The Rushford Library and Rushford Area Society for the Arts are working on a Roots & Rhythm series this year, utilizing the new Susan Hart Memorial gazebo as its activity point. The series is part of a $7,000 grant Library Director Beth Nelson received.
The next regularly scheduled council meeting is Monday, March 25, at 6:30 p.m. at city hall. The public is encouraged to attend.
Leave a Reply