At the November 27 meeting, City Engineer Derek Olinger of Bolton & Menk spoke to the council regarding the state’s Local Road Improvement Program Funding. The three-part program, administered by the Minnesota Department of Transportation, provides up to $1.5 million towards local road projects for regionally significant roads, resulting in safety improvements or addressing deficiencies and contributing to economic development.
The city hopes to secure a portion of the projected $1.7 million cost for the planned Elm Street Reconstruction Project. The grant is highly competitive and will require local support and county sponsorship since Rushford is not a state aid city. But Rushford could have an edge in why it should receive funding.
According to Olinger, the amount provided has increased in the last couple of grant cycles. Surface improvements are something other than what comes up, but he indicated there are reasons why Rushford could get it. For one, cities must pay higher-than-average pricing and engineering fees in thicker street sections where heavy traffic is using the road. Traffic used downtown Elm Street heavily when the state did two major reconstruction projects, first on Highway 16 and then again this year for Highway 30.
Additional reasons the city has reason are substandard utility services, possible future development, additional stormwater from the recently reconstructed State Highway 30, tourism in the area with the Historic Depot and the Root River State Trail, and manufacturing in the area. In addition, the city headquarters public safety services on Elm Street.
“A lot of things that fit the criteria,” offered Olinger.
Olinger estimated the Elm Street project cost to be $1.7 million. The city is responsible for all utility improvements and will seek $1 million from the state.
The city plans the project for 2025. Applying for the grant does not lock it into the project. Applications are due December 8 and the state will award grants in March. The cost to apply is $2,000. The council approved seeking the grant unanimously.
The council did ask whether it could add the cost of the Southview Court project into the larger Elm Street project since the city will have to bond for it regardless. Coupling them together would allow the city to do the bond, bidding and assessments together. The state funding would only apply to the Elm Street portion.
The council also approved extending the listing contract with Darr Realty for the remaining lost in the Himlie Business Park. According to realtor Rod Darr, the lots have generated interest lately, but he’s looking at ways the city might get creative to sell the lots.
“The biggest hurdle is the residential lot,” said Darr. He suggested utilizing part of the Miller Circle lots to adjust the other remaining lots. He noted developers for multi-unit and single dwellings, commercial businesses, and non-profits had contacted him. He’s fielded multiple requests for redacted pricing. While the assessments may be able to be adjusted, the lot cost cannot.
Also of note was a discussion regarding Sexauer’s Tax Increment Financing District (TIF) for the Housting Planned Unit Development (PUD). According to City Clerk Kathy Zacher, the PUD never set up a proper housing authority to get funding built up to take care of the road in the future.
It was further by City Administrator Tony Chladek that it was a request of Sexauer as part of the development agreement that the road be private and never city-owned.
“One of the things we talked about with Sexauer when he was here, and he made it pretty clear when he was designing that thing, that the city would never, ever be responsible for any of that roadwork up there. He was to write it into association paperwork,” he said.
“That’s why he got the lots so cheap,” added Zacher. “Now that different entities are looking at buying all the lots, they don’t necessarily want to deal with the roadway issue in the future,” clarified Zacher. She further noted that Habitat for Humanity wanted to buy it all and put up several different buildings but wanted to avoid dealing with the ramifications of the street issue.
The Economic Development Authority will need to discuss the issue. The city would assess property owners if the road became a street.
“It’s a TIF district. If we’re not going to get the same revenue back, we have to talk about that. We don’t want to take a substandard thing and get stuck with it either,” reminded Zacher. “We should follow development rules unless there’s no other way to make it work.”
During reports, the agenda touched on several items.
Councilor Jim O’Donnell noted that longtime Rushford firefighter, Emergency Medical Technician and Emergency Medical Responder trainer Paul Corcoran is the annual Lions Club Everyday Hero Award recipient. Corcoran will be honored at a ceremony in January.
Public Works has prepared the ice skating rink for the season, including the warming house that was an Eagle Scout Project by Merrill Schroeder. The city requests donations of ice skates in varying sizes. Those offering donations should contact city hall.
The next regularly scheduled council meeting is Monday, December 11, at 6:30 p.m. at city hall. The public is encouraged to attend.
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