City Council approves bonds, discusses funding priorities

Jun. 11--Two separate projects on Newton Avenue were put into one bond proposal Monday night as the Albert Lea City Council considered funding for street reconstruction projects and the fire station.

Rebecca Kurtz, municipal adviser and city bond council from Ehlers & Associates Inc., said the $2.875 million in general obligation bonds approved by the council Monday would support the Newton Avenue and Clausen Avenue reconstruction projects as well as equipment and furniture for the fire station. The street reconstructions are where the majority of the funding, roughly $2.67 million, will go, while roughly $200,000 will go toward equipment and furniture for the fire station.

Kurtz said she did not have an estimated tax impact for homeowners, though part will be paid with property taxes. Assessments on properties benefiting from the Newton Avenue and Clausen Avenue reconstruction projects will also provide funding.

The bonds would have a 10-year term for the street projects and five-year term for fire station furniture and equipment.

Kurtz said she would look at selling the bonds July 22 with funds available in mid-August.

Third Ward councilor Jason Howland asked whether any further bonding dollars were anticipated to be used for the fire station project.

Finance Director Kristi Brutlag said to her knowledge, this $200,000 for equipment was a piece of the financing considerations all along.

Second Ward councilor Larry Baker encouraged the city and council to give local businesses an opportunity to bid rather than only larger companies that may offer a better price.

While City Council members agreed on the top priority of state bond requests, the councilors were split over whether to prioritize the Blazing Star Landing or Blazing Star Trail in its trio of requests.

The board passed resolutions of support for all three requests, which included a $3.5 million request to mitigate flooding on U.S. Trunk Highway 65 -- the unanimous top priority -- a $1.75 million request to complete the Blazing Star Trail between Albert Lea and Hayward and a $20 million appropriation for further planning and development of the Blazing Star Landing and Community Center project.

However, the submission process asks entities to give prioritization to its requests, interim city manager Jerry Gabrielatos said. While the council rated flood mitigation as its top priority, a decision on second and third priorities was not made.

While The Minnesota Department of Transportation is planning on improvements to East Main Street, those improvements do not include flood mitigation. Director of Public Works Steve Jahnke said MnDOT would support the project but did not budget for flood mitigation, such as installing pumps or raising the road.

Jahnke said his preference would be to raise the road, as it eliminates pump maintenance and the pump, which relies on electricity, would not work if the power was out.

At the work session, Albert Lea Mayor Vern Rasmussen Jr. prioritized Blazing Star Trail second and Blazing Star Landing third. First Ward councilor Rich Murray and Howland agreed, while Baker, 4th Ward councilor Reid Olson and 6th Ward councilor Al "Minnow" Brooks prioritized the landing over the trail for bonding requests.

Jahnke said conversations with the Minnesota Department of Natural Resources over the last few weeks have revealed finishing the trail as a priority for dollars from the agency's own funding request to the Legislature. Some funding has already been secured for the project by the Department of Transportation, and to make sure the project happens, the DNR is also headed out for funding, Jahnke said.

The project is already approximately 25 years old and incomplete, Jahnke said, and he expressed concern that the timeline will extend if the city does not let them move forward with it now.

Should the DNR secure the funding, the city could drop its request, Jahnke said. A request for funds for the project is largely to show the Blazing Star Trail is still a high priority for the city.

Baker said he believes Blazing Star Landing is more important than the trail if there is already the possibility for funding to finish Blazing Star Trail.

For Rasmussen, traffic to Blazing Star Trail could help feed Blazing Star Landing, he said.

He also made note of a $7.5 million bonding request from the Shell Rock River Watershed District for funds to continue its dredging project.

Rasmussen said chances of getting big bonding funds for both the Blazing Star Landing and the funds for dredging "I think is about zero." Instead, he said it made more sense to prioritize a smaller project and complete the Blazing Star Trail.

Murray said he would like to see private investment in the Blazing Star Landing before moving forward.

Gabrielatos said applying for bonding funds would not be a formal commitment to a specific project plan for Blazing Star Landing.

In other action:

--The City Council authorized community member Bill Howe's request to seek donations to create a marina on Bridge Avenue between the dam and residential homes. Rasmussen reminded Howe the marina must be American with Disabilities Act-compliant.

Jahnke said the city would not create an additional intersection as the site is near a corner and a crosswalk would not increase the safety of pedestrians in that area.

Howe said the dock would be commercial grade with an intended 20-year life expectancy. His cost estimate for the project was around $75,000.

"We're very excited about this project," Howe said. "We think it's important for Albert Lea."

--John Elwell, former Albert Lea city manager, marked his 50th anniversary of his start as the Albert Lea city manager by addressing the council. He now lives in California.

"I really enjoyed my tenure here and I've kept track of Albert Lea, and I think that you're doing well and I appreciate the opportunity to say hello," Elwell said.

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