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W’bago EDA approves DEED demolition loan | News, Sports, Jobs

W’bago EDA approves DEED demolition loan | News, Sports, Jobs
Written by Publishing Team

Pictured above is a severely damaged SuperValu roof. Winnebago EDA recently approved an application for a DEED demolition loan which they hope will finance the demolition of the building.

The Winnebago Economic Development Authority (EDA) kicked off the new year with an exciting boost to progress at its regular meeting scheduled for Wednesday, January 5, at 5 p.m.

The EDA has reviewed a demolition loan application for the Ministry of Labor and Economic Development (DEED) prepared by EDA specialist Angie Steer.

The EDA is looking at the loan as a way to facilitate the demolition of the dilapidated SuperValu building. The city hopes that the SuperValu site will be developed into a more economically profitable property for the Winnebago Company.

“(SuperValu) has been abandoned for over seven years, resulting in the clear need for demolition,”The loan application states. “Having a large scene in a bad downtown, facing off Highway 169, has been detrimental to society and hindered (impeded) our ability to thrive economically.”

The city estimates that the demolition itself will cost $69,000, with additional costs of $30,000 for internal demolition and $10,000 for restoration costs.

As such, the city is applying for $109,000 in funds from DEED, and the rest of the project is funded via mitigation bonds.

Faribault County has also pledged funds to help cover the cost of demolishing the site to ground level.

“The county awards a portion of the $30,000 USD,”Steer explained. “But, only after tearing down the SuperValu.”

Accordingly, pending approval of the loan application, Winnebago and EDA anticipate an exciting and hopeful next phase of development. However, this is assuming they are able to find a developer for the SuperValu website after it has been demolished.

The EDA Board noted that Winnebago’s ability to repay the loan hinged on its ability to locate an interested developer.

“The current community business owner has expressed interest in the site, but ideas have not been received on paper regarding his intentions,”share loan application

And she adds, “His concept consists of the back auction hall…storefronts are also part of his plan.”

As the loan application states, “EDA’s goal is to rejuvenate Main Street, and the overwhelming presence of the SuperValu Building on Main Street has significantly hampered that.”

Advertise Steer App “Ready for delivery,”And the EDA board voted unanimously that it should send it before the loan deadline in early February. Winnebago EDA also addressed the following agenda items at its January 5th meeting:

• Approval of a business loan application from The Buzz Stop LLC, a rising Winnebago company owned by EDA Board Members Amanda Johnson and Gary Osborne.

Johnson and Osborne plan to open The Buzz Stop, a local bar serving alcoholic and non-alcoholic drinks, popular bar food, gambling and entertainment on 29 Main Street South.

Johnson and Osborne reported total project costs of $138,500, and are requesting $30,000 in funds from the Emirates Diplomatic Agency at a three percent interest rate.

The EDA unanimously passed a motion approving the loan application, with Johnson abstaining.

• Watched a presentation by Steyer detailing EDA’s achievements throughout 2021. Steyer highlighted the many new companies that have arrived in Winnebago, EDA overseas trade grants, and companies that have benefited from the EDA Revolving Loan Fund , USDA-RD grants obtained by the city, and significant events successfully implemented by EDA.

“By working together and utilizing 16 hours per week through a dedicated board and plan, the community has benefited from many exciting new businesses, grants, events, and programs,”Steer noted.

• Discussion of the Minnesota Housing Partnership (MHP) Technical Assistance Grant from Winnebago. The scholarship invites city representatives to participate in the MHP Housing Institute.

According to MHP, “The Housing Institute supports and enhances the ability of rural communities to reach their community development goals through collaborative peer-to-peer workshops and tailored assistance.”

“It’s an 18-month process,”Steer added. “A whole group of people in the community gather to talk about housing and education.”

Steer saw that the process could help the city implement projects such as the Housing Redevelopment Authority (HRA) development or the rehabilitation of the Patriot Municipal Building.

The discussion was only informational, but Steer urged the EDA to consider the benefits of accepting the invitation to join the Housing Institute programme.

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