CHEDA held a special meeting on Wednesday morning at Valley Technology Park and discussed further plans for the Industrial Park project.
CHEDA first discussed awarding Houston Engineering to take on the engineering studies for the Industrial Park project. The study will include a preliminary engineering report about the property and an environmental report (NEPA report). The board approved that the studies be conducted by Houston Engineering in the amount of $28,528.
CHEDA Director Karie Kirschbaum explained that after the engineering and environmental study is complete, the plan will be to install a railroad spur into the Industrial Park. The railroad spur is estimated to take up 15 of the 90 available acres at Industrial Park. The board believes a railroad spur can make the Industrial Park more convenient for potential businesses.
“A railroad spur will allow a business to come in there and stage their product,” said Kirschbaum, “They’ll be able to ship out on the rail. One railroad car is between three and four truckloads of product. So they can ship one railroad car instead of four trucks.”
The last item the board approved was the hiring of a grant writer for the railroad spur. The installation of the railroad is estimated to cost in the amount of $1.5 million. MnDOT currently has available grant funding through its Mercy Grant, which CHEDA is ultimately looking to apply for.
“The $1.5 million is toward the railroad,” said Kirschbaum, “This is an estimate. The cost may vary as time passes, but that is the current estimate. And even the 15 acres is to be determined. We are just now starting to get the grant in there to get the project started.”
The board approved hiring a grant writer, estimated to cost $5,000, in which CHEDA will pay $2,500, and a private entity will cover the other half of the cost.
CHEDA will hold another special meeting on Tuesday, November 28, at 7:00 a.m. at Valley Technology Park.
