The Crookston City Council met on Monday in the council chambers at City Hall to discuss a demolition loan program application, an engineering and design services contract, and an amendment to a contract for the upcoming Highway 2 project.
TRI-VALLEY DEMOLITION LOAN
The council discussed and approved a resolution authorizing an application to the Minnesota Department of Employment and Economic Development (DEED) Demolition Loan Program for the former Tri-Valley building at 102 N. Broadway. The council has discussed the next steps for demolishing the old Tri-Valley building over the last few months. Crookston Housing and Economic Development Authority (CHEDA) Director Taylor Wyum told the council the city is seeking a $499,000 loan to be repaid over a 10-year period at a 2% interest rate, with no interest or principal payments due within the first 2 years.
An additional component of the loan is that if a development is constructed on the site within three years of the issuance of the loan, up to 50 percent of the remaining balance could be forgiven, which Wyum believes could provide the city with options for development or for designating it as a green space. “That two-year grace period before interest and principal payments are due is really nice,” said Wyum. “It lets you complete the project without worrying about making payments right away, and it also lets you budget for future payments. The really neat thing about the program is that if the property is subsequently developed, there’s an opportunity to have some of that demolition loan amount forgiven, which would be fantastic news for the city.“
Council member Dylane Klatt suggested the potential to turn that parcel into a parking lot, as he mentioned the lack of available parking in downtown Crookston. Interim City Administrator Darin Selzler told Klatt that all options would be considered for further development once the building is torn down.
With the authorization, Selzler can file the application with DEED on or before August 3, with a response from DEED expected in mid-September.
CROOKSTON INDUSTRIAL PARK EXPANSION
The council voted to approve a resolution authorizing the city to enter into an engineering and design services agreement with Houston Engineering, Inc. for the Crookston Industrial Park Expansion Project. The project is financially supported by a $3.3 million grant from the U.S. Economic Development Administration (EDA) and could receive up to $750,000 in additional funding from DEED, with any remaining costs to be covered by a municipal bond. Wyum presented the agreement to the council, noting that it will allow critical design work to proceed to the next phase, as the project is estimated to start in 2027. “It’s great to be able to keep working with Houston Engineering,” Wyum said. “They’ve been a great help so far in the years that this project has been going on. You know, government sometimes moves really slow, and so they’ve been patiently waiting, and we’ve been patiently waiting to get approval so that we can get this contract signed and we can get started on some of the actual project work.”
BROADWAY AND MAIN RETROFIT AMENDMENT
The council voted to approve a resolution approving amendment #3 to the Minnesota Department of Transportation’s (MnDOT) contract #1053917 for State Project #6002-72, the Trunk Highway 2 ADA Retrofit. According to documents submitted by MnDOT to the city, the contract was amended to include compensation for additional construction and letting services as well as redesigns of previously accepted design submittals regarding the project. The amendment increases the contract amount by $120,805.70 to an amended total of $1,115,544.01, with the state paying up to $981,540.80 and Crookston paying up to $134,003.21. As the project approaches construction, Selzler believes this will be the last amendment to the contract. “I would hope that this is it. Again, unsure, but you know the planning process now, so you can start construction next year,” Selzler mentioned. “They’re well into that planning process and staging, so I don’t think you’ll see anything else, but certainly undetermined as you’re working on a project this large.
PARCEL 92 TEMPORARY EASEMENT
Finally, the council voted to approve a resolution authorizing the execution of a temporary easement to the state of Minnesota for highway improvements associated with the Highway 2 project. This parcel, located at 101 N. Main Street, is the latest city-owned property to receive a temporary easement ahead of the highway project starting in the spring of 2027. Selzler said, “This should be the last one, kind of boilerplate like the ones we did before. Just an easement again for that Highway Two Corridor project to allow them access to that property, and if there are any minor damages that occur, that’s again part of the payment. It’s an $800 easement that the city will get paid for, and the easement goes through the end of 2028.“
CONSENT AGENDA
The consent agenda was read and approved by the council in a unanimous vote. Items on the consent agenda include the proposed minutes from the July 6 meeting, bills and disbursements in the amount of $402,039.50, the appointment of Carrie Bergquist, Tim Wavra, Laurie Wavra, Miranda Kulzer, and Tionna Williams as election judges for the 2026 primary and general elections, the fifth payment to Gustafson & Goudge, Inc. in the amount of $718,547.46 for the 2025 hangar construction at the Crookston Municipal Airport, the third payment to R.J. Zavoral & Sons, Inc. in the amount of $41,308.73 for the 2024 taxi lane construction and site preparation for the Crookston Municipal Airport, and temporary construction easements with TK Properties of Crookston LLC for $500, Strategic Developments LLC for $2,605.62, Our Savior’s Lutheran Church for $2,384.37, and Larry W. Leake and Ellen B. Leake for $507.15 for the Broadway and Main Street ADA Retrofit and Concrete Pavement Repair Project.
The next City Council meeting is scheduled for Monday, August 3, at 5:30 p.m. in the council chambers at City Hall.
