Kurk Kramer
Sleepy Eye Economic Development Coordinator
The EDA Board met on Tuesday, April 22. The minutes of the March meeting were approved, and the financial reports were given. A detailed report on the continued challenges with the delinquent EDA loan payments from the former business of Shane’s Tire was shared with the EDA Board.
The Old Business items addressed included the continued discussion of Downtown Business District Rehab/Blight/Empty Buildings, including updates on the 120 Main Street East building, the Chuck Hauser building — the new roof is on the north end of the building, the Tyvek is on the side walls, and the interior continues to be gutted on both floors. Chuck is having some difficulties getting cooperation from his neighbor with the property to the west as he is trying to get his west side of the building sided.
On the 108 West Main building, Starry Night Woodworking agreed to install the gutter and soffit on the north side of the building. The Board continues to wait for some pre-design plans and options for potential use from Eric Oleson. He has not responded to any emails I have sent him for nearly three months.
The 132 Main Street East building, former China 14 building, owned by Yi Xiang Zhou. City Attorney, Alissa Fischer Groen shared the process and procedures that are in place since the building warrant has been carried out, and the resolution has been delivered to take care of the work that is needed to be done.
The Board has been considering the possibility of partnering with Rebound Partners, REVOcity, in the development of a Community Real Estate Fund. This topic was tabled to the May 27 EDA Board meeting.
For the past few months, there has been discussion regarding a twin home project. The Board continued the discussion, covering concerns relating to the need for soil samples on the Snow 2nd Addition, lots #11 and #12. The Board reviewed the proposal from American Engineering Testing, which was the company that did the soil testing in 2016 on the 10 lots to the north. I received some information on the two lots from Joe Steffl anf explained to the Board the details and as a result the EDA Board has decided that they would not have the soil testing done on the two lots, and they directed me to contact Joe and suggest that he make an offer on the purchase of the two lots.
After the discussion on the soil boring and housing, and with the additional applications for business assistance, the EDA Board made the decision to table the efforts on housing, as there are some housing projects that currently are taking place in Sleepy Eye and refocus on the Business Assistance Program, which has been very active in past years.
Consideration on current applicants for this program included Anytime Fitness. Last month the EDA Board reviewed this application and tabled it until 2026. There was concern that the application when using the EDA Scoring Matrix for applications scored extremely low, and also that the EDA was currently working with Trevor on a previously awarded EDA loan. The Board did not want to decline the application but instead wanted to work with new applicants in 2025, and wait until next year to consider this application, as Trevor had mentioned that he could put the project off for a year.
The Board considered a recommendation from the EDA Finance Committee on the application from Jake Schauman – Three Jax Printing. The Board approved the application for $25,000 to be used for a new roof on the 101 Main Street East building.
The EDA Board directed me to continue to stay in contact with BlueStem Garden Works regarding the Snow 2nd Addition lots. I informed the Board that I had contacted Michael Springer for discussion on the north 10 lots but had not received any response at this time on his interest regarding them.
The New Business discussed by the Board included a SouthPoint Financial Credit Union inquiry on EDA involvement in gap financing for the sale of the AmericInn Hotel. I informed the Board that I had met with the potential new owner of the AmericInn here in Sleepy Eye, Mike Chaudhari of Sisseton, South Dakota. Chaudhari also owns the Microtel Hotel in Springfield. We discussed EDA financial assistance available for either purchasing and/or rehabilitation work (parking lot and landscaping) on the property. I told him that I would bring this to the EDA Board at their April meeting, but that the Business Assistance Application would need to go to the finance committee first for review and then a recommendation to the full EDA Board. The Board discussed this preliminary request for assistance, and it was decided that they would consider a Business Assistance Application over any gap financing for the purchase of the property. More detailed information on this will be shared as it develops.
The EDA Board received details regarding the Little Sprouts Learning Center Ceasing Operations Letter from City Attorney, Alissa Fischer Groen. The details included the Notice Letter of Ceasing Operations from LSLC effective as of Friday, May 2. She stated the reasons for the closing of the center which were noted in the letter, the two main reasons being that the insurance premium for 2025 had increased to $56,734.85 (a 35.6% increase), and the staffing issues relating to the loss of the current center director who would be leaving to take a new job elsewhere. Alissa addressed the history of the two EDA loans to Little Sprouts Learning Center, the related information regarding the structure of the two loans, and the related information regarding the possible amount of finances that will come back to the EDA after the sale of the center’s contents following closing. The EDA Board directed the LSLC Board to pick a local auction service to conduct an auction/sale for all of the center’s equipment, furniture, and any other contents that could be sold. The EDA Board also directed the LSLC Board to offer for sale any and all contents to any of the local home care providers at 50% off of the purchase price of any aforementioned items. This news was very disheartening for the EDA Board, but they did realize that the EDA was able to assist the community in providing additional early childcare at the center for the past seven years. The EDA Board will now put major emphasis and focus on addressing the community needs regarding early childcare.