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Council moves forward funding plan

by Nelson Obi
June 13, 2023
in Finance
Reading Time: 3 mins read
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Council moves forward funding plan
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FAIRMONT – The Fairmont City Council discussed the proposed funding structure of the proposed community center during its meeting on Monday.

Director of Finance, Paul Hoy, said the item emerged from a joint working session between a number of stakeholders held on 10 May in relation to the proposed community centre.

“During the meeting, Dan Burns with Taft (Bond Counsel) drafted a memo that went through the outline for funding the community center,” Hoy said.

Some key points include who will own the property and what the financial commitments to the city will be.

“It was discussed that the proposal will be brought to City Council for framework approval so that the Foundation can proceed with marketing its new market tax credit issue and complete the financing of its side of the project,” said Hoey. .

Council member Michelle Miller had several issues with the proposed funding structure. At the start of Monday’s council meeting, he asked for the item to be taken off the agenda and tabled for several reasons.

She took issue with the Fairmont Area Community Center Foundation’s lack of proof of cash. She also questioned why the YMCA, the supposed operator of the community center, did not have a presence at the Fairmont and said there was no evidence that its programming was needed here either.

Council member Jay Maynard said the council was not yet voting on whether to hand over the $12 million the city raised in the local option sales tax. Rather, he said that the Council is only adopting the framework.

Maynard said, “We’re not committing anything right now that we can’t take back… We’re not committing anything right now.”

Council Member Brittany Kawecki said it would not be in the city’s best interest not to vote on the matter because delaying it would result in not moving forward with the New Market Tax Credit.

“Costs add up as time goes on, and things aren’t guaranteed,” Kavecki said.

Burns, who was available via speakerphone, was asked if he had anything to add. He said he wanted to reiterate the language in the resolution.

“The preliminary approval granted is solely for the purpose of marketing and the Foundation applying for the New Market Tax Credit,” Burns said.

The motion passed 3-2 in favor of Maynard, Kawecki and Council Member Randy Lubeno, and opposed by Miller and Council Member Wayne Hasek.

Council also discussed communication regarding the search for an interim City Administrator and/or a full-time City Administrator. The discussion item was added to the agenda at the beginning of the meeting at the request of Kaveki.

Lubeno said he recently had a great conversation with GovHR, the recruiting firm the city is using on its search for both an interim and full-time city administrator. Kavecki said he also had a good conversation with the firm, but added it was important the whole council was getting updates.

“What is the status posted by GovHR? I think they said they would post it last week. It would be nice to see what they’ve posted and what they’re looking for, Kaveki said.

She also said that the council had discussed city involvement and asked when citizens could give input on what they would like to see in a city administrator.

Miller, who is on the hiring committee with Mayor Lee Barts, said Barts, through City Clerk Patty Monsen, provided timely information to the rest of the council. He said that the councilors need to maintain patience during the process.

“The communication is there, it just might not be what you want,” Miller said.

He also said that a community survey, which will be available in Spanish, should come out soon.

Miller said, “There’s a process we have to go through and patience is needed so that we can get it right.”

In other action, the Council:

– Approved a $138,816 grant from the Minnesota Department of Aeronautics for use on maintenance and operations at Fairmont Municipal Airport.

– Approved a Memorandum of Understanding (MOU) with Fairmont Area Schools regarding a School Resource Officer (SRO) partnership between the city and school district.

– Provisional previously adopted City Council rules of procedure designating Finance Director Paul Hoey and City Clerk Patty Monsen to forward questions and concerns to the city attorney until an interim city administrator or city administrator is hired The motion to amend was approved.

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