Posted: 11/27/07
$5 million grant with state for economic development approved
By Charlie Warner
Argus News Editor
Help, in a big way, with economic development for businesses that sustained damage during the August flash floods is coming to Houston County. During the Nov. 20 Houston County Board meeting, a grant agreement with the state of Minnesota for up to $5 million in economic aid was approved.
According to County Emergency Services Director Kurt Kuhlers, the grant application had been reviewed by County Attorney Rick Jackson, and recommended for approval.
The grant includes $4,903,000 for business loans in Houston County, and $97,000 to administer the program. The program will be administered through Southeast Minnesota Development Corporation and the Houston County EDA.
During a previous county board meeting, County EDA Director Joyce Iverson reviewed the program with the board. Some of the proposed guidelines include:
ïThe level of assistance desired by Houston County businesses varies widely and several options will be available for owners to consider and select the one which best suits their needs.
ïAssistance will be primarily for flood damages, although an assistance category will be made available to non-flood damaged businesses to increase the overall economic activity in Houston County.
ïFlood damaged businesses should also be allowed to utilize MIF recovery funds for not only "flood damages" but also to assist with construction, even if at a new location, with special provisions for leveraging other funds.
ïThe program is geared to helping reopen and re-establish businesses to retain and create jobs.
Iverson noted the loans would be 75 percent forgivable, with a 25 percent payback. There is a $500,000 limit on the loans.
Commissioner Dave Corcoran, who is a member of the county EDA board, explained the county EDA will be taking the applications, a committee of county department heads, county staff, and township officials will review the applications, and make their recommendations to the EDA finance committee.
"This program is for business retention," Corcoran noted. "Itís designed for businesses that have incurred damage from the floods, and have exhausted all insurance and grant avenues."
Persons wanting more information about this program should contact the county EDA office.
DNR debris grant
The county is still waiting for money from the state through a DNR debris grant to help pay for home demolition removal and debris removal from ag lands.
To date, 21 applications for agriculture debris removal totaling $108,486 have been approved, and two residential applications that totaled $63,567 have been approved.
At the present time the application cap has been set at $5,000 per claim. Once the county finds out how much money the DNR grant will be, if there is any money left over, it will be disbursed to applicants who applied for more than the $5,000 limit.
Going after bridge money
County Highway Engineer Marcus Evans informed the county board that after conducting extensive inspections of all the county and township bridges in the county, 43 percent of them have been declared structurally deficient or obsolete.
"We will be working with the various townships, the state, and federal governments to improve this situation," Evans said. "The state has some discretionary money available at the present time, and will be making an additional $52 million available in early June, but that money has pretty much been assigned to project already. Itís a first come, first serve basis, and the money is appropriated every two years.
"We need to put a list of projects together now, have as many projects as possible on the shelf, to be ready when the next funding cycle comes around," Evans added.
#25 project bid approved
Even though the bid was considerably higher than the engineerís estimate, the board approved a bid from Kimbal Excavating of $26,000 for a stabilizing project for a short section of CSAH 25 between Highway 16 and CSAH 21 near Mound Prairie.
Evans said he originally thought the county could probably do the project, which includes installing rock and wire mesh, and rip-rap along the county road that is damaged nearly every spring due to run-off.
"We need to get this project completed before winter. I felt this was something our crews could do, but as you all know, we have been quite busy every since the August floods," Evans said. "Because most contractors have been very busy, again because of all the flood damage, this price came in higher than anticipated. But we really do need to get this done now."
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