Sanders agrees to contingency fund

Photo by Barbie Porter
The downtown commercial building in Frazee is almost ready for Seip Drug to begin working on its store so the business can move in.

By Barbie Porter


The downtown commercial building in Frazee is up, and bills are coming due. The EDA agreed to extending its agreement with Goldmark (no change in terms, just an extension) as the original contract expired at the year’s end.

One invoice sent to the Frazee EDA had to do with typical construction administration. The Frazee EDA agreed to pay the $305 (CHECK). The second bill was for a commission in filling a space in the building with Seip Drug.

The Frazee EDA members questioned if there wasn’t considerations given, as Seip Drug was already in talks with EDA members about moving into the new building. The EDA agreed to review past meeting minutes and its contract with Goldmark.

The former Sanders Oil building is set to be purchased by the EDA. The group offered the owner, Roger Sanders, $30,000 with $13,000 in additional funds being held. The money is placed in a contingency fund as a 50-gallon tank of hydraulic oil is still underground. After the cost of removing the tank is paid, the remainder would be given to Sanders. It should be noted that Sanders removed the gas tanks on the property this past summer.

Frazee City Administrator Jordin Roberts said the city attorney is drafting an agreement for the EDA and Rogers to sign so the land sale can be completed.

Town Lake Beach is also on the project plans for the city in 2022. However, a snag may upend the plans for a new bathhouse and remodeling of the public beach space along State Highway 87. 

Photo by Barbie Porter
The former Sanders Oil gas station could soon be purchased by the Frazee EDA. The EDA asked the city lawyer to draw up a purchase agreement.

A Phase Two archeological study is being required to get funding from a state agency. Roberts said the price tag of a Phase II study was quoted at $10,785. After examining the quote, some questions arose about line items provided by the Duluth, Minn. based company. The Frazee EDA agreed it would be good to get explanations on the items that created questions. 

If the contract is not satisfactory, Roberts said there are other companies that can do the work; one is based in Fargo, N.D. and the other Bemidji, Minn.

In addition to digging into contract line items, the EDA asked Roberts to continue pursuing conversations with the Department of Natural Resources, which is providing the grant. 

Frazee EDA member Hank Ludtke said he could get affidavits from long time residents and people who worked in the Town Lake area, if that would help explain how the ground at the beach had been disturbed many times over.  It was noted years ago, land was brought in for State Highway 87, earth work had been done at the beach site, including a holding tank being installed at the current bathhouse. 

The EDA was also asked if it had any plans in mind for the county-owned land near Red Willow Heights. Ludtke said the consensus was the EDA had its hands full with projects. The EDA agreed to let the county know it should pursue plans with MMCDC. It was noted the area would be developable for slab-on-grade construction. Structures with basements would require lift stations.