Housing and zoning top priorities

By Robert Williams

Editor

The Vergas Economic Development Authority/Housing Redevelopment Authority began 2024 without President Kevin Zitzow since the committee was first established in 2015. Zitzow reached his term limit in December and can return after a one-year absence.

The group welcomed new member Paul Sonnenberg, a Vergas resident widely known as the owner of Marlo Motors in Perham and elected new officers.

DuWayne Ditterich was selected to replace Zitzow as president with Albright continuing to serve as vice president and as the city council liaison. Vanessa Perry will continue as the assistant treasurer to Julie Lammers.

One of the biggest challenges for the EDA/HRA is a lack of space for businesses. That is already hampering a potential small motel in the village. According to Secretary-Treasurer Julie Lammers, there is an interested party who wants to build a motel in Vergas, but there is currently nowhere for it to go.

“We have no place to put them,” said Lammers.

The demand for space stretches beyond business and into the housing market, as well. 

“Vergas is a happening place and it’s where people want to be, which is really great,” said Albright. 

The group discussed how the perception of Vergas as a retirement community is not factual compared to the data.

According to Lammers, over the last three years, there have been more families moving to Vergas than in the past decade. Ditterich, owner of the Mercantile downtown, has seen those numbers first-hand.

“One thing I’ll say after having the grocery store, I didn’t realize there are as many young people in town as there are,” said Ditterich. “It’s very surprising. You don’t know those people are there until you own a business they come and visit. It’s great to see.”

The group also discussed their goals for 2024 and committee member Joy Summers brought up the idea of reworking what she thought were more vague mission statements into tangible, specific things to accomplish.

“I feel like I’ve been on this board for a couple years and every single one of these is ongoing; they are important and they are things that we want to do and I love that, but none of them are specific things,” she said. 

Funding for the EDA/HRA is also limited, after receiving $5,000 from the city council for the year due to budgetary constraints. The committee has some workable funds from past real estate sales, but is limited in going after bigger projects, for instance, building a spec house at Sunny Oaks, where there are open lots.

Those lots are currently in a difficult sales situation, as well. According to Summers, because they are tax forfeited lots formerly owned by the state and county, there are income restrictions to who can purchase the lots and those restrictions are tight.

According to Summers, the lots have income restrictions of less than $110,000 for a household of two people, however, the buyers must also make more than $100,000 to qualify for a loan from the bank to build a house, which is currently estimated to cost at least $300,000. 

“That’s a pretty small window for us to find buyers,” she said.

“You’re looking for a needle in a haystack,” said Albright.

Summers had one lot sold until she found out they were $18,000 over the income limit.

Building a spec house is one of Summers’ main goals for 2024. As a real estate agent, her suggestion for such a house is to put it on Josh Hanson’s Lawrence Lake Acres, rather than Sunny Oaks, despite the EDA/HRA owning lots there, because the buyer pool is so small at the latter and wide open at the former.

Lammers discussed the income limits with the county and the state will post new income limitations in May. Until then, the Sunny Oaks lots will remain in this quagmire.

Compounding the problem is any increase will likely be in the amount of a few thousand dollars, not something like $50,000, which would create a much more workable financial situation.

Summers and Albright suggested contacting regional members of the legislature to provide some insight or possible changes to aid the situation.

Otter Tail County also owns three Sunny Oaks lots that are planned for senior housing in the form of two triplexes. That development is pending legislative funding, which was limited in 2023, with more funds available this year.

The group wrapped the first meeting of the year with a lengthy discussion on zoning, noting some anomalies like J&K Marine operating with a conditional use permit while being zoned residential, to the need for more commercial space for future development. 

The Planning and Zoning committee proposed creating a map for the next 10 years.

“I think we have to start being a little progressive,” Albright said. “We want EDA weighing in on what this future map is going to look like.”

Ditterich proposed each member take a map and create different ideas individually to contrast and compare at future meetings.

The EDA/HRA meets on the second Tuesday of the month in the new government services building at 2 p.m. Due to scheduling conflicts, the February meeting has been moved up to Tuesday, Feb. 6.