Vergas group receives $15k grant from CEDA

By Robert Williams

Editor

The Vergas Community Fund Committee visited with the Vergas Economic Development Authority (EDA) / Housing Redevelopment Authority (HRA) on Tuesday, Feb. 13, to discuss expanding volunteerism and fundraising efforts.

The groups discussed multiple needs around town and discussed how to refocus on working together to fulfill those needs. One example, the parks committee has big plans for renovating Long Lake Park.

The Vergas Park Board Committee held a Loon Art for the Park fundraiser for future Long Lake Park Renovations last August. The event was held to get direct feedback from residents on the initial design changes.

There were loon baskets designed by local businesses that were up for a silent auction, along with a free will donation meal and a cash bar. The proceeds are the start of fundraising efforts to complete a $1.2 million renovation of the park, which also includes multiple grant applications.

The groups discussed past fundraising efforts that have been successful and how they could be used for future endeavors.

CEDA Grant

Vergas was one of 18 cities to receive a $15,000 Rural Capacity Program grant from Community and Economic Development Associates (CEDA) in January. Along with the grant, comes 150 hours of technical service to further EDA/HRA projects.

“We are thrilled to support these communities in their economic development efforts,” said Ron Zeigler, CEDA CEO. “The Rural Capacity Program reflects our dedication to enhancing the economic vitality of smaller cities in Minnesota, addressing specific challenges they face, and ultimately contributing to their long-term success.”

Prior to receiving the grant, one of the EDA/HRA plans with CEDA was a full cycle polling of local business owners to discuss short and long range planning, hiring and what the EDA/HRA can do to assist.

CEDA has completed surveys of this nature in the past and would assist the EDA/HRA in determining exactly what information needs to be gathered and how it can assist local businesses.

Speaking on behalf of local businesses, EDA/HRA President DuWayne Ditterich noted that he has spoken to other business owners and they are not necessarily of the same mindset where they need to discuss their business needs with other people. What is more important to business owners is expanding business in the village.

“We need to focus on growing versus living in the past and talking to businesses about what they need,” Ditterich said. 

Joy Summers, another local business owner, understood that some people might be hesitant to share their business struggles, but also need to know that the EDA/HRA is there to assist. To do that, communication is key.

“When we get together as an EDA, we’re talking about how best we can help you and we don’t know how that is until we talk to you,” said Summers. “I feel like we have to start that somewhere and it might take a little bit of interaction in order for them to share their needs.”

Paul Sonnenberg brought up that it is likely on a case-by-case basis with each business.

When EDA/HRA applied for the CEDA grant, a category had to be selected for the grant and that category was business retention and expansion program.

Clerk/Treasurer Julie Lammers noted that Vergas has a reputation for providing consistent input on surveys from housing studies to the comprehensive plan.

“People do tell us what they think here in Vergas and that is a really good thing,” she said.

The group used the different avenues of feedback to discuss sample survey questions and topics how the project can be effective for business owners, rather than a waste of time and resources. 

Sunny Oaks

As part of discussing 2024 Housing Goals, the income restrictions tied to the tax forfeited lots of the Sunny Oaks Development were discussed at length and a need for more flexibility to allow buyers to actually purchase the lots.

Summers noted she has lost sales specifically because of the tight restrictions that were set by the county. Ditterich wants to meet with County Community Development Director Amy Baldwin to see if there is any flexibility and who makes the decision to expand the income numbers.

The current income restrictions are $110,000, while a family must have at least a combined income of $100,000 to qualify for a loan. Summers noted, she lost a sale because a potential buyer was $18,000 over the income limit.

After examining state guidelines, the EDA is hoping to rectify the issue at the county level.

Another option is providing a daycare facility on one of the lots. Daycare was listed as a top two priority by Otter Tail County in 2023 and the Child Care Capacity Grant Program from the Minnesota Department of Employment and Economic Development was utilized to support daycare facilities, with a priority based on new or expanding facilities in the county.

The HRA is exploring providing the building and space for a daycare provider to rent and perhaps utilizing a portion of the CEDA grant to assess the relative costs and gather further information.

Vergas currently has two daycares, one inside the city limits. At one time, the village had five daycares.