By Robert Williams

Editor

West Central Minnesota Small Business Development Center (SBDC) Regional Director Ian Carlstrom presented to the Vergas Economic Development Authority (EDA) / Housing Redevelopment Authority (HRA) on its support of the entrepreneurship’s lifecycle in the area on Wednesday, Sept. 4.

Carlstrom was one of the EDA/HRA’s keynote speakers at last year’s annual meeting.

SBDC is a free, confidential resource to people looking to start a business with services such as business planning, financial projections, and market data, according to Carlstrom.

“The vast majority of our program is one-on-one consulting,” he said.

Of the nine SBDC regions in Minnesota, the west central region (Becker, Clay, Douglas, Grant, Otter Tail, Pope, Stevens, Traverse and Wilkin counties) has seen the highest growth from 2022-23. Current numbers from this year have surpassed last year already, said Carlstrom.

“Our foot’s on the gas; we are out there in the communities serving the people,” he said.

Since the beginning of 2023, SBDC has provided $23 million of capital to entrepreneurs and over 5,000 hours of assistance with 70 new businesses having been created.

The majority of that capital is provided via loans with a minimal amount of grantwork being used.

SBDC is a government-funded program and next year’s budget has been submitted, making immediate assistance something that could take some time, according to Carlstrom.

Council liaison Bruce Albright brought up the Vergas conundrum of having a full business district and a need to find space for more businesses. From a planning and zoning perspective, Albright was looking for assistance in how to grow the business district and get new businesses started.

“We need space,” Albright said.

He described the issue as the city office is currently being approached by businesses that want to move to town and there is no room for them.

“We don’t have space to put you; so that’s a problem,” he said.

Carlstrom noted that SBDC workshops can bring together leaders of multiple municipalities and entrepreneurs in the region to share resources on how to solve unique situations.

EDA/HRA President DuWayne Ditterich wanted to know the breadth of various funding sources that can be provided by SBDC.

SBDC does not have its own funds to disperse, but consultants all have different experience in finding potential gap-financing options and creating complete funding packages.

Arts in Vergas

Mayor Julie Bruhn suggested to the Vergas Arts Club about applying for an Artist on Main Street grant available through the Lakes Region Arts Council (LRAC) and West Central Initiative. The grant is $10,000 and available to towns with a population less than 5,000.

According to LRAC, they are seeking two west central Minnesota communities of 5,000 people or fewer to participate in the Artists on Main Street program from January 2025 through December 2025. The EDA/HRA would be the fiscal host for the grant; the Arts Club would write the grant, led by President Carol Albright.

A discussion was had on why the EDA is a better organization to host the grant compared to the community club—the EDA’s non-profit status being the big determining difference. The city can also host the grant.

The EDA unanimously passed a resolution to be the fiscal agent and approve the Arts Club applying for the grant.

CEDA

Jordan Grossman reported on six area businesses that were interested in utilizing a Community and Economic Development Associates (CEDA) community partnership grant of $15,000, with Otter Tail County matching grants up to $25,000 to launch the program.

The EDA/HRA can only recommend to city council that Grossman proceed to applying to the program.

“I think it’s a good use of your CEDA funds, realistically, it would be great to have a bigger pool of money to allot to businesses,” said Grossman.

A EDA elected to send the information to the Community Club for further consideration.

Zoning map

The EDA/HRA continued its discussion on zoning in Vergas, including an updated draft version of the zoning map. Discussions included future usage of potential commercial zoning both inside and outside of city limits.

The only change was to a commercial zone of land to the driveway area of the first residential property near the gravel pit on County Road 35. The resolution sends the change to Planning and Zoning.