Liquor store tops $1 million in gross annual sales

By Robert Williams

Editor

Three members of the Vergas City Council were sworn in during the first meeting of the year, including new Mayor Dwight Lundgren, new council member James Stenger and reelected member Bruce Albright on Tuesday, Jan. 14.

The time and place of city council meetings were adjusted from the second Tuesday of each month to the second Wednesday of each month with the start time remaining at 6:30 p.m.

Appointments were made including Stenger as acting mayor in Lundgren’s absence. Stenger will fill in on occasions when Lundgren is unavailable and also has the ability to sign checks.

Other appointments are listed on the city website under city officials>council portfolios.

Other appointments include:

• Planning Commission Representative and Appointments – Bruce Albright, Rebecca Hasse and Shane Hasse

• Economic Development Authority and Housing Redevelopment Authority Representative and Member – Bruce Albright and Kevin Zitzow

• Event Center Advisory Board Representative and Member- James Stenger

The annual review of the city attorney contract was completed by the former city council and the new council reappointed Thomas Winters of Ramstad, Skoyles and Winters P.A., as the city attorney of Vergas.

The Frazee-Vergas Forum was renewed as the official newspaper, while the city’s website was designated as the official place of advertisement of projects.

Vergas State Bank was designated as the official depository.

The annual review of the city’s engineering firm Widseth’s contract was completed and renewed.

Questionnaires were completed for both the city attorney and engineering firm. Winters received glowing reviews for his efforts and complimented for his genuine care and concern for the city.

Personnel

The personnel committee reviewed Liquor Store full-time positions and recommended making no changes in staffing. Lundgren requested another review this spring with the Liquor Store Manager present.

Two people applied for the city’s Deputy Clerk position and one was interviewed. According to Clerk/Treasurer Julie Lammers, the application period has been extended to Tuesday, Jan. 21, as others have expressed an interest in applying. Any further interviews will be held on Friday, Jan. 24 with the hired applicant expected to start Monday, Feb. 3.

Given the start date is before the next council’s meeting a special council meeting will be held Thursday, Jan. 30, at 8:30 a.m., to approve and confirm the hire at the Government Services Center.

City Center parking lot

The council approved an agreement with Widseth for $30,000 for three phases of engineering services on the downtown parking lot. The council approved paying for the first two phases equating to $12,000 and review phase three at a later date.

“We’re a good way through the design and about 60 percent through and working on our specs for it,” said Widseth Civil Engineer Blaine Green. 

Widseth will provide professional surveying and engineering services for the preparation of a feasibility report for the proposed City Center Parking Lot. The City Center Parking Lot is the area confined by E. Main, E. Linden, S. 1st Ave., and S. Railway Ave. Due to some uncertainty with drainage and storm sewer requirements, this agreement is broken into different phases.

Phase 1: Feasibility Report & Engineer’s Estimate

• This work is to include a topographical survey of the parking lot and abutting curb lines, as well as the delivery of a feasibility report with estimate to resurface and correct drainage in the area.

Phase 2: Design, permits, plans, specifications, bidding.

• This work includes utilizing the survey data to design and deliver plans and specifications, and assist in the bidding of the project.

Phase 3: Construction admin, as-builts, project closeout, and final assessment hearing.

Bids are expected to be received around late February or early March.

Utilities

The council approved a bid from Tri-State Pump and Control for a repair of one of the city’s solids handling wastewater pump for a total of $5,405. One caveat is a potential deduction of $2,430.77 if the cast iron volute is not in need of repair upon inspection.

Utilities Superintendent Mike DuFrane reiterated issues with “flushable” wipes that have been brought up at multiple meetings in Frazee by Public Works Supervisor Larry Stephenson. Despite what might be printed on the products, the wipes are not flushable in smaller municipal systems and are detrimental to larger metro systems as well.

The council also approved the purchase of an air compressor with funds totaling $872.20 to be used. The funds derive from a past sale of brass during a meter exchange.

Liquor

Liquor Store Manager Kyle Theisen presented his annual report, including sales in excess of $1 million for the first time. The store transferred $25,000 to the general fund in late 2024 and gave over $14,000 in discounts to the community.

The store began selling THC products in mid-February of 2024 and it accounted for only 3.75 percent of sales, something Theisen expects to change.

“That’s the bottom category but it is definitely growing quickly,” he said.

• Yearly sales – $1,012,236

• Cash received – $336,425

• Credit Card transactions – $660,265

• Checks received – $14,651

• Profit after product was paid for (excluding wages, utilities, etc.) $266,331 (29.49%)

• Profit after all expenses – $91,725

• General Fund Transfer – $25,000

• Discounts given to the community – $14,347

Top 5 products sold

• Kinky 50ml – 8,113

• Fireball 50ml – 1,878

• Busch Light 30 pack – 1,312

• Coors Light 24 pack – 1,249

• 20lb bag of ice – 965

Both Mayor Lundgren and Albright thanked Theisen for his attention to detail and for providing the report.

“I think you’re doing a real good job bringing in the business in the summer when it is available and in the wintertime when it’s not available so much, but you bring in people and we appreciate that,” said Lundgren. “It’s good for the city.”

“When you get to this level of detail it shows that you truly have an understanding of what’s going on in your business,” said Albright. “It tells me you have a good feel for what’s going 

on.”

Mayor’s Minute

Lundgren introduced a new segment of the council meeting discussing some of his past experiences at the city level, along with his appreciation for current city and committee staff and his willingness to work with them.

“I will back all employees at 100 percent,” he said. “I have no problem supporting you in anything.”

Lundgren, a Frazee native, also noted he is a Vergas transplant but in doing so expressed how much he is looking forward to working with residents and employees to improve Vergas.

“I know we can keep and maintain a pleasant and viable community for all,” he said.

Public hearing

The council held a public hearing prior to the council meeting regarding tax abatements for Hunter Ditterich and Colton Ditterich on individual lots purchased in the Sunny Oaks subdivision. 

The city is working with Otter Tail County to provide a tax abatement up to $5,000 from the city and up to $10,000 from the county taxes. The requests are to abate 100 percent of the increase to the city portion of real estate taxes related to the residential building improvements on the subject properties for a period of up to five years with a maximum of $5,000 rebated.

The county has already approved their portion and the council approved the city’s later in the council meeting by a unanimous vote on both parcels.

Both of the applications were submitted prior to the end of 2024, as the county has discontinued the program as of Dec. 31, 2024.

Vergas mayors since 1905

1905 Mike Poppler

1906 James Nesbitt

1909 B. Stangenes

1910 H. C. Otto, M.D.

1911 William Sauer

1913 Peter Meyer

1914 John Bruhn

1919 James Nesbitt

1920 Phillip Eichmiller

1926 Art Eberviller

1927 O. W. Luebberman

1959 James Mistelske

1961 Gordon Dahlgren

1987 Paul Pinke

1989 Greg Dahlgren

1995 Roger Hanson

2001 Dean Haarstick

2021 Julie Bruhn

2025 Dwight Lundgren