Small Business Development Center satellite office coming to Frazee

By Robert Williams

Editor

Bids for the interior construction of the downtown retail building was extended to Thursday, Feb. 27, at the latest meeting of the Frazee Economic Development Authority (EDA) Tuesday, Feb. 25. The EDA held a special meeting to open bids on Monday, March 3 at 11 a.m., at the fire hall.

Plumbing work has an eight-week wait time, making the first date available for approval of plumbing plans on Thursday, May 1.

Initial hopes were for opening the new spaces by May 15 to house Mama’s Pizzeria N Scoops and Home Sweet Bakehouse. That opening date is unlikely. 

Another issue is that additional power was not brought to the building during the initial construction. The Bakehouse contains a commercial kitchen with all electrical appliances. In the current setup, there is not enough power on the 200-amp panel.

Two different temporary options are being explored to provide enough power until a future road construction project allows for more permanent electrical work to the building.

City Council Liaison Andrea Froeber expressed her disappointment in the company that designed the plans as architects and engineers, Goldmark.

“Personally, I think Goldmark took advantage of a small town,” said Froeber.

According to City Administrator Stephanie Poegel, she had the building plans looked at by a local professional who stated he would not have approved the plans. 

The delays and extra costs have been attributed to Goldmark, who were contracted to design a building up to code and failed to do that. The work was approved by a contracted city employee.

“The city building official at the time should have stopped it,” said EDA President Heath Peterson.

Communication issues were also had about the future of the building where it was presented as future office space, not necessarily including a commercial kitchen. 

“We have safeguards in place now; we’re checking references; we’re using new people and have a new building inspector who knows what he’s doing,” said EDA Consultant Karen Pifher. “There are things in place so that this would not happen again.”

Poegel also related that she and Pifher, as the city admin and EDA consultant, have a broader grasp on building projects and businesses in Frazee.

“We both think big,” Poegel said. “Never would I have thought we’re only ever going to have four offices in this building. That’s not realistic. You need to look at what do we want or what do we envision 10 years down the road?”

Initial lease agreements were going to allow the tenants to hire their own builders for the interior design, but two construction deficiencies found in the current Seip Drug portion of the building caused the EDA to take control to protect its asset.

More discussion will be had on how to proceed and fund any extra costs after opening the bids.

The EDA also received good news on the building with a potential suitor for the fourth and final open retail spot, the middle stall, according to Pifher.

A local business person wants to move into the space based on a few conditions, including rental cost and having the ability to sublease. The business is an office-based business.

The EDA discussed potential subleasing application processes, the rental fee, and safeguards with rental ties between sublet businesses.

Bill Daggett, a new member of the EDA this year, also expressed the EDA’s goal is to aid businesses growing here.

“The whole purpose that the community invested in that is to drive business,” he said. “We’re not in business to make money off it. Our focus is to try to break even and try to  help be an additional burden on the rest of the city while driving economic activity. So, going down to a below market rate. We don’t want to be in competition with other landlords, but I think I’d be open to an accelerated laddering up to market rate.”

The EDA agreed to continue negotiations on rent, the subletting approval process, and escalating rent if subleases were approved and right of refusal.

A potential renaming of the building was discussed but the group declined. It is officially known as the Downtown Infill Building.

A name was deemed unnecessary given that all four stalls will have signs on the building’s exterior.

The EDA also discussed the next project after completion of the infill building. The city has a surplus of the Small City Development Fund that has been sitting. Pifher wants to mobilize the funding to support business development and improve Main Street.

Part of the funds are allocated to facade upgrades. The EDA is hoping to start a campaign to help city businesses improve their exteriors or other facilities upgrades.

Becker County EDA

As the second largest city in the county, Pifher, along with Becker Economic Development Specialist Cody Piper, has been advocating for the county to do more in Frazee. The County EDA has an open seat that was formerly filled by Hank Ludtke.

“We do have an opportunity as the second largest community; our school district is the largest geographically, and in my opinion, we have not received any support from the county EDA. There’s an opportunity for that to change.”

The District 3 opening has one year remaining to serve.

The Becker County EDA consists of a seven-member Board of Directors. The Board consists of two County Commissioners and one member residing in each of the five Commissioner Districts. The Directors serve for terms of six years. The EDA meets the third Thursday of every month at 3 p.m., at the Becker County Court House.

The EDA currently consists of: Karen Mulari – District 1 Appointed March 2023; Tom Klyve – District 2 Appointed October 2021; Open – District 3 Appointed March 2020; Sean Felker – District 4 Appointed August 2022; Abby Anderson – District 5 Appointed March 2023; Richard Vareberg – District 4 Commissioner; Erica Jepson – District 1 Commissioner.

Rachael Johnson from Frazee is planning to seek the appointment.

Red Willow Estates

A public hearing was held on the sale of 936 Red Willow Drive to Joshua Samuelson for residential use. The agreement dictates that a single family dwelling be built upon the property within one year of the date of sale Feb. 25, 2025. The title may not be transferred in the first year without the approval of the Frazee EDA.

Youth Driven 

Transformation

Creating Community Consulting (CCC) and CornerStone Community and Youth Center are presenting a Youth Driven Transformation – Models and Tools for Action Conference March 20-21 at the Event Center.

“It’s going to be fun; we’re excited,” Pifher said. “The first day is mostly hearing about all the projects we have done and the successes and what are the tools and toolkits that go with that. The second day is how do you leverage money? It’s capital campaigning and grant writing training.”

For more information and to register visit: http://youthdriventransformationconference.eventbrite.com/

SMDC

A Small Business Development Center (SBDC) based in Moorhead that serves the nine-county region has contacted Pifher and Megan Jenson’s company Creating Community Consulting about hosting a SBDC satellite office in Frazee. The location was chosen over one in Detroit Lakes.

“They’re so impressed with our work and what we’re doing with rural communities, they said they feel we’re doing the best rural community development work out of the entire region, which was very cool. They also want to contract with us so that SBDC would have a satellite location at Creating Community Consulting,” said Pifher.

SBDC would finance CCC to do one-on-one consulting to aid businesses in starting and launching. The only other SBDC satellite office in the region is in Fergus Falls. 

CCC also donates far more time than it is paid for in EDA consulting for Frazee and this agreement will make up for that difference.

“It’s a big deal,” said Pifher. “We’ll be able to serve more people who are looking to open businesses.”

“That’s wonderful,” said Froeber. “Having been in the city and seeing the previous situation, what you guys have managed to do in such a short amount of time is huge and we as a community are so fortunate, so thank you very much.”

Wannigan Regional Park

A job posting will be coming in March for a Park Manager position.