One of two remaining lots spotlighted as solution

By Robert Williams

Editor

Community and Economic Development Associates (CEDA) Regional Manager Jordan Grossman presented a probable solution to the lack of daycare in Vergas, along with taking up one of the two remaining lots of the Sunny Oaks development at the Wednesday, March 5 meeting of the Vergas Economic Development Authority (EDA) / Housing Redevelopment Authority (HRA).

Grossman spoke with outgoing Otter Tail County Auditor Wayne Stein about reconveying one of the lots in Sunny Oaks to the county to specify different usage and to ask for a purchase back to accommodate that usage, in this case a daycare facility.

“I would encourage a quick action on this in the next month or two,” she said.

The timeframe is crunched due to Stein having recently announced his upcoming retirement.

The reconveyance of a lot to the county would drop the affordable housing attachment. When the HRA purchases it back from the county, which is typically done for a symbolic one dollar, a building would be built on the parcel available for one to two in-home care providers.

The HRA would likely need to continue utilizing CEDA services to help build the facility, as the EDA does not have the finances.

“I definitely have a network of potential interested parties, as well as, Vergas locals, in general, to see a site be built,” Grossman said. “There are two potential providers who would love to have space in Vergas already.”

Owning or renting the building are both options, depending on the provider’s financial capacity.

“There are a lot of higher level funding programs that could assist with that,” said Grossman.

The idea was not pursued further pending discussion with the EDA/HRA. The plan got a very positive response from all members in attendance Wednesday.

“I think that would be amazing and a great use for one of those lots,” said Board Member Joy Summers.

The lot in discussion is 220 Eva Street (see map).

“If we can get help building it I think we can get it built with the help of a provider,” said President DuWayne Ditterich.

One of many ways to get the facility built is to donate the lot to an owner to rent.

The city could lose the assessments, but would gain tax payments and paid utilities to begin recouping that cost. That would have to be presented to the city council for approval.

“And the financial impact of having another site in town separate from any other organization who may or may not choose to move ahead with a daycare center,” said Grossman. “That long-term economic impact, I believe, outweighs that initial loss.”

Another aspect of the building is to build the space in a way that could be sold into a residential home in the future to be saleable in the future.

According to Secretary-Treasurer Julie Lammers, the City of New York Mills completed a similar project and had two separate daycares in the same house.

“Both of the daycares would take care of 24 kids, instead of 12,” she said.

Given the level of interest, Lammers is going to consult New York Mills on their project and Grossman will pursue more information from Otter Tail County to bring a proposal back to EDA/HRA next month.

The group unanimously passed Summers’ motion to go ahead with a request from City Council on the assessments removal and discussion on daycare at the upcoming council meeting. 

Ditterich emphasized the need to attract families and people that would be interested in living in Vergas because of a daycare facility.

“They would be younger, hopefully, thriving families that it would attract,” he said. “We can have a great community growing with the 60+ crowd, but we have to have families.”

“It’s a message to the people of Vergas that we care,” said Summers.

“I think it’s a very valuable project for the City of Vergas,” said Council Liaison Bruce Albright.

Grossman’s current reduced rate contract is expiring with the EDA/HRA. She will be bringing back an estimated cost of her services for the rest of the year.

A brief discussion was had about the remaining Sunny Oaks lot 419 Diane Avenue. The property is heavily-wooded and sloped with a sliver of level ground. The EDA/HRA plans to visit the lot in the future to examine its development potential or lack thereof.

Pelican Ave/Hwy 35

Future use of 3.1 acres of property on the corner of Pelican Avenue and County Highway 35 was discussed. The property has a significant cost to develop and potential issues with the right of way at the junction of the two roads.

The land came up during conversations about potential zoning changes to the area with Mark Sand & Gravel Company (MSGC). The asphalt paving and aggregate contractor provided information from a surveyor on the selected portion of property and MSGC would be willing to work with the city on any potential future improvements. Conversations have not gone further than that.

SBDC

The EDA/HRA will be teaming up with The West Central Minnesota Small Business Development Center (SBDC) to bring more workshops for business owners this year. On Monday, March 31, the SBDC will present “Digital Marketing Essentials for a Thriving Summer,” a seminar designed to help Vergas businesses maximize the tourist season with effective, online strategies.

A second seven-week program called “Rural Edge,” a cohort program designed for small towns and rural entrepreneurs combining business training, peer support and leadership activation to drive real world success and community growth. The course will be held after Looney Days to accommodate the summer schedules of local business owners. Initial plans are to have the weekly meetings on Thursdays, likely beginning in September.