Council backs EDA/HRA daycare project

File photo
Liquor Store Manager Kyle Theisen presented the annual store report to the Vergas City Council Tuesday, Jan. 20.

By Robert Williams

Editor

Vergas Liquor Store Manager Kyle Theisen stressed declining liquor sales during his annual report to the Vergas City Council on Tuesday, Jan. 20.

The store currently employs two full-time employees and two part-time employees.

“Sales have decreased from 2025 versus 2024,” Theisen said. “Fortunately, it’s not just us, but unfortunately, we are affected and it’s kind of a nationwide thing happening right now.”

Despite that, the Vergas Liquor Store exceeded $1 million in sales in 2025 and exceeded 2024’s total sales by $1,800.

“Yes, we’re still getting sales, yes, we’re still going into profit, but it is not the increase that I was expecting,” said Theisen.

Vergas Liquor Store is part of the Minnesota Municipal Beverage Association (MMBA) and Theisen stated the president of MMBA asked for all stores to submit their sales history in May and after that THC sales history was asked to be submitted.

“Alcohol sales are trending downward nationwide,” Theisen said.

The Liquor Store was able to transfer $20,000 to the city’s general fund in late 2025. That number continues a downward trend of transfers to the city beginning in 2021-22 when the store transferred $30,000. That number dipped to $25,000 in 2023 and 2024.

A somewhat surprising revelation was Theisen stating overall sales were down in June and July, prime resort and tourism months in Vergas.

The third quarter of the year saw the highest sales:

Q1 $148,766

Q2 $280,758

Q3 $379,933

Q4 $204,392

Total: $1,015,874.

Other council actions

Acting Mayor

A unanimous vote named councilman James Stenger as the Acting Mayor when needed. In Minnesota, an Acting Mayor steps in for an absent or disabled Mayor, performing all mayoral duties like presiding over meetings, managing city operations, enforcing laws, and representing the city, until the Mayor returns or a successor is appointed, holding the same powers but also retaining their council vote.

Appointments

The following appointments were approved:

Council Portfolios

Appoint City Attorney- Ramstad, Skoyles and Bakken, P.A. 

Designate Official Newspaper – Frazee-Vergas Forum

Designation of official place of advertisement of projects: www.cityofvergas.com

Designate Official Depositories: Vergas State Bank 

Appoint of City Engineering Firm – Widseth

Daycare

The city council waived “whack and sack” fees for the future daycare project on Altona Avenue. More commonly known as SAC (Sewer Availability Charge) and WAC (Water Availability Charge), these are municipal fees charged to property owners for connecting new construction or existing buildings to public water/sewer systems, covering infrastructure costs.

The EDA/HRA also requested a resolution of support from the council on the daycare project, which was approved unanimously.

“That will help as we apply for grants that are available,” said councilman Bruce Albright.

Meetings

The council voted to keep meetings on the third Tuesday of each month at 6:30 p.m., at the Event Center.

Parking

City Engineer from Widseth Blaine Green provided an update on the City Center parking lot. 

A second pay installment of $54,449.01 is owed to the contractor. The only work remaining is more concrete that will be completed in the spring.

The assessments to relative property owners will be charged at a cost of $26.88 per linear foot basis. Assessments range from $800-$3,400 for a total of $10,671.36, $36,997 including the city’s share with its two parcels.

The council agreed on a proposed repayment term of 10 years.

A public meeting on the assessments will be held at 6 p.m., prior to the next council meeting, Tuesday, Feb. 17 at the Event Center.