Lundgren joins meeting to discuss local issues

By Robert Williams

Editor

The Vergas Economic Development Authority (EDA) and Housing Redevelopment Authority (HRA) reelected President DuWayne Ditterich and Vice President Vice President Bruce Albright and replaced Assistant Treasurer Vanessa Perry with Paul Sonnenberg during the latest meeting Wednesday, Feb. 5.

Joy Summers remains on the board and former President Kevin Zitzow is a new addition for 2025.

Meetings will continue to be held on the first Wednesday of the month at 2 p.m., at the Government Services Center.

Total revenue for 2024 for the EDA/HRA came from the annual $5,000 budgeted by the city council and three properties that were sold. For the year, the EDA took in an extra $14,018.44. That total was nearly the same as what the EDA/HRA paid Otter Tail County for assessments on the Sunny Acres properties sold.

Grant funds were also received from Vergas State Bank, Vergas Community Club and CEDA totaling $25,000 with a match from Otter Tail County to total $50,000.

The current grant balance is $49,237.91.

SBDC

Ian Carlstrom, Regional Director of Small Business Development Centers (SBDC), gave a review of 2024 working with the HRA/EDA and CEDA Regional Manager Jordan Grossman.

The SBDC sponsored the digital marketing workshop held in October, the first of four planned workshops in Vergas. There were 19 attendees at the workshop and another is planned for spring or summer, which will also be about digital marketing driven by the feedback received after the October meeting.

SBDC is coming off an historic year of serving 450 clients across a nine-county region with a dozen consultants who live across the region.

“All we do is support small businesses, whether they’re starting up or in business,” said Carlstrom.

In Vergas, SBDC helped six different businesses, specifically, with nearly 50 hours of support.

“Which doesn’t sound like a lot, but that is almost 1.5 percent of the population of Vergas and region-wide, we actually reach much less than 1 percent of the whole region,” Carlstrom said. “Our efforts in Vergas, from the measures I’m looking at on paper, show a significant investment in supporting the small businesses of Vergas.”

SBDC is foundationally funded by federal Small Business Administration (SBA) funds, according to Carlstrom. Those funds need to be matched dollar for dollar. 

The Vergas EDA/HRA donated $2,500 to SBDC, which will be matched by federal dollars.

CEDA

The aforementioned grant money has already been used by Cutting Edge in Vergas. The program is constructed to help small businesses rehab interiors and help with energy efficiency. The applications are available at the Government Services Center and online at the city’s website under EDA/HRA under the link Vergas EDA Community Rehab Grant form.

Grossman has spent time in Vergas discussing the program with local businesses.

It is a matching grant program for commercial building updates up to $5,000 per calendar year.

“This program is very successful in other communities,” said Grossman. 

There are two Vergas companies currently in the application process.

Ditterich noted that January though March is a typical lull in Vergas for businesses and expects with the coming tourist season arriving with spring it will make it easier for businesses to take advantage of the program.

Daycare

Grossman’s assistance with the EDA/HRA has been grant funded and with that funding running out, she has been working on an exit strategy to solve the lack of daycare in the village.

The current status is as of March there will be no daycare available in Vergas.

“I have a feeling and understanding that my role…they would like me to not be overinvolved,” she said. “I have picked up on that.”

Grossman has passed on contact information for those involved and noted that the EDA wants to be involved in a solution.

“I suggest you look into other avenues of having another facility available in town for somebody to lease out for daycare use,” Grossman said.

Vergas is available for a discounted contract with CEDA, which typically contracts through the city rather than a committee.

Ditterich thanked Grossman for her efforts and the impact she made on Vergas. 

Mayor attends

Mayor Dwight Lundgren was in attendance in person for the meeting and brought up a number of topics, including elderly housing and daycare.

Lundgren has explored state and federal housing grants, some with incentives for people with disabilities. He was also brought up to speed on the county’s senior housing program and the lots Otter Tail County owns in the Sunny Acres subdivision. The county broke ground on a senior housing project in Dalton last July that will be completed after winter.

The project will provide six senior rental housing units to help address the housing shortages in the area. Two triplexes will provide one- and two-bedroom, 1 ¼ bathroom, single-level units. The future use of the county-owned lots in the subdivision is very similar to the Dalton project. Currently, Vergas is on a waiting list that is dependent on multiple funding sources and other cities that are eligible for the project.

Ditterich noted he wants to get the Sunny Acres project completed in a two-year span. There are five lots remaining for sale in the subdivision.

“I would like to find a way to move ahead but costs are tremendous right now,” said Ditterich. 

The group also discussed tiny homes as a solution with costs ranging more than $200,000 for a custom build using all local contractors.

“It’s just not cost effective to go that route. I think we’re all in agreement; we love the tiny house route. We have to figure out what funds are available and then we can definitely come up with a plan. There are options but the funds have to come first,” said Summers.

Lundgren contributed to a lengthy conversation on growth in Vergas and multiple options of where that growth could happen in the future.