Times Newsroom Blog

The city Public Works Committee this evening recommended council approval of an agreement with Bob Herkenhoff, who wants to extend utilities to around 100 acres of land he owns in the city's northeast corner and have about 20 home lots ready to sell this summer. Once he extends the utilities to the lots, on land Herkenhoff purchased from the Nagel family in 2010, the city will forgive approximately $35,000 remaining to be paid on an assessment for street work on Eickhof Boulevard several years ago. Since the 2011 assessment has already been certified, Herkenhoff will have to pay that, around $8,000, but the city will then refund him that amount. So, in exchange for what he'll spend on the utilities, around $100,000, Herkenhoff estimates, the city will waive around $43,000 in assessments.

Two weeks ago, realizing he'd start paying higher taxes once he platted the lots, Herkenhoff told the city he'd likely back away from his development plans if the city didn't waive the assessments. City officials and committee members were receptive to Herkenhoff's plans because the city needs more home lots and officials want to continue to add to the tax base. But they also made it clear they wanted any waived assessments to be contingent on him getting the utility work done this summer. Herkenhoff said he's working with Rich Clauson at Widseth Smith Nolting & Associates and will get started in the spring. He plans to sell the first 20 lots, around 100 feet by 200 feet in size, for around $18,000 each. Since they'll involve new home construction, City Clerk/Treasurer Betty Arvidson said they'll be eligible for the city's housing incentive package, which includes, among other things, two years of property tax abatements. Arvidson also added that she's received a few calls in her office from people wondering when Herkenhoff's lots will be available for purchase. Hearing that, Herkenoff said he'd likely hire a realtor to help market and sell the lots.

Colborn property

The city Administrative Committee, which met after the Public Works Committee, recommended council approval of a purchasement with Dave Colborn for the city to buy the 100 acres of land he owns south of Ingersoll Avenue for $590,000 with an eye on readying the land for future industrial development. The city's industrial park is essentially full.

The city will tap its Municipal Land and Buildings Fund for the money, and CHEDA is expected to invest some as well. In addition, Crookston Jobs, Inc. a non-profit that served as sort of a pre-cursor to the EDA when it came to investing in land and things that would boost employment in Crookston, often in the industrial sector, will hold a special shareholders meeting on March 27 to discuss the potential of investing in the land. City Administrator Aaron Parrish said Jobs has some money to invest, and could potentially contribute up to one-third of the sale cost.

Colborn currently rents out the land for agricultural use. The current lease has one year remaining. Parrish said it's possible that the city will extend the lease for a year or two with the current tenant if an agreement can be worked out.

Castle Park grant

The committee enthusiastically recommended council approval that the city continue with its plans to submit, by the March 30 deadline, a grant to the DNR, through the Legacy amendment passed in 2008, that could transform Castle Park in Sampson's Addition into a recreation and natural resources destination. Although the estimates are early, Parrish said the total project could cost just over $400,000, with the grant requiring a local match of one-fourth the total cost. The Park Board, which previously endorsed the grant application, identified Parks and Recreation funds that could be used to come up with the local match.

If awarded, Central Park would no longer be used as the city's primary campground; it would be replaced by a 20-stall campground in Castle Park, with about a handful having sewer service. There would also be a bathhouse. Further north in the park, the dog park would be located, and a portion of the wooded area would be cleared partially for a Red Lake River recreation area, a shelter, and a fishing pier. Trails that have existed in the woods for years would be enhanced as well. The nature-based park fits the grant parameters nicely, Parrish said, adding that the city's application would be made even stronger because the fact that the Central Park campground is vulnerable to flooding when the Red Lake River rises each year.

As part of the application process, a public hearing is required to gather public support, or public concern. That'll be scheduled for March 14, at the next council meeting.

Check out Tuesday's Times or check back at crookstontimes.com Tuesday afternoon for more details on what the committees did Monday night.