Going over budget
The new North Industrial Park project in Blue Earth is coming in at a higher cost than first anticipated.
The project will be about $784,000 short, when all the income and expenses are tallied up, says Linsey Preuss, of the Faribault County Development Corporation.
Preuss gave an update on the numbers to the members of the Blue Earth Economic Development Authority recently.
The total revenue received (or anticipated) totals $2.531 million, Preuss reported. However, the expenses already total $2.980 million.
“The bid for the project (earth moving and utilities) came in at $2.150 million and so far we have paid $1.754 million,” Preuss says. “We will have more bills still coming in.”
The main reason for the extra costs was everything other than the construction itself, Preuss told the EDA members.
“The costs are up from our estimates because of the extra engineering fees, legal fees and appraisal work we have had to do because of things like wetlands credits, a well, and government regulations,” Preuss says.
All of those items topped $1.2 million, which was higher than expected.
Preuss says paying the extra cost now is coming from EDA reserves, but will have to be eventually paid by the city, possibly through a bond.
So far the revenues for the project have come from a $993,050 federal grant, $200,000 contribution from the EDA itself, $444,088 from an EDA grant reimbursement, $190,935 for the sale of the lots to Kibble Equipment, $10,000 donation from First Bank Blue Earth, $50,000 donation from Bevcomm Foundation, $5,000 donation from Ag Star and a $100,000 contribution from Blue Earth Light and Water.
In addition, another $541,156 EDA grant reimbursement is still expected to be received.
All together that totals $2,531,230 for the project.
Total expenses as of Dec. 1 have been $2,980,464 which means a current deficit as of Dec. 1 of $449,234.
The EDA did not take any formal action on the matter at their December meeting