The Blue Earth City Council voted to give their OK to keeping ownership of the Ag Center for at least the next five years.

The request for the five year commitment to keeping the Ag Center had come from the city’s economic development authority (EDA), which had received the facility as a gift last year from Bevcomm, of Blue Earth.

The vote came at the very beginning of the regular council meeting last Monday night and was taken after a lengthy discussion was held during the council’s work session preceding the actual meeting.

The decision was not unanimous, with councilman John Gartzke casting a no vote.

During the work session, city administrator Tim Ibisch had furnished some additional numbers which the council had requested attheir previous meeting held earlier in March.

Ibisch related the annual insurance on the building would be $7,185 while the property taxes have been $34,758.

“There is also about $38,000 in cleaning maintenance costs and another $13,500 to $16,900 in snow removal expense,” Ibisch told the council. “That amount could fund a full time person to take care of those duties at the Ag Center.”

When Bevcomm owned the facility, they showed annual income of $228,800 and expenses of $192,800, Ibisch said.

“They were showing between $38,000 and $40,000 net profit on it each year,” mayor Rick Scholtes added.

Councilman Glenn Gaylord said he was more worried about the big, hidden costs than the monthly expenses.

“What if we have to do some major remodeling, or replace the roof or redo the parking lot?” he asked. “Where is that money going to come from?”

Mayor Scholtes and councilman John Huisman, both also members of the EDA, said they plan to just use funds generated from the Ag Center income to do any updates and repairs, pointing out that five years of profit would give them $200,000 to use for major improvements.

“We would not have to do all of this at once,” Scholtes says. “We can prioritize the items.”

Huisman added that if the center does not make money, then the EDA still has the option to sell it at any time.

Gaylord said it is important to have a long term plan for upkeep and Huisman responded that is why the EDA wants a five year commitment.

“Why make a five-year plan if there is lack of support from the council,” Huisman said. “I hope this council will back the EDA. It is no different than letting the street committee develop a five-year plan and I don’t see you nit-picking with them.”

Gaylord said it is important to have a plan before giving a commitment.

“We need to get answers to our questions now, before we say yes,” he said. “We don’t want to wonder later why we did not question it now.”

Scholtes pointed out it is important to have a commitment so the EDA can do things such as negotiate long-term lease agreements with the tenants and make some improvements.

“We also have some unused portions of the Ag Center that can be remodeled and rented out,” Scholtes said. “If it is done right we could have another $60,000 per year in income, which would help go towards the major projects there.”

Councilman Dan Brod, who made the motion to give the five-year commitment, said it was important to do so.

“Our three options are to sell it, let the EDA run it with no commitment or give them the five-year option,” Brod said. “We don’t know what is going to happen for sure, but if you wait for all the lights to turn green, you’ll never leave your house.”