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W’bago wants Kaduce buildings

By Staff | Dec 4, 2016

The Winnebago City Council is working on a purchase agreement to obtain two properties from Kaduce Plumbing & Heating in town, according to city administrator Chris Ziegler.

A 3-1 vote at the council’s Nov. 7 meeting initiated Winnebago’s plan to purchase the buildings contingent upon state bonding statutes and bond financing, and now steps are being taken to finalize a sale.

“We need to have a survey done and change the parcels slightly from how they are currently listed,” Ziegler said. “(But) I anticipate a February closing.”

The progress represents a step forward for the city in its attempt to land two of three Kaduce properties, Ziegler added, and follows up months of discussions regarding the buildings’ future, including a special meeting dedicated to purchase talks held in October.

If numbers from the City Council’s November vote, which capped off a discussion closed to the public, remain intact, the two Kaduce properties are expected to be purchased for a combined price tag of $290,000.

Kaduce Plumbing & Heating is moving to Mankato, according to Ziegler, as “a large number of their customers” are in that area.

Winnebago is not, however, in a position to make any substantial purchase decisions when it comes to Zierke Built Manufacturing (ZBM), another local business with properties that figure to be up for grabs upon the company’s planned relocation to Fairmont.

“Council ruled them out at this point based on the price and our needs for a Public Works facility,” Ziegler said, referencing one-time plans by Winnebago to pursue Zierke properties for future city use. “Our main focus for the Zierke buildings is to assist them in locating a buyer and bringing in jobs.”

Greg and Kyle Zierke, of ZBM, paid several visits to the Winnebago Municipal Center in late summer to ensure the city would grant their company a release letter, which enabled ZBM to access state funds as part of its move out of town. But both the Zierkes and council agreed to work together to seek future business opportunities for the ZBM buildings in Winnebago.

In the event the properties are not taken over by private hands, Ziegler said the city could explore alternative options for the buildings.

“There may be a possibility,” he said, “where we look at an Economic Development use for them down the road if they are not able to locate a buyer.”