The severely-damaged SuperValu roof is pictured above. The Winnebago EDA recently approved an application for a DEED demolition loan which they hope may fund the building’s demolition.

The Winnebago Economic Development Authority (EDA) ushered in a new year with an exciting push toward progress at their regularly scheduled meeting on Wednesday, Jan. 5, at 5 p.m.

The EDA reviewed a Department of Employment and Economic Development (DEED) demolition loan application drafted by EDA specialist Angie Stier.

The EDA is eyeing the loan as a means of facilitating the crumbling SuperValu building’s demolition. The city hopes the SuperValu site may be developed into more economically profitable property for Winnebago.

“It (SuperValu) has been abandoned for over seven years, which has resulted in the obvious need for demolition,” the loan application states. “Having a large eyesore in disrepair downtown, facing Highway 169, has been a detriment to the community and hinder(s) our ability to economically thrive.” 

The city estimates the demolition itself will cost $69,000, with added costs of $30,000 for interior abatement for demolition and $10,000 in restoration costs.

As such, the city is applying for $109,000 in funds from DEED, and funding the rest of the project via abatement bonds.

Faribault County has also pledged funds to aid in covering the cost of the site’s demolition to its ground level.

“The County is giving a portion of $30,000,” Stier explained. “But, only after SuperValu is demolished.”  

Accordingly, pending the loan application’s acceptance, Winnebago and the EDA anticipate an exciting and hopeful upcoming phase of development. However, this is assuming they are able to find a developer for the SuperValu site following its demolition.

The EDA board did note that Winnebago’s ability to pay back the loan hinges upon its ability to locate an interested developer.

“A current business owner in the community has expressed interest in the location, but ideas have not been received on paper in regards to his intentions,” the loan application shares.

It adds, “His concept consists of a rear auction hall … Storefronts are also part of his plan.” 

As the loan application explains, “The (EDA)’s goal is to rejuvenate Main Street, and the SuperValu building’s overwhelming presence on Main Street has hampered this significantly.”

Stier pronounced the application “ready to submit,” and the EDA board voted unanimously that she should send it off before the loan’s early February deadline. The Winnebago EDA also addressed the following agenda items at their Jan. 5 meeting:  

• Approved a business loan application from The Buzz Stop LLC, an up-and-coming Winnebago business owned by EDA board member Amanda Johnson and Gary Osborn.

Johnson and Osborn plan to open The Buzz Stop, a local bar offering alcoholic and non-alcoholic drinks, popular bar food, gambling, and entertainment, at 29 Main Street South.

Johnson and Osborn report total project costs of $138,500, and are requesting $30,000 in funds from the EDA at an interest rate of three percent.

The EDA unanimously passed a motion to approve the loan application, with Johnson abstaining from the vote.

• Viewed a presentation by Stier in which she detailed the EDA’s accomplishments throughout 2021. Stier highlighted several new businesses which have come to Winnebago, Exterior Commercial Grants which the EDA has awarded, businesses which have benefitted from the EDA’s revolving loan fund, USDA-RD grants which the city has received, and important events which the EDA has carried out successfully.

“Working together and utilizing 16 hours per week with a dedicated board and plan, many new and exciting businesses, grants, events and programs have benefitted the community,” Stier noted.

• Discussed a Minnesota Housing Partnership (MHP) Technical Assistance grant which Winnebago has been offered. The grant invites city representatives to participate in MHP’s Housing Institute.

According to MHP, “The Housing Institute supports and strengthens the capacity of rural communities to reach their community development goals through collaborative peer-to-peer workshops and customized assistance.” 

“It is an 18-month process,” Stier added. “A whole group of people in the community come together to talk about housing, and to be educated.” 

Stier reasoned the process could help the city implement projects such as developing a Housing Redevelopment Authority (HRA) or rehabilitating the local Patriot building.

The discussion was merely informational, but Stier urged the EDA to consider the benefits of accepting the invitation to join the Housing Institute program.