BEA Schools hope to build a tennis facility, but the BE Council wants a new facility at Putnam Park, pictured above, too.

Local tennis court facilities were on the agenda once again at the Blue Earth City Council’s March 21 meeting.

When confronted with the issue, a few council members conducted a fierce rally at the net.

A recommendation from the Tennis Court Subcommittee regarding a financial partnership between the city and the Blue Earth Area (BEA) school district was the debate’s genesis.

Both the city and school district are interested in updating Blue Earth’s tennis facilities. However, there is a lack of consensus regarding where the facility should be located – at Putnam Park, BEA High School, or both.

Furthermore, if there is a facility built at the high school, not all council members agree the city should help fund its construction.

The Tennis Court Subcommittee recommended a two-component project.

Component A would consist of an eight-court tennis facility located at BEA High School, with an estimated $1,026,100 cost.

Component B would consist of a full reconstruction project at Putnam Park, potentially with multiple recreational facilities, with an estimated $779,050 cost.

The school district has informally committed to a 60/40 percent cost sharing split of Component A with the city, plus the cost of interest on the project.

Meanwhile, the city could apply for a Department of Natural Resources (DNR) Outdoor Recreation Program Grant for Component B, which has a maximum award amount of $250,000.

“It is likely that both project components would need to be financed together,” city administrator Mary Kennedy noted in a memo to the council.

Kennedy continued to explain why the city’s options for financing the remainder of the project are limited.

Typically, general obligation abatement bonding would be the city’s best option.

“Currently, the city has three outstanding bonds that were issued utilizing the Tax Abatement bonding authority,” Kennedy said. “Because of the annual limitation on these bonds, the city does not have the authority to issue any more of these types of bonds.” 

Kennedy concluded, “Our only option is to engage a local lender.”

Blue Earth mayor Rick Scholtes indicated funding could be secured from First Bank Blue Earth.

However, council members Glenn Gaylord and John Huisman expressed deep discomfort with the presented recommendation.

Gaylord preferred to split the suggested A and B project components.

“If we only go with the Putnam Park project, can we still get the grant?” he asked, to which inquiry Kennedy responded in the affirmative.

Scholtes noted the grant would only fund a portion of Component B, however.

Scholtes also pointed out the city would only be expected to assist with 40 percent of Component A’s financing.

Gaylord responded, “We don’t need 40 percent of it.” He added he felt the city of Blue Earth would only benefit from Component B – Putnam Park’s portion of the project.

Meanwhile, Huisman was primarily concerned the city would become responsible for funding and facilitating future maintenance for the high school tennis courts.

Additionally, Huisman wished to receive confirmation from the school district that the facility would be open to Blue Earth residents as well as students.

He also suggested, “I think we’re being generous with (financing) 40 percent.” 

Council member Ann Hanna noted the consequences of refusing to help finance the school district’s portion of the project.

“If we don’t help the school, there won’t be a tennis program,” she said.

“We’re trying to work together,” council member Wendy Cole agreed.

“We’ve got to get a loan no matter what we do,” Scholtes added. “We would be able to handle the payments for either project. It’s not a huge reduction by dropping (Component A) out.”

Regardless, however, Scholtes insisted the school district should be informed immediately if the city wishes to alter the proposed cost-sharing agreement for the project.

“We need to let the school know if we’re out,” he reasoned. “If we are, we’re wasting their time.” 

Gaylord suggested reducing the city’s financing of Component A to 30 percent.

“This is a negotiation,” he added.

After further discussion, the council voted unanimously to send the following recommendation to the school district: the city will offer to fund 30 percent of Component A of the project, with the stipulation that the city will not fund any future maintenance for the facility.

Additionally, the city required confirmation that the high school facility will be open to residents.

“We’ll send that to (the school district) as a recommendation and see what happens,” Scholtes said. “We’re headed in the right direction.” 

In other business, the Blue Earth City Council: 

• Passed Resolution 22-09 approving Blue Earth Light and Water (BELW) to apply to the Minnesota Public Facilities Authority (PFA) Clean Water/Drinking Revolving Loan Fund (RLF) for improvements to its drinking water system and the municipal wastewater treatment system.

The city estimates the loan amount to be $10,230,000, or the as-bid cost of the project.

• Passed a resolution certifying minutes from the ongoing meeting relating to electric revenue bonds.

The resolution will enable bonds in the amount of $4,400,000 to be issued as early as next week.

Northland Securities will act as underwriter for the bonds pursuant to federal security regulations.

• Approved Ordinance 22-07 conveying city-owned property to Lisa Lindburg and Steven Kittelson for the amount of $30,000.

The three parcels are located north of the west branch of the Blue Earth River.

City attorney David Frundt noted Lindburg and Kittelson intend to turn the property into a wildlife management area.

• Passed Ordinance 22-08 releasing the right of reversion reserved on Main Street property sold by the city to Project Three Sisters, LLC.

• Approved a bid from Holtmeier Construction in the amount of $4,154,515.46 for proposed 2022 Blue Earth street and utility improvements.

• Appointed Kim Shaffer to the Housing and Redevelopment Authority (HRA).

• Accepted the resignation of Mason Teachout from the Blue Earth Fire Department.

• Set the date for a public hearing regarding property owned by Matt Bartz on Apr. 4 at 5:05 p.m.