The construction materials for this four-plex at the corner of Rice and Eighth streets have been on-site for a long time. Construction could start soon, after a settlement was reached between the city of Blue Earth and APX Construction of Mankato.

A jam-packed April 18 Blue Earth City Council meeting brought closure to a few long-standing issues, and also provided a glimpse into some exciting new developments in the community.

Negotiations between the city, Housing and Redevelopment Authority (HRA) and Economic Development Authority (EDA), and APX Construction Group are finally reaching a resolution.

The negotiations concern an HRA-led development project on Rice Street, and have been ongoing for many months now.

City attorney David Frundt shared Blue Earth’s attorney, Jason Kubousheck, has recently negotiated settlement terms with APX attorney Aaron Dean.

The settlement terms require a total $116,315.07 payment to APX from the city of Blue Earth.

Of that total, $58,000 will satisfy APX’s change order requests and claims for extra work arising out of all contracts with the city.

The additional $58,315.07 is to compensate retainage funds associated with the contracts and work done by APX on two of the Rice Street buildings which were developed as part of the project.

The city is not required to pay retainage funds on one of the buildings, as the work on that site has not been completed.

Mayor Rick Scholtes noted the funds Blue Earth is paying to APX are in exchange for services which APX has already performed.

“They’re being paid for work they did do,” Scholtes explained.

In return, APX will provide the city with all hard copies of plans and specifications for the project, as well as a list of materials purchased by APX for one of the building sites. The materials are currently being stored on the site until construction resumes.

Upon acknowledgement of the terms, the city and APX will close out all contracts pertaining to the Rice Street properties in question.

“The HRA and EDA have both voted to accept this as a settlement,” Scholtes shared with the council.

He explained the HRA authorized HRA chairman Ken Skaare and city administrator Mary Kennedy to sign documents related to the settlement, while the EDA gave authorization to EDA president Lissia Laehn and Kennedy.

The council will need to provide similar authorization to Scholtes and Kennedy to signal their approval of the settlement terms. 

Following a vote, the council approved Scholtes and Kennedy to sign the settlement documentation on behalf of the city.

Kennedy added construction on the HRA-owned Rice Street properties will be re-bid once the paperwork with APX is finalized.

“We own the building plans, and we have the materials on-site,” Kennedy said. “They (the materials) have been reviewed several times by an inspector, and they have been taken off the ground and covered.” 

“The good news in this is that we’re moving on,” she concluded.

In other business, the Blue Earth City Council: 

• Approved the Blue Earth Fire Department to use their capital funds and a $176,267 insurance settlement to replace a fire truck which was irreparably damaged in an accident earlier this month.

The fire department hopes to purchase a new ‘stock’ truck, estimated to cost between $285,000 to $340,000.

‘Stock’ trucks are trucks which manufacturers have built prior to a customer order or purchase, and are thereby available more quickly.

• Received a request from community workforce network representatives to participate in an incentive package program which several local business leaders are developing.

The program would offer incentives from local businesses to individuals who build new housing in Blue Earth.

The group requested that the council pledge an incentive on behalf of the city to prospective home builders.

The council agreed to consider the best way they could contribute to the program and return with an offer mid-May.

• Conducted a Board of Appeal meeting at 3 p.m., which provided residents the opportunity to contest their property’s valuation.

No Blue Earth residents were in attendance. However, county assessor Gertrude Paschke was present to update the council on recent property valuation trends.

She noted local residential values have undergone a necessary increase this year. They have been adjusted from a mean 80.17 ratio to a mean 94.19 ratio to reach state compliance.

• Scheduled a May 2 hearing to finalize the sale of the 101 Blue Stem Drive property.

• Scheduled a May 2 hearing to approve the split of two Fourth Street lots, and subsequently finalize the sale of each lot to a single buyer.

• Authorized Bolton & Menk to remove 22 ash trees which are in the right of way of upcoming street improvement project construction.

The removal will come at no additional cost to Blue Earth homeowners.

• Designated April as Child Abuse and Neglect Prevention Month in the city of Blue Earth.

• Voted not to waive statutory tort liability limits for the city, EDA and HRA.

• Approved a $17,535 agreement with Mosquito Control of Iowa, Inc. for mosquito control services.

• Authorized the Blue Earth Police Department to conduct evening walk-throughs of the Faribault County Fitness Center due to concerns about vandalism and member misbehavior.

• Approved donations to the Blue Earth Community Library and Fossil Discovery Center, the Senior Center, the Police Deer Hunt and the Rural Entrepreneurial Venture totaling $13,188.35.