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County Board discusses building in Frost

Commissioners decide to lease it out one more year, then sell it

By Kevin Mertens - Staff Writer | May 8, 2022

This building in Frost is owned by the county, and it has been leased out for several years. The County Board decided to lease it one more year, and then put it up for sale at a public auction.

After tabling any action on the Public Works shop located in Frost in their previous meetings, the County Board put a plan in motion for dealing with the structure when they met on May 3.

Bill Halverson of Frost has been leasing the building from the county under a lease which has not been updated since 2010. It is up for renewal again on Aug. 1.

The board has discussed various options for the building, which the county no longer utilizes or needs.

One option would be to put the building up for public auction. Another, would be to retain ownership of the building and continue to lease it out with an updated lease.

The city of Frost also expressed interest in the building at one time.

“We can give the building to the city or they can attempt to purchase it at a public auction,” Public Works director Mark Daly explained. “We cannot do an outright sale to the city since it is public property.”

Also in question were the improvements, such as a new roof, which were made to the building by Halverson. Halverson provided a cost estimate, based on 2022 material prices, of over $24,000.

County attorney Cameron Davis told the board there does not appear to be any clause in the lease that would entitle Halverson to receive compensation for improvements.

“Absent a showing that the county agreed to compensate him for those costs, or that the county is acting illegally in attempt to terminate or not renew the lease, he doesn’t have legal ground to stand on,” Davis offered. “Was there ever any discussion between the tenant and the county regarding these improvements before they were made? If so, details of those conversations would be important.”

After a lengthy discussion, commissioner Bruce Anderson made a motion to lease the building to Halverson for one more year at $600 per year and then put it up for public auction.

“That would give him some time to move his stuff out if he so chooses and he would also be able to bid on the building at the auction,” Anderson explained.

The motion passed. The term of the lease will begin on Aug. 1.

While at the meeting, Daly asked for and received approval of a motion to advertise for the county’s annual fuel supply.

Daly also presented a draft proposal of an agreement for the county’s policy for improvements made to the 23 miles of County State Aid Highways which are located within municipalities in Faribault County.

“Current policies and agreements define cost splits. The county pays for reconstruction costs while the city pays for annual maintenance costs,” Daly commented. “Many of these CSAHs were constructed before 1971 and did not use state aid funds. Concrete pavement repairs are expensive and burdensome to these small cities.”

There was some discussion on the proposal and Daly will provide more information to the commissioners at future meetings.

“I am not really expecting any action on this until later in the year,” he said.

Action was also taken to approve spending $45,000 for replacement of concrete panels on County Road 32 in the city of Wells.

Daly also mentioned the two county parks were open and Pihls Park is already receiving many reservations.

Anderson also shared the county had received one bid, in the amount of $8,132, for repairing the roof on a building at Woods Lake Park.

The commissioners also held a public hearing on creating a subordinate service district which will be known as the Riverside Heights Subordinate Service District.

On March 22, a petition was filed with the county auditor requesting the board to create this service district to help facilitate the installation, financing and management of an upgraded sewer system.

“In order to facilitate funding, including obtaining available grants and low-interest loans, government involvement is advisable,” county auditor Darren Esser explained. “With the approval of the board, the next step is to publish the resolution in the county newspaper. Thirty days after the date of publication, if there is no valid referendum petition received by the county, the district is said to be established.”

In other business:

• The board approved a joint powers agreement between the State of Minnesota and Faribault County to investigate and prosecute identity theft and related financial crimes.

• Laketown Electric Corporation of Mankato was awarded the bid, in the amount of $170,000, for the electrical work on the courthouse reconstruction project.

• The commissioners also voted to accept the bid, in the amount of $300,000, from Century Construction Company of Ramsey, for the carpentry contract for the courthouse reconstruction project.

• Approval was given for Planning and Zoning administrator Lori Rebuffoni’s request to attend the Minnesota Association of Planning and Zoning Annual Conference.