At a Winnebago City Council meeting held on Tuesday, May 10, plans to demolish a vacant Main Street building marked not an end, but a beginning for Winnebago’s economic future.

The city’s aging SuperValu building has graduated from a mere eyesore to a veritable safety hazard.

The city invested a significant amount of time in securing funding for the building’s demolition, hoping to someday make the 34 South Main Street property viable for a new business.

Economic Development Authority specialist Angie Stier succeeded in securing a demolition loan for the project last April. The $109,900 loan is funded by the Department of Employment and Economic Development (DEED).

The City Council was already on board with the project. However, it took a significant amount of paperwork at Tuesday night’s meeting for the council to officially adopt the loan and its repayment plan.

The council first passed Resolution 789-2022, which was necessary to certify that the SuperValu building is structurally substandard.

“It (the building) met all the requirements for being able to do this. It is not reparable,” city administrator Judi Hynes said.

“It was really substandard a couple weeks ago,” mayor Scott Robertson added. He was referencing the large amount of dangerous debris which has been flying off the building site onto Highway 169, posing a hazard to drivers.

After passing the resolution, the council conducted a public hearing for proposed property tax abatements, which are necessary to secure the DEED abatement loan.

“It’s kind of misleading,” Hynes explained. “It doesn’t actually authorize the abatement taxes. It just makes it so the city has the ability to levy abatement taxes.” 

Essentially, DEED required Winnebago to issue a tax-exempt general obligation bond to secure the loan. The city certified a property tax abatement levy to pay the debt service on the loan.

The total amount of taxes proposed to be abated by Winnebago on parcels within the abatement area is estimated to be no more than $109,900, which will be collected over a 10-year term.

However, the annual tax abatement levy would be spread over the city’s entire tax base; it would not just be levied on properties in close proximity to the site.

As no members of the public were present for the hearing, the council closed the public hearing and passed Resolution 790-2022 adopting the proposed property tax abatements. They will commence for taxes payable in 2024.

Next, the council approved the SuperValu demolition project loan agreement with DEED, and passed Resolution 791-2022 adopting general obligation tax abatement bonds in the amount of $109,900.

In other business, the Winnebago City Council: 

• Approved the 2021 audit report presented by Abdo representative Layne Kockelman. He informed the council the city has received a clean opinion on its financial statements. However, Winnebago needs to continue to address debt in its utility funds through rate increases.

• Approved a request from The Buzz Stop to sell beer and intoxicating liquor on the grounds of Bago Fun Fest on June 18.

• Approved two noise permits for The Buzz Stop. One will allow the bar to host outdoor karaoke on June 17 from 8 p.m. to 12 a.m. The other will allow the bar to host a band on Aug. 6 from 8 p.m. to 12 a.m. The city also gave The Buzz Stop permission to close the alley behind their business during both events.

• Approved the hiring of new lifeguards and pool attendants for the Winnebago Swimming Pool.

• Passed Resolution 792-2022 to elect the standard allowance available under the revenue loss provision of the COVID Local Fiscal Recovery Fund, which was established by the American Rescue Plan.

Hynes explained the resolution allows the city to do less documentation when spending the $146,483.20 in ARPA funds which Winnebago has been allocated.

• Approved a $77,123.55 quote from WW Blacktopping, Inc. for street overlay. The work will be done on Second Street SW and two blocks of Third Avenue SW.

• Approved a $3,800 quote from Bernie Schultz for the removal of seven ash trees in poor or unsafe conditions.

• Approved an $8,425 quote from Burbach Aquatics for a pool facility study.

Hynes noted the city currently has $147,544.28 in pool funds. She suggested a study would help the city determine how best to preserve the swimming pool, and possibly add new amenities.

• Granted police chief Eric Olson a pay increase of three percent, as his annual review yielded satisfactory or above results.