As the end of the year approaches, budgeting season begins.

With this in mind, the Blue Earth Economic Development Authority (EDA) discussed its 2024 budget at a meeting held on Thursday morning, Oct. 12.

City administrator Mary Kennedy wanted to discuss the EDA’s cap for its loan and grant programs, as well as its budget for improvements at the Ag Center.

She asked the board, “Do you want to keep the loan and grant programs at the $75,000 annual dollar cap?” 

Kennedy noted that the EDA had initially acquired ownership of the Ag Center so it could become a source of funding for the board’s Revolving Loan Fund. However, the Ag Center is not currently generating an annual profit for the EDA. As such, she wondered if the board felt it could afford the $75,000 cap.

“I want (the Ag Center) to be a building that people are proud to do business in, but it’s expensive to do that,” Kennedy explained. “I don’t think it’s losing money, but I don’t think it’s supplementing our funds right now. If you feel it needs to, then we have to pull way back on what we’re doing there.” 

Mayor Rick Scholtes agreed with Kennedy’s assessment, adding, “We probably have a few more years, in my opinion, before the Ag Center could help.” 

The EDA was willing to give the Ag Center time to grow into its potential.

“You’ve got to spend money to make money,” EDA board member Lissia Laehn observed.

Kennedy also reported that the EDA’s loan funds are still healthy. The Revolving Loan Fund’s current balance is $461,957, while the Utility Revolving Loan fund’s balance sits at $109,752.

“These are unbelievably healthy loan funds,” EDA specialist Amy Schaefer said.

“Let’s leave (the cap) at $75,000 for now, and see how it goes over the next few years,” Scholtes suggested.

The board then reviewed several projects which have been budgeted for the Ag Center next year, including updating the bathrooms and drinking fountains.

Also, $70,000 in capital expense funds has been set aside for new flooring in the Ag Center’s bathrooms, atrium, hallways, entryways and conference room.

The EDA also discussed the Ag Center’s other maintenance needs. They reviewed quotes for testing the building’s sprinkler system before approving an $8,193 estimate from Johnson Controls to cover five years of sprinkler inspections.

Additionally, the board reviewed Squeegee Bros’s quote for window cleaning services.

“The windows are huge and very hard to clean,” Schaefer said.

The board agreed to hire Squeegee Bros to clean the interior and exterior of the Ag Center’s external windows, at a $190 cost for the exterior windows and a $175 cost for the interior windows.

Schaefer will request that Squeegee Bros clean the outside of the windows once a quarter, and clean their insides twice a year.

The EDA Board discussed the Ag Center’s conference room, too. A project to remove outdated technology from the room was recently completed, and Schaefer suggested the outdated tables in the room should be replaced.

She will research the cost of new tables and bring her findings to the EDA next month.

Finally, the board reviewed a request from the Faribault County License Bureau, which rents a space in the Ag Center, for new flooring in the public areas of the office at a total cost of $8,350.

“We have $10,000 budgeted for tenant projects,” Kennedy said. “If they’re going to move out of the space, it will still be an improvement to the Ag Center.” 

The EDA board approved the license bureau’s request.

In other business, the Blue Earth EDA: 

• Approved a Commercial Improvement Loan request from Tim Juba for funds to offset the cost of repairs to portions of the Juba’s parking lot and sidewalk.

The total cost of the repairs comes to $4,700, and the EDA will compensate Juba for half of that cost.

• Learned that Schaefer and Kennedy recently attended a dinner with SMIF president/CEO Tim Penny and Pham Thi Hoa of the Margaret A. Cargill Foundation to discuss economic development in Blue Earth, as well as the community’s B.E. Welcoming group.

“I think it was a big honor for Mary and I to be asked to go to that,” Schafer said. “I want to reiterate that Blue Earth’s efforts are noticed in the broader community of economic development.” 

• Learned that a Rural Entrepreneurial Venture (REV)-sponsored Biz & Brew event hosted at Lost Saint Brewing on Sept. 20 was a success, with roughly 12 to 15 people in attendance.

Also learned that REV recently distributed ‘kindness kits’ to local businesses.

• Was reminded that B.E. Welcoming will be hosting its second annual Day of the Dead Festival at 10 Talents Art Center on Sunday, Oct. 29, at noon.