Construction and property issues dominated the very first Blue Earth City Council meeting to be held in the new Blue Earth City Hall, on Monday, Feb. 3.

The largest project the council took action on was a $1.652 million new five-unit T-Hangar at the Blue Earth Municipal Airport.

City engineer Ben Rosol described the proposed hangar and its location at the airport, as well as the financing of the project.

The federal grant money will cover 97.5 percent of the cost, Rosol said. That amounts to $1.569 million of the cost, he added.

“The state of Minnesota will cover 1.25 percent of the cost, or $41,300,” Rosol said. “Which means the city of Blue Earth would pay for the other 1.25 percent, or $41,300.”

Rosol added that the plan had been approved by the city’s airport advisory commission.

Four of the new hangars would be the size of other ones at the airport, but one of the five total would be what is called a “jet pod,” Rosol noted.

“It would be a larger size, to accommodate a larger aircraft,” he explained.

The council voted to proceed with the project and calling for bids for the construction.

Another property discussion dealt with a purchase agreement which involved a lot on Blue Stem Drive in the new Prairie View Subdivision. The purchasers listed on the purchase agreement for the lot were Kevin and Annette Pevestorf.

The agreement called for a purchase price of $5,000.

City administrator Mary Athey pointed out that the city requires an agreement from the buyers that a home will be built on the property with construction starting within 18 months of the purchase.

“This purchase agreement does not include that construction agreement and we don’t believe the buyer intends to build,” Athey said. “The $5,000 discounted price was meant to help with selling the lots for new homes.”

The regular price of a lot is $22,500. Athey said that amount covers the basic costs the city has invested into the lots, and is also a discounted price.

The council voted 6-1 to not approve the purchase agreement, with council member John Huisman voting no.

In other business at the meeting, the Blue Earth City Council:

• Approved a purchase agreement with Faribault County for the county’s purchasing the former City Hall at a price of $283,100. The County Board was expected to approve the agreement at their meeting to be held the next day. Details on their discussion and their decision is in another story in this week’s Faribault County Register.

One issue with the sale was the use of five parking spaces behind the former City Hall, which the city still wants to be available for nearby businesses.

•Approved a proposal presented by engineer Rosol for the city to apply for a grant from the state PFA Fund that would lower the interest rate on future sanitary water project loans by one percent. The cost of preparing the application for the grant is $12,000, but the city could be saving $10,000 on each million dollars of all future projects they bond for.

• Accepted the gift of a plaque for the new City Hall that was created by local artist Ross Pollard.

• Gave out certificates of appreciation to numerous city employees congratulating them on their various number of years of employment.

• Approved a new Parks Donation Policy which deals with how donations of items to city parks should be handled.

• Approved a new city zoning map with changes, including the addition of Riverside Addition into the city limits.

• Approved an amendment to the city administrator’s employment contract that would raise the number of months an administrator would be paid after a termination of employment from four to six.

• Appointed Tim Juba to the city’s Charter Commission.