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City approves interest buydown for new One Stop Burger Shop

The Kenmare City Council revisited and reversed its decision from last month to deny a Fund Itt interest buydown to the One Stop Burger Shop for construction of a new restaurant.

10/12/11 (Wed)


By Terry Froseth
The Kenmare City Council revisited and reversed its decision from last month to deny a Fund Itt interest buydown to the One Stop Burger Shop for construction of a new restaurant.
Questions regarding the term of the buydown were answered, and concerns about use of local contractors for the construction were addressed.
Councilman Troy Hedberg explained the loan process and also spoke of the benefits the new restaurant brings to the community.
He also stated his concerns with the council or sales tax committee trying to police where a business buys its materials or chooses it contractors.
The council gave its approval to Fund Itt’s three percent interest buydown on $100,000 for a term of 20 years (as required by the Bank of North Dakota Flex Pace program), for a total of $33,110.11, with a balloon payment in 2018 if the city sales tax is voted down. The annual payment from Fund Itt will average $1650.
Water and sewer work
City engineer Ryan Ackerman reported to the council that the sewer extension project from Soo Street, at the south end of 4th Street, to the vicinity of the old city landfill will begin next week.
Ackerman also reported that McGuire Iron, the contractor for the new city water tower, will soon begin work on the footings and base pad for the tower.
The new water tank is being fabricated at McGuire Iron’s shop. The new tower will be located east of the city’s existing water tower.
Ackerman also informed the council that relocating of the new booster pump station from its present location near the old landfill to the site of the NAWS water tower east of town, will not take place this year.
Ackerman said the new Great Northern Trucking yard to be built east of town will have sufficient water pressure from the city line, without use of the booster station.
More rezoning
Two city parcels will go through the process of rezoning to accommodate new construction.
The City Housing Authority four-plex to be constructed on the southeast corner of the intersection of Central Avenue and Sixth Street will need to be rezoned from residential single-family (R1) to residential multi-family (R3).
The location of the former Bev’s Upholstery building on north Central Avenue will need to be rezoned from commercial to residential for a new home to be moved on to the site.
In other action:
• The city’s accountant, Jan Kostad, presented the financial report. Kostad said the budget as approved in August on first reading was adjusted for city employee salary increases. He said the city will levy 85.65 mills and generate $149,418 in tax revenue. The council approved the budget on second reading.
• The city is looking at additional benefits for its seven primary employees, such as vision and dental insurance, along with a flex plan. The council will act on a recommendation in December.
• A liquor license transfer was approved from Beer Bob’s to the Memorial Hall for October 17 to 22 for GooseFest activities.
• A pre-buy propane contract was approved for 6000 gallons at $1.80 per gallon from Farmers Union Oil of Kenmare.
• The Ward County Sheriff’s Department has stationed deputy Laurie Eide in Kenmare.
• Councilman Butch Norrie said Kenmare’s inert landfills had passed inspection by the State Health Department.
• Norrie said the garbage collection contract with Ankenbauer Dray expires December 1st. He said he has been soliciting bids for the contract from other companies for comparison with Ankenbauer’s.
• The city decided it would no longer withhold payment on a new Bobcat skidsteer. There is a waiting time of 6 to 8 months to get a new one. The new Bobcat doesn’t have all the features the city wanted, but it was right according to the purchase quote. Mayor Roger Ness said, “We got what we paid for.”
• Councilman Chuck Leet said the city has received quite a few applications for the city patrolman position. He said the committee will look at the applications at the end of the month and do some interviews.
• Councilman Owen Medland said the city is still having a problem with 12 accounts regarding activation of a new water meter. The city has threatened to shut off the water service to the homes and businesses if they don’t comply to the new meter requirement.
• Councilman Todd Ankenbauer said there are a couple places on the city streets that need to be filled in. It was noted that water standing at the intersection near the Baptist Church continues to be a problem without a fix.
• Butch Norrie has resigned his council seat and attended his last meeting. Mayor Ness said there are a few people interested in the position. Anyone interested can contact Ness or the city auditor’s office. The city ordinance instructs the mayor to appoint someone to the position within 15 days. The position will then be up for election on the next city ballot.