BRAINERD — Brainerd is ready for new business.
That's one way to look at the city's newly approved central business district incentive policies.
“I think the warm feeling that comes from having a program like this in the area is a great ‘open for business’ signal to our community,” City Council Member Tiffany Stenline said on Monday, July 16. “And I think it’s worth it.”
The new policy, approved by the council on Monday night in a 6-1 vote, will provide incentives for new businesses to locate in certain commercial districts in Brainerd.
It's essentially an expansion of the 2019 River to Rails initiative, which focused on revitalizing the areas of Brainerd's downtown business district between the Mississippi River and Northern Pacific Center, and between Washington and Oak streets. As part of the initiative, the district will waive sewer and water fees for building projects, as well as building permit and inspection fees for projects under $150,000.
The Central Business District incentive policy now includes all property along Washington Street/Highway 210 from the city's east end to its west end, as well as property from South Sixth Street to Buffalo Hills Lane East. City council members discussed these new parameters at their July 1 meeting, and city staff drafted a final policy to present to the City Council on Monday.
The same River to Rails incentives will apply to the expanded area through 2029, when the original commitment was supposed to expire.
Brainerd Public Utilities Commission members expressed concern about exempting such a large area from sewer and water fees because those fees could potentially be used to pay for the city's aging infrastructure, but the commission did not recommend the policy.
City Councilman Jeff Chechok made a motion to reject the policy on Monday, but it failed with no one in favor.
Based on the roughly $138,000 worth of fees waived on 359 business licenses issued in the River to Rail District since 2019, that means businesses have saved an average of about $385 each — an amount that Chechok said wouldn't put businesses off.
“But it just postpones the issue of the need for more funding for infrastructure,” he said.
Councilman Gabe Johnson, who also sits on the Economic Development Board, said he understands Chechok's concerns about losing revenue, but one of the factors the Economic Development Board has taken into consideration is the aging infrastructure in these commercial districts.
“The infrastructure in these neighborhoods doesn't need to be expanded anytime soon, so the SAC and WAC funds have to be used to expand the infrastructure,” Johnson said of sewer and water rates. “This is on the edge of the development in town, laying bigger pipes that these neighborhoods won't need for decades.”
Stenglein said the policy is not necessarily about the lowest cost to start a business, but rather about encouraging companies to locate where the city wants them and where they are most likely to be successful.
Mayor Dave Badeaux said he appreciated that, as Johnson noted, the project would be located in an area that doesn't immediately need infrastructure upgrades, and that the City Council should only focus such efforts on those areas. He also said he appreciated Chechok's concerns about lost revenue. Chechok was the only vote against the measure. Badeaux does not vote on City Council items except in the case of a tie vote.
In other matters on Monday's agenda, the council:
Approved for legal gambling A bingo exemption application submitted by the Lower South Long Lake Improvement Association for an event to be held Sept. 1 at Jack's House Bowling.
Event request approved Brainerd Night Out will be held at Gregory Park from 5-8pm on August 15. Juniper Street will be closed between 6th and 7th Streets North to allow for emergency response vehicles.
Event request approved First Lutheran Church's Summer Picnic/Night Out will be held from 5-7 p.m., Aug. 6. Norwood Street will be closed between South Seventh and Eighth Streets. Sidewalks and adjacent streets will be open.
Event request approved South 10th Street between Laurel and Front streets will be closed for the “Onyenstalk 2: The Ripening Return” outdoor concert on Aug. 3 from noon to late night.
Final payment request approved Donated $1,537.98 to last year's Southwest 4th Street storm drain repair project. The total cost of the project was $157,397.80.
Final payment request approved They contributed $12,227.38 to the Lamb Park Reconstruction Project last year. The total cost of the project was $262,973.11, funded in part by a Minnesota Department of Natural Resources State Park Road Account grant.
Sign the contract $105,980 to WSB for engineering services for the Lowell Elementary School Safe Pathways to School project. Construction on the project is expected to begin in summer 2025.
Staff authorized to advertise Bids for the Laurel Street Bridge repair project. The project includes repairs to the joint gland that prevents stormwater from entering the abutment and repairs to the runoff under the bridge adjacent to the east abutment.
Staff authorized to post advertisements Bid for an exterior repair project for a police station. The project includes repairs to the exterior insulation and finish systems, window and door replacement, roof replacement, and various other repairs.
The resignation was accepted two electric lines from the Brainerd Department of Public Works;
Accepted the city flag The Historic Water Tower Preservation Committee requested it and agreed to have it placed atop the water tower.
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