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JDA approves recommendation for city council

By Staff | Jul 11, 2014

The Rugby Job Development Authority and City of Rugby Mayor Arland Geiszler approved approve a change order of about $42,000 for Park Construction’s road construction for the Chalmers Addition housing project.

The JDA met Wednesday and listened to four options from Interstate Engineering’s Wade Senger.

JDA and city council members were reluctant to approve more money for the project. Senger said that a $360,000 change order was approved last year, but that cost dropped to $300,000.

JDA vice president Tom Graner expressed dismay at the bidding process, but suggested approving a change order that stayed within the $60,000 that was previously factored in.

“It don’t see the benefit of waiting,” Graner said. “I don’t like the extra money either but as long as we can do it within the money of the first change order.”

The decision was tabled at Monday’s city council meeting because the addition is owned by JDA.

Senger explained that about $38,000 is needed for gravel and paving in 11 soft spots of the Chalmers roads. A high water table has kept soil in the area soft, so drain tile will be added in thicker sections to take any rising water into the storm sewer.

Original plans called for a stronger fabric to be laid under the road in the northern part of the addition, but JDA approved recommending the strong fabric be used throughout the addition. Senger estimated the cost of additional fabric at $4,000.

“We should do it as right as we can and not pass on problems to citizens of Rugby and JDA for future,” mayor and JDA member Geiszler said.

Because no money was added beyond the $360,000 of last year’s change order, the new change did not require approval of the city council.

Other JDA activity

The board approved a motion to recommend use of the PACE (Partnerships in Assisting Community Expansion) programs. JDA director SyAnn Graber explained the program in an email: “The PACE (Partnership in Assisting Community Expansion) programs at Bank of North Dakota are designed to encourage specific types of economic activity within the State of North Dakota. PACE provides an interest buy down that can reduce the borrower’s rate of interest by as much as 5 percent. In order to be approved for the Flex PACE/PACE programs, Bank of North Dakota requires a 70/30 split, with the community providing 30 percent of the PACE funding.

“The JDA acts as the community match for the Bank of North Dakota. The JDA has, in the past, granted to a business as an indirect grant to assist with the buy down of interest.”

The JDA announced that members Wes Black and Bob Wilmot are resigning from the board. Former Mayor David C. Cichos was appointed to Wilmot’s at-large position and the board recommended Tanner Johnson to replace Black as the Bremer Bank representative. The board approved that recommendation and the mayor will speak with Johnson before approving.

The JDA reviewed the 2015 budget and approved recommending it for approval of the city council.

Graber told the board that 88 participants attended the Economic Development Association of North Dakota (EDND) conference held in Rugby last month.

The mayor updated the JDA on a proposed annexation east of the city and said he hopes to have sewer and water available by autumn 2015 along U.S. 2. Gooseneck Implement is moving there and Geiszler hopes to see more businesses look into the area as infrastructure is placed.

He said the state’s department of transportation is expected to extend the frontage road on the south side of U.S. 2, but that may not happen until 2017.

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