Nancy Edmonds Hanson
nancy.edmonds.hanson@gmail.com

Two Moorhead businesses will be expanding next year after the City Council approved tax exemptions for the developers planning to construct their new, larger quarters later in 2020.
Meeting online Monday night, the council approved a property tax exemption requested by Enclave Solutions LLC for a two-story office building at 1547 30th Ave. S. It will be leased to Solutions Behavioral Healthcare Professionals. The mental health practice is currently located in facilities on Belsly Boulevard and Eighth Street South.
The practice was founded by Joel Bakken in 1999. Since then, it has grown to more than 300 professionals, with five offices in Minnesota and a sixth in Fargo. The five-year exemption on the $3.4 million building is estimated to total $272,000.
The second property tax exemption was granted to Rich and De Properties, which plans to build an 8,000-square-foot building at 1601 Main Ave. SE to house an expanding pet-oriented business. Wags n Whiskers and its companion company, Wags Play n Stay, offer pet grooming and dog boarding, daycare and training. Both are owned by DeAnne Kading Powell. The companies employ the full-time equivalent of 22 people. The project’s cost is estimated at $575,000, with the five-year tax exemption totaling $27,600.
Burning damaged trees
The City Forestry Department expects the volume of wood waste – already beyond the capacity of its compost site – to increase dramatically in coming years as the emerald ash borer advances toward the city’s boulevards. The council approved a request by public works director Steve Moore to authorize the purchase of an air curtain burner to incinerate infected waste, along with other tree trunks and limbs removed by city crews. The compost site currently receives about 4,000 tons of wood waste each year.
The firebox’s cost will be split between the city and Clay County, which has already approved funding for half of the $172,000 installation. The balance of Moore’s request for $120,000 will cover the cost to prepare and submit an application for a Title V air permit from the Minnesota Pollution Control Agency.
Approval of street plans delayed
Assistant city engineer Tom Trowbridge’s request for approval to proceed with two street projects was partially approved, but delayed two weeks for more public input on the north Moorhead portion of the project. A final vote is planned at the next council meeting on April 27.
The two plans discussed Monday affect 12th Avenue South from Fourth Street to Southeast Main, and Sixth and Seventh Avenues North as well as sections of 18th and 20th Streets. Trowbridge explained the two were being bid as a single project; cost of the low bid the city has received is $3.2 million for the south plan and $1.5 million on the north side.
He noted that at least one citizen responded to the department’s invitation for comment by asking whether the current time was the right one to embark on the project. Questioned by council member Shelly Carlson, he explained that part of the bid could not be accepted and the rest “just added later.” He noted that a delay this year would cost the city the $1.8 million in state funds already approved for the improvements. “We would have to reapply, and that would mean a major delay,” he said.
City engineer Bob Zimmerman added, “There are good economic reasons to proceed.” He noted that, given the uncertainty of the pandemic situation, contractors are looking for work – a good time to obtain competitive bids.
Budget impact anticipated
City manager Christine Volkers reported to the council that the city’s finances appear stable for now – but that may change as the impacts of the pandemic are felt more fully. She called her figures “a snapshot of what we expect,” adding that the situation is changing from day to day. Her estimates are based on both the local situation and conversations with other Minnesota cities.
Among the impacts she suggested is a 15% reduction in property taxes, which amount to one-third of the general fund budget. “We’re seeing significant shortfalls in revenue from Parks and Recreation and the Cullen Hockey Center,” she said. “We expect utility funds to be down because of nonpayment.”
The losses can be made up in the short run from the city’s reserve funds, but that balance cannot fall below 40% of the budget and retain the city’s excellent bond rating; the current level is a healthy 60%.
“Staff is working hard to develop cash-flow projections for operating scenarios if the emergency situation lasts for six months or for 18 months,” she said. “Depending on the length and severity, we may be looking at service changes and expense reductions.”