Sleepy Eye to act on event center
SLEEPY EYE - It is anticipated that the Sleepy Eye City Council at its Sept. 8 meeting, will consider a resolution to hire a Mankato architectural firm to create designs and plans for a new event center to be built on the east end of town.
Sleepy Eye City Manager Mark Kober said Monday that the project is projected to cost about $3.5 million, but designs and plans are needed to closer determine what the project will entail. He has hopes of a fall ground-breaking if all details fall into place.
"The City Council has decided by consensus to go with a new event center rather than remodeling the Orchid Inn," Kober said.
Project financing was discussed at a meeting last Thursday involving city stakeholders. Kober said he feels it would be much easier to finance the project by using budget carryover amounts from city funds including the general, hospital and sewer funds plus the Public Utilities Commission (PUC).
"If we take about 20 percent of reserve funds from a number of funds, I think we can pay cash for the project without putting anyone in a bind," Kober said. "That would be much easier to do than borrow $3.5 million and pay it back ... over 20 years at 4 percent interest. We have the (cash) reserves to do this to get the project off to a good start. If we don't use cash reserves, we could raise taxes, which would involve adding about $250,000 in debt service a year, which I don't think is the way to go."
Kober said that the city would have to subsidize the event center, to be used for events like wedding receptions and large events such as the Sleepy Eye Firemen's Dance, South Point Credit Union and Pheasants Forever annual meeting, among others.
Before the project would be complete by perhaps early 2017, Kober said the City will continue to manage large events at the Orchid Inn. "They have nine wedding dances and other events scheduled in the coming months," Kober said.
He said a special election regarding the City funding the project was discussed at the meeting last week. In addition, he said a survey with constituent opinions could be e-mailed, regular mailed or carried into the City Building was another way to determine public opinion on the project.
Kober said it was suggested last week to build an event center near Sportsmen's Park on the north side of Sleepy Eye Lake.
"People have suggested building a restaurant in that area before too," Kober said. "I don't think there is enough room near the park to do that. Plus we'd have to add sewer and water service."
Earlier this month, the city council considered an event center analysis done by Oleson & Hobbie Architects, LLC of Mankato. The firm estimated the cost of remodeling the Orchid Inn including updating HVAC (heating, ventilation and air conditioning), plumbing, electrical and sprinkler systems at $1.9 to $2.6 million - compared to new construction just north of the former Inn of Seven Gables, at the east end of town along U.S. Highway 14 at $2.6 to $3.6 million.
"The Inn of Seven Gables isn't in bad shape," Kober told the City Council at that time. "I know of several people who want to buy it when a purchase option becomes available."
He added that the City of Sleepy Eye has a purchase agreement to buy property just north of the Inn of Seven Gables.
(Fritz Busch can be e-mailed at fbusch@nujournal.com).
Reported by: nujournal.com
Sleepy Eye City Manager Mark Kober said Monday that the project is projected to cost about $3.5 million, but designs and plans are needed to closer determine what the project will entail. He has hopes of a fall ground-breaking if all details fall into place.
"The City Council has decided by consensus to go with a new event center rather than remodeling the Orchid Inn," Kober said.
Project financing was discussed at a meeting last Thursday involving city stakeholders. Kober said he feels it would be much easier to finance the project by using budget carryover amounts from city funds including the general, hospital and sewer funds plus the Public Utilities Commission (PUC).
"If we take about 20 percent of reserve funds from a number of funds, I think we can pay cash for the project without putting anyone in a bind," Kober said. "That would be much easier to do than borrow $3.5 million and pay it back ... over 20 years at 4 percent interest. We have the (cash) reserves to do this to get the project off to a good start. If we don't use cash reserves, we could raise taxes, which would involve adding about $250,000 in debt service a year, which I don't think is the way to go."
Kober said that the city would have to subsidize the event center, to be used for events like wedding receptions and large events such as the Sleepy Eye Firemen's Dance, South Point Credit Union and Pheasants Forever annual meeting, among others.
Before the project would be complete by perhaps early 2017, Kober said the City will continue to manage large events at the Orchid Inn. "They have nine wedding dances and other events scheduled in the coming months," Kober said.
He said a special election regarding the City funding the project was discussed at the meeting last week. In addition, he said a survey with constituent opinions could be e-mailed, regular mailed or carried into the City Building was another way to determine public opinion on the project.
Kober said it was suggested last week to build an event center near Sportsmen's Park on the north side of Sleepy Eye Lake.
"People have suggested building a restaurant in that area before too," Kober said. "I don't think there is enough room near the park to do that. Plus we'd have to add sewer and water service."
Earlier this month, the city council considered an event center analysis done by Oleson & Hobbie Architects, LLC of Mankato. The firm estimated the cost of remodeling the Orchid Inn including updating HVAC (heating, ventilation and air conditioning), plumbing, electrical and sprinkler systems at $1.9 to $2.6 million - compared to new construction just north of the former Inn of Seven Gables, at the east end of town along U.S. Highway 14 at $2.6 to $3.6 million.
"The Inn of Seven Gables isn't in bad shape," Kober told the City Council at that time. "I know of several people who want to buy it when a purchase option becomes available."
He added that the City of Sleepy Eye has a purchase agreement to buy property just north of the Inn of Seven Gables.
(Fritz Busch can be e-mailed at fbusch@nujournal.com).
Reported by: nujournal.com
