Using a corner of the vacant Staples Airport Industrial park for a borrow pit could have a double benefit for the city.

The Staples Economic Development Authority board voted April 27 to instruct their executive director to continue exploring use of their site as a source of fill material for the proposed construction of the north-south corridor and overpass project.

Jerel Nelsen, executive director, explained that the value of the fill material could be used to offset the city’s 20 percent match required to receive 80 percent federal funding for the project.

Nelsen said the fill could amount to about 10 percent of the city’s total needed to match the projected $7 to $8 million overpass project.

At the same time, the excavation could leave the city with a low-lying wetland. Creating such a wetland will be required as part of the project, as the projected north south roadway will have to be built through existing wetland. Under state and federal rules, the project owners have to create two acres of wetland for every acre lost to construction.

“Excavating this area could both save taxpayers a significant amount of the city’s share of the cost, and create wetland mitigation at the same time,” Nelsen told the EDA members, who include three people from the city council and four from the community.

“What are the drawbacks?” Stan Carlson asked.

The only major one, according to Nelsen, will be the loss of acreage that some day might be used for industrial park development. But he said the area where test borings have already been done is at the northwest corner of the 150 acre site just west of the airport. It is already a low area and least desirable for building of any area of the acreage.

Carlson made the motion to continue exploration of the site as a borrow pit site.

Nelsen reported the sale of the Carter Ringer property at that time was still up in the air, with the National Joint Powers Alliance (NJPA) purchase not final until a possible April 30 signing. Norbert Johnson, who is now a Texas resident, is the owner of the building which is slated to go tax forfeit on May 10.

NJPA has offered $139,000 for the former garment factory property, which has been vacant for at least ten years and has had damage from leaking roofs and vandalism.

However, at least three loans have the property as collateral, with a city of Staples loan subordinate to two others. The North Central Economic Development Association (NCEDA) has agreed to taking 85 percent of its balance ($20,879), the Initiative Foundation has agreed to taking 85 percent of its balance ($18,933) and Staples has agreed to accepting 75 percent of its outstanding balance ($21,786). In addition, the owner owes Todd County back taxes.

Johnson, who has not made payments on his loans for several years, was reportedly not satisfied with the small amount that he will receive once all the taxes and loans have been satisfied.

In other matters, the EDA board:

o APPROVED leases with the Central Lakes College Ag Center to lease the EDA industrial park land for crop farming.

o APPROVED a quote of $4,943 from Northway Construction Services for insulating work on the underside of the roof of the Staples Industrial Building. Moisture has been building up over one of the three rental units with the work designed to alleviate that problem.

o RE-ELECTED the EDA officers. Chris Etzler is the EDA president and treasurer, Rob Schmieg is the vice president, City Administrator Nate Mathews the assistant treasurer and Jerel Nelsen is the secretary.

o APPROVED the EDA’s annual report as presented by Nelsen. The 2009 annual report shows several real estate transactions - such as acquiring a 29,000 foot parcel from MnDOT for the Staples All Veterans Park and sale of the city’s Highway 10 property to Ernie’s Food Market - during the year. The EDA approved four loans during the year from the EDA Revolving Loan Fund and two loans from the EDA’s newly formed Awning and Facade Loan Program. Several other projects and statistics were presented in the report.

o HEARD Nelsen’s activity report, including discussions with Stan Widmer regarding his boat building project, discussions with Bill Paulson and his PCM Products, a custom rubber molding firm. Both are currently tenants in the city’s industrial building.

o HEARD Nelsen report on potential re-opening of both the Coast True Value store and the Helling Food Pride stores.