Sutherland Council Considers Rental Space Closure
By Mari Radtke
Public comments were delayed by request of visitor Steve Koch at the Tuesday September 5 regular meeting. Council verified that Koch wanted to speak before action on a proposed resolution to “terminate use of the [former] bus barn for storage by the public.” Council was willing to oblige.
Councilman Chase Cox updated council on the discussions of economic development. He outlined a group interested in obtaining slow-moving houses for improvement. He also noted a discussion to more formalize roles for the Labor Day event. Bringing rides to the event is getting back into the conversation. Cox recognized liability issues, but explained that he had recently been made aware of the history halting rides.
City Clerk Amanda Vander Hof informed council that the O’Brien County Assessor is not requiring, per Iowa Code, plans for any building projects requesting minimum assessment.
Library, Fire and Ambulance and police reports were given to council. Adam McQueen, Sutherland police officer graduated from the Law Enforcement Academy and is on duty.
Fees to put messages on the community sign at W 2nd and Main Streets were finalized. Council originally set the rate at $5 per day or $25 per week, as suggested by the installers. Further discussion of rates included free for not for profit all the way through to $5 per day. Vander Hof reported that Paullina and Primghar charge $2 per day. After discussion and input from Nancy Hill, Library Director who manages the sign, council decided to put the charge for everyone at $3 per day.
The resolution to terminate the [former] bus barn came up for discussion. The termination was set at January 1, 2024. Koch started by asking the reason behind terminating the leases of the bus barn and what is the plan to generate any of the missed income by not renting.
Vander Hof described some issues with the building such as security, door closures and standing water, and recounted the power being shut off spoiling food in the Little League refrigerator. There was some disagreement/confusion about the electric billing and who was paying it. David Mills had believed that his parents were paying that. Vander Hof explained that was not the case.
Koch recounted that the original plan was no electricity in the barn and at some point that had changed. He mathed out the tenants x rent to reach a figure of $36,000 over 10 years and commented how none of it had been put back into the building. He went on to say that the $3600 per year going back into the building “wouldn’t be out of the realm.” He gave thoughts of how the city could spend that money for the city. He was cut off by both Vander Hof and Mayor Kay Gifford saying that the funds were budgeted to the Parks Board.
He then returned to asking for plans to replace the revenue. Councilman Bruce Engelke noted that the fire department has some needs for storage. Other city department storage needs were mentioned. Gifford tasked Koch with what is the “motivating factor of making the building a storage because, was it let for public bid?” She said, “Now if there is an empty space we have to let it out for public bid, uhm, so I don’t understand how it even came about.” Koch interrupted stating, “I don’t know how it ever got appropriated to the park board because it was going to go into the general fund of the city at the time.” Gifford wondered out loud, “$3600 going into the general fund those improvements could have been made. And asked, ‘why weren’t they?’” Koch agreed saying, “That’s my question also.” Gifford’s retort was to remind Koch, “You guys were on the board, you guys were on the council.” Koch said, “So at that time it had been brought up. I did not know the money was going to the Park Board, so then it’s the Park Board goes in and if they want to keep that generation of income so they can go in and make some small improvement.”
The discussion turned to what the Park Board will do without that revenue with no clear statement addressing the concern. Jack Wallinga, another tenant said about the revenue stream being budgeted to the Park Board, “I never knew that.” Vander Hof and Gifford both said that had always been that way in their tenures.
Cox spoke up recognizing the condition of the building and asked, “why would you want to store your stuff there?” Koch turned the question back to him. Engelke explained it is equipment that will no longer be kept outside getting snowed on. Following a detailed description of what is wrong with one of the doors, Cox asked, “how long have you guys been there?” Wendy Koch responded, “All 5 of us have been there since it started.” That time was determined to be more than 10 years. The tenants were identified: Ken “Nelson has 1 stall. We have 1. Jack and Bonnie 1. Dave’s got 2 and Al has the large one on the west end.”
There was a lot of talk about the building deficiencies, the cost to the city to repair the building and/or loss of revenue and increased rental rates.
Koch ended his part of the conversation with he would be back next month with something else if council wants to terminate the facility as a rental.
Cox said he is interested in tabling the resolution. He said he understands both sides of the issue and wants to learn more.
Gifford advised that the next opening would require the city to put the spaces out for bid. The resolution was tabled.
The resolution to transfer real estate to Mark Thompson needs a rescheduled public hearing. The original notice had an incorrect date.
Department of Transportation awarded the City of Sutherland a grant to obtain a mobile speed sign in the amount of $5990.00. The project for this sign was originally discussed in a council meeting 2 years ago. The signs cost in excess of $6000 at that time. The TSIP grants take a lot of time.
Council members complimented the crosswalks, the basketball court striping and the general condition of the city for the Labor Day celebration.
