Henning EDA said apartment building could be a future revenue source for the city
By Chad Koenen
The Henning EDA affirmed its desire for the City of Henning to not sell Countryview Apartments last week.
During its regularly scheduled meeting last Thursday, the Henning EDA unanimously approved a recommendation to not sell the city-owned facility. The issue was brought to light after a recent city council meeting in which selling the city-owned apartment building was brought up to help cover future city expenses.
However, several Henning EDA members spoke out against the idea as it could provide annual funding for the city and requires minimal work to maintain.
“As an EDA I don’t know why you would want to sell a profitable business unless you are hard up for cash, or for some other reason,” said Henning EDA Chairman Josh Rud. “It’s a very profitable venture.”
Rud said the balance on the loan was just over $31,000.
Rud said the annual budgeted expenses are approximately $25,000, less depreciation, while the budgeted revenue is approximately $62,400. Currently, the profits are put aside into a Countryview Apartment fund.
Rud said the going rate for an apartment building like Countryview is between $50-60,000 per unit. That means the city could get about $400,000, if it opted to sell the building. However, he said over the course of 10 years the city would be better off keeping the building and having that annual revenue source.
Henning EDA member Darren Wiese said the apartment building will be paid off in the near future, meaning there could be an opportunity for annual revenue coming into the city’s coffers. Even if repairs like a new roof or maintenance cuts into those profits a bit, selling it will mean all of that profit will go away. Wiese also said the building is typically full and there are very little issues that come up at the building over the year.
Henning EDA member Tammy Fosse suggested the EDA look at hiring a manager to take care of the maintenance at the facility, as opposed to city utility workers as has been the case in the past.
Currently the city is in charge of maintenance at the building, however, some projects have been subcontracted out.
In other news
• Accepted the resignation of Brenda Reese as a member of the Henning EDA. The EDA will inquire with community members to find a person to fill the vacant spot.
• Discussed the possibility of selling Willow Creek. With building costs going up and the facility’s history of losing money, several EDA members suggested now might be a good time to explore selling the facility. Fosse suggested the Willow Creek Commission should be given the task of exploring the options of Willow Creek, which could include selling the facility. The EDA said it would assist the Willow Creek Commission with any help it needs should it explore selling the facility.