No decisions on city-owned property have been made

By Chad Koenen

Publisher

What could a potential cash influx by selling Countryview Apartments mean for the City of Henning and Henning EDA? The Henning EDA briefly discussed, but were nowhere near a decision on the matter, of the potential of selling Countryview Apartments and using the nearly $400,000 that could come with the sale on bigger projects to promote business and housing in the community. 

The discussion concerning a potential sale of the city-owned Countryview Apartments has taken place a number of times over the years, but this time the Henning EDA members were encouraged to think about what could happen should the city receive a large influx of money for housing and business projects. The city originally constructed the apartment building with the hope of bringing more affordable housing to the community, but the facility has needed a number of costly repairs and maintenance projects in recent years. 

While the facility has been able to consistently turn a profit over the years, which was then put into the general fund for city and Henning EDA project, the Henning EDA found itself debating a bit of a philosophical question over whether the city would be better off with one lump payment to the tune of nearly $400,000 that could potentially be used for another big project in the community, or using a small profit every year from Countryview to complete a number of smaller projects. 

According to records from the City of Henning, Countryview made a profit of $36,781 and $34,894 in 2021 and 2022, but lost $32,314 in 2023 and lost another $25,437 due to expansive projects at the facility that included replacing the boiler, new flooring, paint, appliances, cabinets, a new roof, gutters, landscaping and much more. 

Henning Clerk/Treasurer Jenna Kovarik said several representatives from the City of Henning attended a recent regional mayors meeting where several local mayors spoke about what they have used their EDA money for in the past. Many of those projects include expansive fix-up loans and business expansion. However, another large city backed project could be on the table should the city receive a lump sum payment for the building. 

Henning EDA Chair Andy Eckhoff said “a city shouldn’t be a buy and hold entity” and said most EDAs and city’s build facilities like Willow Creek or Countryview with the intent of eventually selling them. He said proceeds from the sale can then be used for another project within the community to keep the money churning over for the betterment of the community as a whole.

Kovarik said selling the building would also allow the city to collect taxes and utilities on the facility, which could generate additional income for the utility department.

While some members of the EDA seemed open to the idea of looking at selling the facility and using that money for another project, Glenn Scott questioned if it would be in the best interest to sell the facility. He said getting a lump sum payment would be a big boost for the Henning EDA and city right away, but using the profits from the facility each year could provide the city with continued annual income that could then be set aside for future projects.

No decision about potentially selling Countryview Apartments were made and Henning EDA members said they will look into whether they should sell or keep the facility at a future meeting. Any decision regarding the building would need the blessing of the Henning City Council. 

The taxable value of the building is just under $400,000 according to Otter Tail County, which is what the Henning EDA used as a base for discussion concerning a potential sale. 

In other news

• Discussed the potential need to follow through with an eviction notice for a resident at Countryview Apartments. The resident has a large dog in the apartment and has been informed in the past, and again by the Henning Police Department, that large animals are not allowed in Countryview Apartments, per the lease agreement.