By Chad Koenen

Publisher

The Henning EDA found itself in a bit of a chicken and egg scenario last week as it weighed what should come first—housing or businesses?

During its regularly scheduled meeting last Thursday morning, the Henning EDA heard from Otter Tail County Community Development Director Amy Baldwin who provided the board an overview of two recent housing studies that were completed in both Pelican Rapids and Parkers Prairie. The expansive housing studies looks at everything from current housing stock, affordable rent, employment characteristics and projections on what could be needed for housing in the future. 

“Just to get that understanding of where folks are at in your community,” said Baldwin of the study. “Most importantly, they take all that information and make recommendations.”

Over the past few months the Henning EDA has sought input from the public about what it would like to see come to Henning. While many of the ideas generated from the public revolved around businesses or things to add to places like the festival grounds, several people on the EDA said a housing study could essentially kill two birds with one stone as it could provide information to give to future housing developers and business owners.

The cost of the study was estimated to be $15,000, but Baldwin said Otter Tail County currently offers a $5,000 grant to fund a portion of the housing study. Henning EDA members weighed whether the EDA should pay for the remaining $10,000 itself, or see if the Henning City Council would be willing to split the cost. At the time of the meeting the EDA was unsure about when, or even if, the company Baldwin recommended would be able to complete a housing study in Henning.

City clerk/treasurer Jenna Kovarik said she spoke with the Parkers Prairie clerk/treasurer who said they were pleased with the results of their housing study.

“I talked to Beth and she said this was the stepping stone they needed,” she said.

Baldwin said the housing study will provide data to potential housing developers to show what kind of housing may be needed in the community and what future rent could generate for them to pay for the project. In an already tight and competitive housing market, Baldwin said the housing study could give Henning an opportunity to potentially attract developers and even apply for state funding to complete some of the projects. 

“It gives developers at least a starting point to say, ‘hey come and build in our community.’ It helps them understand what the need is and what the rent needs to be in a community,” she said. “Developers are hard to come by so the community really needs to be ready for them.”

Henning EDA member Nathan Thalmann said he was in favor of the study as Henning is located approximately 30 minutes from a number of communities like Alexandria, Fergus Falls, Perham and Staples, making it an ideal bedroom community. He said one thing the EDA will need to look at down the road is where it can put new businesses in town as the industrial park is nearly full. 

Thalmann said a perfect location for a new apartment building would be the former Henning nursing home, which is for sale,. The former nursing home is currently listed for sale at $319,500. 

“It is an easy on and easy off (to Highway 210),” he said. 

Thalmann and several EDA board members said the cost would have to come down quite a bit for the EDA to purchase the facility, especially since it would need extensive repairs or to be torn down altogether. 

Henning EDA President Andy Eckhoff agreed that the housing study would be a good first step to completing a number of the projects the EDA has discussed over the past few months. 

“I think getting this housing study is the first step to getting all of these great things we have been talking about,” he said. 

In addition to attracting new businesses, Baldwin said it is important for a community to also support their existing businesses in their town as well. 

The Henning EDA will reach out to CEDA to check on a time line and final cost for completing a housing study, as well as speak with the city council to see if it would be willing to fund a portion of the study moving forward.

In other news

• Heard that all of the EDA loans are up to date, with the exception of Grizz-Lee Industrial Coating which has not made a payment since December 2023. The existing balance of the loan, which includes interest, is $22,035.30. The original loan from September 2022 was for $25,000. The Henning EDA said in the future if a business is behind 30 days or more they will reach out with a phone call and at 60 days they will likely send a certified letter to inform the EDA loan holder that their account is past due.