By Chad Koenen

Publisher

After officially selling Willow Creek Assisted Living earlier in the day to St. Williams Living Center, the Henning City Council approved a bonding package to pay off the one-time city-owned facility as soon as next year.

During its regularly scheduled meeting last week, the Henning City Council approved a refunding bond to essentially put the $1.5 million sale price and close to $290,000 in equity contribution into a special bond that will pay off the remaining $1.789 million in principle and interest, as well as the cost of issuing the new bond. The original general obligation bond, which was refinanced in 2017, can be officially paid off on Oct. 1, 2025. Due to that refinancing the city cannot pay off the bond sooner than Oct. 1, 2025.

One thing that is working in Henning’s favor is higher-than-usual interest rates, which are still over four percent for these type of refunding bonds. That higher interest will benefit the city as it needs to pay off the shortfall from the sale of the building and the remaining bond on Willow Creek. That shortfall is approximately $290,000.

“The current market is actually benefiting you because we have been in markets in 2020, 2021, when rates were 1-2 percent,” said George Ellertson of Northland Securities. “That would have meant there would be less interest earned in the escrow account, so that you would have to fund more. (In that case) there would be more coming out the city and EDA pocket to fully fund that escrow account. But now with yields of investments north of four percent that is a positive here for you certainty at this time.”

The city council officially approved a resolution to issue the bonds, which will be similar to a resolution that will need to be approved by the Henning EDA during its regularly scheduled meeting on July 18. 

In other news

• Approved an application for funding from the Otter Tail County CDA Community Growth Partnership Grant program for a housing project for the Rose Family Development LLC. The program is a county-wide program, but needed to have the blessing of the city council to proceed. The Rose family has expressed an interest in constructing an affordable house on a piece of property they own near the school that could be sold to a family on the open market. 

• Discussed rules and hours for the new Henning Skate park. The skate park, which is located at the Henning Festival Grounds, will be open from 8 a.m. to dark. Those who utilize the skate park are asked to wear a helmet and kneepads and spectators are asked to observe from outside the skating area.

• Heard requests from Dondi Kimber (leaky toilet) and Betty Saari (plumbing issues) to forgive a portion of the water and sewer bills. In keeping with past practice the city offered to set up a payment plan, but did not forgive the water and sewer bills. 

• Heard the plans for a renovation of the water treatment facility in Henning was approved by the Minnesota Department of Health. The project consists of expanding and renovating the existing water treatment plant including providing separate chemical feed rooms, new chemical feed equipment, rehabilitating filter, replacing filter media, replacing under drains, rehabilitating pressure softeners, replacing the air compressor, replacing the brine delivery system, replacing valves and piping and other miscellaneous work.