Marshall City Council approves South Hill street reconstruction bonds; delays park abatements

The Marshall City Council on the night considered and approved a five-year street reconstruction plan and the issuance of general obligation street reconstruction bonds that will fund the South Hill/South Minnesota/Charles Avenue reconstruction project and related alley work.

The vote followed a public hearing led by EJ Moberg, Director of Administrative Services, who outlined the city’s bonding plan and recommended trimming several park projects from this year’s bonding package. “Our airport reconstruction project for the hangar area is something we do not believe would be a 2025 project,” Moberg said, adding staff recommended removing the Liberty Park bandshell, the Independence Park restroom back-room project and the Legion Field abatement from this year’s bond issuance. Moberg told the council the bonding estimate provided by Baker Tilly and updated staff estimates reduced the projected street project cost from about $1.46 million to roughly $1.02 million and that the city had noticed $1,035,000 for the street bonds to leave room for unfavorable bids.

Jason Anderson, Director of Public Works and City Engineer, presented project specifics for the South Hill, South Minnesota and Charles Avenue reconstruction, noting bids were opened on Feb. 12 and the low bid was $995,695.25 from D & G Excavating of Marshall — slightly under the engineer’s estimate. Anderson said the total project budget including a 5% contingency and 16% engineering fees was $1,212,756 and that costs will be apportioned across special assessments, wastewater utility, Marshall Municipal Utilities (MMU), the Surface Water Management Fund and city ad valorem dollars.

The council closed the required public hearing on the five-year plan and then approved a resolution adopting the plan and authorizing the issuance of general obligation street reconstruction bonds. The motion to approve the plan was made by Councilmember Craig and seconded by Councilmember John; the motion passed by council vote. A separate, related resolution declaring the city’s official intent to reimburse project expenditures with proceeds of tax-exempt bonds also passed.

On the ensuing public hearing about property-tax abatement for three park-related projects, Moberg reiterated staff’s recommendation to delay the abatements because final costs and funding sources were uncertain. He said the bandshell funding request included a pending legislative request for legacy funding and the Legion Field project lacked final architectural cost estimates. After accepting public comment (none presented) and closing the hearing, the council agreed not to proceed with the abatement resolution at this time and to defer those projects until more defined estimates and funding are available. The council’s handling of the abatement was described by Moberg as a staff recommendation that the council accepted; no abatement resolution was adopted.

The city advised that issuance of street reconstruction bonds carries a 30-day petition right to referendum: 5% of the votes cast in the last municipal general election can force a referendum if those signatures are filed with the city clerk within 30 days of the resolution’s publication. The resolution also requires a two-thirds supermajority of those present for adoption.

The council’s action on the street project moves the low bid to contract award consideration (see separate award action) and keeps the park projects off the current bonding list pending further design and funding clarity.

Ending: The street reconstruction measures approved Tuesday set the South Hill neighborhood project to proceed to contract award and established bonding authorization; the three park projects noticed for abatement were deferred for later consideration. Council and staff indicated they will return with updated cost estimates and any necessary resolutions when appropriate.