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Fergus Falls council accepts transfer of old dairy site; state appropriation to fund purchase and crossings
Summary
Council approved a resolution to accept transfer of the ‘old dairy’ site from the Port Authority and will use a $4 million state appropriation—including $1.2 million for acquisition and roughly $1.4 million intended for railroad crossing upgrades—to fund acquisition, crossings and trail planning.
The Fergus Falls City Council approved a resolution accepting transfer of the former dairy property from the Fergus Falls Port Authority and to pursue state funds tied to that transaction.
City staff told the council that the Minnesota Legislature allocated $4 million specifically for the dairy site. The city will use $1.2 million of that appropriation to acquire the property from the Port Authority; remaining funds are earmarked for railroad crossing upgrades, site planning and construction of a river-side trail buffer parcel.
City staff said final negotiations are under way with the railroad on crossing work and that about $1.4 million of the appropriation is expected to be used for crossing improvements. The grant funds will be routed through the Port Authority into a dairy property project budget once the transfer paperwork is complete.
Staff clarified that the planned river trail will follow the river corridor and not run within the Otter Tail Valley Railroad easement; council members said railroad representatives have been unwilling to provide an easement for a trail through the railroad corridor, so the city is planning the trail on the riverside and, if needed, routing it along Stanton Street instead.
Council members approved the resolution by roll call. The transfer had been discussed and approved previously by the Port Authority; the council’s action completes the municipal acceptance step needed to file paperwork with the state to access the appropriation.
The council did not tie any immediate new local tax levy to the acquisition in the discussion; staff said the $4 million appropriation is state money and will fund acquisition, crossings and on-site trail work. Further design, construction timelines and any remaining local funding needs will return to the council as the railroad negotiations and site planning proceed.
