Inver Grove Heights EDA approves budget, authorizes final plans for Dickman Trail utility project

On Monday, Aug. 25, the Inver Grove Heights Economic Development Authority voted to approve a project budget and authorize the city engineer to finalize plans and seek bids for the Dickman Trail Utility Improvement Project.

The action authorizes up to $15,000 to complete final engineering plans and to advertise the project for bidding; the EDA also approved a preliminary total project budget of roughly $1,493,910, with final costs to be set once bids are received. Director Ziemer presented the request and the motion to approve the resolution (EDA project number 25-01) was adopted by unanimous voice vote.

The project will extend public water, sanitary sewer and storm utilities to support a redevelopment led by Interstate Industrial LLC that includes at least three small industrial/office-warehouse buildings totaling about 27,000 square feet. Ziemer said the city’s design work to date, completed by Bolton & Menk, cost about $69,000 and the estimated construction cost for utilities, roadway and related work is $1,281,910 before contingency.

Ziemer said the city has received a DEED Host Community grant of $415,625 toward the work and has applied to Dakota County’s redevelopment incentive grant program for about $250,000; the county’s award decision is expected Sept. 23. “So we’re just trying to keep sort of the momentum sort of going forward,” Ziemer said, explaining the EDA authorization would allow the city to complete plans and put the project out to bid in time to meet grant-related deadlines.

Ziemer described the near-term schedule as completing plans by about Sept. 8 and receiving bids around Sept. 30, with the EDA to consider contract awards at an October meeting (staff suggested Oct. 6 or Oct. 13). He added that the DEED grant funding sunsets on June 30, 2026, and reimbursement requests must be submitted by May 30, 2026, for work to be eligible.

EDA members asked about the city’s financial exposure and long-term use of the plans if the project does not proceed. Member Takach expressed concern about the ratio of public investment to expected tax return, saying, “I’m just concerned about how much skin we have in the game versus the developer and what the payback is to the city.” Ziemer replied that the plan development funds would remain useful for future work even if this particular redevelopment does not proceed.

Ziemer said utilities will be routed down Dickman Trail and will connect to existing lines near Dixie Avenue; the city is not planning to fund a utility crossing under the railroad as part of this contract. He also said the project costs will be handled through the EDA project fund rather than the city’s pavement management or utility operating funds. The finance director reported the EDA capital fund balance is “slightly under $40,000,” a figure Ziemer repeated as roughly $38,000–$39,000 when asked.

The developer’s purchase agreement cited in the presentation lists a combined sale price of $721,360 for four parcels included in the redevelopment. Ziemer said the developer estimates roughly 10–20 jobs per building, or about 30–90 jobs across the development.

The motion to approve the resolution (EDA project number 25-01) was moved by Director Ziemer, seconded, and passed by unanimous voice vote. The authorization specifically allows up to $15,000 to finish final plans under the existing Bolton & Menk contract and to proceed with advertisement and bidding; the EDA will return to consider bid awards after bids are opened and grant awards are known.

The EDA did not take further actions at the meeting and adjourned after the vote.