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Stewartville approves $790,000 purchase of 92-acre Beach Farms parcel for public-works site
Summary
The Stewartville City Council approved buying 92 acres from the Beach Farms family trust for $790,000 on an installment plan, citing needs for snow-storage, composting and a consolidated public-works complex; staff said roughly 60 acres are developable and mining rights would transfer to the city.
Stewartville — The Stewartville City Council voted to buy 92 acres of farmland from the Beach Farms family trust for $790,000, approving a multi-year installment schedule to acquire land the city says could host a future snow-removal compound, compost site and an expanded public-works complex.
City staff described the purchase as a strategic response to anticipated growth and long-running operational needs. The proposed financing uses an amortized payment plan intended to preserve the city’s cash position: staff reported a first-year payment of $131,666.67 and an estimated total interest cost of about $79,000 over the life of the plan. Officials said recently matured certificates of deposit could cover the early payments and that the city will be paying off roughly $638,000 in loans next year, which frees up options for budgeting the installments.
Staff told the council that roughly 60 of the 92 acres are developable above the floodplain; the remainder includes former mined pits that staff said can be filled after soil-and-water approval. The packet and discussion noted the city could transfer or sell a small parcel (about two acres) to Dairland Power to site a substation and that short-term rental or continued agricultural leasing could generate interim revenue to offset payments.
Councilors asked how the purchase would affect the municipal budget and were told the financing plan is intended to avoid a one-time principal outlay and that staff would return with financing options if the council preferred a different approach. After a motion and a second, the council approved the purchase on the proposed schedule by voice vote.
What happens next: staff will proceed toward a closing anticipated shortly after the turn of the year and will coordinate any substation sale, fill projects and potential interim leases. The council did not record a roll-call vote in the transcript; minutes show the motion carried on a voice vote.
