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Red Lake Falls council approves rent settlement option for PowerHouse Fitness, authorizes City Hall estimate and accepts $780,000 contract obligation
Summary
At its May 11 meeting the Red Lake Falls City Council approved a settlement option for PowerHouse Fitness’ outstanding rent, adopted a written-payment rule for mall tenants in arrears, contracted up to $6,000 for Small Cities grant assistance to DEED, authorized cost estimates for proposed City Hall plans, and accepted a Moore Engineering RD contract that will add $780,000 in obligation.
The Red Lake Falls City Council met May 11 in Council Chambers and unanimously approved a package of administrative and project actions, including a conditional rent settlement for a downtown tenant and steps toward a proposed City Hall project.
Council Member Neil Knaack moved that Attorney Delray Sparby offer PowerHouse Fitness the option to pay one-half of its outstanding rent balance, with the city forgiving the remainder if the tenant responds within 30 days. Council Member Joyce Kalbakdalen seconded the motion, which passed unanimously. The measure directs the city attorney to make the offer and closes the account if the tenant accepts the terms within the 30-day window.
Knaack also moved — and Council Member John Kleven seconded — a new policy for mall tenants who fall three months behind in rent. Under the adopted rule, a delinquent tenant must sign a written payment plan that the council must approve; default on that plan will prompt a referral to Attorney Sparby for eviction proceedings. The city did not record specific past-due amounts in the meeting minutes.
On grant support, Council Member John Kleven moved and Council Member Joyce Kalbakdalen seconded approval of a contract for services with NW MN Multi-County HRA not to exceed $6,000 to complete a Small Cities grant application to the Minnesota Department of Employment and Economic Development (DEED). The council approved the contract unanimously.
The council also authorized design work related to a proposed City Hall. Council Member Cheryl Matzke moved and Council Member Kyle Thibert seconded a motion approving Widseth to proceed with a cost estimate for the proposed plans; the motion carried unanimously.
Finally, the council accepted the Moore Engineering RD contract as presented. Council Member Kyle Thibert moved and Council Member John Kleven seconded acceptance of the contract, which the minutes record will result in an additional $780,000 owed by the city; the motion passed unanimously. The minutes do not specify the repayment schedule, funding source for that obligation, or further conditions.
The meeting opened at 6:07 p.m. and adjourned at 7:03 p.m. Mayor Allen Bertilrud and City Administrator Kathleen Schmitz signed the minutes. The full text of the minutes is available at City Hall or by request.
