Harmony EDA urges City Council to OK temporary land use and contingency construction agreements to keep state bike-trail project on track

Chair Kerry Kingsley called the special meeting of the Harmony Economic Development Authority to order at 7:32 a.m. Dec. 8 and led discussion of two agreements intended to keep a planned state bike-trail extension on schedule.

The EDA recommended that the City Council approve a temporary land-use agreement that would let the State work on City-owned property if the State’s ownership transfer of the trail corridor is not complete before construction begins. City staff member Chris Giesen reported the City purchased the corridor with a grant from LCCMR that requires returning the land to the State; the State was “working on the transaction” but Giesen said it was not known when the transfer would be completed.

The board also reviewed a contingency construction agreement under which the City would encumber state bonding funds and manage construction if the State cannot award bids before Dec. 31, 2022. Because state bonding dollars must be encumbered within four years, the EDA noted the project’s encumbrance deadline is the end of 2022; if bids are not received or feasible before that date the State could use the contingency to preserve the funds by having the City carry out the project and be reimbursed from the remaining project funds.

Board members Steve Donney and Andy Batstone expressed concern that the agreement references $1.2 million while earlier conversations with the State had cited about $1.4 million in available funding. They also questioned who would manage day-to-day work if the City assumed the project. The board said it would be prudent to have the City Engineer represent the City to ensure construction is carried out correctly.

Greg Schieber moved and Andy Batstone seconded a motion recommending the City Council approve the temporary land-use agreement should the land transfer not be completed before construction; the motion carried unanimously. Schieber then moved and Batstone seconded a separate recommendation that the City Council approve the contingency construction agreement as a precaution to protect the bonding funds; that motion also carried unanimously. Present board members voting yes were Kerry Kingsley, Steve Donney, Andy Batstone and Greg Schieber.

Giesen said he would follow up with the DNR and the State to resolve outstanding questions and report back to the EDA. The board agreed to develop a lobbying strategy at its regular January meeting to secure additional funds to complete the entire trail project. The meeting adjourned at 8:27 a.m.