Red Lake Falls awards $8.4 million contract for 2026 street and utility improvements, approves financing steps

On June 8, 2026, the Red Lake Falls City Council unanimously approved Davidson Construction, Inc.'s bid of $8,396,549.00 for the 2026 Street & Utility Improvement Project, pending approval and funding from USDA Rural Development and the Minnesota Public Facilities Authority.

Council member John Kleven moved to accept the bid and Joyce Kalbakdalen seconded; all members present voted in favor. The motion explicitly tied the award to outside funding approvals, leaving final contract execution contingent on those agencies' decisions.

At the same meeting the council approved two related financing measures. Resolution #06-01-2026, relating to the issuance of a general obligation temporary utility revenue bond, and Resolution #06-02-2026, establishing procedures to comply with reimbursement bond regulations under the Internal Revenue Code, both passed unanimously. Joyce Kalbakdalen sponsored the resolutions as recorded in the minutes.

The council also accepted an engagement letter with S&P Global Ratings with a rating fee of $21,400.00 to support the city's financing process. That engagement will inform credit considerations as the city seeks approval and disbursement from USDA Rural Development and the Minnesota Public Facilities Authority.

The council's votes were unanimous: Allen Bertilrud (Mayor), Joyce Kalbakdalen, Cheryl Matzke, John Kleven, Neil Knaack and Kyle Thibert voted yes. The council adjourned at 6:56 p.m. The next substantive steps are formal approval and funding decisions by USDA Rural Development and the Minnesota Public Facilities Authority before the city may finalize the contract.