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Long Prairie holds public hearing, approves resolutions to pursue federal small‑cities development grant
Summary
The Long Prairie City Council held a public hearing March 11 and approved two resolutions to pursue federal Small Cities Development Program funds, designating a downtown target area as slum and blight and authorizing the city to act as applicant and fiscal agent.
The Long Prairie City Council on March 11 held a public hearing and approved two resolutions to pursue federal Small Cities Development Program (CDBG) funding for housing and commercial rehabilitation.
Jason Krebsbach, Community Development Director for the Central Minnesota Housing Partnership, led the hearing and described the city’s proposed project mix: 21 owner‑occupied housing rehabilitations, four single‑family rental projects and five commercial rehabilitation projects. The city’s current proposal allocates $943,000, with a permitted maximum of $1.2 million if additional single‑family rentals or commercial rehab projects qualify, Krebsbach said. He told the council that federal funds would be subject to state and federal requirements, including immediate remediation if lead paint is detected and historic‑preservation review for homes older than 45 years.
Krebsbach outlined timing: full homeowner applications are not expected for at least a year, the program kickoff would likely be spring 2027 if awarded, and the project period would run about 30 months from contract execution, with selection notifications anticipated in September–October 2026.
As part of the application packet, the council approved Resolution No. 26‑03‑11‑05 designating a downtown target area as a slum and blighted area. City staff reported that of 54 parcels in the target area, 29 buildings were classified as structurally standard and 25 as structurally substandard. The resolution passed after a roll‑call vote: Mayor James Kreemer, Lilah Gripne and JoAnn Schroeder voted yes; Council Members Gabrier Perez and Clint Krueger abstained.
The council also approved Resolution No. 26‑03‑11‑06, which authorizes the City of Long Prairie to act as the legal sponsor and fiscal agent for the CDBG application and certifies the city’s legal, managerial and financial capacity to administer the program. That resolution passed with the same voting pattern as the slum and blight designation (Perez and Krueger abstained).
Council and staff members noted program details that will affect applicants: commercial rehab funds are limited to exterior work and signage and may be used for Americans with Disabilities Act (ADA) compliance items; residential funds can cover interior repairs. Krebsbach said funds awarded through this program include forgivable assistance on a seven‑year schedule for homeowner projects (with pro‑rated repayment if the property is sold before seven years); commercial assistance requires full repayment if sold before the seven‑year term. The city will follow federal and state program rules if selected.
Next steps: the city will finalize its application and submit materials by the program deadlines. If awarded, staff said they expect application intake and project implementation to follow the federal timeline Krebsbach described.
