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Bird Island council agrees to move ahead with Bolton Bank looping project preparations while awaiting PFA loan
Summary
Council reviewed bids for the Bolton Bank looping street project (Schmidt Construction the low bidder), was told a 20-year PFA loan package likely will be finalized in August–September at interest rates cited around 1–2%, and agreed to begin contracting and early construction work with the understanding the city may temporarily cover pay requests until loan reimbursement.
City staff and the project consultant updated the council on the Bolton Bank looping project and funding status with the Public Facilities Authority (PFA). Schmidt Construction was reported as the low bidder; staff said the city is not grant-eligible and that PFA indicated a 20-year loan package would likely be finalized between August and September. Staff noted recent projects on the PFA list are slowing grant availability because the state has not passed a bonding bill.
Project details: staff cited a construction cost of about $380,000 for utility work, curb and gutter, driveway restoration and gravel surfacing this year, with asphalt paving planned for 2025. The consultant said PFA interest rates on comparable packages had been around 2% and some as low as 1–1.2%.
Council discussed two options: wait for the loan paperwork to be finalized and start construction later, or sign notices of award and contracts to start earlier with the understanding the city would temporarily cover early pay requests until the PFA loan is finalized and the city is reimbursed. The consultant said PFA staff (Kathy Barrett) had indicated the city could proceed with construction and expect reimbursement after loan closing; council members expressed general agreement to proceed at the earliest convenience, provided there are funds to cover initial invoices.
Staff also discussed construction-phase services (prevailing-wage monitoring, Buy America/Build America Act compliance and construction observation) and estimated those services at about $54,000 (hourly estimate, dependent on construction duration). The council agreed the services would be included in the overall project budget.
