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Mahnomen council approves E Washington Ave. project plans, assigns most costs to MMCDC
Summary
The Mahnomen City Council on May 4 approved design revisions, an interfund loan and the advertisement of bids for the E Washington Avenue water, sewer and road project. The total project cost is listed at $250,000; the city will pay $25,000 and the Mahnomen Main Street CDC (MMCDC) will be assessed the remainder.
The Mahnomen City Council on May 4 voted unanimously to advance the E Washington Avenue water, sewer and road project by approving an interfund loan, a design task order amendment and plans and specifications to be advertised for bids.
Jon Pratt of Apex, the engineering consultant on the project, told the council the total project cost is $250,000 for basic water and sewer extension, road rehabilitation and lateral replacement. Pratt said the city’s share is $25,000 and that the Mahnomen Main Street Community Development Corporation (MMCDC) will be assessed the remaining balance; the assessment is proposed to run for 20 years or until payoff. Pratt also described a design increase of $10,000 and a corresponding reduction in the construction estimate from $55,000 to $30,000 under Task Order No. 6 Amendment No. 1.
Why this matters: the action moves the project from planning into procurement and ties repayment to a special assessment on a single benefited property, reducing immediate city capital exposure but placing long-term repayment responsibility with MMCDC.
Council approved Resolution 5-4-2026-1 authorizing an interfund loan to cover spending before receipt of tax increment/special assessment proceeds, then approved the task order amendment and Resolution 5-4-2026-3 to approve plans and order bids. All votes on these items were recorded as carried 5-0.
Pratt said the city expects bids returned for review at the council’s first meeting in June and that a special contract will be drafted for MMCDC to sign prior to the council’s approval of any construction contract. The council did not amend the assessment term in the meeting record; the minutes note the 20-year assessment or until payoff as the proposed structure.
The council’s motions were procedural approvals necessary to proceed with design completion and solicitation of contractors. The interfund loan authorizes city funds to be used temporarily where project costs precede anticipated assessment receipts. The minutes show no recorded public opposition, and council members voted in favor of moving the project forward.
Next steps: staff and Apex will finalize documents for advertisement and return bid results to the council for formal contract consideration at the June meeting.
