Owatonna City Council Approves Street Utility Project and Tax Exemption for Energy Station

The Owatonna City Council meeting on March 18, 2025, covered a range of topics, including the approval of a resolution for the 2025 Street Utility Project and a tax exemption request for the Steel Energy Station. The council also discussed updates to the wastewater treatment facility expansion and addressed resident concerns about a proposed highway project.

0:05The council unanimously approved a resolution to advance the 2025 Street Utility Project, which is set to upgrade the infrastructure of Lynn Drive and Oakdale Street Southwest. The current infrastructure has outlived its usefulness, prompting the need for this comprehensive improvement. Public Works Director Sean Murphy outlined the project’s scope, with an estimated cost of $234,916.24 affecting 39 property owners. The financing will involve city funds, Owatonna Public Utilities (OPU) contributions, and special assessments. The bid opening is scheduled for April 9.

In a notable decision, the council granted support for a personal property tax exemption for Steel Energy Station. This exemption applies to generating equipment for a natural gas combustion turbine peaking plant, which supplements renewable energy resources. The approval aims to relieve approximately $150,000 annually in personal property taxes for the generating equipment, although the plant will still contribute through real estate taxes. The exemption required a resolution of support from both the city and county, which the county had already provided.

18:23Attention then turned to the ongoing wastewater treatment facility expansion project. A new change order, number 19, was presented, detailing 22 work change directives that increased the budget by $192,478.87. The revised total contract cost is now $57,584,727.91, representing a 3.35% increase over the original value. The funding for this increase will be sourced from the sanitary sewer fund. Additionally, the council discussed a professional services agreement amendment related to change order number 18. The amendment, capped at $372,519, is intended to address staffing constraints by engaging additional construction administration services. This strategic financial management was noted as an efficient response to the project’s extended schedule.

The council also reviewed a proposal for purchasing a property on Maple Drive. This acquisition, priced at $195,000, is part of a broader initiative to remove homes from flood-prone areas, contingent upon receiving a grant from the Department of Natural Resources (DNR). The total estimated cost, including removal, is projected at $225,000, with funding allocated from matching grants and the dilapidated buildings fund.

37:00On another front, the council addressed citizen concerns regarding the East Side Corridor highway project. A resident, Matt Sine, expressed his apprehensions about safety and noise pollution due to the proximity of homes to the proposed highway right of way. He argued that the project was abandoned in the early 2000s and criticized recent developments in the area that contradict past advisories. Sine suggested that alternative existing routes would be less disruptive to residents, questioning the rationale for reviving such a project. His comments underscored the community’s need for careful consideration of developmental impacts on residential areas.

18:23The meeting also featured updates on various other projects and programs. The council approved several motions, including a construction administration proposal for the Eighteenth Street Trail Southeast project and a property purchase to enhance pedestrian access to Darts Park. Furthermore, a condition management study for the library roof was greenlighted to address its historical significance and recent damage.

37:00In the public safety realm, the council discussed updates to the deer culling program in city parks, with changes made in response to community concerns and environmental assessments. The program, supported by the DNR, aims to manage deer populations effectively while ensuring public safety and ecological balance.

Note: This meeting summary was generated by AI, which can occasionally misspell names, misattribute actions, and state inaccuracies. This summary is intended to be a starting point and you should review the meeting record linked above before acting on anything you read. If we got something wrong, let us know. We’re working every day to improve our process in pursuit of universal local government transparency.

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