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City implementing ways to repurpose properties

FAIRMONT– Fairmont’s Community Development Director, Pat Oman, has been with the city just under one year and on Monday brought forth several big items dealing with buildings to the Fairmont City Council for action or approval.

Prior to getting the job, Oman said he had done research on the position and the challenges facing the city and had pinned down some priorities.

“I appreciate staff’s involvement. We have department heads involved in a lot but I was looking at where there needs to be growth,” Oman said.

He gave credit to former city administrator, Matt Skaret, and interim administrator, Jeff O’Neill, who have both given him a free hand to do some of the work.

A few of Oman’s and the council’s priorities have had to do with buildings and housing and on Monday progress was made in both areas.

A few months ago, the council discussed the possibility of putting up the Southern Minnesota Educational Campus (SMEC) building for sale.

While at one point there was discussion about the potential for turning the space into a city hall, the council at its April 28 meeting directed staff to put together a Request for Proposal (RFP) and on Monday the council was tasked with approving a sale strategy.

“One of the big challenges you’ll run into whether you’re dealing with a broker or a real estate professional is they’re usually based on a sales contingency,” Oman said. “A certain percentage of the sale is what they’ll get for commission.”

However, he said there could be an opportunity to provide the building to the right developer for a much lower sale price.

Council Member Randy Lubenow asked how much it costs to run the building annually. He said that would be the minimum or maximum fee he felt the council should pay to get rid of the building. Finance Director Paul Hoye said the cost is $98,000 a year.

Lubenow also asked what the area was zoned in.

Oman said that’s its currently zoned B3 but surrounded by residential and public buildings. He said the space has the opportunity to be developed as multi-family residential or commercial business offices or a combination of both.

“We’re not going to know. Let the proposals come,” Oman suggested.

Council Member Britney Kawecki said she would prefer to see the building used for housing over commercial building space.

“The availability for the SMEC building, it’s been available. Maybe it hasn’t been as appealing due to the classroom style. I feel like we’re in desperate need of housing in one way or another,” Kawecki said.

Because the building is registered as a historic building, it’s likely not going to be approved to have it torn down and Oman said he doesn’t believe the council wants to see that happen.

The council opted to have city staff market the property to the best of its ability and after 90 days revisit the topic and see if it wants to do something different.

On Monday Oman brought up to the council the consideration of addressing a blighted property at 1524 Albion Avenue in Fairmont. It’s a property he said he had identified as needing to be addressed soon after he moved here last August.

The council first talked about the property at its April 28 meeting and at that time approved authorizing a consent agreement for demolition of the house and commercial property.

Oman told the council that the city had been following Minnesota state statute 463.151, which allows the city to collaborate with the home owner to develop a consent agreement that will allow for the city to come in and demolish the property.

“That was the agreed upon strategy that was brought to the council. Unfortunately we had one final piece left to go on site and get demolition estimates and we were able to go on site but unfortunately we didn’t get access to the building,” Oman said.

He said after that he did not receive a response from the personal representative and owner of the property.

“At this point in time it takes collaboration. The home owner has to work together with the government unit. When that doesn’t happen, it brings up a secondary strategy and that’s Minnesota state statute 463.161. It allows us to do the exact same thing without a consent agreement without the individual home owner,” Oman said.

He told the council that this is a strategy it will continue to see in order to clean up blighted properties but that the city will work as closely with the property owners as possible.

“At the end of the day, this is good for the city and it’s good for the neighbors and it’s good for the property owner,” Oman said.

Council Member Jay Maynard shared that when he moved to Fairmont 23 years ago, he thought the building was a hazard.

“I believe that the time for playing nice is over,” he said.

The council passed a motion to direct staff to proceed with abatement of the property at 1524 Albion Avenue.

Oman said this property was one of five on his priority list and that he plans to bring others to the council to consider in the near future.

“We want to give people as many options as possible,” Oman said. “If you have a dilapidated building that has no functional use anymore and must come down, pattern with us. We’ll help you using the statute on the consent agreement. Don’t work with us and we’ll use the other statute and bring it down.”

He said if a property has the availability to be saved, there’s the option of using a loan program through the local housing trust fund.

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