Council hears housing proposal

Craig Kruckeberg has had the same issue for years: There aren’t enough places to live in Blooming Prairie for the people who work there.
The need for more workforce and affordable housing hasn’t gone unnoticed by city officials, either, but a solution is more complicated than simply building more houses and apartment buildings.
Several areas within the city are platted for development, according to City Administrator Andrew Langholz – but those properties aren’t owned by the city, “and progress with property owners has been slow.”
What the city can do is offer incentives, things like tax abatement or tax increment financing. What it can’t do, Langholz told Blooming Prairie City Council members, is act as a developer – not without more capital, expertise or manpower.
Langholz told the council he believes the city is “entering a prime window for expansion, for multiple reasons.” Among them: easy access to four large cities with 45 miles; more remote work options for employees and multiple high-speed internet providers; the recent passage of the school referendum; and the planned opening of a large childcare and early childhood education site.
The childcare facility, Leo Augusta Academy, will occupy the former Minimizer building. The property was donated by Kruckeberg and his wife Robyn, along with $1 million. A further $3 million capital fundraising campaign has brought in $1.5 million.
“The public stepped up for $35 million for the school” bond referendum, Kruckeberg said after the meeting. “The people in this city are already stepping up. It’s time for the city to step up to the plate.”
He proposed building what have traditionally been called “starter homes” on 20 open lots in Blooming Prairie.
“Three-bedroom, 900- to 1,200-square feet houses,” Kruckeberg said. “And put the alleys back in behind them, so they can start building equity, garages, she-sheds.”
The city could provide the lots and the infrastructure – streets, curb and gutter, utilities – in order to make the housing more affordable, “and to do it right,” Kruckeberg said.
“I don’t need to make a dime; I just need to get employees in town.”
Kruckeberg is the CEO of Kruckeberg Industries, a holding company for a group of businesses including Stinar Aviation Ground Service Equipment, KIK Marketing, Kruckeberg Services and Bandit Series LLC. All of the firms are headquartered in Blooming Prairie.
The housing he’s suggesting would be affordable for people who don’t earn six figures annually; it would have minimal impact on other developers, Kruckeberg said, “because that’s a completely different market. These aren’t $280,000 houses.”
The city would rather use existing homes – eliminating the need for new roads and sewer lines, “but they’ve got to be available to be sold,” Kruckeberg said.
More housing, of course, potentially lowers the tax base for everyone, he reminded council members.
“You’re going to have to spend money to do it; you’re going to have to bite the bullet.”
Kruckeberg’s plan would cost the city at least half a million dollars.
“I appreciate them being lean,” he said, “but my taxes went down. Instead of lowering them, throw that (overpayment) in a jar. Build it up.”
Acting Mayor Bill Newman said the council would take the suggestion under advisement.
 
In other business:
The city council members approved the final 2022 property tax levy of $833,341. That’s a total increase of about $40,000, or 5.05%. The council had hoped to lower the 5.5% preliminary amount set in September to 3.98%, but fully funding the capital equipment fund through 2026 prevented the decrease.
Members approved the conditional hire of Nathan Taarud as a part-time police officer for the city. He has cleared the background check and medical exams.
The council approved a $20,000 donation from the BP Chamber of Commerce, part of its charitable gambling operation. The money is to be used for city beautification; part of the donation will be used to buy an ice liner for the hockey rink at Victory Field.
Members approved rate adjustments for the sanitary sewer and storm sewer after what Langholz called an “eye-opening” rate study for future planning. The monthly sanitary sewer base rate will increase by $6 per month; the usage rate per 1,000 gallons will increase by 63 cents. The storm sewer residential base rate will climb by $1.64 per month; commercial properties will go up $3.29 per month.