Several local businesses look to expand in industrial park

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Representatives from two Spring Valley businesses appeared before the Spring Valley City Council Monday, Sept. 10, to secure lots within the city's industrial park.

Local businessman Aaron Kolling of AMD Distributing, which has already expanded in the industrial park, told the council he was looking at further expansion in the next two to three years.

“It is the front two lots that he wishes to purchase, along with the back lot,” city administrator Deb Zimmer explained. “The problem is the back lot is not currently platted, so in order for that lot to happen we'll having to go through the platting process.”

Previously, the city gave two lots as AMD expanded with the condition that they construct a building.

This time Kolling explained the company is currently in need of more parking, though there is also an ongoing need to expand its buildings.

“We are in the preliminary stages of expanding our business again and where we are going to do it and how much land we are going to need,” Kolling explained. “It will be very similar to what we have going on now; we need some more workers and some more buildings. I can't promise that we would build a building next year or the year after. I can tell you we are trying to make arrangements right now to be able to have land to expand when we need it, which we perceive to be in the next two to three years.”

Zimmer noted that when the city began selling lots in the industrial park they sold for $1.85 a square foot. Many cities now are giving lots away to businesses willing to build and create jobs.

“I would think the only concern from the city point of view is that we would be selling them to you without any increased tax base, where as if someone else were to come in and actually build there it would,” council member Jessy Betts commented.

Betts proposed that the city lease the lots to AMD with the option to purchase and first right of refusal if someone else did want to build there.

“Your best growth is from within,” Zimmer said of helping local businesses expand.

“Personally, I'd like to see you get it for nothing if you're going to create what you did already,” council member Todd Jones expressed.

While the council agreed the best route may be a lease option, it tabled the item to further discuss pricing.

Next, Eugene Bronk and Jason Jewison, employees of Seabright Electric, also shared their interest in a lot within the industrial park and asked the council to donate the land.

According to the men, they are prepared to build a 56-foot by 64-foot by16-foot pole shed this fall for the expansion of Seabright Electric.

“These two guys decided they would like to stay in town and be electricians, so I said, 'well, this is a good opportunity, if they could build a new building because at this point I'm not going to build a new building.' I'm sure they'll have to hire more people,” Seabright Electric owner Craig Seabright said. “You're keeping a company that has been here for 30 years and you're going to help keep it here.”

“It seems to fall in the same boat where we are basically saying if you can build out there we are willing to do what every other town is willing to do, then,” Betts said. 

The council approved the land donation contingent on the facility being built.

City Hall

Work continues on City Hall, which has been plagued with water issues.

Zimmer shared that many of the walls within the building now have mold issues.

“We don't have any way to bring in fresh air (to the building), so you have an estimate for an air exchanger,” Zimmer explained. “We are also going to get a commercial-grade dehumidifier to put in the basement and hopefully it will pull out some more of this moisture.

While the council originally approved having Sentence to Serve come in and demo the main wall, it is unknown when the crew would be able to complete the project.

“If we don't do anything about it now, then it is going to become an OSHA (Occupational Safety and Health Administration) issue,” council member Tony Archer expressed.

The estimate from JJBK Construction was for $6,000, though the company believes it could be less depending on the time.

The council approved the demolition of the wall and purchase of the air exchange.

Other business

• The council approved the preliminary levy of $1,484,188 with a city tax rate at 131.17 percent. This is an increase of 17.77 percent from last year’s final levy. The levy can be decreased as the council finalizes the budget, but it cannot be increased.

• The council reviewed the fine for those not in compliance with the city's recreational vehicle ordinance. The city decided to lower the cost of the permit to $25 in order to entice people to get them and set the fine at $50.

• The fourth pay estimate for $653,573.55 from Elcor Construction for the 2018 street project was approved.

• A resolution was approved supporting the library funding partnership between local cities and Fillmore County. The resolution asks the county commissioners to increase its level of funding for library services to 40 percent by fiscal year 2024. Currently, the county funds 30 percent of the services.