Council addresses concerns, holds off on development agreement for SE addition

By Editor | July 30, 2024 |

By Anna Jauhola
The Hallock City Council addressed a letter from one contractor and tabled a decision for another during their regular meeting on Tuesday, July 2.
Rodney Bakken, who owns Bakken Construction, attended the council meeting after sending them a letter regarding housing and development within Hallock. With a lack of housing, Bakken said he’s been working over the years to provide more, whether it be rental units or now new homes on lots he owns.
He expressed his concern about Hallock Properties, backed by Robert Carr, Jay Friedt and others, purchasing city-owned lots in the southeast addition to privately develop and the city then building a road to support those homes.
“It makes zero sense to me to put in a public street using public money for a private entity to own all those lots,” Bakken said. “I would suggest you put in the street, because it would be inviting. I have nothing against the guys that are involved. I just makes no sense that us taxpayers as a whole would pay for a street for one private entity to own the 20 lots surrounding that street.”
He asked why the city can’t just continue selling two lots at a time, like they’ve been doing.
Councilor Kevin Waller, who is also on the housing committee, said the lots aren’t there for the city to make money.
They are to provide a location for people to build homes, so “if houses are going to be built there, we will have to build city streets there. And there won’t be a street there until there’s houses there.”
Mayor Dave Treumer added the city wouldn’t sell 20 lots and “just let them do whatever they want.”
After Bakken’s comments and discussion, the council approved a waiver of conflict of interest, regarding legal work done for both the city and Hallock Properties regarding this development project. Brink Lawyers attorney Jeff Hane represents the city and is drawing up papers for Hallock Properties regarding the entity’s proposed development in the southeast addition.
“By signing this, we’re not entering into any agreement,” Waller said. “This is just a separate entity from the agreement. It’s a hold-harmless agreement for our city attorney.”
Finally, the council discussed the proposed agreement between the city and Hallock Properties for purchasing 20 lots in the southeast addition, which they want to develop but need the city to build a road. The agreement was tabled during the June meeting.
“The purpose here tonight is if you have any questions for Jay and Robert, who are here, to ask them,” Waller said. “We didn’t plan to have any discussion. We more so planned to see if there were any council questions that needed to be raised and brought to Jay and Robert.”
He noted the council and developers have been talking about the project for about a year. Councilor Naomi Larson asked if all 20 lots would be reserved exclusively for Hallock Properties, or if individuals were interested during the project, they could come in and buy lots within the area. Waller said the lots would be reserved.
Bakken had earlier asked if Hallock Properties would receive these lots under the same terms as individual buyers – that is, for a certain dollar amount, which they’d get back if they built within a certain timeframe. According to the proposed agreement, Hallock Properties would “deposit with the city a check equal to the sum of $2,500 for each lot, which purchase price shall be held by the city in escrow pending development.” So for each lot Hallock Properties develops, they will get back the cost. They plan to build at least one house per year.
Larson also expressed concern over building a brand new street for a development when the city has so many other streets that need to be fixed. Bakken pointed out the process just to plan to build a road takes time, especially since the city has to bid out the project. In the proposed agreement, the city would have to build a street with curb and gutter within 36 months of a single-family home being completed.
Robert Carr said they would be ready to build starting the beginning of August, if the city approves this agreement. He said they plan to build on the first two lots that are immediately adjacent to 12th Street, which is the developed east-west gravel road by the fire hall.
“We have literally been trying to give those lots away by a very minimal payment,” Waller said. “And we’ve been returning that payment upon execution of building on those lots. This is just an extension of that to a bigger degree.”
Councilor Jen Peterson was absent from both the June and July meetings, and the council agreed all members need to be present to vote on this issue.
They set a special meeting for Monday, July 8 at 5:30 p.m. to further discuss and possibly approve the agreement with Hallock Properties.
In other business, the council:
• Discussed second-party swim lessons being held at the Hallock Pool, which has been allowed the last few years. The issue came into question when lifeguards asked why they couldn’t give additional swimming lessons on the side. It’s a matter of having personal insurance. Eksteen Enterprises LLC submitted insurance for giving swimming lessons, which she has been giving during regular pool hours, but has requested to give more lessons before the pool opens at noon. The council said this would interfere with the city’s lessons, which are held in the mornings. The council tabled the issue to gather more information from previous council meetings. “I think we all need more information before we come up with a recommendation or a solution. I’m positive we did this once before,” said Councilor Kevin Waller.
• Approved Kevin Klein’s resignation from the Hallock Fire Department as he will retire.
• Approved a transfer of entitlements for $5,000 from Hallock’s airport to the Orr Regional Airport in Minnesota.
• Approved hiring two very part-time summer rec employees to cover baseball coaching when regular coaches are gone. Isaac Gustafson and Elijah Muir were hired at $13.43 per hour each.
• Approved two changes to the camping rules and policies to include a seven-day cancellation policy and a locking fee for the online reservation program.
• Approved a building permit for Kelly Lofberg to place a 12-by-16 outbuilding on his property.
The next regular council meeting is set for Monday, Aug. 5 at 5:30 p.m.