After discussing the topic for several months, the Backus City Council approved the transfer of $50,000 from the city's revolving loan fund, established to help the Scamp trailer facility to rebuild and grow after a fire, to a Local Development Organization under the Cass County Economic Development Corporation.
This was according to a verbal summary of the Monday, Oct. 7, meeting by Clerk Ann Swanson.
The Cass County EDC already acts as LDO for $50,000 in additional funds, also from the Scamp revolving loan. The city still retains a balance for its revolving loans for those within the city of Backus; however, releasing the funds to an LDO allows those funds to be used outside of city limits and with fewer restrictions than were attached when the city was in control of the funds.
It also means that the EDC gains control of who receives those loan funds.
In addition, the city council:
- Reviewed options for improvement to Point Road, a project requested by residents of that road. A study by Short Elliott Hendrickson Inc. engineering firm provided the council with two options estimated at $115,000 and $300,000, respectively.
In part, the price difference is regarding the different methods of preventing freezing of water mains beneath the road. One proposed abandoning and replacing sections of the main, the other proposed insulating the existing main. The council asked SEH to get a quote for the same options, but to extend the project to one of the properties at the farthest back section of the road. No action was taken.
- Listened to a resident's concerns regarding the county recycling bins in town. The resident is concerned that abuse of the bins may result in their removal. The council said Cass County recently changed contractors for recycling, so there may be changes to come. Otherwise the council discussed options but did not finalize anything.
- Received a quote ranging from approximately $9,000 to $10,000 for work on the ceilings in the city meeting room and office room. Council members tabled the discussion until they get quotes for electrical work, which was not included.