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Refund coming to city members of the county EDA
The Pipestone County Economic Development Authority decided, July 16, to refund membership fees cities have paid over the past two years to the county organization.
The unanimous decision was cast in the name of “fairness.” The city of Pipestone has not paid its membership fee since 2007, and Holland since 2008. Pipestone currently owes $45,210.
Though the county could try and force Pipestone and Holland to pay — both signed a resolution binding them to the county organization — the EDA board members opted not to go that route.
“Taking them to the cleaners is not an option because they don’t have the funds,” said Jeannie Swenson, EDA board member and mayor of Ihlen. “It would only be messier and it wouldn’t pay.”
Instead, the board members agreed with EDA Board Member and County Commissioner Marvin Tinklenberg’s suggestion that they wipe the slate clean with refunds dating back to the second quarter of 2007 when Pipestone pulled out.
The total amount refunded will be $13,684.25. The money will go to Edgerton (6,779.50); Jasper ($3,918.25); Trosky ($1,196.25); Ihlen ($701.75) and Hatfield ($484). Holland will receive a refund for the $604.50 it paid in 2007, before it followed Pipestone’s example.
The EDA will not dissolve at this time, but will instead “lay low” and survive off existing cash reserves — a strategy that wouldn’t be far different from the one they’ve employed for the past couple of years, according to Les Nath, EDA board chairman and mayor of Jasper.
“Since Pipestone pulled out, we’ve just been coasting, basically,” Nath said.
Board members discussed a tax levy as the most likely method of funding the organization moving forward. However, they also indicated they would have to redefine the goals and objectives of the county EDA if their councils and the county were expected to approve a levy.
“If we go the levy route, we have to justify that,” Tinklenberg said.
Only cities that participate in the county EDA would be subject to the levy. So if a tax levy were to fund the organization, board members agreed Pipestone would have to participate.
“If the city of Pipestone doesn’t come in, we can’t levy them and then we’re done,” Nath said.
The next subcommittee meeting between city and county officials to talk about the county EDA has been scheduled for Friday, August 21 at noon.
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