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Hearing set on Oak Hills Center project funding

by Shawn Johnson
June 22, 2022
in Finance
Hearing set on Oak Hills Center project funding

NEW ULM – Brown County commissioners on Tuesday unanimously approved setting a July 7 public hearing date for public input on using the county’s relations authority to help finance the expansion of Oak Hills Living Center.

Oak Hills United is working with Prairie Bank and intends to borrow $14.8 million on a tax-free basis to fund 15 memory care units, 15 enhanced assisted living units, and refurbishment of 16 existing assisted living units.

Groundbreaking is out for Friday, July 15.

A motion was acted upon by Commissioner Dave Borchart, New Ulm; Approved by Tony Berg, Rural New Ulm.

Current plans include using as much as possible of Brown County’s $10 million in bankable bonding authority available this calendar year. The remaining $14.8 million will be issued in the form of taxable bonds that will be re-issued tax-free in January 2023.

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“It’s a good expansion project for the community,” said Brown County Administrator Sam Hansen.

In other business at Tuesday’s meeting, the county board was informed that bid results for the CSAH 8 bridge replacement project are at least 10% higher than the $3,580,822 engineer’s estimate. Brown County Highway Engineer Wayne Stevens said there may be more state funding available to close the gap.

Stevens said the county is awaiting approval from the state for the lower bidder’s application.

If approved, the Highways Department will bring the lower bid to the Board for consideration.

Bridge 2110, sometimes called the Peterson or Hale Bridge, is the last truss bridge owned by Brown County. It is structurally inferior with a low adequacy rating and several serious structural issues.

The bridge was closed in August 2017 to repair serious deficiencies and reopened in the fall of 2020.

The bridge placement project and approach work on the Brown County side of the river is funded by federal, bridge bonds and state aid funds. Approach work is funded by state aid funds on behalf of Rainville County.

Washington County plans to move the CSAH 8 bridge to the Lake Elmo Park Reserve to replace the existing bridge used for pedestrian and cycling excursions on the Loop Trail.

(Fritz Busch can be emailed at [email protected])

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