Summary of Fergus Falls City Council Work Session – May 7, 2025
- Ryan Tungseth
- May 8
- 5 min read
Time: 7:00 AM, City Hall
Attendees: Mayor Anthony Hicks, council members (Mark Leighton, Al Kramer, Mike Mortonson, Scott Rachels, Laurel Hildy, Jim Fish, Joel Swenson, Kim Springer), city staff (Andrew Bremseth, Clara Beck, others unnamed), no public speakers noted.
This concise summary highlights key outcomes and significant discussions with timestamps from the three economic development presentations, focusing on city business priorities.
Key Items
Opening and Housekeeping (0:00–2:07)
Roll Call: Quorum present (0:26–0:40).
Purpose: Consolidate three team presentations on economic development into a unified plan, including funding and hiring strategies (0:47–1:12).
Update: Bolton & Menk to cover $138,000 Delagoon Campground change order in-house, saving city funds (1:19–1:46).
Significance: Sets stage for collaborative economic vision; resolves Delagoon issue favorably.
Team 1 Presentation: In-House Economic Development (Mike Mortonson, Al Kramer, Mark Leighton) (2:07–42:47)
Overview (2:07–8:13): Mortonson emphasized collaboration, not an “all-or-nothing” proposal, aiming to set Fergus Falls apart as in the 1800s (RTC) and post-WWII boom. Noted population stagnation (14,000 vs. 12,000 in 1919) and retail/industry decline due to economy, demographics, workforce, or city involvement.
Proposal (8:13–28:59):
Hire a full-time economic development director under city administrator, aiding departments (building, engineering, community development) without replacing staff (11:13–12:06).
Candidate must be outgoing, with sales, real estate, land acquisition, contract negotiation skills, and passion for Fergus Falls (13:24–15:21).
Focus: Commercial/retail acquisition, industrial relocation, apartment/housing policies, TIF policy administration, council presentations, and business handholding (15:48–19:25).
Support via a 7–10 member advisory board (retail district manager, industry leader, entrepreneur, salesperson, multi-city business owner, housing/construction expert, mayor) (19:49–23:36).
Funding: $80,000–$110,000 salary, using $50,000 (ex-501c3 allocation), $20,000 (HR shift), $100,000 (engineering shift). Proposed long-term 0.5% city-wide sales tax to fund salary, land acquisition, and projects (~$1–1.5M annually) (27:59–30:40).
SWOT Analysis (23:49–27:47):
Strengths: In-house presence, instant staff communication.
Weaknesses: Slower than 501c3 due to council/staff delays.
Opportunities: Use city funding for growth.
Threats: Losing ground to neighbors, limited community involvement.
Compared to 501c3: Strengths (autonomy, quick decisions), weaknesses (fundraising focus), opportunities (flexible spending), threats (funding shortages) (26:25–27:47).
Rationale (30:40–37:15): 501c3s (e.g., Greater Fergus Falls) cannot control deals or funding; in-house ensures council/staff oversight, proven in cities like West Fargo.
Additions (37:15–42:47):
Kramer: Highlighted I-94 location, five exits, 1,100 lakes, and collaboration with region (e.g., Bemidji model) (37:36–41:01).
Leighton: Stressed uniting businesses, schools, Chamber for cohesive growth (41:16–42:47).
Significance: Advocates in-house director with broad vision, innovative funding, and community pride.
Team 2 Presentation: Port Authority-Led Economic Development (Laurel Hildy, Scott Rachels, Joel Swenson) (42:59–1:09:33)
Overview (42:59–45:58): Hildy noted stagnant population, high unemployment, static jobs, and retail decline over 20 years. Goals: Increase living-wage jobs, shift tax burden to commercial properties, grow tax base.
10 Initiatives (45:24–1:06:07):
Leadership/Structure: Hire economic development director via Port Authority, reporting to administrator, with Economic Improvement Commission (EIC) oversight. Focus: 50% new business (industrial zones), 40% existing businesses, 10% community projects (housing, workforce, childcare). Fund via tax levy offset, no cost increase (46:03–48:27).
Workforce Development: Bridge schools-employers, promote to remote workers, pilot internships, explore career academy (e.g., Moorhead), address wage/skill gaps (48:32–49:37).
Housing Availability: Increase market-rate housing for buyers, families, seniors via grants (e.g., infrastructure, community block) (49:49–50:14).
4–9 (Summarized): Enhance industrial zones (I-94 corridor), improve infrastructure (roads, utilities), streamline permits, support childcare, align downtown revitalization, grow retail/restaurants (dairy, mall sites) (50:20–1:03:46).
Shared Vision: Align council, staff, partners via strategic plan, pursue grants (Opportunity Zones, EDA, historic tax credits), ensure project readiness (1:03:46–1:06:07).
Funding: $200,000–$275,000 annually, including high salary for quality candidate. Leverage SBDC ($15,000–$30,000 match), grants, and tax incentives (1:08:31–1:09:09).
Additions (1:07:22–1:09:33):
Swenson: Stressed past Greater Fergus Falls success, need for communications strategy (1:07:22–1:08:24).
Rachels: Noted prior director’s overreach; director must align with council (1:08:24–1:08:31).
Significance: Comprehensive, structured approach via Port Authority, emphasizing partnerships and measurable outcomes.
Team 3 Presentation: Port Authority/EDA Hybrid (Anthony Hicks, Laura Springer, Scott Rachels) (1:09:59–1:36:11)
Overview (1:09:59–1:13:13): Hicks outlined $14.8M net tax capacity ($1.3B total, 50% residential, 32% commercial/industrial). Noted static job growth, retail decline, and heavy residential tax burden.
Proposal (1:13:13–1:28:03):
Hire economic development director as Port Authority manager/EDA lead, reporting to administrator, funded via Port Authority ($200,000–$250,000, including $100,000 salary, benefits, expenses). Use $50,000 ex-501c3 pledge, tax levy reductions, budget shifts (1:18:35–1:20:36).
Priorities: 50% existing business retention/expansion, 40% new business (industrial, airports), 5% community efforts (housing, childcare), 5% visionary planning (1:20:50–1:21:43).
Structure: Port Authority as EDA, with three external board members (business, entrepreneurial expertise). EIC as advisory board (1:22:30–1:24:01).
Support: Engage Golden Shovel Agency ($14,000–$30,000) for community priorities, lead generation (24 weeks) (1:24:21–1:25:57).
Incentives: Build $2.3M loan fund with 25% liquor store profits ($150,000–$250,000/year), pursue state grants, county funding, TIF/abatement policies, demolition rebates (e.g., Burger King sites) (1:25:57–1:28:03).
Strategic Plan (1:28:03–1:32:37): Rachels advocated comprehensive plan to guide director, covering land use, housing, utilities, quality of life. Enables grant applications, community engagement (1:28:16–1:32:37).
Priorities: Develop I-94 corridor (free trade zone), Stanton project, dairy site, downtown vacancies, support Visit Fergus Falls ($160,000 budget) for events, leverage hotel opening (1:14:14–1:16:55).
Significance: Balances immediate action with long-term planning, leveraging Port Authority flexibility.
Discussion and Next Steps (1:36:11–1:55:06)
Consensus (1:36:11–1:39:49): Hicks identified 75–80% agreement: Need in-house director, clear policies, advisory board, funding shift ($200,000–$275,000), collaboration, housing focus, code review, third-party funding, communication, and growth vision. Unique assets (I-94, rail, utilities) emphasized.
Comments (1:39:49–1:49:13):
Mortonson: Praised unity, Hildy’s presentation, called session a “best of times” for council (1:39:49–1:41:46).
Leighton: Noted transformation from past inaction, proud of vision (1:41:56–1:42:38).
Rachels: Thanked Greater Fergus Falls, stressed communications need, agency option (1:42:45–1:46:18).
Fish: Highlighted alignment despite independent work (1:46:32–1:47:21).
Hildy: Thanked council, urged interim SBDC agreement ($15,000–$30,000) for small businesses (1:47:26–1:49:13).
Next Steps (1:49:13–1:55:06):
Form group (one member per team, Mayor) to blend presentations (1:52:55–1:53:37).
Fund via $70,000 (ex-501c3, other savings), budget shifts for 2025, new 2026 department line (1:50:44–1:51:43).
Develop job description, hiring plan, strategic vision concurrently (1:53:07–1:53:55).
Share presentations publicly via website (1:54:54–1:55:06).
Significance: Unified vision emerges; actionable steps outlined.
Next Steps
Form Consolidation Group: One member per team (Mortonson, Hildy, Hicks) plus Mayor to merge plans (75–80% aligned).
Funding Plan: Use $70,000 (2025 savings), adjust tax levy, plan 2026 budget line ($200,000–$275,000).
Hiring Process: Draft job description, initiate recruitment for in-house director (Port Authority or city).
Strategic Plan: Begin comprehensive plan with community input, aligning with hiring timeline.
Interim Support: Explore SBDC agreement ($15,000–$30,000) for small business gap.
Public Engagement: Share presentations online, schedule follow-up session.
Disclaimer: This summary was generated by an AI system without added opinions. No claims of accuracy are made, though timestamps are included for reference. For the full context, please view the meeting video on YouTube: [YouTube Video Link Here]. This content is provided by Growth Forge Studio (formerly 4t Creative), dedicated to helping businesses grow.
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