Iola City Council members agreed that even with costs higher than projected, and no known developer ready to build, extending streets and utilities through an undeveloped part of Iola is worth the investment.
Council members voted unanimously Monday to accept a bid from Mission Construction, St. Paul, to spend $1,730,255 to build a new street into what will become known as Cedarbrook Third Addition at the north edge of Iola.
The Mission bid was one of three the city received.
Council members eschewed the low bid, from Heck and Wicker, Inc. of St. Paul, which was more than $60,000 cheaper, after Assistant City Administrator Corey Schinstock expressed concerns with the new company that has only recently begun to take on work like what the city needs.
The city has utilized Mission before, Schinstock noted, most recently with installation of a pedestrian bridge earlier this year near Iola Elementary School.
The price tag was more than $300,000 above what had been projected when Council members gave the go-ahead for the infrastructure projects last fall.
In addition, one developer’s hopes to build several duplexes on land near the new street fell through after he was unsuccessful in seeking state grants to help cover construction costs.
Nevertheless, Council members agreed that without the infrastructure, hopes of attracting other developers was next to nil.
“I know it’s a lot of money,” Mayor Steve French said. ‘It’s a gamble to build it and sit back and wait.”
And while Council member Carl Slaugh expressed concerns about the financial impact — the money will come from the city’s capital projects fund, which is generated by sales tax revenues — he voted with the other seven members in proceeding.
Schinstock said company officials indicated construction would likely start in August and be complete sometime next spring.
COUNCIL members discussed briefly a proposed ordinance to codify rules for dining establishments to offer outdoor seating on city sidewalks.
The new ordinance, which will be drafted by City Attorney Bob Johnson, would allow for outdoor seating, provided pedestrians have a 6-foot clearance between the edge of the seating area and the back of the curb.
For most businesses along the square, that should be no problem, City Administrator Matt Rehder said, because of ample space on the wide sidewalks.
“It’s a good idea to get this done,” Councilwoman Joelle Shallah said.
