FAIRMONT– On Monday the Fairmont Economic Development Authority (FEDA) talked about approving a wetland credit sale for the expansion project at ADS. The topic led to a conversation about funding sources and who controls them.

The city’s Economic Development Coordinator, Ned Koppen, said, “the ADS project, their expansion has been going on for some time. It started over two and a half years ago and from day one there’s been discussion, they have some drainage that they need to take care of with that expansion.”

He said he’s been involved in some conversations as needed and that it’s at the point where ADS needs to mitigate the draining of some wetlands and FEDA controls the credits.

“They want four and a half acres of credits of wetlands and we had committed earlier that we would sell them an acre at a reduced rate… and now they came back and want four and a half acres and we’re going to hold them closer to market rate,” Koppen said, adding that staff had discussed it.

He called the project a win-win as it helps out an employer.

Britney Kawecki, who is a new FEDA member and also a Fairmont City Council member, asked about the city’s Lake Restoration fund and why the wetlands were going to FEDA and not the city.

“They fall under our purview, I was told,” Koppen said.

She questioned why the Lake Restoration fund pays for and monitors wetlands but that FEDA has a hand in it.

“Why doesn’t it come out of the FEDA budget to purchase and monitor these,” she asked.

Community Development Director, Pat Oman, who was present, said that the city owns the credits, not the EDA.

“We’re not levying as an EDA… it’s all a pool of city money, of which the EDA is allocated some funds and they’re playing a role here in facilitating the sale of wetland credits,” Oman said.

Ultimately the board approved the sale price of the wetland credits for ADS to continue its development. It will now go to the legal team at ADS for next steps.

In other action, the board:

— Approved an extension of pre-development agreement between it and the South West Minnesota Housing Partnership (SWMHP), which is building twin homes out at White Tail Ridge. Koppen said the extension has been approved already once or twice and the board approved an additional extension until Dec. 31, 2025. A total of four twin homes will be built. Two are nearly complete and one has already been sold.

— Approved partnering with Martin County EDA for a succession planning workshop and contributing $1,000 for it.

— Approved moving $20,000 from reserves to the facade program.