By Jason Schoonover and Sam Wilmes

One of the Austin proposals to develop two waterways was included in the state Senate’s $1.8 billion capital investment bill unveiled Monday, but city officials vowed to continue working on the other projects.

The Senate recommended $600,000 to Austin for the Fourth Avenue Northeast Dam area for flood control retaining walls, restoring the former mill site, for stream bank restorations and to study dam conditions.

However, the Senate bill did not include a $3 million proposal for the Ramsey Dam area and Ramsey Mill Pond near The Old Mill Restaurant to acquire more land, build two miles of trail, restore a railroad bridge, improve the dam and build public amenities to improve the area.

Austin City Administrator Craig Clark said he was encouraged the $600,000 for the Fourth Avenue dam was included in the bonding bill and said the city will continue working on the Ramsey Dam area proposals, both this year and in future bonding years if necessary.

He said that project will tie in with the Fourth Avenue dam work and with things like the Shooting Star Trail.

“There’s so many connection points there that are so advantageous,” he said.

The Minnesota Department of Natural Resources had raised questions about the Ramsey Dam being eligible for state funds since it is currently owned by Hormel Foods Corp., but Clark said those issues have been resolved.

“We did resolve the issues with the DNR,” Clark said.

The city has discussed acquiring the dam from Hormel.

The Senate’s bill also included $20 million for flood mitigation efforts, which the Cedar River Watershed District would be able to apply for to advance waterways plans. CRWD leaders were seeking $1.6 million for the first part of a project called the Accelerated Results Plan, which will complete 25 water retention and water quality projects in the district. The Cedar River Watershed District already has half the money for the $8.4 million project. The district is providing $1.2 million, the Hormel Foundation is providing $3.2 million.

Wastewater dollars

Help may be on the way for Austin’s wastewater treatment plant, as Clark was pleased the Senate proposed $80 million to support local clean and wastewater priorities.

“That’s encouraging,” he said.

The MPCA enacted stricter water standards about a year ago that would hold cities responsible for managing their phosphate levels, among other things. Several cities and the coalition are pushing back against the new MPCA rules and asked legislators to revoke the standards as lawmakers hadn’t approved the changes.

Austin officials have long voiced concerns, chiefly a potential for $20 million in upgrades to the Austin Wastewater Treatment Facility. Albert Lea officials have said the rule could cost the city somewhere between $8 million and $30 million to upgrade its wastewater treatment facilities to meet the new requirements.

Clark said the city will likely apply for any dollars made available through the final bonding bill. Gov. Mark Dayton’s bonding proposal included additional wastewater funds.

Clark and Mayor Tom Stiehm plan to go to St. Paul soon to discuss Austin issues with legislators.

Albert Lea projects

Two major Albert Lea projects were also included in the bill, including $3.5 million to move Front Street north to make way for lakefront development and preliminary preparation work north of the railroad and money to city connect water and sewer to the Stables area.

Albert Lea City Manager Chad Adams said he was pleased the Blazing Star Landing project made the proposal. He described the project’s inclusion as a “first step,” and said he hopes legislators keep the project in the bill the rest of the legislative session.

He said eight private developers have contacted him expressing their interest in the site, noting he expects more interest if bonding dollars are secured.

Adams said a developer could be secured within the next nine months for redevelopment of lakeshore property.

“Based on the level of interest and discussion we have received to date, I believe that some developers are motivated to move forward with a partnership with the city if we receive the state bonding dollars,” he said.

He said if the city receives state bonding dollars, it would likely issue a request for proposals this year for prospective 2017 development and relocation of Front Street.

A $7.43 million bonding request for Albert Lea’s Riverland Community College campus and a request to develop Bent Tree Trail were not included in the bonding bill.

The Riverland dollars would go to renovate outdated space to relocate truck driving and collision programs from Austin to Albert Lea and to integrate the programs into shared spaces with auto service and diesel programs.

‘Critical needs’

District 27 Sen. Dan Sparks, DFL-Austin, a member of the Capital Investment Committee, said the bonding bill will invest in needed projects across the state, noting the bill includes $150 million for local roads and bridges.

He said the investments would create 39,000 jobs and help create future economic growth.

“This funding is going to critical needs and public assets whether its water quality, our colleges and universities or other local needs, including a sizable investment, $150 million, targeting local roads and bridges, “ Sparks said in a press release. “Together, these investments would create 39,000 jobs and would help create economic growth in the future. I look forward to passing this bill off of the Senate floor later this week, and urge my colleagues in the House to also present a bonding bill before this session ends.”

He said $80 million is included in bonding for Public Facilities Authority to support local clean and wastewater priorities, such as the Stables project.

The Senate plan also allots $15 million in Greater Minnesota business development public infrastructure grants, $20 million in transportation economic development grants, $5 million in innovative business development public infrastructure grants, $4.33 million for a redevelopment grant program, $70 million for a local road improvement fund and $80 million for a local bridge replacement and rehabilitation program.

Too much?

District 27A Rep. Peggy Bennett, R-Albert Lea, said though she hopes local bonding projects will be included in the bill, she thinks the $1.8 billion proposal is too much.

“I don’t know what they are thinking,” Bennett said of the Senate’s proposal.

She said in general, bonding has turned into a project wish list statewide.

“I just think we have to be careful,” she said, noting she is concerned that future generations would be forced to pay back debt incurred by current state leaders.

She suggested the Senate focus on a transportation bill and tax bill still on the table from last year’s legislative session before trying to pass a bonding bill.

The Senate bill contains more than $1.8 billion in projects, with a mix of borrowing and spending from other state funds. It aligns closely with Gov. Mark Dayton’s wish list from earlier this year.

But the Senate and Governor disagree both in scope and approach with the Republicans who control the House. House Republicans are shooting for a $600 million bill but haven’t yet released a detailed list.

House Speaker Kurt Daudt said that will not come until after the Legislature figures out how it will spend a $900 million surplus.

Lawmakers have just three weeks remaining to wrap up their work.

District 1 Sen. LeRoy Stumpf, DFL-Plummer, unveiled the bonding bill, which DFL leaders said makes significant investments in education, critical water and environmental infrastructure projects and transportation.

“My major takeaway after traveling 3,000 miles across the state this past fall on our bonding tours was that Minnesota has an aging infrastructure problem,” Stumpf said in a news release. “We saw it at stop after stop — cracked walls, leaking roofs and windows that needed to be replaced. You’ll see that asset preservation was a major priority for a lot of the agencies — and we funded $212.5 million worth of these project requirements.”

In a news release, the Coalition of Greater Minnesota Cities supported the Senate’s $167 million bonding proposal for clean water infrastructure grants and loan programs and the $15 million proposal for the Business Development Public Infrastructure grant program.

“I’d like to thank the Senate Capital Investment Committee and its Chair Sen. Stumpf for recognizing the needs of Greater Minnesota communities in their bonding bill,” said Coalition president and LeSueur Mayor Robert Broeder. “I’m pleased that to see that the Senate has joined Gov. Dayton in supporting important infrastructure programs that benefit cities across Minnesota.”

He said now that the Senate and governor’s office have each released its bonding proposals, the House must act.

“As the House crafts its bonding bill, it’s critical that our House members match the Senate’s commitment to addressing Greater Minnesota’s water infrastructure and economic development needs,” Broeder said.

— The Associated Press contributed to this report