To:       Editor

From:   Mary O’Brien

Date:   September 29, 2008

For Immediate Release, Please

Foundation makes land available for purchase by City Utilities

The Black River Falls Area Foundation Board of Trustees announced last Friday that it has made available for purchase by the City Utilities a portion of land the Foundation owns on Highway A, across from Burnstad’s Supermarket.

Foundation Chairman Gil Homstad says the Foundation acquired the land approximately 11 years ago from the McNulty Family.  “It was one of two parcels of land on which options were purchased by the Foundation for the construction of a City Park,” says Homstad.  “When the other parcel, the Savage land, was selected as the site for the Community Park, Milt Lunda suggested that the Foundation purchase the McNulty land for future city recreation purposes, as well as for possible school purposes.  Because the Foundation did not have available funds to purchase the property, Milt and Lidy Lunda generously donated the money needed to acquire it!”

The Foundation trustees were aware that the City Utilities have been looking to acquire land for a new operations facility to provide equipment and vehicle storage, improve customer access and service facilities, and also provide land for storage of poles and other inventory.  “We know they have an option to acquire acreage from McNultys on Highway A at a cost of $45,000 an acre with a requirement that the entire 12-acre parcel would have to be purchased at a cost of $540,000,” says Homstad.  “As an alternative proposal we are offering the Foundation property of 14.75 acres at $15,000 an acre for approximately $221,000. The remaining 10 acres of the Foundation property will continue to be reserved for use by the school district.”

According to City Utilities Manager Jerry Ewert, land must meet specific objectives.  “It must provide convenient access to customers, provide for efficient and fast service of lines and equipment, have good road access, be served by the Utility electric, water, and sewer facilities, and it must be a location that can be incorporated into the City of Black River Falls,” he said.  “In addition, the City of Black River Falls will receive an annual increase of approximately $30,000 payment in lieu of taxes.  The Foundation land appears to meet those objectives and, the purchase price of $15,000 an acre would result in a significant savings to the Utilities’ customers of approximately $319,000 plus interest.  And this location would also save an estimated $80,000 in costs of bringing utilities to the site.”  Ewert also says the savings from the lower land costs and reduced construction costs will reduce the originally anticipated rates charged to the Utilities’ customers from the project cost.

Homstad says an added benefit would be that all of the proceeds the Foundation would receive from the land sale would be used for community recreation purposes.  “Soccer fields and baseball fields are two possible uses for a portion of the funds,” he says.

Homstad expressed special appreciation to Milt Lunda for his foresight and generosity.  “If the sale goes through, it would result in triple benefits of lower rates for utility customers, improved recreational facilities for city residents, and land still available for future school uses,” he says.  “It’s a win, win, win result!”