NORTH MANKATO — North Mankato city officials approved the issuance of $27 million in general obligation bonds to finance a new public works facility, moving forward after multiple residents urged city leaders to delay the project and put it to a public vote.
At Monday evening’s Port Authority and subsequent City Council meeting, the council adopted a resolution consenting to the bond issuance and affirming the city’s financial backing in 5-2 and 3-2 votes, respectively.
The bonds will fund construction of a consolidated public works facility on Timm Road. The debt will be backed by the city’s full faith, credit and taxing authority, with repayment primarily supported through property tax levies. Tammy Omdal of Northland Securities and the city’s adviser on the sale said the bonds are structured over 25 years, with maturities from 2028 through 2052 and an average interest rate of about 4.11%.
The project has generated months of sustained public debate. Public comment periods at both meetings focused heavily on the financial impact and timing of the project. Residents raised concerns about rising property taxes, utility costs and broader affordability pressures on households and small businesses.
“The current plan for the $27 million building will certainly experience significant cost overruns due to fuel increases which will impact every aspect of its construction,” resident Tom Hagen said, noting the U.S.-Israel war on Iran and resulting surging prices.
Residents questioned whether the city had considered the cumulative financial burden on the public and whether alternative or less expensive options had been sufficiently explored.
“This is not the economic time for citizens to be dishing out additional money through property taxes,” resident Kelly McDonough added. “We are the people. Democracy is in our hands. Let it be.”
Initial plans for a new facility, estimated at roughly $24 million, emerged in 2025 as city officials cited space limitations, environmental concerns and operational inefficiencies at the current Webster Avenue site. The proposed Timm Road location was identified as the only site meeting long-term needs after environmental reviews discouraged redevelopment of the existing property.
City administrator, Kevin McCann updated the council that a lawsuit put forth in February by resident Barb Church challenging the financing approach, had been dismissed in Nicollet County District Court, noting the judge determined the Port Authority has the legal authority to issue bonds for the project and transfer the facility to the city.
Financial details presented at the council meeting by Omdal indicated the bonds received multiple bids and Maren Magill with Taft Law Firm explained that the Port Authority will remain the obligor on the bonds, with debt service funded through city property tax levies.
At the City Council meeting, prior to the final vote for approval, residents including Church, Hagen, Lucy Lowry and McDonough again called for delaying the project or putting the financing decision to a public vote.
“This without any public vote,” Lowry said. “It’s basically taxation without representation.”
“We don’t have to always build,” added resident Randy Hermanson. “We don’t have to have new and improved. That’s a lot of money, especially for folks that are retired and on fixed incomes.”
Mayor Scott Carlson acknowledged council members are aware of the financial pressures facing residents and indicated the city would continue working to manage future tax impacts while addressing infrastructure needs.
“We are serving a smaller number of people, but a lot of infrastructure,” Carlson said in defense of the project, referencing the miles of streets the public works department is tasked with maintaining.
Earlier this year, concerns over the taxpayer impact, transparency and the absence of a public vote prompted a petition drive earlier seeking a referendum on the bonding decision. Organizers fell short of the required number of signatures, and city officials maintained that Port Authority-issued bonds are not subject to referendum under state law.
The financing plan also drew scrutiny from some council members, including efforts by Sandra Oachs to delay the bond sale for further review. Those efforts were unsuccessful, and the bonds proceeded to a competitive sale process in February. She along with council member Billy Steiner both voted against the bond issuance Monday evening.
The final authorization completed a process that began earlier in the year with adoption of the enabling ordinance. With the April 20 resolution, the city has formally authorized the bond issuance, establishing its financial obligations and clearing the way for continued development of the new public works facility.