City Council Meeting Date: November 18, 2025
To: Mayor and City Council
From: Ben Martig, City Administrator
David Benentt, Public Works Director/City Engineer
Title
Consider Amended Resolution Requesting State Capital Investment Bonds for Northfield Community Resource Center (NCRC) in the City of Northfield.
Body
Action Requested:
The Northfield City Council Approves an Amended Resolution Requesting State Capital Investment Bonds for the Northfield Community Resource Center (NCRC) in the City of Northfield.
Summary Report:
There was discussion at the May 20, 2025 worksession related to interest in whether to pursue State Bonding dollars for any local capital projects. Pursuing funding for the NCRC building was expressed as an interest from Council.
The City Council passed Resolution 2025-058 (attachment 3) at the June 3, 2025 meeting. This resolution offered support for staff to submit a bonding request with the state in the amount of $2.5 million with a $2.5 million local match.
After discussions with the Minnesota Management and Budget office and the House Capital Investment Committee on what projects are eligible, staff made the decision to amend the request. Therefore, the request will now be $3 million with a $1 million local match. The $1 million for the local expenses are consistent with the proposed improvements in the Capital Improvement Plan (CIP) that does include mostly tenant funding but in some cases City matching funds.
On November 5, 2025 members and staff from the Minnesota House of Representatives visited the NCRC building as part of the bonding tour. They were given a brief tour of the building and the various organizations housed in the building as well as presentation on what is involved with the project and what the city is asking for. Visuals used in the presentation are attached (attachment 2).
Background
In Minnesota, state capital bonding refers to a process where the state borrows money, primarily through the issuance of general obligation (G.O.) bonds, to finance capital improvement projects. These projects, often funded through capital budgets, can include land acquisition, construction, and repair of state facilities, as well as grants to local governments for similar purposes. There is a deadline in June for local governments to submit interested local projects for consideration by the Governor and this also is the standard process for the bonding committee of the Minnesota Legislature to review requests.
The NCRC houses several key government and non-profit service providers, including Healthy Community Initiative (HCI), Community Action Center (CAC), FiftyNorth, Rice County United Way, Rice County satellite offices, WorkForce Development, and a satellite location of the Northfield Public Library.
As with all aging buildings, critical repairs and upgrades are needed in the NCRC to ensure the organizations housed there can continue to provide their necessary services. In addition, organization-specific upgrades and additions are needed to continue to meet the growing needs for their services. Examples of this are additions to the CAC food shelf and the Fifty North senior center.
Attached is a link to Minnesota Management and Budget Project page should any individuals be interested in exploring more background information.
Alternative Options:
NA
Financial Impacts:
Total Cost of Safety/Security Upgrades and CAC Expansion $3 Million
Total Cost of Routine Building Maintenance and Improvements $1 Million
Total Expense Amount $4 Million
State Bond Requested Funding $3 Million
Local Match (Lessee Tenant/City details to be determined) $1 Million
Total Revenue $4 Million
Tentative Timelines:
2026 Legislative Request.