EDA approves operating subsidy request

By RON LARSEN

Journal Staff Writer

NEW ULM -- The New Ulm Economic Development Authority Wednesday approved an operating subsidy request totaling $59,943 for the current fiscal year, starting July 1.

The subsidy request, which is $8,000 more than the past fiscal year request, now goes to the U.S. Department of Housing and Urban Development for approval.

Assistant Executive Director Dave Schnobrich told the board the subsidy requested for the 2001-2002 fiscal year amounted to $51,723, but "we received $44,884 for a deficit of $6,839."

Last fiscal year was the first time that the local EDA received an operating subsidy from HUD, Schnobrich said.

In other business, Schnobrich obtained the board's approval to increase the fee by $1,800 being paid to Lynn Heuchert of Three Oaks Design Studio in New Ulm for providing interior design services at Broadway Haus.

This action raises the total that she is being paid to $5,790. Schnobrich said there is $6,000 budgeted for design services. It is the second increase the board has authorized.

"We acknowledge that staff grossly underestimated the amount of time necessary to complete the project," Schnobrich said.

For the construction phase of the Broadway Haus improvements, Schnobrich said adjustments had increased the original contract amount from $24,815. to $26,822, an increase of $2,007. He said an additional $637 will be spent for installing two additional bulletin boards and to add wallpaper borders in the restrooms.

Schnobrich reported three quotes had been obtained for 16 chairs and four tables for the Broadway Haus project, ranging from $7,268.27 to $10,113.45. No action was requested.