NEW ULM — A discussion on the Convention and Visitors Bureau (CVB) financial report turned into a citizen’s request to abolish a Chamber of Commerce authority, during the city council meeting Tuesday.

Shannon McKeeth, owner of Bingham Hall Bed and Breakfast, spoke to the council about the lodging tax fund being used by the Convention and Visitors Bureau (CV) to purchase new city banners.

McKeeth said the state Legislature has not authorized using the tax for general city purposes, according to an attorney general’s opinion.

“We should use these funds to market and advertise how beautiful New Ulm is,” McKeeth said. She wanted instruction on how to file an official complaint. McKeeth said she had previously spoken with the CVB about this concern, but said she received no response.

City Attorney Roger Hippert said he could not give advice on an action that could have an adverse effect on the city. Hippert said the attorney general example cited by McKeeth was not related. He felt the banners could be viewed as marketing New Ulm, which is allowed.

Mayor Robert Beussman clarified new banners are being purchased because high winds damaged the previous banners.

McKeeth felt their needed to be accountability on this spending as $20,000 being used for banners was too much considering the CVB has less than $33,000 for marketing outside New Ulm.

“I pay this lodging tax an it needs to be address,” she said. “I don’t want to go to the state, but it sounds like I might have to.”

Councilor Les Schultz commented that there was a committee that made these decisions and he did not want to micro manage it.

New Ulm Chamber President Audra Shaneman was at the meeting to answer questions. She said the use of lodging tax was not controversial. Shaneman said they were following an Attorney General’s ruling on guidelines for using the tax. She said the banners do fall under tourism and is an appropriate use.

Councilor Fisher said she was comfortable with this explanation as the City Attorney did cited no red flags.

Shaneman said the previous banners were wind whipped and the CVB wanted to replace them in time for upcoming events. It is hoped the new banners can last at least eight years.

McKeeth argued there would be a better use of the money to put billboards in the Twin Cities because banners on Broadway do not bring people to New Ulm. If they see the banners, they are already in New Ulm.

Schultz said this was an opinion, but it was not an opinion shared by the council. Schultz said there was a committee that meets and discuss these issues.

McKeeth wanted the council to hear the opinions of the hotel owners who pay this lodging tax. McKeeth has been on the original banner committee, but said she was voted off the CVB for seeking accountability. She asked the council to considering abolishing the arrangement with the CVB to prevent the spending of these funds and outsource the marketing of New Ulm.

Councilor David Christian said the discussion was getting away from its originally intention. The only issue on the agenda was the receiving the CVB financial report. He said further discussion should be brought forward on a future agenda.

In other news, a public hearing was ahead of a vote authorizing a loan with conditions to Windings, Inc in the amount of $250,000 from the City’s Revolving Loan Fund.

Windings is looking to make substantial capital investment in building additions, machinery and equipment at 15 Somsen Street in the site previously occupied by ELKAY.

Assistant City Manager Chris Dalton said the loan was for 10 years with one percent interest. Conditions of the loan also require Windings create 12 positions within two years of occupying the building. Seven of the positions needed to be for Production Team at $16.55 hours; two positions for Sales Team at $25 an hour and three Engineering Team positions at $27 an hour.

After closing the public hearing, Schultz made the motion to approve because the jobs being created were high paying position. The motion was seconded by Fischer and unanimously approved by the Council.

Later in the meeting, the council approved resolution approving the acceptance of a $325,000 Minnesota Investment Fund grant from the Department of Employment and Economic Development (DEED) on behalf of Windings.

Retail Service Specialist Cara Knauf gave an update on the Downtown Holiday Garlands. After a meeting Monday night, a one-year easement was drafted by City Attorney Roger Hippert for all the building owners. The easement would allow the garlands to be hung as they had in the past for one more year. This would allow for further discussion in 2019 regarding the budget and structural inspections.

The hope is all the business owners will sign the agreement by Oct. 26. Knauf said things are underway, but there were a few businesses she needed to work to sign agreement.

“I am excited,” Mayor Beussman said. “They will be back, or at least partially back for another year. This is something the City of New Ulm has had for years and I do believe it is a draw.”

The council authorized a series of applications to the Safe Routes to School Infrastructure program to help fund various traffic safety project.

The first application sought funds for a Rectangular Rapid Flashing Beacon (RRFB) on Broadway at 4th S. Street.

The Safety Commission recommended the application at their last meeting. Last year the council tabled authorizing a Transportation Alternatives application in favor of waiting for a Safe Routes to School funding solicitation.

A total of $6.5 million is available in Federal funding through Transportation Alternatives program in Greater Minnesota, but requires a 20 percent local match.

The Safe Routes to School State Infrastructure Program provides $2 million in State bond funds Statewide and does not require a local match.

The estimated contact cost to install a RRFB at 4th S. Street is $125,000. With the State Grant, 100 percent of the contract cost would be funded. The would have to fund the preliminary and construction engineering estimated to be $20,000 which is considered a non-eligible project cost.

City Engineer Steve Koehler said this does not commit the city to the project, it is simple to authorize the application.

The council unanimously approved the application.

The second application to Safe Routes to School was for the installation of a roundabout at North Highland Avenue and Oak Street. This application was also unanimously approved by the council.

Since the new high school opened the vehicle traffic has increased at this intersection. An engineering study recommend a roundabout. The preliminary cost estimate for the roundabout is $300,000 for construction and $40,000 for design engineering. Once again this was an application and did not commit the city to the project.

The city has already submitted for engineering proposals for the Roundabout. Koehler said regardless of whether or not the application to Safe Routes is accept, the city would likely want to move forward with the engineering.

Three proposals received were reviewed by a committee and recommended contracting with WSB & Associates at an amount of $38,700. WSB & Associates were not the lowest cost bid. Koehler said the lowest bidder left out an important factor in the engineering process. Koehler believed this lowest bid would increase if the city asked them to include the additional work. According to State Statute a bid can be accepted based on the proposal and not the amount.

The council unanimously accepted the bid from WSB & Associates.