NEW ULM — The Farmers Co-op of Hanska is preparing to repair and replace railroad crossings owned by the co-op on Valley Street.

During a special meeting of the New Ulm City Council on Thursday, Farmers Co-op of Hanska was approved for a loan from the City’s Revolving Loan Fund to complete the repairs. The term of the loan is 10 years, with two percent interest, and the loan will not exceed $150,000.

City Manager Chris Dalton said the co-op meets the requirements for a revolving loan under infrastructure improvements. Dalton recommended approval because railroad crossings are an ongoing problem in New Ulm. 

The conditions of the road at railroad crossings have been a city concern for years. The city does not own the railroad crossings and cannot make repairs without the railroad’s consent. In July, the council discussed an option to force action from the railroad owners.

Farmers Co-op applied for the loan because the Canadian Pacific (CP) representatives are coming to New Ulm within the next two weeks. Farmers Co-op wants to tie in repairs with CP’s work on other city railway crossings

Jerry Svoboda with Farmers Co-op of Hanska said the loan is to repair the crossings at Valley Street. The original application also included repairs to the crossing at 3rd Street, 7th Street and 11th Street, but Svoboda said he recently learned CP plans to work on these crossings.

Councilor David Christian made the motion to approve the loan to Farmers Co-Op of Hanska with a second from Councilor Lisa Fischer. It was unanimously approved.

City Engineer Steve Koehler said staff and council have put in a lot of time on the railroad crossing issue and he wanted to thank Farmers Co-op for stepping up to help resolve it.