Blue Earth County approves bids and a $600,000 loan to finish RAD housing conversions

Blue Earth County commissioners approved a series of procurement resolutions and financing steps on April 21 to advance a RAD (Rental Assistance Demonstration) conversion of county public-housing properties.

Dustin Mornhall, facilities manager for the City of Mankato, told the board the Project 11208 package is split into appliance, exterior, flooring and mechanical bid packages covering Breckenridge Townhomes, Pioneer Plaza, Eastview Apartments, Madison Lake and scattered single- and duplex-family homes. "Staff recommend awarding the bid in the amount of $114,900," Mornhall said when presenting the appliance package; the board adopted the resolution by voice vote.

Mornhall presented subsequent packages: an exterior bid recommended to Nielsen Black Topping & Concrete ($194,900), a flooring bid (low bidder Craig Hirtusk, $384,362.40) and a mechanical package (low bidder Quality Appliance, $199,500). He told commissioners that earlier, a single lump-sum bid exceeded available funds and that itemizing the work lowered the aggregated cost to roughly $893,662.

Separately, EDA staff explained that HUD approved conversion of the remaining public-housing units (47 scattered sites plus Breckenridge townhomes) and recommended transferring ownership to Blue Earth County by quitclaim deed at a nominal price so the properties can operate under project-based Housing Choice Vouchers. The board authorized the county to accept the properties and execute HAP contracts and management agreements with the Mankato EDA.

To address a remaining funding gap for HUD-required end-of-life improvements, the board also approved a request for a Housing Trust Fund loan not to exceed $600,000, described as a 0% loan repayable over five years. EDA staff said they expect not to draw all the funds and that repaid dollars would replenish the local fund for future leverage.

The board voted on each procurement and the loan authorization by voice; motions were approved.

What comes next: staff said the property transfers and related management agreements will return to the board next month for execution and that contractors will proceed under the awarded bid packages.