Pelican Rapids EDA backs façade grant for Mercantile, supports Chamber dissolution plan

Jordan Gmith, economic development director (joining by Zoom), presented two EDA items on June 30: a façade improvement grant application for the Mercantile seeking $81,710 in reimburseable grant support, and a plan to dissolve the Pelican Rapids Area Chamber of Commerce and fold many chamber functions under the EDA.

Gmith said the chamber has struggled with volunteer burnout, limited administrative capacity and declining perceived value for members. The EDA proposal would expand the EDA board from five to nine members, create subcommittees to take on event marketing and business support functions, and rely on EDA staff for grant writing and project management. Gmith said the chamber will need a two‑thirds member vote at a meeting on July 13 to effect a formal dissolution.

Councilors discussed likely funding and staffing questions. Gmith said final budget numbers for any additional staff time were not yet available and suggested event revenues, EDA budget lines and limited grants could cover extra effort without a standalone membership fee. He asked the city to record council support and to allow use of city legal services through the dissolution process if chamber members vote to proceed; council voted to record support and to permit use of city legal services as requested.

The council also approved the façade grant application on a motion and second. Staff said grant disbursement would follow the receipt and review of invoices and proper paperwork.

Next steps: the chamber will hold a membership meeting on July 13 to vote on dissolution; if members approve, the city and EDA will proceed with legal and operational transition work.