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City of Redwood Falls awards $13.7 million bid to begin construction on new industrial, residential sites

On Tuesday evening, Redwood Falls City Councilors approved a $13.7 million bid to begin the first phase of construction for a new industrial park and residential area south of Redwood Falls.

The basics of the proposal have been in the works for almost two years. The plan calls for 325 acres to be readied for a residential and industrial area on the south side of Redwood Falls, in the approximate area of Carris Health – Redwood and St. John Lutheran School.

The residential and industrial areas will be built in phases, depending on demand. The city would create the infrastructure such as roads, sewer systems, and electrical systems, then sell the finished, construction-ready lots to interested developers.

The full contract for the 2022 Reflection Prairie Addition and the Reflection Ridge Business Park – Phase 1 went to to Kuechle Underground Inc. of Kimball. Subcontractors include Schmidt Construction of Redwood Falls, Duininck of Prinsburg, All State Traffic of Rockville, and Creative Curb of Eden Valley.

The amount, about $13.7 million dollars, is 10% above the Engineer’s estimate. The project has been discussed and planned for about two years. City councilors, along with many potential bidders, were concerned about how current inflation and supply chain issues could raise expenses further if bidding was postponed for another six months or year.

No property tax increases for Redwood Falls residents are planned. Much of the cost of Phase I of the project will come from the Redwood Falls Public Utilities for the repayment of proposed bonds. A total of $476,000 per year in payments are estimated from the water, wastewater, and stormwater utilities for a term of 25-years.

Also, much of the cost would be paid for by sales of the finished lots for new home and business owners, as well as from tax-increment financing.

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