City of Worthington aims for new city hall at old Wells Fargo building

The City of Worthington took action Monday toward purchasing the former Wells Fargo building at 1010 Second Ave. and converting it into a new city hall for the community.

The Worthington City Council first approved a letter of intent to acquire the property with an agreed-upon sale price of $800,000. The city will deposit $40,000 in earnest money that would be returned to the city if it terminates the sale agreement prior to the expiration of the Dec. 4 inspection period. The earnest money, along with liquidated damages of $40,000, will be returned to the city if the seller fails to close as the city’s exclusive remedy. 

Later in Monday’s meeting, council members approved a proposal from Short Elliott Hendrickson for architecture and engineering services for programming, conceptual design and estimate of project cost of renovating the Second Avenue building. This work includes a space needs analysis to accommodate the City Administration, Finance, Engineering and Community Development departments, as well as Council Chambers and Worthington Public Utilities offices. 

This work will be completed no later than Dec 1. The professional services work will be performed for a lump sum fee of $26,500 plus reimbursables.

In a separate matter Monday, the council approved a city and Minnesota Department of Transportation Highway 59 reconstruction agreement for the reconstruction and turnback of U.S. 59. The project includes North Humiston Avenue from Interstate 90 to Oxford Street and Oxford Street from Humiston Avenue to Minnesota 60.

The city’s share of this project is estimated to be $2,332,393.16 for water main and sanitary sewer construction. Worthington Public Utilities is responsible for funding these projects. The first half of funding to MnDOT is due upon the award of the construction contract in November with the second half due on March 1, 2027. Construction is scheduled to begin in 2027 and continue through 2028.

Additionally, council members unanimously approved a preliminary 2027 levy that represents a 14.0% increase over 2026.

The total levy of $10,327,116 breaks down into an operating levy of $8,688,818 and special tax levies of $1,638,298. The proposed levy is an amount not to exceed and may be lowered, but not raised for the final levy certification in December.

Also included is a resolution approving the Housing and Redevelopment Authority's 2027 proposed levy of $228,000, an increase of $10,000 over 2026.

The city council will host a meeting at 6 p.m. Dec.14 in the City Hall Council Chambers to discuss the final 2027 budget and levy. A Truth-in-Taxation Hearing will be hosted at this time, where public input will be taken prior to adoption. 

Among other business items, the council also approved a proposal from the engineering firm of Short Elliott Hendrickson for work on the existing boat landing at Ehlers Park. This proposal is based on an hourly rate not to exceed $24,500.

The existing landing, which is in disrepair and needs to be reconstructed, is a concrete landing with two ramps and a floating dock between the two. In 2024, the city — along with the Lake Okabena Improvement Association — did a similar project at the Sunset Park boat ramp. City staff is hoping to do the same kind of project at the Ehlers ramp sometime in the near future. 

This SEH proposal includes a design survey, plan sheets for construction, cost estimate and permitting. At this time, staff is just getting the plans and permits in place for a future project. This construction project was not included in the 2027 budget, and staff will work to get a spending plan to council at a later date.

Also Monday, council members approved the third and final required reading of a proposed ordinance regarding the imposition of civil penalties for liquor license violations.

The proposed ordinance establishes a graduated penalty structure for violations by liquor licensees and provides a consistent process for imposing penalties. The ordinance is authorized by state statute and provides that prior violations occurring more than 36 calendar months before the most recent violation will not be considered when determining successive violations.