Two-Percent loan approved for local roof replacement at business site

Members of the Worthington City Council, acting in the capacity of the Economic Development Authority, approved on Monday a $34,000 request from its Two-Percent Loan Program to help finance a replacement of the flat roof of a building that's home to a downtown business.

The Two-Percent Loan program provides financing to small downtown business to purchase equipment and/or make building improvements. Scott and Greta Kraft, the owners of Adorn 1024 and Kitchens and Baths by Greta — located at 1024 Third Ave. — applied for the program to help finance the roof replacement work.

The applicants received two bids for the project. The low bid came from Jacob’s Repairs & Installations of Sioux Falls for $68,062.65.

The EDA’s program stipulates that a private lender shall provide at least half of the total loan amount at market rate with the EDA providing the rest, up to $50,000, at two percent interest for a term of up to 15 years. The EDA loan will be secured by a mortgage on the property at 1024 Third Ave.

Later in Monday's meeting, council members approved a one-year contract with Patricia Arnt to operate the Beach Nook in Worthington's Centennial Park. Arnt will  be paid a sum of $5,000 — unchanged from recent years -- in exchange for maintaining the restroom facilities, the beach area and the concession area during the term of the lease. 

Also approved was a task order with Bolton and Menk Inc. not to exceed $64,500 for professional engineering services related to the design and development of public infrastructure improvements for the planned East Flower Lane extension.

Additionally, council members approved a lone bid of $705,849 from Hulstein Excavating for its planned Sixth Avenue Street Reconstruction Project. The bid was approximately 20% lower than the engineer’s estimate. 

Some council members expressed concern with Hulstein, citing work done previously in the Homewood Hills neighborhood. City Engineer Hyunmyeong Goo recalled that the primary concern with the project was the paving work, which he said will be done by different contractors with the Sixth Avenue reconstruction. Goo also added this project will have bituminous paving, which Hulstein does not do.

The Sixth Avenue street work will also include curb and gutter replacement, and Goo added that he has already had conversations with Hulstein representatives on having this work meet the city's requirements.

In other business Monday, the council approved a resolution authorizing the abatement of a small detached garage located at 900 Seventh Ave. The structure in question has fallen into disrepair and has significant holes in the roof and walls and is missing window panes. The rest of the structure has peeling paint, rotting wood, and the inside is generally exposed to the elements. Remnants of a tarp that once covered the roof are still visible as well.

The owner of the property made contact with the Community Service Officer on Dec. 19, 2025, stating their intent to locate a contractor to repair the structure. There has been no communication from the owner since.

In another matter Monday, the council approved the second reading of a proposed ordinance to vacate part of the platted public utility easement on lots 1 and 2, block 1, of Six Fairway View Addition.