As of Jan. 1, 2019, the Redwood Area Hospital was transferred to Carris Health, and as part of that transfer agreement the new owner has committed to the construction of a new medical facility in the community.

According to Keith Muetzel, negotiations have been taking place between the City of Redwood Falls and Carris Health regarding the development agreement for that hospital project.

Muetzel, who talked about that process with the city council at its April 2 meeting, said the purpose of the development agreement is to establish the responsibility of each party as it relates to the design and construction of the public and private improvements that are needed for the project. That would include water distribution and sanitary sewer lines and structures as well as storm water infrastructure.

Under the terms of the agreement, Carris Health will be responsible for 100 percent of the design, construction and expense of all municipal improvements required for the project. Carris Health will also be responsible for all plan review conducted by the city for the project, as well as any permits and hook-up fees.

Muetzel said that includes an upgrade to the current lift station that would serve the facility, as it is at capacity. 

The city also recognized the fact that the improvements being made as part of the hospital project have the potential to benefit the city, as the infrastructure could benefit other areas of the community where development could happen.

As a result of that recognition, the agreement stipulates that the city will make a lump sum payment to Carris Health in the amount of $250,000 to offset the infrastructure costs.

Muetzel said rather than have each entity do its part, negotiators made more sense to do the project as one in order to obtain competitive pricing.

Muetzel said the city's engineer will review and approve the plans for the infrastructure, and the city will have someone on site ensuring the project meets the standards for those infrastructure projects.

Under current city regulations when a project of this nature is developed land must be set aside for a park, but in this case the city has deemed that is not a necessary element to the project and in the agreement will waive that requirement.

Bryan Lydick, Carris Health-Redwood administrator, said the infrastructure work will have to be done in coordination with the upcoming work on the infrastructure along DeKalb Street.

Should things continue progressing forward, work on the site could begin yet this spring.

In other action at its meeting, the council:

• Approved a request to close a portion of Second Street June 14, 2019 for the Nuvera customer appreciation event.

• Approved an on-sale liquor license application for the Lions Club of Redwood Falls in coordination with the NightFalls event being held May 2.

• Approved the purchase of three mounted switches from the Stuart Irby Company at a cost of $54,642. The request from public utilities is for use on the Carris Health-Redwood hospital project.

• Approved the 2019 seal coat improvements project, which was awarded to Allied Blacktop of Maple Grove at a cost of $260,443.68. The work will include all streets and frontage roads east of DeKalb Street and CSAH 101 to include North Redwood, as well as the Redwood Area Community Center parking lot and the school link trails.

• Approved the final pay reimbursement for the Gould Street improvement project for $98,120.72 to Schmidt Construction of Redwood Falls. The final contract price for the project was $1,264,063.65.

• Approved the employment of Seth Breitkreutz as a full-time street maintenance worker at a rate of $22.32 per hour

• Approved the employment of Craig Kodet as a full-time street maintenance worker at a rate of $22.32 per hour.