City Council approves nonprofit grant program; takes no action on development agreement for data center

At its July 21 meeting, the City Council approved a new nonprofit grant program, replacing the previous subsidy model with a competitive, application-based system.

Mayor Randy Knaack emphasized that having a set amount of money designated to assist area nonprofits will aid in the city’s budgeting process. The administration recommended setting aside $50,000 for the program in the 2026 calendar year, though Council Member Matthew Crowe suggested increasing the fund to $65,000. 

Council Member Sydney Brennan inquired about the selection process for recipients. Mayor Knaack stated that all grant awards would be decided by the full council in an open meeting. Council Member Lee Schwebs expressed concern about fairness, noting that most municipalities do not provide public funds to nonprofits.

Applications for the new grant program will be accepted from January 1 to February 28, 2026, and reviewed by the council no later than its second meeting in March. Funds will be distributed by June 1, with grantees required to report on their progress and outcomes. A formal presentation to the council will be required in December, outlining how the funds were used and the organization’s sustainability plans. Yonko noted that this timeline could restrict how nonprofits structure their programs.

Organizations that currently receive funding through the city’s Tax Increment District (TID) budget process—such as the Mabel Tainter and Downtown Menomonie—may still be eligible to apply if their projects meet the grant program’s criteria.

The council ultimately approved the process without locking in a specific dollar amount, which will be finalized during the city’s fall budget deliberations. Council Members Randy Sommerfeld and Leland Schwebs voted against the measure.

Update on Development Agreement 

In February 2024, the city entered into a development agreement with Atlas Holdings LLC for the redevelopment of the former Badger Iron Works site. Craig Wildenberg, President of Atlas Specialty Contracting, provided an update on the redevelopment project. Wildenberg reported that the property received a clean bill of health from the Wisconsin Department of Natural Resources and that cleanup efforts are roughly halfway complete. He also noted that before entering into a development agreement with the city, the company had considered relocating to Boyceville.

New roof for Menomonie Public Library

The Council approved a resolution regarding roof replacement of the Menomonie Public Library. The building’s 23-year-old roof is nearing the end of its useful life. Following a public bidding process, the Library Board recommended awarding the project to Elite Construction Services in the amount of $91,508.42 plus the actual cost of sheeting and roof edge replacement. This bid includes premium asphalt shingles. Replacement of rotten roof sheeting and edge materials, if needed, will be billed separately at set unit prices. Funding for the project will be shared by the City of Menomonie and the Menomonie Public Library Foundation. The city will pay 50% of the project cost, up to $100,000. 

Water main repair project

A massive water leak occurred on the east side of ConAgra on February 24th. Initial repairs, completed in early March, were done by Haas Sons. Cedar Corporation was hired to design and oversee Phase II of the ConAgra water main repair project, which included soliciting bids. Upon the recommendation of Cedar Corporation, the Council awarded the Phase II contract to Skid Steer Guy of Mondovi at a cost of $166,005. 

Proposed development agreement with Balloonist LLC

The Council entered into closed session to discuss a proposed development agreement with Balloonist LLC for a proposed data center.  No action was taken upon returning to open session.

In other business, the Council:

• Approved a special event permit submitted by St. Joseph Catholic Church for its annual Fall Festival on September 21.

  
  

• Approved a Class B combination liquor and beer license for Hostetter Pub LLC, doing business as Hoss’s Pub, located at 516 Broadway St. S.