The Hibbing City Council on Sept. 17 approved a resolution to take the city to market for general obligation sales-tax revenue bonds to finance the new Public Safety Building and approved several related contracts for testing, inspection and building security.
The measure to offer the bonds was presented by Finance Director Sheena Mullin, who said the sale would be supported by the local sales tax approved by voters and would cover roughly $19.6 million plus financing costs. Mullin said the city would only levy the difference if sales-tax revenues proved insufficient to meet debt service.
Councilors then approved contracts tied to the building: envelope performance testing with Lurch Bates for $11,600; continuing inspection/testing services with NTS for $103,690 (the council accepted staff and architect recommendations to retain the firm that performed earlier geotechnical work for continuity); and a security package with American Eagle Security Systems covering surveillance hardware, access control hardware and installation (hardware and installation figures were presented separately by staff and approved by the council).
City Service Director Nick Rolla told the council that staying with the same geotechnical/testing firm through the project reduces risk of later disputes. “If you switch midway through a project on it, it can lead to potential issues down the line,” he said as staff explained the recommendation to accept the higher but continuing bid.
All items were approved on motions from council members with support recorded and no roll-call tallies documented in the minutes beyond unanimous “aye” votes during the meeting.
Discussion only: council members asked for clarification on funding sources and contingencies for the bond sale; Mullin reiterated that the sales tax voters approved will support the bonds and that a levy would only be used if sales tax revenues fall short.
Decision/direction: council authorized staff to proceed to market with the sales-tax–backed general obligation bond issuance and approved the listed contracts and testing services for the Public Safety Building project.
The council did not set specific construction start dates at the meeting; further scheduling and contractor mobilization will follow standard procurement and contracting steps.