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Rail spur project may have to be scaled back

The southeast industrial park rail spur may not be built until 2013 and may have to be shortened, according to discussions in Tuesday's regular Wadena city council meeting.

The city approved a declaration of restructions for a DEED grant as part of the process of moving forward with the rail spur project.

After the approval, City Administrator Brad Swenson said BNSF indicated they would not put money into the project.

The city of Wadena and Wadena County are contributing to the cost of the project. Federal funding toward the project announced in September will be a large portion of the project.

"If all these pieces don't fall into place, then the project has to be reduced in size, so it maybe wouldn't go into the industrial park as far," Swenson said. "The project will end up being the amount of money that we have."

He said it would not be a fast process, and if the railroad is constructed in 2013, they will be making good time.

The council approved other agreements during the meeting.

The council approved DGR for engineering work on the southeast substation switchgear addition, not to exceed $34,500.

Because of new state bids, the council had to change a September decision on airport front end loader bids and approved the purchase of a 621E Caseloader from Titan Machinery this time around.

No one showed up for the special assessment public hearing, and the resolution for it was passed.

The council approved an electric and water wage agreement for pay to increase 1 percent in 2011 and 2 percent in 2012, with the same offer being extended to non-union employee wages.

Because of the economy, employees had agreed to a 0 percent wage increase in 2009, and most departments had taken only a 1 percent increase in 2010.