MANKATO — The city is expanding an industrial park with the help of a state grant of nearly $1 million.
On Monday, the City Council approved Holtmeier Construction’s bid for the project’s first utility improvements, mostly water, sewer and streets. The Mankato company’s bid was $399,603.05, the lowest of five offers and about 16 percent below the city’s estimate.
The state Department of Employment and Economic Development grant, worth $969,218, covers 70 percent of the expansion of Energy Drive and related utilities. Assessments on developers will pay for the rest. The project will allow the Eastwood Energy Industrial Park to expand by about 70 acres.
It will be marketed for industrial uses with a base cost of $25,000 per acre and assessments estimated at $7,000 per acre.
The final phases of the development will take place next year.
The city will wait on signing the contract with Holtmeier until the company finishes the Cleveland Street project.