By Jolene Farley
The Hills Economic Development Authority was forced to make a very difficult decision at a Tuesday evening meeting.
The EDA received two similar bids for the former American Salvage building in Hills. One presented a manufacturing opportunity and the other a café and recreation center.
Manufacturing offer
John Schwing, president of Technical Services Inc. from Sioux Falls, and Don Packard, president of Northland Precision Machine Inc.. made the first presentation to the EDA.
Schwing and Packard were highly recommended by Hills resident Linus Svoboda, who was present at the meeting.
The companies plan to relocate the working end of their businesses from Sioux Falls to the American Salvage building.
Northland Precision Machine is a tool and die business. Packard has designed and built a mold for a hitch pin caddy that is currently being manufactured, using plastic injection.
Technical Services builds custom controls and automation for area manufacturing companies and the food industry.
Schwing has also developed, designed and patented a device used on heavy-duty trucks, which is sold under the FireOptic brand of bumper guides, lenses and LEDs.
Schwing and Packard would maintain their business addresses and office in their homes in Sioux Falls but would do machine work in the Hills building.
The amount of business the companies could bring into Hills is unknown.
They would try to use local employees, and would patronize the city and local businesses whenever possible. They would offer welding and other farm equipment repair.
The building would be modified with a new 10-by-9-foot overhead door, and the roof would be repaired.
Café and rec center
Dennis Hartman, owner of Cabinet Works Inc., presented a plan next. His plan included a café and recreation center in the American Salvage building.
"I am really gearing toward a place where young people can go to play some pool, play some games and get something to eat," said Hartman. Hartman said no smoking or alcohol would be allowed.
The decor would be done with past and present Patriot memorabilia, according to Hartman. The café would offer fried foods and a daily lunch special.
When Hills EDA President Arlen Leenderts opened the sealed bids, they revealed a $2,400 offer from Technical Services and a $1,000 offer by Hartman.
After some deliberation, board member Dana Dahlquist moved to accept the highest bid.
Leenderts asked for a second on the motion three times with no response from the rest of the board.
"I don't see there is that much difference between the bids. To look at the broader picture, what is each one bringing to the community?" asked board member Wendell Bengtson.
The board agreed they were taking a loss on the building and they needed to weigh who would provide the most benefit to the community.
"Why not get something with the possibility of working?" asked Dahlquist. "We have had cafés before, and they didn't work."
The council advised Hartman that the money required to equip the building with a kitchen could be more than he expected.
"I think it will cost you more than what you think," said board member Jim Jellema. Hartman admitted he had not delved into cost yet.
"We have lost several things in the last few years," said Mayor George Langford. "We need to turn our community around. We need something that will show forward progress right away."
Langford seconded Dahlquist's motion to accept the $2,400 bid from Technical Services, and the motion passed unanimously.
Technical Services will take immediate possession of the former American Salvage building.
The council commended Hartman on his idea and told him not to be discouraged.
In City Council business:
o The council will place a notice in the paper advising residents that proceeding with construction before obtaining a building permit is illegal. There is no charge for a building permit. "They should be at the (council) meeting prior to the project," said Jellema.
o The city will use the rest of a ReLeaf Community Tree Planting Grant to plant four or five trees at the baseball field. Planting trees at the football field ate up $2,430 of the grant.