WDAZ: Your Home Team

Published December 27, 2010, 06:03 PM

McIntosh, MN Loses Big Tenant Hurting Annual Budget

City leaders in McIntosh Minnesota found themselves short on money after one of it's biggest tenants moved out of a city building. The USDA has just moved into a new building in town, leaving the city of McIntosh with a ten percent drop in revenue for the annual budget.


The USDA-run Farm Service Agency and the Natural Resources Conservation Service are now in a new building just east of it old home.

Mayor Bruce Haaven says the federal government is paying a privately-owned building owner more then two times the price in square footage than it did for the McIntosh city owned property. The city was told their building did not meet federal handicap codes. They mayor said they offered to update the building and not raise the rent, but they did not here back from the USDA.

"It's upset everyone here. We see how the federal government spends their money. We have a perfectly good building and they decide to spend all that money and we don't know why," says McIntosh Mayor Bruce Haaven.

Haaven says the annual loss in rent is about $30,000 a year which is about 10% of its annual budget. Two full time city employee which did maintenance on the city owned building were laid off to help offset the lose.