Fergus Falls Dairy Trail project advances with low construction bid

The former dairy site on the Otter Tail River took another step toward becoming part of Downtown Fergus Falls as city officials weighed a construction bid for the Dairy Trail that came in below the engineer’s estimate. For a parcel that has sat in planning discussions for years, the immediate payoff is practical: a clearer path to connect a long-vacant industrial property at 301 South Buse Street with the river, the trail system and the city core.

The site carries unusual weight for local taxpayers and nearby businesses because it is not just open land. The old dairy processing plant shut down in 2002, and the Fergus Falls Port Authority has been trying to turn the 29.5-acre property into a place for mixed residential, non-residential commercial and service uses. The land already has public river access and sits next to a regional trail, which gives the city a rare chance to turn a former industrial edge into a visible downtown asset.

That redevelopment vision has been built into city policy. Fergus Falls’ downtown and riverfront master plan calls for trail amenities, mixed-use and multi-family housing, river views and other riverfront improvements at five key opportunity sites. The city’s planning library also includes a Bicycle & Pedestrian Master Plan, a Housing Study and a Downtown & Riverfront Master Plan, underscoring that the Dairy Trail is part of a broader redevelopment strategy rather than a stand-alone path.

The public investment behind the project has been building for years. A Legislative-Citizen Commission on Minnesota Resources project abstract described the former Mid-American Dairy property as a 28.9-acre industrial site with 3,476 lineal feet of Otter Tail River frontage. A separate local report said a $4 million state appropriation supported acquisition, railroad crossing work and trail planning tied to the site. Together, those pieces point to a larger goal: improve access now so the property can support housing, commerce and more downtown traffic later.

That longer view fits Fergus Falls’ history. The city was chartered March 1, 1872, on Dakota and Anishinaabe land, and the Otter Tail River has shaped local development since the 19th century, powering mills and early industry. As the Dairy Trail advances, city leaders are betting that the next chapter of that riverfront story will be written in walkers, cyclists and new development where a dairy plant once stood.