One of the most developments was the announcement by Jay Scott from Rebound Partners regarding the impending purchase and renovation of The Lamplighter property. This property is set to be transformed into Snow Drop Winery, a wine production and café facility. The project is expected to commence construction within the year.

In tandem with this, Scott also highlighted ongoing negotiations with Oak Hills concerning their interest in the Garden Terrace property. This potential strategic partnership aims to enhance services offered by Oak Hills. Scott sought authorization to negotiate a purchase agreement for the EDA to sell the property to Rebound Partners. He discussed the property’s valuation, referencing a recent appraisal that used both sales comparison and income approaches. The sales comparison approach revealed an average per unit value of $60,000, with the offered price being $71,000 per unit. However, Scott raised concerns about the appraisal’s omission of property taxes and the industry-standard 5% vacancy factor, which he argued could misrepresent the property’s net operating income. By applying these factors, he estimated the property’s value at approximately $7.72 million.

The EDA meeting also saw the completion of solar panel installations across all public housing properties. While the installations have been completed, the panels will only become operational after passing state electrical inspections scheduled for the following week.

Another important topic was the approval of new payment standards for the Section 8 Housing Choice Voucher Program. The updated standards, which align with fair market rents set by the Department of Housing and Urban Development (HUD), are designed to keep housing units affordable for low-income families. The fair market rents for Brown County were shared: $640 for an efficiency or studio apartment, $711 for a one-bedroom, $933 for a two-bedroom, $1,140 for a three-bedroom, and $1,567 for a four-bedroom. The board unanimously approved raising the payment standards to 110% for one and two-bedroom units and maintaining the three-bedroom units at 103%. These new rates will take effect on November 1st, 2024.

Public housing flat rents were another item of focus. These rents are set annually based on fair market rents, allowing families to choose between paying income-based rent or a flat rent. The proposed flat rents will be effective October 1st, 2024, coinciding with fair market rent levels. The changes will not impact residents until their annual recertification, which occurs in March for Broadway House tenants and in September for rental house tenants.

Discussions regarding the home buyer assistance loan program revealed that the first borrowers from 2019 have started making their payments. A resolution approving the 2025 Economic Development budget was presented and unanimously approved. The budget includes a tax levy of $117,000, new commercial rental income from a daycare center, and a $260,000 transfer from Garden Terrace to cover program expenses.

The economic development activity report included a presentation from Grow Minnesota at the previous month’s partnership meeting. The Child Care team has completed planning for an appreciation and training event scheduled for November. Additionally, the mayor suggested engaging with local businesses undergoing major expansion projects, which was well received by the board. Meetings have been conducted with Patterson’s Diamond Center, Wiborg Chevrolet, and an upcoming meeting with Alen is planned to discuss their expansion. These businesses will be featured on the economic development website and social media to recognize their contributions to the community.

The meeting transitioned to other business items with a closed session to discuss potential real estate sales. Before entering the closed session, the vice president assumed control of the meeting due to a noted conflict of interest. The board members then moved into the closed session to discuss the potential sale of the Garden Terrace property in accordance with Minnesota statutes governing open meetings.