##VIDEO ID:wrPKRLndc6Q## e e e e no no you got to do nothing I got you all set up ped up it is 8:00 a on Tuesday October 8th 2024 and I call The Economic Development Authority meeting to order item number one is the roll call we have five members present and we do have a quorum item 2.1 is the Eda September 10th 2024 minutes I didn't have any questions I'll make a motion to approve the Eda September 10th 2024 minutes I will second that we have a motion in a second any further discussion all in favor say I I I opposed motion carries item 3.1 we will move down into other business that moves us to number 4.1 administrative activities for September 2024 good morning president Mark graph and Commissioners um you have the report in your packet um just wanted to give an update on the solar panel project at the at the public housing properties um all six scattered site properties um the installation's been completed and they've all passed their state electrical inspection um so they've submitted all that information to pu um the Broadway house inspection is pending the um State inspector came he wanted a few changes so they're working on scheduling someone to come back to do that it'll get inspected again and then um we should be able to move forward so what I thought was going to be a quick project is starting to drag on but we're getting there um as long as we see progress we're happy note under the Eda report the rental house at 320 North Broadway has been moved to um 107 North Minnesota Street um and we're working with the rent on purchasing the home and that's being done on the city council side of things um and then we're working on the sale of the three lots um and that should be closing in the near future um Chris do you have a date on that yet no closing date yet on that but it should be um in the next couple of weeks okay um and then note uh Oak Hill's Living Center requested a letter of support from the Eda for a grant application they were working on um a letter was provided and that's attached to the report for your review um I have nothing else to highlight for you um end of Staff report but I'm happy to answer any questions you may have was a nice letter for Oak kills thank you for doing that I'll make a motion to accept the Economic Development Authority administrative activities for the month of September 2024 second we have a motion in a second any further discussion all in favor say I I I opposed motion carries item 5.1 Eda October 8th 2024 claims list I reviewed this I didn't see anything out of the ordinary Heather anything you wanted to note no that being said I'll make a motion to approve the Eda October 8th 2024 claims list I will second that too we have a motion and a second any further discussion all in favor say I I I opposed motion carries item 6.1 Eda loan to Vintage and vianel commission president and Commissioners um this is a small um $2,500 loan like we did uh during covid two businesses they've been dealing with construction for the past couple of months a little hard to get to their business um and they don't do uh internet sales so this would be a small uh $2,500 loan um 0% interest rate term would be two years so roughly a little over $100 a month and then payments wouldn't start until January 1st 2025 so um construction should be done in front of their store by the end of this month early early November so that gives them a little time to get the word out that people can park front of their store again and then they should be able to make those payments um next year um the only um condition on that is they'll have to sign a personal guarantee as well I will um make a motion to authorize the loan for vent vinyl in the amount of $2,500 second we have a motion in a second any further discussion I just want to say I think it is nice that we are doing this loan as an Eda um I know that the business has been impacted but to remind people that that was a conditional use permit that that area is not designed for this type of business that that was an exception made but just another case of how our Eda is willing to work with our community and the businesses I do have a discussion Point as well I am in favor of this but I would I I don't know how to say this um I I don't want things to just keep popping up like this I would like you know if this is something we want to do that this is something we put in our strategic plan and and have something going forward where we have a good decision-making process behind it and not just oh this this sounds good and we have the money and let's give it to to these folks um but that being said um we do have a motion and a second all in favor say I I I opposed motion carries we are now going to pull 3.1 into the agenda the public hearing for the sale of Eda property Garden Terrace properties I do have a conflict of interest as one of the partners in this is Oak who has an interest in Garden Terrace's Oak Hills I will um seed the gavel to VP culk and leave this for this section thank you Michelle okay so we are going to public hearing for the sale of the Eda property and Terrace if you have any questions or comments you're welcome to come up to the podium state your name and address thank you my name is Peg zandell I live at Garden Terrace one um I um I guess I was expecting maybe a little explanation of how this would work or what it is so I guess my questions are is this open for bids is everybody available to buy it how does the sale work and um where does Oak Hills fit into this project okay so um we did go out to bid uh about year ago year or about two years ago um and we rejected um the offers at that point in time uh currently um the party interested in purchasing the property um just submitted a bid so um we're we went through the process with them kind of vetted um their bid brought it had multiple discussions with the Eda about that um between that point in time when they submitted their offer to this point in time we've had multiple inquiries from other individuals looking to potenti put in a bid um none of those individuals have submitted a bid um and we've given um the same information that we gave rebound partners and none of them have submitted a bid at that point in time uh we do not have to actually go out for RFP for sale of property um we did the first time just to see what was out there uh and with this last um bid that we got uh it was just we were talking to them said hey we'd like to put in a bid and they submitted an offer sheet and we started that process um to vet it so that's kind of where we're at with that um as far as oills um is is concerned um part of the purchase agreement is for the current um buildings that are there um the Oak Hills does have first right of refusal on the buildings if rebound Partners chooses to sell uh but rebound Partners is also going to work with potentially work with Oak Hills on a third development on that lower spot there as well um so they are actively working with Oak Hills um to facilitate um an expand a potential expansion to campus in in at a future date thank you thank you okay any other questions I just want to add that one of the bigger reasonings for wanting to work with this Dev Vel oper in particular was their willingness to work with and collaborate with Oak Hills knowing that that is um a facility that we want need to support um and given they not in a position to acquire the properties themselves right now that that can still be an option to them in the future when hopefully that could be more of a uh realistic possibility but in the meantime um especially with this thir third building being willing to help solve some of those problems we're facing in our community I really appreciated that about these developers specifically I also appreciated the fact that they're looking to um approve improve the area with amenities um such as like walking trails um pickle ball courts um grilling areas other things like that I believe it's important for the City of New Al to get out of the business of housing uh for in fair market value I believe that it depresses the uh potential investment of private developers if they're competing with an entity like a city and so in my opinion economic de and economic development uh this property which presently has been um consider not in the tax space if you will there has been a payment made by the city but not nearly the 120 or $140,000 a year so we would be having tax income from this which would put it back on the roles and also encourage private development I think we have three or four private developers that are looking at housing in newal but with the city competing with them or they with the city uh it's it makes it more difficult as far as leveraging for loans and so on so I support this wholeheartedly I will say I concur with the mayor's sentiments um and that I agree you know given um my time in local government here I'm frequently asked about Garden Terrace um I've actually over time been on both sides of this issue at first saying you know we should sell and we shouldn't own all of this property and then I thought oh well this does generate a lot of income for our Eda um that we can use to maintain and manage a lot of the projects that we have put in place to support everything from um Home Improvements for those who may be looking to sell their homes or first-time home buyers um small business grants and so there's something to be said for that but when I got the information on you know what we can be doing with some of that revenue and how we can better serve the community that way and as the mayor said get out of kind of that um space where we are preventing others from being competitive we all know that housing is an issue here and I feel like this is a is this is the right move for the city at this time um and we do have a nice offer and um I'm looking forward to having this move forward very good any other questions or comments good morning a uh 1927 Crestview Drive New retired CPA uh it was about 50 years ago when I came back to no and started a CPA practice so I've been hanging around downtown a long time um dealt with a lot of businesses a lot of individuals I would humbly submit that I think I have a pretty good grip on the economics of what goes on in newal and I really endorse what Andrea and Kathleen just mentioned um the city does need to get out of thek market rate rental housing uh and get that Capital deployed elsewhere more usefully what has been mentioned is that if this sale proceeds uh there's about $8 million in the city coffers 7 million from the property and a million do of Reserve City in there that then becomes available you've got two major developers looking at downtown improvements the georg's ballroom property and the old Marketplace Mall the city will have some need for infrastructures to support that and now you would have the capital to do that and that's significant that's where the city can best render its assets and that's to facilitate development not to compete quick anecdote if there's any doubt about the city's past history and the influence on the market rate housing about 2017 2018 when Community Housing Development Corp came into new to do the Emerson Union property their initial plan was to do market rate housing they ran the numbers and they couldn't do it the the structure was beautiful terazzo floors High ceilings large Windows uh great infrastructure for market rate housing they ran the numbers and when Heidi Rothman came to some of us that were also involved said we can't do it because your market rate rentals and your low-income housing rentals are $100 apart and Heidi's comment was I have never seen anywhere in this state that kind of a tight Gap such market rate rentals for obvious reasons so it became low-income housing and that's great we needed the housing either way uh their beautiful structure the beautiful properties beautiful rentals but um it wasn't the market rate housing that was also needed and that would continue to be the pattern without the market taking hold and having the influence and as Kathleen said allowing more development so I think the reasons are very compelling I think the timing is very good uh don't don't misconstrue the past history is having any any villains everybody me well this was a situation at day one with Garden terrrace where we needed housing I ched the chamber back in the late 80s we were losing CPAs because we couldn't house them in new Al they were commuting from Mano and a year or two later they're gone um so what the city did then made some sense but the law in history we've learned the the unintended consequences uh has inhibited the market rate so I hope you'll do the right thing uh I'm deeply invested in how new succeeds the good news is I'm retired and I don't have to deal with trying to keep CPAs in no anymore um but I'm hopeful that my successors and all those other businesses in town uh will benefit from your actions thank you thank you okay we looking for a resolution I guess I'd make sure if anyone else wants to be heard they speak now or we're going to be closing public hearing would anybody else like to step to the podium and make comments or have questions for us and then we will close the public hearing no so yeah we'll need a motion in a second okay we need a mo looking for a motion to close the public hearing I'll make a motion to close the public hearing okay looking for a second I'll second okay we have a motion in a second any further discussion do we need to read the whole motion into the record that'll be the resolution yeah a motion to close the public hearing yeah yeah the resolution because it's more than just closing the public hearing you need to offer the resolution as well just read all of 3.1 I think Heather is at you no whoever made the the person making the motion okay okay so I will offer a resolution authorizing with conditions the sale of Eda owned properties located at 1 3.1 3.1 this is the public hearing the public hearing oh gotcha okay so offer the resolution closing so I will offer the resolution closing the public hearing regarding the sale of Eda property located at 10001 and 1021 North Garden Street and the vacant lot identified by partial number 001 57.1 78. z490 again I second all right we call roll call commissioner Berg yes commissioner beter yes commissioner hen yes vice president cul yes that it carries okay uh resolution carries 7.1 7.1 and then item 7.1 authorize sale of Eda owned by Garden terce uh we are looking for a resolution I'll offer the resolution authorizing with conditions the sale of Eda owned properties located at 10:1 and 1021 North Garden Street and the vacant lot identified by parcel number 001.0 570. 17849 to rebound real estate for $7.3 million and authorize the executive director to execute all necessary documents related to that sale I will second all right and then the motion the resolution carries we have to do roll call roll yeah well I mean is there any discussion does anyone have any questions okay okay any further questions um and then none so I would ask Heather to call Ro right commissioner Berg yes commissioner bker yes commissioner hen yes vice president culk yes and the resolution carries and I will yield back to president Mark basically to close the meeting item 8.1 Economic Development activity report right I'll just highlight a few items for you um newon partnership met last month and heard a presentation um by rebound the rebound partners rocity team uh Child Care team met and uh the annual provider appreciation training event has been planned and registration is open last time I checked we had about 30 providers had registered but um they have a couple weeks yet so those numbers could go up [Music] um and then um you see the other activity in here I'll just um highlight that first children's Finance invited me to be one of their panelists at a uh an event in Hutchinson innovated Innovative Child Care Solutions in Greater Minnesota so I talked about our pod model at Westridge place um I have to say the audience was very engaged they were taking notes like crazy asking really good questions so Child Care is definitely still a Hot Topic um in the state and the nation for that matter um and uh Wendy Anderson is here to talk about her third quarter report if you have any questions for her her report is attached otherwise end of report and then just a couple side notes um we did um record the deed for Georgia so we're just waiting for the county to record that and then we can get the deed to uh the Fisher group and then they will mobilize I demolition uh sometime this year still uh we are still waiting um to hear from the state for the grant that we applied for uh we were on their agenda uh to receive I think it was 950 um th000 for the River Haven project uh so we're waiting word to see if the their board approved that but we were on the list as a possible recipient so um that'll help with the housing project up by the airport uh and then as Heather mentioned the house has been moved uh and we're just waiting for uh the buyer's attorney um to set the closing date and we'll get that closed um hopefully in the next couple of weeks thank you Wendy for your report it looks like you're we're keeping you busy if there's no comments I'll make a motion to accept the economic development activity report for September 2024 activities second we have a motion and a second any further discussion all in favor say I I I opposed motion carries item 9.1 new Al business resource and Innovation Center third quarter report good morning friends uh Tim kanak um Eda uh you know I want to address the Eda and just say that U we have not submitted a report and the reason for that is we've been really busy trying to restructure New Brick we are looking for a new opportunity to develop relationships I think that's our number one goal in our community and uh we do have a a short update um we're excited to announce that we have a project lead the way which is one of our pill education in the uh public middle school so that is starting already um it's in progress uh Cathedral is looking at uh continuing this uh program next year they lost two of their teachers and uh Minnesota Valley Lutheran um is very active in Project Lead the Way so one of our pillars has been very successful um along with that we're you know part of our report would have to include um part of our mission and our mission is education um industry and uh when we look at the other thing that's probably missing today with new brick is what are we doing about housing right housing is is a big issue in newm and uh I'm excited to say that that has become one of our initiatives one of our goals and we're looking at an affordable housing uh initiative it's a concept right now and we're excited to work with the Eda and the City of New Alman that and Steve will have more to say to about that and probably in a couple months here so with that said the C CTE Center is something that we're looking at right now as an initiative to become a profit Center not only for the educational system in the community but for New Brick so there's a concept out there right now that uh we're working on as a board that should be uh should be exciting for the Community not only as the students potentially would be paid for their work but community members to come in and actually uh look at Manufacturing in different areas again it's just a concept um we're in early discussions with the school district on this so um you know with that said I I think that uh Newber is in a really good place right now and uh we're excited to work with the Eda because you guys have been great part Partners we appreciate that we also would like to at this point just say maybe some consideration for to continue to support new brick in a financial way and uh we just want to ask for that at this point in time uh with that said I'm excited to announce Steph Brown our new executive director Stephen hello everyone um my name is Steph Brown and I'm new to new home I I uh very excited about it and working with the new brick and trying to bring their Vision uh together with yours and and really help this community my my background is is in Development and Construction and Entrepreneurship and franchising and uh have been uh very successful and and this is a new challenge and and meeting everyone in in the in the community has been fantastic and and we've already really started to get working on a bunch of these things and trying to put together plans to bring them all to fruition uh rather quickly so at this point um I'm one month in and uh and have had a and had a really good time and uh hope to see you all around U very frequently so have any questions for me no okay Commissioners what are your wishes well we don't have a report to make a motion to accept so just the oral report okay I make a motion to accept the oral report from Newber third quarter I'll second that I just want to make a quick note that um although there has not been a report submitted um in the last month Steve has uh immersed himself in our community greatly as someone brand new to it and has met with a lot of people and had a lot of conversations and um is working on building positive relationships which I think is step one for anyone new coming into this role and it's appreciated so I would ask that we as an Eda give them Grace on this first report and look at how we are going to build together moving forward and um not so much looking at the past any further discussion all in favor say I I I opposed motion carries there being no further items on the agenda this meeting is dismissed thank you