0:01The most prominent topic centered around the proposal to establish TIF District 1-20, classified as a redevelopment TIF district. The proposal aims to capture increased property tax revenue from new developments, channeling it to support the district’s financial needs without affecting the current tax flow to local entities. The city plans to partner with a developer to apply for funds from the Minnesota Housing workforce housing development program, requiring a match of up to $1,750,000 in tax increment financing. This initiative is designed to stimulate market-rate development in greater Minnesota.

The TIF district proposal prompted an in-depth explanation of the financial mechanics involved, including the requirement that 70% of the parcels in the district must have existing improvements, with more than 50% of buildings considered substandard. The district is not obliged to extend financing for the maximum term of 26 years, allowing flexibility based on actual development outcomes. Concerns were raised about specific exclusions from tax increment calculations and their implications on revenue from the development. The meeting concluded without a formal vote on the TIF resolution, as further deliberation was needed.

35:18In parallel, the authority delved into the necessity of a new hotel feasibility study for Zumbrota. The previous study, conducted in 2017, is deemed outdated by local stakeholders. A community group led by Todd Fitzgiven expressed a strong desire to update the study, emphasizing its potential to attract investors interested in developing a hotel and other related amenities. The estimated cost of the study is $15,000, with a possibility of reducing it by $5,000 through a local grant, leaving a net expense of $10,000.

Despite the lack of a guaranteed hotel project resulting from this study, Brian Hogan from Landros expressed willingness to financially support the study, highlighting the need for quality accommodations for visiting clients. The authority considered using funds from the EDA’s loan account, which had accrued repayments from prior loans, to finance the study.

A discussion ensued over the strategic importance of this study in the broader context of community development and economic growth. Concerns were voiced about proceeding without a clear hotel prospect, yet many saw the potential for a hotel to attract other businesses, such as restaurants and breweries, thereby boosting the local economy. The Rebound Group’s involvement was noted, with optimism expressed about the opportunities identified for Zumbrota, including strong traffic counts and community interest in development projects.

50:22Elsewhere in the meeting, community-driven initiatives and marketing strategies were also discussed. The need for effective marketing of Zumbrota as a destination was highlighted, with suggestions to place a new billboard or create promotional materials for visitors, especially those coming from the Mayo Clinic. The authority reflected on past marketing efforts and expressed a desire to engage professionals to enhance their strategies. There was an acknowledgment of the successful development projects in nearby communities, sparking discussions on how Zumbrota could replicate such achievements.

In terms of ongoing projects, updates were provided regarding the Katie Apartments and Keller Bartman project, with positive developments such as the anticipated repaving of a key alley. The meeting wrapped up with a plan to advance with the TIF developers’ agreement, allowing the authority to proceed without a public hearing, thereby streamlining the process.