. IT'S 515 I WILL CALL THE MEETING TO ORDER AND DO WE NEED TO DO ANYTHING ELSE? SHE'S ALL SET.
SO ONE OF THE THINGS THAT I INADVERTENTLY DID WE HAVE A MEETING IS BEING TRANSCRIBED AND SUMMARIZED WE WE HAVE A VERY GOOD FRIEND WHOSE BIRTHDAY IS TODAY AND A MONTH
OR SO AGO I SAID I WILL MAKE DINNER FOR YOU NOT REALIZING IT WAS THE PORT AUTHORITY MEETING AND SO I NEED TO LEAVE ABOUT 615 SO THAT I CAN GET
HOME AND FIRE UP THE GRILL AND STUFF BUT SO CYNTHIA WILL BE RUNNING OUT AFTER THAT. BUT ALSO I WOULD LIKE TO MOVE AN ITEM AROUND ON THE AGENDA ITEM 3.1 WHICH IS A SECOND
AMENDMENT TO THE NATIONAL MASTER DEVELOPMENT CONTROL REDEVELOPMENT CONTRACT I'D LIKE TO BRING UP SO WE DO THAT RIGHT AFTER THE APPROVAL OF THE MINUTES SO IF THAT'S
OKAY WITH EVERYBODY WE WILL DO THAT AND AND GET THERE. WE ONLY HAVE TWO ITEMS I THINK THAT WE ACTUALLY HAVE TO VOTE ON WHICH IS THE AUDITOR'S REPORT IN THAT.
SO IF THAT'S OKAY WHAT I WOULD THEN DO IS ENTERTAIN A MOTION FOR THE APPROVAL OF THE MINUTES FROM OUR LAST MEETING . SO I WOULD LIKE A MOTION MADE
AND SECONDED ANY FURTHER DISCUSSION OR ADDITIONS AND CORRECTIONS AND ALL IN FAVOR PLEASE SIGNIFY BY SAYING I, I
OPPOSED MOTION CARRIES FIVE ZERO SO HOLLY OR KEVIN ARE YOU GOING TO TAKING ELUCIDATE US
AND I SEE WE'VE GOT CHRIS HAGAN AND BILL THERE SITTING TO ANSWER QUESTIONS OR WHATEVER. YES PRESIDENT ERICKSON AND
PORT AUTHORITY COMMISSIONERS SO I AM HERE TO PRESENT THE SECOND AMENDMENT OF THE 2016 MASTER REDEVELOPMENT CONTRACT FOR PRIVATE REDEVELOPMENT OF LAND AND THIS IS THE
CONTRACT THAT IS THE MASTER CONTRACT OVER FOR THE USE OF TAX INCREMENT FINANCING ON MLK PROPERTY SPECIFICALLY THE CONTRACT ITSELF OUTLINES TERMS
FOR HOW FINANCIAL ASSISTANCE FROM THAT RESOURCE WOULD BE PROVIDED FOR DEVELOPMENT PROJECTS. IT ALSO OUTLINES INFORMATION ABOUT PUBLIC INVESTMENTS WITH
GOALS OF SUPPORTING THE LONG TERM VIABILITY OF MALL OF AMERICA ITSELF AS WELL AS PROTECTING THE CITY AND THE PUBLIC RESOURCES. SO THIS IS THE SECOND
AMENDMENT OF THIS VERSION OF THE CONTRACT AND IT RECOGNIZES PANDEMIC IMPACTS TO THE REDEVELOPMENT OF THE PROPERTY AS OUTLINED IN THE STAFF REPORT.
THE CONTRACT LANGUAGE DOES PROVIDE FOR EXTENSIONS UNDER CERTAIN CIRCUMSTANCES THAT ARE UNAVOIDABLE DELAYS AND IN THIS CASE THOSE DELAYS INCLUDE EPIDEMICS, GOVERNMENT ACTIONS
AND FOREST CLOSURES. THE EXTENSION IS CONTEMPLATING THE IMPACT OF THOSE ACTIONS ON THE REDEVELOPMENT ACTIVITY ON THE SITE AND DID GO BEFORE
CITY COUNCIL LAST NIGHT FOR APPROVAL. PORT STAFF AND 555 NEGOTIATED THE TERMS OF THIS PROPOSED
EXTENSION AND THAT BEFORE YOU IS A EXTENSION OF TWO YEARS TO TWO PERFORMANCE THRESHOLDS. THE FIRST TIME FRAME IS MOVING FROM A 10 TO 12 YEAR TIMEFRAME
FOR PERFORMANCE IF APPROVED HERE TONIGHT AND THEN THE SECOND WOULD BE MOVING FROM 20 TO 22 YEARS AND WITHIN THOSE TIMEFRAMES THERE ARE ALSO
CERTAIN AMOUNTS OF VALUE OF REDEVELOPMENT ACTIVITY THAT NEEDS TO HAPPEN AND THIS EXTENSION WOULD MODIFY THOSE VALUES SLIGHTLY SO IT WOULD BE A REDUCTION FROM 500 MILLION
TO 400 MILLION AT THAT FIRST THRESHOLD WHICH IS THAT 12 YEAR NOW 12 YEAR THRESHOLD AND THEN INCREASING THAT SECOND THRESHOLD BY THAT $100 MILLION AMOUNT TO REBALANCE IT TO 800
MILLION FROM 700 AND THEN THE TOTAL VALUE OF ACTIVITY FOR REDEVELOPMENT THAT WOULD BE REQUIRED BY THE CONTRACT REMAINS THE SAME THAT $1.2
BILLION VALUATION AND WITH THAT I WOULD ALSO JUST LIKE TO ACKNOWLEDGE THAT THE SPECIAL COUNSEL IS ON THE PHONE VIRTUALLY TONIGHT IN CASE THERE ARE ANY KIND OF CONTRACT
LEGAL QUESTIONS AND THEN AS PRESIDENT ERIC STATED OR ERICKSON STATED MR. HAGAN AND HIS COUNSEL ARE HERE WITH 555
CORPORATION OKAY QUESTIONS FOR COMMISSIONER NELSON YEAH. THANK YOU, PRESIDENT. I DON'T HAVE ANY QUESTIONS. JUST AS WAS ALLUDED TO WE LOOKED AT THIS LAST NIGHT AS
CITY COUNCIL PASSED IT UNANIMOUSLY AND I THINK THERE WAS A GREAT DISCUSSION BECAUSE IT SEEMS LIKE A PRETTY STRAIGHTFORWARD ISSUE TO ME THAT WE JUST THIS IS JUST AN
EXTENSION AS WE WORK TOGETHER TO GET THINGS DONE. I APPRECIATE THE WORK OF STAFF TO WORK ON THE TERMS OF THIS
TO PROTECT THE CITY AND IT FRANKLY IT SEEMS LIKE A PRETTY STRAIGHTFORWARD SITUATION TO ME AND THAT'S WHAT KIND OF HOW THE COUNCIL SAW IT LAST NIGHT AS WELL. SO APPRECIATE THE OPPORTUNITY
TO SPEAK. COMMISSIONER LYONS I WATCHED THAT LAST NIGHT IN ALL DUE RESPECT, MR. NELSON, THE SPENDING OF $180 MILLION IS NOT PERFUNCTORY OR
STRAIGHTFORWARD. I DON'T THINK I DON'T THINK IT EVER HAS BEEN. I STARTED IN 2018 AND THE FIRST COME UP ON THIS AND I WAS OPEN MINDED OVER THE YEARS
THAT SPREAD THE SKEPTICISM THE DOUBT AND I I'VE BEEN IN OPPOSITION FOR THE LAST 2 OR 3 YEARS. I DON'T SEE ANY REASON TO CHANGE THAT POSITION 160 MILLION I'VE GOT TO WHAT IS
GOING TO BE THE LARGEST EXPENDITURE OF FUNDS THE CITY HAS EVER MADE? I REALIZE IT'S TWO FUNDS. IT'S A DIFFERENT VENUE THAN THE BLOOMINGTON FORWARD BUT THAT WAS LESS THAN THAT.
IT WAS 39 MILLION FOR THE BIG 22 FOR NINE MILE. I DON'T KNOW WHAT THE HEALTH AND WELLNESS CENTER GOT BUT IT WASN'T PUSHING 100 MILLION SO I JUST DON'T THINK THERE'S ANYTHING STRAIGHTFORWARD ABOUT THIS AT ALL.
I THINK IT'S TURNED IN ONE NEVER ENDING PROJECT. I THINK IT'S GOT A FATIGUE FACTOR TO IT AND THE ONLY THING THAT'S UNAVOIDABLE ABOUT IT IS NOT THE PANDEMIC.
THE UNAVOIDABLE IS TRIPLE FIVE'S INABILITY TO FIND PRIVATE WORK AND CAPITAL EITHER IN DEBT OR IN EQUITY TO GET THIS THING GOING AND UNDER
CONSTRUCTION SINCE 20 2020 PANDEMIC ALLIANZ FIELD HAS BEEN BUILT THE SIX SIX HEADQUARTERS HAVE BEEN BUILT AND THIS IS STILL MOLDERING ALONG AND I JUST DON'T KNOW
WHEN THAT'S GOING TO END. ANOTHER TWO YEARS GOES BY AND IN THE LAST TIME WE SAW THIS THE COSTS MY MIND STUCK SOMEWHERE ABOUT 350 MILLION I DON'T KNOW WHAT IT'S GONE TO
NOW AND I CAN JUST SEE THEM COMING BACK AGAIN NEEDING MORE MONEY TO FINISH THIS THING. WE'RE BURNING UP A THIRD OF THE ACREAGE IN THE LAND NORTH OF THE MALL OF AMERICA
AND IS THAT WHAT WE WANT AND OR BURNING IT UP ON A WATER BASED TOURIST ATTRACTION? THAT'S A BUSINESS. IT'S NOT REAL ESTATE. SO I MEAN MY MY MY PROBLEMS
WITH IT AND THE FAULTS I SEE JUST KEEP ME UNFOLDING ITSELF. IT'S AN INTERIM TERM PROPERTY 35 MAYBE 50 YEARS ON IT YOU'RE DEALING WITH WATER BUILDINGS
AND WATER DON'T EVER AGREE WITH ONE ANOTHER AND I'M JUST IT'S JUST ONE THING AFTER ANOTHER SUSTAINABILITY COMMITTEE CERTAINLY HAS RESERVATIONS ABOUT IT. THEY'RE ONLY DEALING WITH THE
POWER USAGE OF IT. THEY'RE NOT DEALING WITH THE WATER WATER ISSUES ON IT. SO I DON'T KNOW I JUST I WATCHED THE COUNCIL LAST NIGHT TIMED IT I DON'T THINK IT WAS FIVE MINUTES AND THEY JUST
SMOKED RIGHT THROUGH IT. SO I DON'T KNOW BUT I JUST I JUST DON'T THINK IT'S STRAIGHTFORWARD. I DON'T THINK IT'S PERFUNCTORY EITHER.
COMMISSIONER NELSON YEP. THANK YOU, PRESIDENT AND I APPRECIATE YOUR COMMENTS AND I, I ACTUALLY DON'T DISAGREE WITH YOU IN TERMS OF THE OVERALL PROJECT BUT I DON'T THINK THAT'S WHAT'S BEFORE US. WHAT IS BEFORE US IS NOT THE PROJECT OR ANY PARTICULAR
THING. IT'S AN EXTENSION OF THE AGREEMENT AND THAT IS IN MY MIND SOMETHING THAT IS CONSISTENT WITH OUR OTHER ACTIONS THAT AS I SAID LAST NIGHT AND NOT IN MY MIND VERY
CONTROVERSIAL THAT WE WOULD CONTINUE TO WORK TO DEVELOP THAT PROPERTY. AS YOU HAVE SAID AND THIS IS NOT THE SPECIFIC PROJECT THAT'S NOT WHAT WE'RE VOTING ON.
WE'RE NOT VOTING ON PROVIDING ANY TYPE OF MONEY. AND I WILL ALSO NOTE THAT THE COMMUNITY HEALTH AND WELLNESS CENTER IS IN EXCESS OF $100 MILLION.
SO YOU KNOW, THIS THIS WE HOPE IS A SIGNIFICANT PROJECT. THAT'S THE GOAL. THAT'S WHAT WE WANT. AND SO YOU KNOW, LET'S CONTINUE TO ALLOW OUR STAFF
THE TIME AND THE FLEXIBILITY AND THE SUPPORT TO GET IT DONE THAT THAT'S WHAT I WOULD SUGGEST THAT WE DO. OTHER COMMISSIONERS COMMENTS QUESTIONS IF NOT I WOULD
ENTERTAIN A MOTION THAT'S ON PAGE 43 FOR THIS PROJECT OR FOR I'M HAPPY TO MAKE THE
MOTION ONCE I GET TO PAGE 43 I WOULD MOVE TO APPROVE A RESOLUTION APPROVING AN AMENDMENT TO THE 2016 MASTER REDEVELOPMENT CONTRACT FOR
PRIVATE REDEVELOPMENT OF LAND WITH A SEA LAND HOLDINGS SECOND MOTION MAN AND SECOND AND ANY FURTHER DISCUSSION AND ALL IN FAVOR PLEASE SIGNIFY BY
SAYING I I OPPOSED NO MOTION CARRIES 4442 AGAINST OKAY
THANK YOU. ANY MORE DISCUSSION? ALL RIGHT. I'LL ONLY BE GOING. >> GOOD. SO THE NEXT ONE WE WANT TO DO THEN IS MOVE TO ITEM 2.1 THE EXTERNAL AUDITORS REPORT.
YES. THANK YOU PRESIDENT ERICKSON AND COMMISSIONERS THIS IS THE EXTERNAL AUDITOR'S REPORT ON THE PORT AUTHORITY'S 2025 YEAR END FINANCIALS AND WE HAVE
ANDY HERRING HERE FROM REDPATH WHO IS OUR AUDITOR WHO WILL PRESENT HIS FINDINGS AND WE ALSO HAVE MARY KAY HEINEN, THE PORTS ACCOUNTANT IF WE HAVE ANY QUESTIONS TO BE ANSWERED
AND HE IS ON LINE SO I WILL DIRECT YOUR ATTENTION TO THE MONITORS AS HE SPEAKS TO US. ALL RIGHT. THANK YOU. GOOD EVENING EVERYBODY. I'M JUST WORKING ON SHARING
THE SLIDES HERE. WELCOME. THANK YOU. THANK YOU. GOOD EVENING. WELL, THANKS FOR ALLOWING ME TO DO THIS VIRTUALLY.
>> IT JUST CUTS DOWN ON SOME TRAVEL TIME AND WE WE DON'T HAVE ANYTHING SIGNIFICANT TO DISCUSS TONIGHT IN MY OPINION. >> WELL, WE WILL BE HOPEFUL THAT WHEN YOU THE NEXT COMES
UP THAT YOU CAN GIVE US A REDUCTION IN YOUR COST OF DOING THIS BECAUSE WE'RE DOING IT THIS WAY. >> SO THAT SOUNDS GOOD. I WILL KEEP THAT IN MIND
WHATEVER THE NEXT CONTRACT YOU ALL RIGHT. >> SO THE RESULTS OF THE AUDIT WE WRAPPED UP THE AUDIT IN EARLY JUNE.
I'VE ISSUED OR PRESENTED THE RESULTS TO THE CITY COUNCIL AND NOW IT'S THE PORT AUTHORITIES TURN SO I WILL HAPPEN TO MY PRESENTATION AS
PART OF THE AUDIT WE ISSUED JUST A REMINDER SO WE AUDIT THE CITY THE PORT AUTHORITY AND THE HOUSING AUTHORITY ALL AT THE SAME TIME. THE FINANCIAL STATEMENTS
OF THE THREE ENTITIES ARE ISSUED IN ONE DOCUMENT SO ONE AUDIT OPINION COVERS ALL THREE ENTITIES AND THE REPORTS THAT
WE ISSUED ARE AN OPINION ON THE FINANCIAL STATEMENTS, A REPORT ON INTERNAL CONTROLS, A REPORT ON LEGAL COMPLIANCE, A REPORT ON FEDERAL COMPLIANCE WHICH IS NOT APPLICABLE TO THE
PORT AUTHORITY AND THEN A COMMUNICATION WITH GOVERNANCE LETTER. SO THE RESULTS AN UNMODIFIED OPINION WAS ISSUED.
THERE WERE NO INTERNAL CONTROL OR LEGAL COMPLIANCE FINDINGS ONE FIND IT RELATED TO FEDERAL COMPLIANCE AND THEN JUST STANDARD COMMUNICATIONS AND
THE GOVERNANCE LETTER. SO FOR THE OPINION ON THE FINANCIAL STATEMENTS THAT'S THE MAIN AUDIT REPORT OUR RESPONSIBILITIES TO DETERMINE THAT THE FINANCIAL STATEMENTS
ARE FREE FROM MATERIAL MISSTATEMENT AND PRESENTED IN ACCORDANCE WITH GAAP OR GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. HOW DO WE DO IT?
WE VERIFY THE FINANCIAL STATEMENTS OR OCCURRENCE VERIFYING THE FINANCIAL STATEMENTS. >> EVERYTHING IN THEM HAS OCCURRED AND PERTAINS TO THE
PORT AUTHORITY FOR EXAMPLE CASH AND REVENUE IS THAT ACTUALLY THE PORTS CASH ACTS, THE PORTS REVENUE AND THE FLIPSIDE COMPLETENESS WE'RE VERIFYING THAT ALL LIABILITIES
AND EXPENSES FOR EXAMPLE ARE INCLUDED IN THE FINANCIAL STATEMENTS AND THEN ACCURACY CUTOFF CLASSIFICATION VERIFYING AMOUNTS ARE REPORTED IN THE CORRECT ACCOUNT IN THE
CORRECT FIND IN THE CORRECT YEAR THOSE SORTS OF THINGS. THE RESULT WE ISSUED A CLEAN OPINION OR AN UNMODIFIED OPINION AND THAT'S THE HIGHEST
FORM OF OPINION YOU CAN RECEIVE AND I'LL JUST TOUCH ON A FEW OVERALL GENERAL RISKS THAT WE IDENTIFY REALLY FOR ALL MUNICIPAL AUDITS OR ALL
GOVERNMENTAL AUDITS. THESE ARE NOT SPECIFIC TO THE PORT AUTHORITY THAT A RISK OF THE MANAGEMENT OVERRIDE OF CONTROLS EXISTS. THERE'S INTERNAL CONTROLS AND
POLICIES IN PLACE BUT THEY MUST BE FOLLOWED IN ORDER FOR THAT TO BE EFFECTIVE. SO WE'RE LOOKING AT THAT PROBABLY THE MOST SIGNIFICANT RISK JUST THE RISK RELATING TO
DISBURSEMENTS AND HOW PUBLIC FUNDS ARE SPENT. SO WE'RE VERIFYING THE THE EXPENDITURES OF THE PORT ARE APPROPRIATE AND THEN YOU HEAR A LOT ABOUT FRAUD IN THE NEWS.
WE'RE DEFINITELY LOOKING FOR MATERIAL FRAUD THAT MIGHT BE PRESENT IN THE FINANCIAL STATEMENTS. THERE'S I WOULD SAY THERE'S LESS SUSCEPTIBILITY ON THE
PORT SIDE. IT WOULD REALLY HAVE TO DO WITH EXPENDITURES CASH THAN SAY A PRIVATE FOR PROFIT BUSINESS THAT MIGHT ALSO HAVE
INVENTORY SUSCEPTIBLE TO THEFT. >> FOR EXAMPLE. YOU KNOW, OBVIOUSLY WE DON'T HAVE THAT SITUATION BUT IT'S IT'S ALWAYS SOMETHING ON OUR
MIND THAT WE'RE TESTING FOR AND THANKFULLY WE DID NOT COME ACROSS ANY INSTANCES OF FOR SURE INSTANCES OF FRAUD OR
ANYTHING THAT WE SUSPECTED THERE TO BE FRAUD OR ANY SUSPICIONS OR ALLEGATIONS OF THAT KIND. >> THE NEXT REPORT A REPORT ON
INTERNAL CONTROLS OVER FINANCIAL REPORTING. SO THAT'S THE POLICIES AND PROCEDURES AND IT ALSO LINKS BACK TO MY PREVIOUS COMMENTS A STRONG SET OF INTERNAL
CONTROLS ALSO HELPS PREVENT FRAUD, REDUCES FRAUD RISK. SO EXAMPLES OF INTERNAL CONTROLS, APPROVAL OVER DISBURSEMENTS, APPROVAL OVER
THE MONTHLY BANK RECONCILIATIONS A PROPER SEGREGATION OF DUTIES SO THAT NO ONE PERSON HAS ANY NO ONE
PERSON HAS TOO MUCH AUTHORITY IN ANY CERTAIN AREA. AND THEN ON THE BACK END A REVIEW OF FINANCIAL STATEMENTS ARE DONE MONTHLY OR QUARTERLY OR ANNUAL BASIS. >> THE RESULTS WE DID NOT NOTE
ANY FINDINGS RELATED TO INTERNAL CONTROLS. NEXT THE STATE AUDITOR ISSUES A FAIRLY LENGTHY GUIDE THAT WE COMPLETE AS PART OF THE AUDIT
FOR TESTING FOR COMPLIANCE WITH STATE STATUTES. >> THE SEVEN SECTIONS IN THAT GUIDE ARE LISTED UP ON THE SCREEN SO WE'RE TESTING FOR COMPLIANCE TO MAKE SURE
INVESTMENTS ARE ALLOWABLE UNDER STATE STATUTES THERE IS COMPLIANCE RELATING TO DEBT MAINLY DURING THE YEAR THAT A BOND WOULD BE ISSUED THAT
WOULD THAT WAS NOT APPLICABLE IN 2025. THERE'S THIS CONTRA OR COMPLIANCE REQUIREMENTS RELATING TO DISBURSEMENTS TAX
INCREMENT SO FOR A VARIETY OF AREAS THERE THAT WE PERFORMED TEST IN AND DID NOT NOTE ANY INSTANCES
OF NONCOMPLIANCE THERE'S ALSO A SINGLE AUDIT THAT WE PERFORMED RELATING TO FEDERAL COMPLIANCE AND SPENDING FEDERAL DOLLARS.
THIS IS NOT APPLICABLE DIRECTLY TO THE PART THERE. THERE IS ONE FINDING THAT WE NOTED RELATING TO THE SECTION EIGHT HOUSING CHOICE VOUCHERS
PROGRAM AND MAINTAINING ACCURATE AND IT FILES THEN THE LAST LETTER A REPORT IS A COMMUNICATION TO THOSE CHARGED
WITH GOVERNANCE LETTERS THAT WOULD BE A LETTER TO THE TO THE CITY COUNCIL TO THE PORT AUTHORITY BOARD, TO THE HRA COMMISSIONERS AND THAT'S A
LETTER OF A MOSTLY STANDARD COMMUNICATIONS THAT ARE REQUIRED TO BE MADE FROM THE AUDITOR TO THE BOARD JUST HIGHLIGHTS THAT THERE WERE NO NEW ACCOUNTING POLICIES OR
ANYTHING SIGNIFICANT IN THAT AREA ADOPTED IN 2025. >> THERE IS ONE MORE SIGNIFICANT ESTIMATE AND THAT'S JUST RELATING TO THE VALUE OF THE LAND HELD FOR
RESALE. >> I'M HAPPY TO REPORT THERE WERE NO DISAGREEMENTS ENCOUNTERED DURING THE AUDIT. IN FACT EVERYTHING LIKE USUAL STAFF WERE WELL-PREPARED.
MARY KAY WAS AVAILABLE AND READY TO ANSWER ALL OF OUR QUESTIONS AND EVERYTHING WENT SMOOTHLY WITH REGARD TO THE AUDIT PROCESS AND THERE WERE NO CORRECTED OR UNCORRECTED
MISSTATEMENTS RELATED TO THE PORT ACTIVITY THAT WE IDENTIFIED SO ANDY, HOW DID YOU OR HOW DOES THE CITY DETERMINE THE VALUE OF THE
LAND HELD FOR RESALE THAT THAT 17,000,001 50 THAT WAS THE ORIGINAL COST. OKAY. SO THAT THAT NUMBER ACTUALLY
NEVER INCREASES ON YOUR FINANCIAL STATEMENTS. BUT IF THE IF THE OVERALL VALUE OF THE LAND DECREASED THEN IT SHOULD BE WRITTEN DOWN
. >> SO THAT ESTIMATE IS THAT YOU KNOW, IF YOU SOLD THAT LAND TO A THIRD PARTY YOU'D BE ABLE TO RECEIVE AT LEAST 17,000,001 50 READY?
THANK YOU. YEAH, YOU'RE WELCOME. IT'S JUST ORIGINAL COST, RIGHT? CORRECT. CORRECT .
THERE'S A SLIDE HERE THAT HIGHLIGHTS THAT FOR THE 54TH CONSECUTIVE YEAR THE CITY RECEIVED THE CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING AND THAT ALSO INCLUDES THE PORT'S
FINANCIAL STATEMENTS ARE COVERED UNDER THAT AWARD AND THIS AWARD IS EXPECTED TO BE RECEIVED AGAIN FOR THE 2025 STATEMENTS.
>> TWO MORE SLIDES JUST SUMMARIZING THE 2025 FINANCIAL ACTIVITY AND WE'RE PROBABLY AT THE POINT WHERE WE'RE LOOKING FORWARD TO 27 ALREADY BUT I'M
LOOKING BACK AT 25 IN THE GENERAL AND SOUTH LOOP FUND NOTHING ALL THAT SIGNIFICANT TO REPORT AND REALLY ON THE DEBT SERVICE FUND EITHER THE
DEBT SERVICE FUND BALANCE IS RESTRICTED FOR THOSE 2015 TIFF BONDS AND THEN THE FUND BALANCE IN THE CAPITAL PROJECT FUNDS ARE THOSE ARE BY TIFT
FUNDS THOSE ARE RESTRICTED FOR TAX INCREMENT PURPOSES. >> AND THEN THIS LAST SLIDE JUST HIGHLIGHTS A FEW MORE THINGS. A COUPLE OF THE ITEMS I JUST
MENTIONED THOSE BONDS THEY'RE BEING PAID AT AS SCHEDULED AT THE END OF 2025 ABOUT 4.4 MILLION REMAINED OUTSTANDING.
THERE WAS A $1.4 MILLION INCREASE IN THE AMOUNT OF TAX INCREMENT REVENUE THAT WAS COLLECTED IN 25 COMPARED TO 24
INVESTMENT INCOME WAS DOWN ABOUT SIX 700,000 BUT THAT PERCENTAGE DECREASE THAT'S CONSISTENT WITH OTHER ENTITIES AS THE INTEREST RATE STARTED
TO DECLINE AND 25 AND IT ALL RIGHT EXPECT THAT TO BE LOWER IN 2016 NOTHING ALARMING THERE THAT'S JUST BASED ON MARKET RATES MAJOR EXPENDITURES WAS
THE CONCLUSION OF THE CONSTRUCTION OF THE PARKING RAMP AND THEN OVERALL FUND BALANCE INCREASED AROUND $11 MILLION.
>> BIG PICTURE I DON'T SEE ANY CONCERNS ESPECIALLY RELATED TO THE PORT AND OVERALL IT WAS A SMOOTH AUDIT THAT I'D BE HAPPY TO ANSWER ANY QUESTIONS
COMMISSIONER QUESTIONS OR COMMENTS. WELL THANK YOU ANDY. I GUESS IF THERE'S NO QUESTIONS OR COMMENTS ON PAGE NINE OF YOUR PACKAGE THERE'S A
MOTION TO ACCEPT THE AUDIT WHICH I WOULD ENTERTAIN. MR. PETERSON THANK YOU, MR. PRESIDENT. I MOVE THAT WE ACCEPT THE PORT
AUTHORITY'S YEAR END FINANCIAL REPORT FOR CALENDAR YEAR 2025 SECOND SECOND MOTION MADE AND SECOND ANY FURTHER DISCUSSION AT ALL IN FAVOR PLEASE SIGNIFY BY SAYING I I OPPOSED MOTION
CARRIES SIX ZERO. ALL RIGHT IS IT BARB WE'LL UP NEXT NO PRESIDENT ERICKSON AND COMMISSIONERS THAT WILL
ACTUALLY BE PRISCILLA ARE BUSINESS ASSISTANT SPECIALIST WELCOME PRISCILLA. THANK YOU. GOOD EVENING.
I THINK IT SOUNDS GOOD I'LL BE PRESENTING AND THE ITEM 2.2. PRISCILLA, COULD YOU SPEAK A LITTLE MORE DIRECTLY INTO THE
MICROPHONE PLEASE SO THEY CAN GIVE ME A BETTER YES. OKAY. SWEET .
OKAY. WE SHOULD DO OKAY. AND I STARTED OFF HERE SO I TO GLITCH. OKAY.
GOOD EVENING, PRESIDENT ERICKSON OR COMMISSIONERS I'M GOING TO BE PRESENTING ON THE SMALL BUSINESS ASSISTANCE GRANT PROGRAM AND JUST GIVE ME AN UPDATE ON THAT AND I KICK
US OFF WITH SOME CONTACTS. SO STARTING IN DECEMBER THERE WAS OPERATION MEASURE SURGE WHICH I'M SURE WE'RE ALL FAMILIAR WITH WHICH COST A LOT OF DISRUPTION IN OUR SMALL
BUSINESS COMMUNITY. AND SO IN RESPONSE OPERATION METRO SURGE THE PORT AUTHORITY HAD APPROVED UP TO $400,000 FOR A GRANT PROGRAM AND THEN STAFF DEPLOYED THIS GRANT
PROGRAM TO PROVIDE FUNDS TO AFFECTED BUSINESSES AS A RESULT OF THE CRISIS, THE PROGRAM SOUGHT TO MEET THE FOLLOWING OBJECTIVES WE WANTED TO MAKE SURE THAT WE RETAINED
OUR SMALL BUSINESSES THAT WERE IMPACTED BY THOSE ACTIVITIES. WE WANTED TO MAKE SURE THAT NO JOBS WERE BEING LOST EITHER BECAUSE A BUSINESS HAD TO CLOSE DUE TO ALSO LOSS OF INCOME FOR THE BUSINESS AND
THEN WE ALSO WANTED TO SUSTAIN THE LONG TERM VIABILITY OF OUR BUSINESS AND NOT JUST RETAINING THEM IN THE SPACE THAT THEY WERE IN BUT ALSO MAKING SURE THAT THEY COULD BE SUSTAINED OVER THIS PERIOD
OF CRISIS. JUST A BIT OF A SOME DETAILS FOR THE PROGRAM I MENTIONED BEFORE WE LAUNCHED THIS FEBRUARY 24TH WITH A PUBLIC APPLICATION AND THAT
APPLICATION CLOSED APRIL 20TH AND THEN THE FULL PROGRAM CLOSED SOMETIME LAST MONTH. IN TERMS OF ALL OF THE CLEANING UP OF THE PROGRAM, THE PROGRAM ALSO INVOLVED A
LOT OF CROSS-DEPARTMENTAL COOPERATION. IT WAS THE PORT AUTHORITY LUNCHEON, THE PROGRAM LEADING IMPLEMENTATION BUT WE ALSO HAD SIX OTHER DIVISIONS WITHIN THE CITY THAT HELP WITH COMPLIANCE REVIEW.
WE ALSO CONTRACTED WITH NEXT STAGE TO PROVIDE UNDERWRITING SERVICES AND SUPPORT THE DISTRIBUTION OF THE FUNDS AND THEN THIS IS SOME INFORMATION
ON HOW WE WENT ABOUT IMPLEMENTING THE PROGRAM. SO WE INITIALLY RECEIVED 195 APPLICATIONS FROM BUSINESSES ACROSS THE CITY AS WELL AS OUTSIDE THE CITY ACTUALLY UP
UNTIL PLACES LIKE LAKEVILLE THERE ARE PLACES PEOPLE FROM AROUND THE STATE APPLY FOR THE PROGRAM AND THEN THE PORT AUTHORITY STAFF REVIEWED THOSE 195 APPLICATIONS, SCREENED
THEM FOR BASIC ELIGIBILITY VALIDITY, COMPLETENESS, WHAT HAVE YOU. AND THEN WE MOVED 121 UNIQUE BUSINESSES OVER TO THE SIX DIVISIONS AND THOSE DIVISIONS ACTUALLY I WANTED TO MENTION
WHO THEY ARE SO WE HAD UTILITY BILLING FINANCE, ENVIRONMENTAL HOLD, THE CITY CLERK'S OFFICE BUILDING AND INSPECTION AS WAS ASSESSING AND SO THEY DID SOME DEEP COMPLIANCE REVIEW MAKING
SURE THAT THEY WERE IN COMPLIANCE WITH THE CITY AND THEN THIS IS A BUSINESSES WERE FOUND TO BE IN COMPLIANCE AND THEN THEY WERE SENT TO NEXT STAGE FOR ADDITIONAL REVIEW WHERE THEY WERE CHECKED FOR DOCUMENTED REVENUE LOSS.
ONE OF THE CRITERIA WASO SHOW 30% OR MORE DECREASE IN REVENUE IN A SPACE OF DECEMBER TO FEBRUARY AND THEN 25 BUSINESSES WERE
APPROVED AND FUNDED TO THE TUNE OF 178,770 $7,787 WHICH IS AWARDED EITHER AS GRANT ASSISTANCE OR MORTGAGE ASSISTANCE DEPENDING OF IF THE
BUSINESS OWNED THE PROPERTY OR RELEASE INTO THE PROPERTY. >> AND THEN THIS IS JUST TO SHOW YOU A LITTLE BIT OF THE DEMAND LIKE I MENTIONED 195
APPLICATIONS ACROSS THE UNIQUE BUSINESSES THAT WE SCALED DOWN TO WE RECEIVED CLOSE TO $1 MILLION IN REQUESTS FOR ASSISTANCE AND THEN THE BUSINESSES THAT WE ULTIMATELY
AWARDED HAD REQUESTED CLOSE TO $200,000 AND WE WERE ABLE TO FUND 94% OF THAT REQUEST AND A BIG REASON FOR THE 6% UNFUNDED REQUESTS WAS REALLY BECAUSE
BUSINESSES WERE ASKING FOR ABOVE THE $10,000 MAXIMUM THAT WE HAD SET. SO SO JUST WANTED TO SHOW YOU
SOME OUTCOMES FROM THE PROGRAM STARTING WITH THE ECONOMIC IMPACT 24 OF BUSINESSES WERE FUNDED. OF THOSE BUSINESSES THAT WERE FUNDED WE WERE ABLE TO SUPPORT AND OR PRESERVE 173 LOCAL JOBS
WHICH AGAIN MEETS OUR OBJECTIVE THAT I MENTIONED EARLIER WE HAD CLOSE TO 100,000 SQUARE FOOT OF COMMERCIAL SPACE STABILIZED MEANING THAT BUSINESSES AND HAVE TO LOSE THEIR SPACE AND
THEN OF THE SPACE OR THE BUSINESSES THAT WE DID FUND, 96% OF THOSE ARE COMMERCIAL RENTERS. SO THIS WAS A REALLY EFFECTIVE
PROGRAM IN THAT REGARD. GOOD. YES. MR. LANCE CAN I ASK QUESTION IF YOU GO BACK TO SCREEN
THERE'S JUST A LAG. YOU GET ONE MORE BACK I THINK YEAH, ONE MORE BACK YEAH. ON THE 25 BUSINESS ULTIMATELY
AWARDED 190,000 REQUESTED 270,000 DEPLOYED. IS THAT BECAUSE IT'S ONLY 12,000 BUT I'M JUST COME WASN'T ALL DEPLOYED SO LIKE I MENTIONED BEFORE THE 6% THAT
WE COULDN'T DEPLOY WAS BECAUSE WE HAD SOME BUSINESSES THAT TWO MONTHS OF RENT WAS ABOVE $10,000 AND OUR MAX THAT WE WERE GIVEN OUT WAS $10,000. SO THAT'S ONLY REASON WHY WE I SHOULDN'T SAY ONLY BUT A MAJOR
REASON WHY WE COULDN'T FUND IT'S A TIMING ISSUE KIND OF IT. NO, IT'S JUST NOT LIKE THEIR REQUESTS EXCEEDED WHAT WE WERE ABLE TO PROVIDE. THERE WAS A LIMITATION.
YES. OKAY. I JUST WONDERING, YOU KNOW, GOOD QUESTION. THANK YOU FOR THE QUESTION. AND THEN JUST WANTED TO SHOW
YOU THE GEOGRAPHY OF WHERE WE AWARDED THE FUNDS. SO WE DID SEE A LOT OF THE IMPACT IN THE EASTERN SIDE OF BLOOMINGTON ALONG LYNDALE
FOR SOME BUT THEN THERE WAS ALSO POCKETS OF SPECIFICALLY COMMERCIAL NODES ALSO THAT WERE IMPACTED AND THAT WE WERE ABLE TO FUND AND THEN JUST
SOME DEMOGRAPHIC INFORMATION OF THE UNIQUE APPLICATIONS THAT WE MOVED FORWARD WITH CLOSE TO 60% OF THOSE APPLICATIONS WERE FROM BIPOC OWNED BUSINESSES AND THE
DISTRIBUTION IS SHOWN ON THE SCREEN HERE AND THEN OF THE FINAL GRANTS THAT WE APPROVED 72% OF THE APPROVED GRANTS
WHERE OF BIPOC OWNED BUSINESSES AND THEN ADDITIONAL DEMOGRAPHIC INFORMATION WE COLLECTED DATA OF YOU KNOW, GENDER AGE BUSINESS
CHARACTERISTICS AND IT'S JUST SHOWING SOME OF THAT INFORMATION UP HERE JUST BRINGING OUT THE TEXT THIS ON THE SCREEN JUST TO SAY THAT OUR ELIGIBILITY CRITERIA WAS
VERY STANDARD MIX AND NATURALLY SELECTED FOR THE PEOPLE WHO ARE HIGHLY IMPACTED BY THE MEASURE. SO THERE WAS NOT A SPECIFIC EFFORT IN A WAY TO EXCLUDE
ANYONE. IT WAS THE MET MATRIX. THE STANDARD WAS POOR ECONOMIC DEVELOPMENT MATRIX AND NATURALLY SELECTED FOR THE FOLKS WHO ARE DEEPLY IMPACTED
. HERE ARE SOME CHALLENGES WE ENCOUNTERED IN THE IMPLEMENTATION OF THE GRANT. A LOT OF THE BUSINESSES I MEAN YOU SEE THE NUMBER FROM 121 DOWN TO 56. THE REASON FOR THE DROP
IN THAT NUMBER WAS BECAUSE A LOT OF PEOPLE DID NOT HAVE BUILDING PERMITS OR HAD NOT, YOU KNOW, PULL A REQUEST FOR A BUILDING PERMIT. AND SO I HAD NOT PAID THEIR SAC WHICH IS A SEWER AVAILABILITY CHARGE.
AND THEN WE ALSO HAD SOME BUSINESSES SPECIFICALLY RESTAURANTS THAT HAD UNRESOLVED ENVIRONMENTAL HEALTH VIOLATIONS AND SO THAT MEANT THAT THEY COULDN'T QUALIFY FOR THE GRANT. AND THEN THERE WERE ALSO
BUSINESSES THAT HAD MISSING CITY BUSINESS LICENSES AND OUTSTANDING UTILITY BALANCES WHICH ALL MEANT THAT THEY WERE ABLE TO COMPLIANCE FOR THE PROGRAM.
WE STARTED TO TAKE NOTICE OF THIS CHALLENGES REALLY EARLY IN THE PROGRAM AND SO WE TOOK SOME STEPS TO HELP MITIGATE THAT TO ENSURE THAT WE COULD REALLY HELP AS MUCH BUSINESSES QUALIFY FOR THE
PROGRAM AND SO WE HAD THREE BUSINESS CLINICS IN THE MONTH OF MARCH HELD IN VARIOUS LOCATIONS ACROSS THE CITY TO PROVIDE AN OPPORTUNITY FOR PEOPLE TO COME TALK TO STAFF AS WELL AS A BUSINESS ADVISOR
FROM NEXT STAGE ON HOW TO APPLY FOR THE PROGRAM, QUALIFY FOR THE PROGRAM AS WELL AS UNDERSTAND WHAT ARE THE REQUIREMENTS OF THE PROGRAM AND THEN AS AN UPPER AS PART
OF THE EFFORTS THAT WE TOOK WE WENT SENDING OUT THE QUOTE UNQUOTE I SHOULD SAY REJECTION NOTICE WE WOULD HAVE LISTS REASONS WHY THE BUSINESSES DIDN'T QUALIFY AND GAVE THEM
AN OPPORTUNITY TO RECTIFY AND SO GIVING THEM AN OPPORTUNITY TO COMPLY WITH THIS. WE HAD MANY BUSINESSES WHICH DID RESUBMIT AN APPLICATION OR YOU KNOW, RE REQUEST FOR FUNDS
AND OF THOSE BUSINESSES WE HAD TWO BUSINESSES THAT SUCCESSFULLY REAPPLIED AND WERE EVENTUALLY AWARDED FUNDS AND THEN FINALLY ONGOING AND
FUTURE EFFORTS AS PART OF UNDERSTANDING THE GRANT PROGRAM AND THE IMPLEMENTATION AND THE CHALLENGES WE ENCOUNTERED. WE ARE MOVING FORWARD WITH INFORMATION CAMPAIGNS TO JUST USING THE BRIEFING AS WELL AS
OTHER DIGITAL COMMUNICATION MEDIUMS THAT WE HAVE TO INFORM PEOPLE OF THE DIFFERENT WAYS TO BE COMPLIANT WITH THE CITY IN CASE OF A FUTURE GRANT PROGRAM LOAN PROGRAM, FINANCIAL ASSISTANCE PROGRAM WHATEVER THAT MIGHT BE.
WE'RE ALSO GOING TO BE PROMOTING THE SAC AND SMALL BUSINESS CREDIT AND DEFERRAL PROGRAM BECAUSE THIS CAN SOMETIMES POSE AS A CHALLENGE TO BUSINESSES THE COSTS OF ONE
SAC CREDIT ONE SAC UNIT I SHOULD SAY IS ABOUT 2500. I DON'T WANT TO SAY THE WRONG AMOUNT AND THEN THE CITY HAS ITS OWN SAC FEE AS WELL AND THAT'S A LOT OF MONEY FOR A BUSINESS THAT'S JUST STARTING
OUT OR EXPANDING OR WHAT HAVE YOU. SO WE WANT TO MAKE SURE THAT PEOPLE ARE AWARE THAT THE CITY PROVIDES RELIEF FOR THOSE EXPENSES AND THEN THIS JUST A
FINAL ONE IMPLEMENTATION OF THE CITY SAC FEE CREDIT PROGRAM WHICH BAR WE'LL BE TALKING ABOUT SOON UP HERE. THAT'S ALL FOR MY PRESENTATION
ANY QUESTIONS, MR. GRANT I DIDN'T SEE AND PERHAPS I MISSED IT THE TYPES OF BUSINESSES ASSUMING A LOT OF RESTAURANTS BUT DID YOU HAVE A GRAPH WITH THE TYPES OF BUSINESS?
NO, BUT WE DO HAVE THE INFORMATION ON THE TYPES OF BUSINESSES SO WE HAD FROM AUTO REPAIR SHOPS, RESTAURANT CONS IT WAS A MIX. WE HAD SOME HEALTH DAYCARE
KIND OF CARE TYPE FACILITIES INVOLVED. WE ALSO HAD MAYBE NOT SO MUCH FOOD BASED BUSINESSES BUT LIKE SMALL HEALTH LIKE SELLING JUST
LIKE I DON'T KNOW THE MALL LIKE THOSE KIND OF BUSINESSES . >> SO IT WAS A VARIETY WAS NOT PREDOMINANTLY RESTAURANTS. THESE WERE ALL BUSINESSES CURRENT BUSINESSES. YES. AND THEN IS THERE ANY FOLLOW
UP PLANNED WITH THESE BUSINESSES TO SEE HOW THEY'RE DOING IN THE FUTURE AND THAT THE MONEY ACTUALLY WAS BENEFICIAL AND REALLY HELPFUL
SUSTAIN VERSUS OKAY, WE GOT IT BUT WE'RE GOING TO GO OUT OF BUSINESS IN FIVE MORE MONTHS. YES, GREAT QUESTION. SO PART OF THE APPLICATION WAS THEY AGREED TO A FOLLOW UP
SURVEY IN SIX MONTHS AND SO WE WILL BE ASKING QUESTIONS OF THE BUSINESSES IN WHAT IS GOING TO BE IT'S GOING TO BE LESS THAN SIX MONTHS BY NOW BUT YES, WE WILL BE FOLLOWING
UP WITH THEM TO MEASURE CERTAIN FROM THE 185 APPLICATIONS TO 25 THAT WERE GRANTED WHAT WAS THE MOST CRITICAL FILTER OR WAS THAT THOSE CHALLENGES YOU SPOKE
OF WITH LIKE BUSINESS LICENSES AND UNPAID UTILITIES OR WAS IT KIND OF WITH THE UNDERWRITERS? IT WAS REALLY WITH THE COMPLIANCE. SO A LOT OF WE ONLY SEND 56
BUSINESSES TO THE UNDERWRITERS AND THEN THEY WERE THEY PAID THAT 56 OR 25. SO IT WAS REALLY THAT UNFORTUNATE A LOT OF BUSINESSES HAD NEVER PULLED PERMITS AND THIS WASN'T MENTIONED UP THERE.
BUT ONE OF THE THINGS THAT WE DID AS AN OPPORTUNITY TO COMPLY WAS WE GRANDFATHERED SOME BUSINESSES IN ACTUALLY TO HELP THEM BEING COMPLIANT SO THE CITY HAD NOT ALWAYS REQUESTS SAID OR REQUIRED A
PERMIT OF BUSINESSES AND SO IF A BUSINESS HAD OPEN OR IT STARTED AND I'D BEEN IN BLOOMINGTON IN THE SAME LOCATION BEFORE THE CITY STARTED REQUIRING PERMITS WE SORT OF LIKE PULLED THEM
THROUGH BECAUSE THEY WOULDN'T HAVE KNOWN AND THAT'S NOT YOU KNOW WE CONSIDER THAT THAT WAS NOT THEIR FAULT OR IF THERE'S LIKE A CHANGE IN OWNERSHIP LIKE THERE WAS SOME ADDITIONAL CRITERIA THAT WE EXPANDED UPON
TO ALLOW FOLKS MOVE THROUGH BUT THEN THE BUSINESSES THAT THEN EVENTUALLY MOVE THROUGH TO THE NEXT STAGE THEN THEY MEET THE ADDITIONAL ELIGIBILITY REQUIREMENTS LIKE NOT SHOWING 30% OR MORE
IN REVENUE LOSS AND THOSE THAT WERE GRANDFATHERED IN WITH THE TO THEIR RESUBMITTED AND WE'RE SUCCESSFUL KNOW THOUGH THAT THOSE ARE COMPLETELY DIFFERENT ACTUALLY FROM THAT THANK YOU.
OF COURSE OTHER QUESTIONS COMMENTS WELL I THINK THERE'S A LOT OF THINGS THAT YOU PROBABLY LEARN FROM THIS AND THINGS THAT MAYBE WE CAN DO JUST IN TERMS OF RELATING TO
SMALL BUSINESSES. AND I WAS TALKING WITH BARBARA A LITTLE BIT BEFORE AND SHE SAID, YOU KNOW, IT'S BEEN A REAL LEARNING THING FOR THE CITY AND I THINK TO FIND WE HAD THAT MANY THAT WERE REALLY
WEREN'T IN COMPLIANCE FOR ONE REASON OR ANOTHER AND SOME OF IT THEY JUST DON'T KNOW. BUT IT'S MAYBE SOMETHING THAT WE CAN DO MORE IN THE FUTURE THROUGH THE PROGRAM.
SO THANK YOU VERY MUCH. IT'S INTERESTING AND IN BETTER NEED IT'S JUST SOMETHING OBVIOUSLY WE HOPE IN YOUR FOLLOW OF SURVEY THAT WE CAN
PERHAPS LEARN MORE ABOUT WHAT WE CAN DO TO MAINTAIN THAT BECAUSE REALLY I MEAN WE WOULD LIKE TO KEEP THE BUSINESSES IN OUR OPERATION GOING IF WE CAN. YEAH. THANK YOU, MR. PRESIDENT.
YOU KNOW THAT JUST TO KIND OF FOLLOW UP ON WHAT YOU WERE TALKING ABOUT AROUND THE COMPLIANCE, YOU KNOW, IT WAS IT WAS INTERESTING TO SEE KIND OF HOW HOW MANY APPLICATIONS FELL OFF AND I WAS I WAS
TRYING TO THINK ABOUT IS THAT A IS THAT A BAD THING OR A GOOD THING? YOU KNOW, KIND OF THE FALLOFF AND ONE OF THE THINGS THAT I THINK IS KIND OF INTERESTING ABOUT KIND OF SETTING A BAR
AROUND THAT SORT OF COMPLIANCE IS THAT IT IN IN KIND OF AN INDIRECT WAY IT SETS A KIND OF BUSINESS VIABILITY. IT'S A LITTLE BIT OF IT AND IT'S NOT LIKE TARGETED
DIRECTLY AT THAT BUT YOU WOULD THINK THAT THE MORE BUSINESSES THAT HAVE PROBLEMS ON THOSE DIMENSIONS LIKE HOW LIKE HOW VIABLE THAT REALLY IS. AND SO I YOU KNOW, ONE OF THE THINGS BETTER BE USEFUL TO THINK ABOUT THIS AS WE'RE AS
WE'RE GOING ALONG MORE IS DOES DOES HAVING THESE SORTS OF KIND OF RULES IN PLACE FOCUS THE MONEY ON THE BUSINESSES THAT ARE KIND OF THAT THAT YOU COULD SAY IN SOME WAY ARE BETTER TO PUT
MONEY INTO TO KIND OF KEEP GOING IN THE LONG RUN THAT'S WHAT I'M THINKING ABOUT. I HAVEN'T REALLY I'M REALLY PROCESS IT COMPLETELY BUT I'M KIND OF THAT'S THAT'S WHAT I'M THINKING ABOUT WITH RESPECT TO THIS SO WELL I THINK PERHAPS
WHEN THAT SURVEY COMES BACK SIX MONTHS IN AND YOU KNOW MAYBE SOMETHING THAT EVEN WOULD BE GOOD TOO SINCE WE HAVE A COHORT OF PEOPLE THAT
HAVE REALLY BEEN EXAMINED HERE IN MIGHT EVEN BE WILLING YOU KNOW, WORTHWHILE TO TAKE AND HAVE ONE AT SIX MONTHS AND THEN MAYBE FOLLOW THROUGH IN A YEAR OR SOMETHING JUST TO SEE THE KINDS OF THINGS I MEAN, YOU KNOW, WE'VE DISCOVERED
IN SOME OF THE OTHER WORK WE'VE DONE THAT THAT THERE ARE OBSTACLES TO PEOPLE REALLY GETTING STARTED WANTING TO DO THESE THINGS AND THEY THEY
SIMPLY AREN'T AWARE OF IT. THE COMPLEXITY YET AND YOU KNOW, IF WE WANT TO DO WHAT WE CAN TO MAKE BLOOMINGTON A GOOD PLACE TO DO BUSINESS, THESE THINGS ARE CAN CAN HELP SO
THAT THEY'RE NOT START UP BUSINESSES IN THIS POPULATION SO THAT'S DIFFERENT YOU WHEN YOU THINK OF A LOT OF A STARTUP BUSINESS IS NOT REAL GOOD AT BUT THESE ARE ALL
BUSINESSES IN FOR A CERTAIN TIME BUT STILL TO MONITOR AND SEE WHAT WE CAN LEARN FROM THAT. GOOD POINT. GOOD POINT. EXCUSE ME PRESIDENT AND COMMISSIONERS, IF I CAN ADD A
LITTLE BIT OF CLARITY TO THAT WHEN NEW BUSINESSES COME TO THE CITY, IF THEY DON'T INTERACT WITH THE CITY AND DON'T NECESSARILY NEED A BUILDING PERMIT OR A BUSINESS LICENSE, THEY DON'T COME TO
THE CITY AT ALL SO THEY MAY JUST OPEN THEIR BUSINESS AND THAT'S WHAT HAPPENED IN SOME OF THESE CASES AS THEY NEVER GOT A BUILDING PERMIT AND THEY NEVER GOT A SAC DETERMINATION FROM THE METROPOLITAN COUNCIL . SO WHEN WE'RE WORKING WITH
OTHER CITY DEPARTMENTS AND WE'RE GIVING OUT MONEY, WE WANT TO MAKE SURE THAT THE BUSINESSES ARE IN COMPLIANCE SO THAS A GOAL NOW IS TO GET THEM IN COMPLIANCE SO THAT WHEN WE HAVE OTHER FINANCIAL
OPPORTUNITIES THERE THEY'RE ABLE TO APPLY FOR THOSE OPPORTUNITIES GOOD AND THERE'S ALSO SOME DUPLICATES IN THERE AND BUSINESSES THAT WERE FROM
OUTSIDE OUR OUR OUR COMMUNITY . SO MY QUESTION IS THAT KIND OF THE PERCENTAGE BECAUSE THE THE GROUP THAT YOU USE TO DO THE THE NEXT STAGE SEE SO MANY
STARTUPS IS THAT KIND OF NOT STARTUP BUSINESS IS A NEED OF ASSISTANCE DO THEY DID THEY HAVE A FEEL THAT THAT'S A NORMAL PERCENTAGE THAT PROCEED FROM THE INITIAL APP TO THEIR
UNDERWRITING? YES OKAY. I WOULD THINK SO WITH THE ONES THAT WENT OVER TO THEM. YEAH, BECAUSE THANK YOU VERY MUCH FOR THE FIRST THING.
SO NOW WE'RE GOING TO BURN THIS. I DON'T RIGHT THAT I DON'T KNOW IF I NEED ANYTHING. OKAY.
AND NOW WE'LL HEAR FROM BARB WOLF, ASSISTANT PORT AUTHORITY ADMINISTRATOR ABOUT WITH MORE DETAIL ABOUT THE SAC PROGRAMS THAT PRISCILLA MENTIONED.
OKAY. SO WHAT THAT'S MY INTRODUCTION. SO I'M TO UPDATE YOU WITH EXISTING SEWER AVAILABLE
RECHARGE PROGRAMS THAT WE OFFER. SO A LITTLE BACKGROUND FOR THIS. THE BOTH OF THE PROGRAMS WERE DESIGNED BY OUR COMMUNITY DEVELOPMENT RACIAL EQUITY
ACTION TEAM SO EACH ONE OF THE DEPARTMENTS AT THE CITY HAS EMBEDDED IN THEM A RACIAL EQUITY ACTION TEAM. SO YEARS AGO AS PART OF THAT PART OF OUR CROSS DEPARTMENT WAS STAFF WE DEVELOPED BOTH
OF THESE PROGRAMS SO THAT THEY COULD BE DEPLOYED TO OUR COMMUNITY TO SUPPORT BUSINESSES AND HAVE IT BE EQUITABLE ACROSS THE ENTIRE COMMUNITY SO THOSE WERE
PRESENTED TO THE CITY COUNCIL IN EARLY 2022 AND APPROVED AT THAT TIME. SINCE THEN WE ALSO ADDED AN ADDITIONAL CITY SAC FEE WHICH WE ESTABLISHED IN EARLY 2025
SO THAT FEE WAS BROUGHT FORTH BECAUSE OUR OUR GROWING COMMUNITY AND AGING COMMUNITY WE'RE STARTING TO DEVELOP VERTICALLY AND SO AS WE ADD ADDITIONAL UNITS WE NEED TO
GROW THE CAPACITY OF OUR SEWER SYSTEM AND WE ALSO NEED TO BE ABLE TO UPDATE IT. SO THE CITY IMPLEMENTED THIS FEE TO START BUILDING THE RESERVES ALSO IN 2026 THE CITY
WENT TO AN ORGANIZATION WIDE NEW POLICY FORMAT. SO THIS IS BRINGING BOTH OF THESE POLICIES INTO THAT NEW FORMAT WITH A COUPLE OF UPDATES.
SO WHAT IS A SAC THAT IS A ONE TIME FEE DETERMINED BY THE METROPOLITAN COUNCIL WHICH OVERSEES THE SOUTHERN COUNTY METRO AREA. IT IS SOMETHING THAT EVERY NEW
BUSINESS AND EXISTING BUSINESS THAT EXPANDS MUST HAVE A DETERMINATION BY THE COUNCIL. SOMETIMES A MET COUNCIL MIGHT FIND ZERO THAT THEY NEED BUT THEY'RE DETERMINING THE WATER
USAGE OF THAT BUSINESS AND SO AS IT EXPANDS WILL THEY ADD ADDITIONAL WATER USAGE TO THE SEWER SYSTEM SO THERE'S TWO SAC FEES AS I MENTIONED THE METROPOLITAN COUNCIL CHARGES
THERE'S $2,485 PER UNIT WHEN THE CITY OF BLOOMINGTON ADDED THEIR FEE IN 2025 THEY DETERMINED THAT AT $2,026 PER UNIT BOTH OF THESE FEES CAN BE
CHANGED ON AN ANNUAL BASIS ALTHOUGH THEY REMAINED STABLE FOR WELL CITY OF BLOOMINGTON BOTH YEARS 2025 AND 2026 AND THE MET COUNCIL HAS REMAINED
STABLE FOR SEVERAL YEARS SO BOTH OF THESE FEES ARE DUE AT THE TIME A BUILDING PERMIT PAYMENT FOR A BUSINESS APPLICANT. SO WHY DO WE PROVIDE THIS ACT
PROGRAMS AND PRISCILLA ALLUDED TO THAT A LITTLE BIT. WE WANT TO PROVIDE FINANCIAL ASSISTANCE AND HELP WITH SOME OF THOSE STARTUP COSTS WHEN A NEW BUSINESS COMES INTO OUR COMMUNITY GOING THROUGH THE
PERMITTING PROCESS OF COURSE THE FEES THAT ARE OWED TO THE CITY THERE'S JUST ONE SIDE OF IT THERE'S MONEY FEES TO STARTING UP A BUSINESS SO THIS REDUCES BARRIERS TO ENTRY AND EXPANSION AND ALSO PROMOTING
LOCAL INVESTMENT AND SUPPORTING OUR BUSINESS COMMUNITY AND HERE I WANT TO GIVE AN EXAMPLE IF A BUSINESS COMES IN NOW AND THE METROPOLITAN COUNCIL DETERMINES THAT THEY OWE FOUR SAC UNITS, YOU CAN SEE THAT'S
GOING TO BE NEARLY $10,000 FOR THE COUNCIL AND 8000 FOR THE CITY RESULTING IN A FEE OF $18,000. I WILL TELL YOU THAT MOST BUSINESSES WHEN THEY COME INTO
THE CITY HAVE NO IDEA WHAT SAC IS NOR THAT THEY'RE GOING TO ALL THESE DOLLARS WHEN THEY COME IN. SO THIS IS AN EXTRA ADDED EXPENSE THAT THEY DID NOT KNOW OF IN THEIR BUSINESS PLAN AND GET INTO SOME OF THAT
PREVENTION THAT WE'RE DOING IS WORKING WITH NEXT STAGE WHO IS OUR TECHNICAL BUSINESS ADVISOR AND MAKING SURE THAT BUSINESSES GET INTRODUCED TO THE CITY EARLY ON AND ALSO MAKING DEVELOPING
RELATIONSHIPS WITH OUR PROPERTY OWNERS SO THAT WHEN THEY'RE WORKING AND PROPERTY MANAGEMENT COMPANY IS ALSO THAT THEY'RE COMING TO THE CITY FIRST. COMMISSIONER ALLEN'S JUST I'M
JUST WONDERING THEY KNOW WHAT THEY'RE GETTING FOR THAT TWO OR I MEAN THEY'RE COMING IN TO BLIND LANE WITH THAT OKAY AND I'M PAYING THIS WHAT DO I GET FOR IT? >> YES WELL IT'S EXPLAINED BY SEVERAL CITY STAFF.
I'VE EXPLAINED IT NUMEROUS TIMES AND SOMETIMES YOU JUST NEED TO EXPLAIN IT AND LAY TERMS OF WHAT IT IS. BUT YES, WE EXPLAIN THIS TO
THE CUSTOMERS. SO THAT'S JUST EXPLAINING SAC SO A LITTLE BIT ON THE DEFERRAL PROGRAM.
THIS IS A FIVE YEAR REPAYMENT TERM FOR BUSINESSES. IT'S AT A LOW INTEREST RATE THIS YEAR IT'S OUT 2.27 THAT IS DETERMINED BY THE COUNCIL BASED ON THEIR DEBT RATIO.
SO THIS DEFERRAL PROGRAM ONLY APPLIES FOR THE COUNCIL FEE. IS THAT A BUSINESS THAT WOULD OWN SO AT THE TIME THAT WE COLLECT THE SAC FEES WE COLLECT 20% DOWN PLUS THE
FIRST MONTH'S PAYMENT. THE CITY COLLECTS THOSE FEES ON BEHALF OF THE COUNCIL AND THEN WE PAY THEM BACK TO THE COUNCIL ON A MONTHLY BASIS. THIS IS AVAILABLE FOR
BUSINESSES WITH A MINIMUM OF TWO AND A MAXIMUM OF 25 SAC UNITS AS A DETERMINATION AND WE SECURE THIS THROUGH A DEFERRED PAYMENT AGREEMENT THAT IS SIGNED BY THE CITY, THE BUSINESS APPLICANT AND THE
PROPERTY OWNER IF THEY'RE NOT THE OWNER OF THE PROPERTY AND ALL OF THIS IS GOVERNED BY A MASTER AGREEMENT THAT SIGNED BETWEEN THE CITY OF BLOOMINGTON AND THE
METROPOLITAN COUNCIL. SO I JUST WANT TO GIVE YOU SOME EXAMPLES. WE ONLY HAVE THREE OF THESE IN EXISTENCE RIGHT NOW. SO AGAIN WE STARTED THE PROGRAM IN EARLY 2022.
IT JUST HAPPENS THAT ALL THESE ARE FOR RESTAURANTS WHICH IS VERY EXPENSIVE TO OPEN A RESTAURANT. SO YOU CAN SEE IN THE EXAMPLES HERE THE FIRST ONE $10,000 INSTEAD OF PAYING THAT AT THE
TIME OF PERMIT PICKUP THEY ONLY HAD TO PAY $2,100 AND THEN THEY CAN MAKE A LOW MONTHLY PAYMENT OF $140 FOR FIVE YEARS. SO THIS JUST SHOWS YOU A
LITTLE BIT FOR UNIT SAC UNITS. THE SECOND ONE $15,000 AND NOT ONLY PAYING 210 A MONTH AFTER THAT AND THEN WE HAD ONE EARLIER THIS YEAR FOR A
RESTAURANT THAT'S OPENING AGAIN YOU CAN SEE THAT THE INTEREST RATE FLUCTUATES SLIGHTLY EVERY YEAR BUT THIS AND WE WORK WITH OUR FINANCE DEPARTMENT TO DEPLOY THIS AS
WELL AND PROVIDING AN AMORTIZATION SCHEDULE FOR THE APPLICANT AND THEY MAKE THEIR PAYMENTS DIRECTLY TO OUR FINANCE DEPARTMENT. THEY'RE GOOD.
ANY ADDITIONAL QUESTIONS ON THE SAC DEFERRAL PROGRAM QUESTIONS ANYWAY, KEEP ON GOING I GUESS. OKAY. I'LL MOVE ON TO THE CREDIT PROGRAM.
THIS APPLIES OUR CREDIT PROGRAM APPLIES TO BOTH THE METROPOLITAN COUNCIL FEES AND THE CITY OF BLOOMINGTON SAC FEES. THIS IS AVAILABLE FOR BUSINESSES THAT HAVE A SAC DETERMINATION UP TO TEN UNITS
AND THIS PROGRAM PRETTY MUCH ACTS AS A GRANT TO THE BUSINESS SO WE WOULD JUST TRANSFER OVER FUNDS THAT ARE THAT THEY OWE IN THE SYSTEM SO
WE WOULD PAY THESE FEES UPFRONT AND IF THE BUSINESS SHOULD CLOSE THEM THE MONEY IS NOT REFUNDED TO THEM. SO WE HAVE TWO FUNDING SOURCES FOR THIS PROGRAM THE BUILDING
INSPECTION SAC CREDIT FUND. THIS IS A FUND THAT HAS BEEN DEVELOPED OVER DECADES THAT WE HAVE COLLECTED MONEY IN. WE ALSO GET A 1% DISCOUNT ON OUR FEES TO THE MET COUNCIL
EVERY MONTH THAT WE GET CREDITED FOR AT THE END OF THE YEAR. THAT'S PART OF THESE FEES BUT THEY'RE ALSO CITYWIDE CREDITS ON PROPERTIES WITHIN BLOOMINGTON. ADDITIONALLY NOW WE HAVE THE
PORT AUTHORITY SAC CREDIT FUND SO LAST YEAR AS IN 2025 IN NOVEMBER WHEN THE PORT BOARD APPROVED OUR 2026 BUDGET, THEY APPROVED $75,000
TO HELP SUPPORT THE CITY'S SAC FEE PROGRAM SO THE PORT AUTHORITY CAN HELP PAY FOR THOSE FEES FOR A BUSINESS MAC COUNCIL FEES OR CITY SAC FEES .
>> HERE'S SOME EXAMPLES SINCE WE'VE DONE THIS IN 2022 REMEMBER NOW NONE OF THIS INCLUDED THE SAC PORT FUND. THIS IS ALL THROUGH THE BUILDING AND INSPECTION FUNDS .
SO IN 2022 A COMMUNITY CENTER THAT OPENED HERE THAT HAS BEEN VERY SUCCESSFUL 2023 TWO RESTAURANTS IN A RETAIL LOCATION. I DO WANT TO POINT OUT THOUGH THERE ARE RETAIL LOCATION
THERE IN 2023 WITH $2,500 THIS BUSINESS WAS GOING TO OPEN ALREADY HAD CLIENTS LINED UP WHEN WHEN THEY FOUND OUT THAT THEY NEEDED TO PAY THE SAC AS A MICRO-BUSINESS $2,500 THAT
YEAR UNEXPECTED TO PAY CAN BE DETRIMENTAL SO THIS WAS SHE WAS VERY GRATEFUL FOR THIS FOR THIS GIFT 2024 I WANT TO POINT
OUT THAT WE'RE ALSO SUPPORTING OUR EXPANDING BUSINESSES SO TWO RESTAURANTS AND A SERVICE LOCATION IN ADDITION TO THREE ADDITIONAL BUSINESSES THAT
OPENED AND THEN IN 2025 ANOTHER COMMUNITY CENTER, A DANCE STUDIO THAT'S BEEN IN OUR COMMUNITY FOR NEARLY 14 YEARS MOVE LOCATIONS.
SO WE ASSISTED WITH THAT A RESTAURANT EXPANSION AND THEN TWO ADDITIONAL BUSINESSES AND THEN EARLIER THIS YEAR THIS ONE SHOULD OPEN SOON BUT IT
MOVED A LONG TIME RESTAURANT MOVED FROM ONE LOCATION TO ANOTHER. SO OVER THESE FOUR PLUS YEARS WE'VE DEPLOYED $293,000 THROUGH THIS PROGRAM TO HELP
SUPPORT OUR BUSINESS COMMUNITY AND AGAIN ON THIS FUNDING CAME FROM THE BALLOON INSPECTIONS FUND UP TO THIS POINT. AND SO THE NEW SAC PORT FUND
WILL HELP WITH ADDITIONAL FUNDING ON THE CITY SAC PHASE AND THAT'S ALL I HAVE FOR THIS EVENING. THIS IS ALL INFORMATIONAL SO THERE'S NO MOTION THIS EVENING
BUT I'LL TAKE COMMENTS OR QUESTIONS FIRST AS ARE COMMENTS MR. WANTS TO SHUTTER . THE FIRST ONE IS THE ZAWADI
CENTER AND THE SECOND ONE IS THE BLOOMINGTON ADULT DAYCARE . WELL I THINK IT'S GREAT THAT THESE BUSINESSES THAT ARE TRYING TO EXPAND AND YOU KNOW
WORK FOR WORK WITH THEM I MEAN IT'S AN IMPORTANT THING TO DO SO THAT'S GREAT AND THANK YOU. THANK YOU. SO WE HAVE ANOTHER ONE ON
CREDIT POLICY HERE. WE'VE COVERED BOTH OF THOSE. WE HAVE COVERED BOTH PRESIDENT ERIC OH MY GOSH. YES. WE'RE CRUISIN RIGHT ALONG AND MINISTER UPDATES YES I WILL TRY TO DO THIS QUICKLY.
THANK YOU VERY MUCH PRESIDENT AND COMMISSIONERS FIRSTLY I JUST WANTED TO WHAT WE SHOULD DO I JUST FIRMLY SAY WE'RE HAPPY TO HAVE YOU BACK WITH US
AND WE UNDERSTAND THAT YOUR YOUR ADDITION TO YOUR FAMILY IS PROBABLY TIME CONSUMING BUT ENJOYABLE AND YES, SO TRUE.
WE'RE WE'RE WE'RE HAPPY AND I HAVE I HAVE TO COMPLIMENT KEVIN. I THINK YOU KNOW, HE UH DID I THINK A VERY GOOD JOB OF STEPPING IN AND MAKING THINGS KEEP MOVING DURING YOUR
MATERNITY LEAVE. WELL, THANK YOU. AND THAT WAS ACTUALLY THANK YOU ALL. THAT WAS THE FIRST ITEM ON MY UPDATES WAS TO THANK KEVIN AND
BARB AND ALEJANDRO'S NOT HERE AND MARGARET FOR YEAH YEAH. >> WE CAN'T FORGET BARB EITHER. I KNOW ALL FOUR OF THEM DID QUITE A LOT ESPECIALLY KEVIN, BARB AND ALEJANDRO ARE ALL TOOK ON PIECES OF MY
RESPONSIBILITIES TO KEEP THE PORT MOVING. YOU DIDN'T SEE IT ALL BUT RUNNING STAFF MEETINGS, GOING TO INTERNAL MANAGEMENT MEETINGS. SO I JUST WANTED TO THANK THEM ALL ON THE RECORD FOR ALL THE WORK YOU DID AND CONTINUE TO
DO AS I PHASE BACK IN. THANK YOU FOR KEEPING THINGS RUNNING SMOOTHLY. I APPRECIATE IT AND THEY DO TOO AS YOU HEAR AND ALSO MARY KAY WHO'S AMAZING I JUST HAVE
TO THANK MARY KAY WHENEVER POSSIBLE. THAT SAID, ACTUALLY MOVING ON TO BUDGET, WE ANTICIPATE BRINGING THE PRELIMINARY BUDGET AND LEVY TO YOU FOR
YOUR REVIEW IN AUGUST AND THEN WE'LL PROCEED THROUGH OUR SEASON AS WE DO WE GO TO THE PORT AND THEN WE GO TO CITY COUNCIL WITH PRELIMINARY AND THEN WE COME BACK TO YOU WITH FINAL AND THEN GO TO CITY
COUNCIL WITH FINAL AND THEN FILE EVERYTHING WITH THE COUNTY. THE CITY IS NOW UNDERGOING A TWO YEAR BUDGET PROCESS SO YOU WILL BE SEEING NUMBERS FOR 2027 AND ESTIMATES FOR 2028.
SO THAT'S JUST A LITTLE BIT DIFFERENT THAN WHAT HAS BEEN DONE IN THE PAST. OTHER ANNOUNCEMENTS WE HAVE HAD SOME RIBBON CUTTINGS RECENTLY GIORDANO'S AT MALL OF AMERICA AT IF ANYONE MADE
IT TO THAT THANK YOU FOR YOUR ATTENDANCE ADDED 80 JOBS AND THEN CHUCK AND DON'S AT NORMAN DEL VILLAGE. WE ALSO WANTED TO MAKE SURE YOU TOOK NOTE THAT HATCH
BLOOMINGTON TRANSITIONED TO A BLOOMINGTON LOVES LOCAL FOR 2026. THERE WAS CONCERN WITH OPERATION METRO SURGE THAT ALLOCATING MONEY TO SUPPORT NEW BUSINESSES RATHER THAN
CONCENTRATING ON SUPPORTING STRUGGLING BUSINESSES THAT WERE ALREADY HERE WOULD BE THE WRONG TONE IN THE COMMUNITY AND THIS YEAR AND SO THE PROGRAM HAS PIVOTED AND THEY ARE INSTEAD AWARDING MONEY TO
BUSINESSES THAT ALREADY EXIST IN BLOOMINGTON. I THINK THAT WAS A GREAT CHANGE AND A VERY SMART THING TO DO. THE PORT CONTINUES TO HAVE MONEY PLEDGED TO THA PROGRAM
BUT THE PROGRAM CONTINUES TO FIND OUTSIDE SPONSORS TO SUPPORT IT. OTHER UPDATES EXCITING ONE SEAGATE IS CONSIDERING AN EXPANSION HERE BUT IT'S A
COMPETITIVE PROCESS. THEY ARE LOOKING AT TWO OTHER LOCATIONS SO THE STATE HAS PUT TOGETHER A PROPOSED PACKAGE FOR THEM AND LAST NIGHT THEY WENT TO CITY COUNCIL FOR THEIR APPLICATION TO THE MINNESOTA
INVESTMENT FUND WHICH WOULD HELP TO POTENTIALLY SUPPORT AN EXPANSION HERE AND THAT IS A SECOND EXPANSION AND THERE WAS A RECENT ONE WHERE THERE WAS ALREADY A BUILDOUT AND THEY'VE JUST ADDED THE EQUIPMENT AND
THE PEOPLE TO DO THAT WORK AND SO NOW THEY'RE LOOKING AT AN ADDITIONAL EXPANSION AFTER THAT. OTHER DEVELOPMENT PROJECTS SOUTH TOWN WE HAVE HEARD WILL
LIKELY NOT PURSUE TIFF FOR PHASE ONE DUE TO PREVAILING WAGE REQUIREMENTS APPLYING TO THE THIRD PARTY CONTRACTS. SO THE DICK'S HOUSE OF SPORT
WILL BEGIN CONSTRUCTION WITHOUT A TIFF APPLICATION BUT WE EXPECT THAT THERE MAY BE OTHER TIFF APPLICATIONS AT A FUTURE DATE. WE DO STILL EXPECT TO SEE A PHASED PROJECT THERE, A MUCH
LARGER PROJECT AND SO A VISION PRESENTATION IS COMING AT A FUTURE MEETING. THE ADAORA APARTMENTS IS A 52 UNIT DEVELOPMENT. THAT ONE CAME THROUGH VERY
QUICKLY SO COMPLIMENTS TO KEVIN FOR RUSHING THAT THROUGH COUNCIL APPROVED APPLICATION DOCUMENT ALREADY AND THEN FUTURE ACTIONS WILL OCCUR IF FUNDING IS AWARDED.
WE ALSO HAVE LYNDALE APARTMENTS THAT WERE NOT AWARDED A BOND ALLOCATION ROUND AND WILL NEED TO APPLY AGAIN IN FALL OR WINTER WILL LIKELY BE COMPETITIVE FOR BOND
ALLOCATION AT THAT TIME. AND THEN THE WATER PARK WE STARTED THE MEETING WITH A BIT OF TIME AWAY BUT WE CONTINUE TO WORK WITH THEM ALL ON ITEMS FOR THE DEVELOPMENT AGREEMENT AND THEY ARE CONTINUING TO
ENGAGE WITH LENDERS TO SUPPORT THE PROJECT. AND THEN FINALLY FOR THE OPPORTUNITY HOUSING ORDINANCE INCLUSIONARY ZONING REQUIREMENT FOR NEW DEVELOPMENTS WHICH IF YOU ALL
HAVE SEEN A FEW TIMES COME THROUGH STAFF ARE WORKING THROUGH UPDATES TO THE ORDINANCE AND WE HAVE A NEW HOUSING DEVELOPMENT SPECIALIST
SUPPORTING THIS PROGRAM KENNY NIEMEYER HAS MOVED ON TO A DIFFERENT POSITION OUTSIDE THE CITY. SO I BELIEVE YOU MET RYAN AT A PREVIOUS MEETING AND THOSE ARE
OUR UPDATES. IF YOU HAVE ANY QUESTIONS I'LL TRY TO ANSWER THEM OR I WILL DIRECT YOU TO THE PROPER STAFF PERSON QUESTIONS FOR A A QUESTION MAYBE IT'S A MOOT POINT NOW BUT THERE IS A LITTLE BIT OF DISCUSSION ABOUT
WHAT HAD GONE THROUGH TO THE COUNCIL AND ARE CAN GO AND PARK AND FLY AND YOU SENT US SOME INFORMATION RIGHT AFTER THAT WITH THE LINK TO THE
COUNCIL MEETING WHICH HAD BEEN EXTENDED AND I KNOW STEVE AND I HAD BOTH BEEN ON TOP OF PLANNING AT DIFFERENT PARTS WHEN THOSE WERE APPROVED. SO WHAT'S HAPPENED ON THAT?
IT DIDN'T GET APPROVED BY COUNCIL OR PRESIDENT ERICKSON AND COMMISSIONER HUNT I MAY ALSO RELY ON OUR COUNCIL MEMBER. THERE WAS ALSO THAT MEETING
THERE WAS HEALTHY DISCUSSION RELATED TO THE APPROVALS FOR PARKING GO AND PARKING FLY AT THE JUNE 18TH MEETING OR THE SUBSEQUENT THE LAST MEETING.
>> OH YES I'M I WILL ADMIT I'M BLANKING ON THE DATE IT'S KIND OF BEEN A WHIRLWIND BUT COUNCIL ULTIMATELY DID APPROVE WHAT WAS PROPOSED BY STAFF AND
THAT WAS BY OUR PLANNING DEPARTMENT SO I MIGHT ACTUALLY RELY ON OUR COMMISSIONER MR. COUNCILMEMBER NELSON TO SPEAK TO THEM MORE FULLY AS HE WAS
ONE OF THE INDIVIDUALS THAT WAS PRESENTED THAT ITEM BY OUR PLANNING DEPARTMENT. YES. SO ULTIMATELY WHAT WAS APPROVED BY THE COUNCIL WAS AN UPDATE TO THE ORDINANCE THAT
REQUIRES THIS IS JUST AN APPROXIMATION 25% OF IT TO BE DEVELOPED BY SOMEWHERE IN THE 2030 RANGE. YEAH, SOMETHING LIKE THAT.
AND THE REST OF IT IT WAS GRANTED PERMANENT RIGHTS TO THEIR SURFACE PARKING SO THAT NO LONGER THE TEMPORARY NO
LONGER NO LONGER TEMPORARY. YEAH THAT'S RIGHT. IF YOU YOU CAN WATCH THE MEETING SO GOOD GOOD ONE BUT
WHAT'S THE LAST ONE. YEAH SO THAT THAT IT WAS APPROVED THAT THAT BOTH OF THEM BASICALLY 25% NEEDS TO GET DEVELOPED AND OR SET ASIDE
FOR DEVELOPMENT IT WAS MADE CLEAR DURING THE CONVERSATION THAT THEY DON'T ACTUALLY HAVE TO BREAK GROUND IN THAT TIME FRAME. THEY SIMPLY HAVE TO CEASE
PARKING AND SET ASIDE THAT AREA FOR DEVELOPMENT WITHIN THAT TIME FRAME. SO I CAN SHARE OTHER THOUGHTS
OFFLINE BUT I THINK I SHARED ENOUGH THOUGHTS ALREADY JUST TO JUST TO COMMENT ON THAT IS THAT I THINK THE AND HAVING BEEN AROUND KIND OF FOR MANY
OF THE PERIOD ALTHOUGH NOT WHEN IT WAS PUT IN PLACE YOU KNOW MAYBE THE PERSON MAYBE THE PERSON TO YOUR RIGHT IS THE PERSON TO LOOK FOR IT LOOK TO FOR THAT. BUT I THINK THE THE KIND OF ORIGINAL SIN ON THAT IS
BACK BACK AT THAT POINT IN TIME NOT YOU KNOW AND THEN THIS IS THIS IS TRYING TO DO SOMETHING TO RECTIFY A SITUATION THAT HAS A BUNCH OF CONSTRAINTS AND I'M AS AS
SOMEONE WHO HAPPILY KICKED THE BALL DOWN THE FIELD A LITTLE BIT AND YOU KNOW ALLOWED ALLOWED KIND OF THINGS TO KIND OF GO ALONG, I PROBABLY HAVE SOME KIND OF INVOLVEMENT IN THAT.
BUT I THINK THE YOU KNOW, IT'S A SITUATION WHERE YOU KNOW, YOU LOOK BACK IN RETROSPECT HE SAID THAT PROBABLY WAS NOT A GOOD IDEA TO APPROVE IN THE FIRST PLACE. SO AND AS YOU RECALL THAT TEMPORARY WAS USED QUITE A BIT
AND ALSO BY SOME OF THE PLAYERS THAT SPOKE IN THE MEETING AT DIFFERENT CAPACITIES OF AS WE LOOKED AT DIFFERENT THINGS AT PLANNING COMMISSION AT THAT TIME AND
WHAT WAS BEING PORTRAYED TO US OR PRESENTED BY SOME OF THE SAME PLAYERS AS TEMPORARY AND YOU LOOK AND YOU SAY THAT'S NOT A TEMPORARY STRUCTURE BUT STILL THERE.
YEAH CRYSTALLIZE I JUST NEED TO GET EDUCATED ON THE TWO YEAR EXTENSION TO THE MALL OF AMERICA TWO YEARS IS THAT
TIED TO THE STATE LEGISLATURE PASSING THE EXTENSION OF THE UNPRECEDENTED USE OF TIFF FUNDS BY BY CITIES? ARE THEY DO THEY COINCIDE THAT
THE TWO YEAR DOES THIS TWO YEARS COINCIDE WITH WHAT'S SO THERE'S BILLS BILLS AT THE STATE LEGISLATURE APPROVED LAST WINTER.
SHORT ANSWER IS A LITTLE BIT SORT OF THE TWO YEAR EXTENSION THAT WE ARE ASKING FOR COINCIDES WITH THE TWO YEAR EXTENSION OR THE IT WAS A TWO
YEAR EXTENSION THAT WE ASKED FOR AT THE LEGISLATURE FOR THE USE OF THE SPENDING PLAINTIFF SO IT WAS ORIGINALLY THE DEADLINE WAS THE END OF 2025 TO START A PROJECTS IT'LL NOW BE THE END OF 2027.
IT'S A VERY ASTUTE QUESTION YOU'RE ASKING. SO YES, THE AMOUNT OF TIME THAT WE ASKED FOR GOES JUST A LITTLE BIT OVER THAT THAT WINDOW OF TIME. SO IT GIVES US THE FULL AMOUNT
OF TIME TO USE THE POWERS OF THE SPENDING PLANT IF SO, GOING TO 2028. YES, BUT IT IS ERICKSON AND
COMMISSIONER LINE 20 LATE 2027 THE EXTENSION WOULD PROVIDE FOR A TWO YEAR EXTENSION TO THE JULY 19TH 2028 DATE SO EFFECTIVELY SIX MONTHS PAST
THAT TIMEFRAME THAT MS. MAYSAK WAS SPEAKING TO AND PART OF THE ATTENTION THERE IS TO ALLOW FOR THAT TWO YEAR TIME FRAME AND THEN ALSO IF THE
WATER PARK DOES MOVE FORWARD SO THAT WE'RE NOT HAVING TO DO ANOTHER MODIFICATION AGAIN IN THE FUTURE FOR THE SAME REASON THE FATIGUE OR ANYTHING
ELSE. YEAH. THANK YOU, MR. PRESIDENT. I JUST HAD ONE THING ALSO WITH REGARDS TO THE PARKING
FACILITIES THERE AND I JUST WANT TO APOLOGIZE T MY COLLEAGUES BECAUSE IT WAS WAS NOT SOMETHING THAT I THOUGHT OF UNTIL AFTER AND AND MAYBE ALL THEY CAN HELP ME WITH THIS IN THE FUTURE. I DON'T KNOW WHY THAT DIDN'T
COME THROUGH THIS AS WELL GIVEN THAT IT WAS IN SOUTH LOOP AND HOW ENGAGED THE PORT HAS BEEN IN DEVELOPMENT IN THAT AREA. IN HINDSIGHT I SHOULD HAVE
MADE THAT REQUEST THAT THAT WE GOT YOUR OPINIONS ON IT AND THAT WAS MY BAD. AND SO I JUST WANT TO TAKE A MOMENT TO APOLOGIZE TO YOU FOR THAT. I MEAN IT'S IT'S BEEN IT'S
BEEN DONE IT IT IS WHAT IT IS. BUT YOU KNOW, THAT WAS SUCH I MEAN FOR 30 YEARS OR WHATEVER THE PORT HAS BEEN THAT'S BEEN
THE FOCAL POINT OF DEVELOPMENT FOR THE PORT AND I KNOW WE CHANGED THAT A FEW YEARS BACK BUT THIS GROUP HAD ALWAYS BEEN ENGAGED ON THOSE ISSUES AND I DON'T KNOW WHY THAT DIDN'T
HAPPEN AND IT WAS YOU KNOW, IT WAS REMISS ON ME FOR MISSING THAT SO IF WE CAN JUST IF I CAN HELP AND IF YOU CAN HELP MAKE SURE WE DON'T DO THAT AGAIN, I APPRECIATE IT. IT'S NOT YOUR RESPONSIBILITY.
THAT WAS MY THOUGHT TOO AS I LOOKED AT THAT THE MEN ARE THE REVIEW THAT COUNCIL MEETING THAT WHY WEREN'T WHY WASN'T IT JUST INFORMATIONAL TO US
VERSUS TO BRINGING IT UP AND YEAH OKAY ANYTHING ELSE? >> WE ARE ADJOURNED. OKAY WELL THAT'S RIGHT