the show. >> I am. >> You are. Okay. [laughter] Good. I'm here to help. No government. I'm here to help. Good to go. Yep. >> Okay. All right. Good morning. I want to
call to order this uh Thursday, November 20th uh EDA meeting uh at 7:00 a.m. Uh like a motion to approve the agenda. Are there any additions, deletions, or corrections to the agenda?
>> I recommend we approve Second. >> A first and a second. Any additional discussion? >> All in favor? >> I opposed. >> Motion carries. Uh consider approval of the minutes from
the October 16th, 2025 regular meeting. Are there any additions, deletions, or corrections to the minutes? If not, I'll entertain a motion. >> So move. The first >> a second. >> Second. Any further discussion?
All those in favor? I >> I >> opposed. Motion to or uh minutes are approved. >> Uh condition consider approval of the October 25th treasures report and monthly bills. Mr. Ericson.
>> All right. Well, good morning everybody. Um for October the uh EDA between the three accounts had a beginning fund balance of 13272793. Uh there were no revenues received uh
last month. Expenses were 22.8598 for uh ending balance of 1344195. Um typically revenues are the pet stop veterary clinic revolving loan fund
repayment. Um we did yesterday I believe receive uh the October and November payments. So you'll see that reflected next month. Uh standard expenses uh payroll and associated benefits our sponsorship for
Frosty Fest and then our social media management and content. And then uh bills to be paid this month are West Brack Marketing for uh social media management and content. Uh included with the treasures report is
the expenses for October and then also the uh revenue and expense [snorts] guide for the uh revolving loan fund, our small cities grant and then uh the 210 EDA fund.
All right. Thank you. Anybody have any questions or comments on the treasures report? If not, I'll take a motion to accept the treasures report. >> So move first and second. Any further
discussion? All those in favor? I >> opposed. Motion carries. Old business. Uh update on the EDA small cities development grant program. Mr. Ericson.
>> All right. Uh we've got two projects that have been completed. Uh our third project is a basement foundation repair. We had a a contractor come out and uh provide a a recommend recommended solution. The homeowner uh accepted that
as acceptable. So um the HA is working on drafting up the the scope of services so that project can be bid. Uh it is anticipated that that project cost will be more than what the grant amount is of
just under 26,000. So we'll have to figure out how we wrap that up wrap that up in the agreement or uh the homeowner has a separate agreement for the additional costs with the contractor that's awarded the bid.
Uh the fourth project uh we did receive a bid and it was bid as um a general contractor. We reviewed the bids and everything was good to go. We uh the property owner came in and signed the uh the repayment agreement and when the um
we were scheduling the meeting, you have to have a kind of like a precon meeting for the the project. Um the uh contractor notified us that he did not want to be the general contractor and that all of the um items
that he didn't bid on such as plumbing and electrical, he didn't want them running through his company to pay them. So um unfortunately what that means is um we have to rebid the project because
we didn't um or the way that it was bid was not bid separately so that um it has to be um out there for so many days and then this packet of information instead of the general submitting it needs to be
submitted for each one of the trades. So, um I guess I'm not sure at this time where the the homeowner is uh with that, but we uh rejected the bid. Uh project five is um this is one that's hanging out there. Um at this time, it's
really up to the homeowner to um do what they need to do. So, we're in a holding pattern until they I don't know, I guess, decide on what needs to be done, what what what work they want. So, nothing we can do at this time until they make that decision. And
then the sixth project uh provided information to a property owner. Um they filled out the inquiry form and provided all the required income documents. Uh unfortunately, it was found that they made too much and as a household and did
not qualify for for the program. And then since the last meeting we did submit our uh annual uh report which has been accepted by deed. So
continue to advertise it and push it and it just unless the uh improvements are interior we're probably in a holding pattern for >> season. >> Yep. Exactly.
If there's any questions, I'd be happy to answer them. >> Anybody have anything? >> All right. Thank you, Joel. Uh, next item. Consider approval of the EDA's final 2026 budget. Mr. >> Thank you. So, we talked about this at
the last several meetings uh at the I believe it was >> meeting at the end of September, I believe. Um, we uh were instructed to make some some cuts to the the proposed budget to get
down to a a level that the council felt comfortable uh using some reserves for. So, as part of those budget cuts, uh 10,000 was cut from the EDA. So, looking at um $40,000 from the the property tax levy.
And again, just a quick sum summary of these funds. The 208 is our revolving loan fund and uh only revenues and expenses that are associated with that are uh at this point in time as I said earlier the pet stop veterary clinic um repayment
209 is our uh small cities that's just revenues that reimbursements I guess that we would receive from deed and then uh in the expenses would be for admin and and project related 210 is the kind of the majority or day-to-day operating
uh fund of the the EDA. So uh we have talked about this at the last several meetings. Um basically items that have been discussed have been uh training and instruction that's attendance at the uh chamber annual dinner our business retention and
expansion initiatives and we've got thousand for business visits. um we apply for that grant to Smith for uh 50% of the market study to determine um the demand for certain businesses in in
Lawndale. Uh if it's not awarded and then we'll know I think it's a day before our December meeting uh if we're awarded it or not. But that total cost was um 96 or $9,800.
So, we may have to double that. We approved our facade program uh funding for that. Uh marketing, social media, that was reduced to uh $3,000 and that is just strictly for uh economic development marketing.
And then funds to other agencies such as the chamber, FrostyFest, um trying to think what else. We don't usually sponsor a um uh a lunch and learn and then we have provided funds to Smith
in the past. So, as proposed, uh the budget's anticipated to uh run a deficit of just under $13,000. Not ideal by by any means, but as we
talked at our last meeting, we didn't spend nearly as much of our uh marketing or advertising budget as as we had budgeted. So I am anticipating a a fund balance at the end of the year um to be
at least what that proposed deficit for next year is >> and of that the that's also working in anticipation of that uh that grant would offset 10,000 of that because we don't have that figured in the budget. Correct.
>> Uh we have >> uh 4,900. >> So if we swing the other way. Okay. >> Make it worse. >> Okay. But what's our what's our our marketing surplus is? How much?
[clears throat] Uh right now almost $15,000. >> Okay. A little less thing then. Okay. All right. Does anybody have any additional questions or comments on
that? All right. Thank you, Joel. Uh, next item, discuss the business retention expansion business visit program. Mr. Ericson. Um, [clears throat] so again, we've been
talking about this at our last several meetings. Um, I did reach out to Scan Air Filter and Ivory and Onyx, the salon in town. Both agreed to, um, be the
first two businesses kick off the program. Um, they've been both sent the survey and Scan Air Filter has returned theirs. Um, I haven't looked at it yet, but they indicated that they'd be
looking at a meeting date in December. So, where I left it with them was just provide us some dates and times at work and I'll be in touch with you guys. So, um
probably early next week look at that survey and then get it out to you guys so you guys can review it. Um, so you guys all have it and then those who can can attend the visit um are prepared and
hopefully it ends up being a a good and productive meeting with with scanner filter. >> All right. Anybody have anything on that? >> All right. Thank you. Uh, next item, social media marketing update. This be
your wheelhouse there. Thank you, Council Member Palava. Um, Westbreak marketing contract expires on December 31st, 2025, and Holly will be removing herself from the lawn sales social media platform. Holly has provided the December
marketing calendar in which the EDA approved at the October 16th, 2025 meeting. As you might recall, uh, Bonnie wanted to uh, have the previous month um, uh, calendar in the packet just for referral.
I I am confirming that uh Holly did make our updated changes which included uh uh the public works uh Mr. Joe or director Joe Dornfeld uh his video insert and then uh multiple um snow emergency
information posted. Uh remember we are sharing the posts for everything that the chambers is putting out there in December. So just for your reference, uh that has been updated and in the packet as an attachment. Uh Holly will not be
providing a January 2026 marketer marketing calendar because it is her company's policy not to stay on a social media platform with an act uh without an active contract, which makes sense. So if just going into your packet, we're
just going through our stats uh from October. Uh our october stats, the website visitors are still similar with a slight uptick. Uh most viewed page is the homepage. Well, which makes sense. Uh
with second being the utility page. Uh 72 people also searched the site for something. Uh Facebook uh book views were up and new followers but fewer interactions which means fewer likes or comments. However, the views are up uh
quite a bit for October. So, as you can see, uh the fluctuation through the month. Um Google Analytics uh website visitors increase in users, decrease in events. A Google Analytics event is a user interaction on a website or app you
can track and such with with a button click. uh YouTube videos uh YouTube video video YouTube was uh Real 19 Bar and Grill and then the food shelf and uh things to do in the fall. Uh Holly is pointing out
that Real 19 got a lot of views. Uh 335 views which is great. Um remember this goes back to our our concept of uh our our theme for the year. Why Londale? So, it was great to highlight Rail 19 and what they're doing uh in the city of in
the city. Uh the following page is just Facebook views, uh viewers, uh content, interaction, visits, and followers, and the same with the uh Google business um analytics page.
So, Mr. Chair. Uh that concludes my report and like I said, Holly is done with the marketing uh calendar portion of her contract with the city. >> Okay. So with that then we will we're obviously working on trying to get that
position filled. Is she if if she was to win a win a bid on or win that contract again, is she ready to just take off again? >> Of course she is. She's always ready. Holly has done a wonderful job for the city. Uh her customer service is is off
the charts and she is always responsive. I could email her or text her and she is always uh responding right back. But yes, uh she could uh hit the road running here in January. Okay. Uh is there anything on the
calendar or anything that uh that anybody wanted to address? Everything looks good for December. >> Yep. Everything was uh approved last month and they changed it's just a change update from our changes from the
previous month uh um meeting. Okay. Any [clears throat] comments or concerns? All right. Moving on to our next item, uh, new business. Consider approval of
resolution 202501, a resolution making findings of the use of the property tax abatement for certain property located in the city of Lonsdale. Mr. Ericson. >> All right. Thank you. just real quick before um Shannon Sweeney of David Drone
Associates presents his information, but uh the city's received a land use application uh for a 58 unit market rate apartment complex uh to be located at 900 Ash Street Northeast. Uh to date, we've approved amending our comprehensive plan and zoning uh for
that parcel from central business district to allow for the the PUD of the 58 units and nine detached single family residential lots. Uh currently, uh land use applications have been submitted and are under review for the preliminary and
final plat uh as well as the the site plan. Uh those items will be considered at the uh November 25th planning commission and um working with the city attorney on a a
PUD agreement for um the the development in in general. So that's a a brief update of where we are today. Um as I said, Shannon Sweeny's here to um go over the the tax
abatement request. So I'll turn it over to Sean. [clears throat] >> Thank you, Joel. >> Good morning. Welcome. >> Thank you. Uh I'll just give a quick background. It's my first time before you. So, uh I work for a company called David Brown Associates. We are municipal
adviserss to cities, counties, and townships in Minnesota. We advise on uh public finance and public subsidies. And I've been in the position for 26 years. Uh so, I'm getting old. It's my birthday today.
>> Happy [laughter] birthday. >> So, it's uh good to be before you. And what we've essentially done is taken the application, reviewed it along with financial projections for the project. Uh one to determine if it's within the policy that you've adopted in 2017 for
the provision of tax payment assistance. uh that policy also asks the EDA to make a finding with regard to whether it's in compliance with state statute. So state statute governs the provision of subsidies like this. Uh it's very specific with regard to findings that
are required to be made in order to provide this form of subsidy. A tax abatement is a collection of property tax that is then reimbursed to the developer over a negotiated period of time in a negotiated amount. In no event can that amount to be reimbursed exceed
the actual property tax generated by the property. And so ultimately when this is calculated, what we're normally doing is calculating the abatement or the new city property tax that exceeds the tax that you're already collecting. And what
the developer is requesting is the reimbursement of 75% of that tax for a 10-year period of time. The developer provided a a financial projection based on uh essentially the development cost of his project at about
$13.5 million. Uh charging rents from,025 per month up to $1,500 per month depending on unit size and all the costs associated with operating the project. Uh developers in order to finance projects have to meet
certain thresholds for debt coverage. uh they have to demonstrate the ability to produce 125% of the actual debt payment in net revenues and generally they're looking for a cash on cash rate of return. So the investors that put equity
into the project have expectations with regard to how much they're going to receive for that investment. And [clears throat] based on the financial projection provided, they weren't meeting either of those metrics without some form of assistance. This is not uncommon. We work with lots of
communities in greater Minnesota like you that are working on developing multifamily residential housing. Comparatively speaking, I would say the requested subsidy is not only less because it's a 75% of the actual tax to be generated, but it's also shorter in
duration than what we generally see. I would say on average I see a request for 15 years of tax increment financing assistance for a project like this. Uh the difference is with tax increment financing that uh [clears throat] through city action the developer is
able to capture city county and a little bit of school tax. Uh for that the developer also has to have income restrictions on 20% of the units. Those provisions don't apply to tax abatement which is being requested here. So
there's no income restrictions on any of the units, which is, you know, the developer likes because ultimately they have flexibility in who they rent to and when and how and all those sorts of things. And so at the end of the day, uh
the developer through his financial projection demonstrated a need. Uh we don't believe the project will proceed without the assistance that's being requested. that assistance is also being requested from Rice County and my
expectation is is uh that is necessary as well. Not expectation is what has been documented at this point. And so uh in review of the policy and state statute, we I found and have indicated
and drafted a resolution making the necessary findings that one, the request would comply with state statute and two that it would comply with your local policy. Specifically in your local policy, it asks us to uh ultimately
make a few findings or it gives us actually it gives us a a list of things that are reasons why we might consider providing tax abatement. And the three reasons that I pointed to that I felt applied to the potential project is that
it will increase the tax base in order to lessen the reliance on single family residential dwelling property taxes. The project will increase the business and industrial market potential in the city by providing additional housing opportunities for new employees. Joel
has mentioned to me and it's pretty common theme that we hear from our local businesses that we need more housing in order to draw and attract additional labor to our communities. And lastly, the tax baitment will accelerate the development process to achieve development on the site which would not
be implemented without the assistance. uh tiff or tax increment financing a similar tool that I just mentioned has a statutory test that but for requirement that means ultimately we have to demonstrate that without the assistance
the project won't proceed tax abatement statutes don't contain a similar provision there's no necessity to have that there's other findings that need to be made but that isn't one of them but you do have it in your local policy which isn't a bad thing and So
ultimately you're asking the developer to demonstrate that the assistance is needed otherwise the project is unable to proceed and the developer is provided financial information to demonstrate that need. So ultimately we've passed that test within your local policy.
Uh happy to answer the any questions that you have with regard to the information provided that included a summary letter from me with regard to the things we considered uh under the policy in the statute a copy of your tax abatement policies included in a draft
resolution making the findings that ultimately the request complies with state statute and local policy. So happy to answer questions. um will the in the tax abatement will that um put an extra
burden on the original on the ordinary taxpayer the in the housing? >> No, because the assumption is that without the assistance you're not going to receive that tax base. The only way that there might be an extra burden is if additional service is required to serve that property and we're not
getting a local property tax in order to do that. So if we felt we needed to buy a new fire truck that could reach a higher story or if we had significant addition to our plowing that we had to do in the winter, things like that, we might argue that it could be a burden to
other taxpayers. Generally, a project like this that's f fitting within existing neighborhoods and infrastructure isn't going to add much if any to the system. And your school district's still going to benefit from additional enrollment from kids
that may live in this facility. And so, typically we see schools being uh a proponent of projects like this because enrollment is an issue. Uh, I guess you'd have to make a finding that you think that this
is going to require, you know, lots of police visits or something like that in order to argue that it's going to be a burden to the system. >> Also, I understand that the median income in this city is $91,000.
Is this with the rent being so low, is that going to be uh lowering the median income in this city? I suspect that uh rental housing in general would have a modest impact on that.
>> Yeah. Because um >> but this is not income. This is not income qualified housing. This is market rate. >> The rate the the rental rates I consider to be very competitive, meaning they're going to be able to draw people to the community. your businesses are looking
for employees and they will have housing to transition to as they take those jobs. It will add enrollment to the school district which the school district will be happy to receive because that's how their funding is generated. Well, I know I would have that's what I was, you know, asking
about that those questions. But, um, >> I don't know in time, uh, if this doesn't work out for this p for this business, will this ever become subsidized housing with the federal government? >> Uh, could some another developer acquire
it and try to transition it? Sure. We can't we can't say that that's not possible. Generally though, if he's not successful, ultimately it's probably going to be sold at a loss. And ultimately, the next developer is probably going to prefer to have it market rate. And if he's buying it at a
loss, or she, they're able to rent it at a even lower level to make it even more competitive. Usually the transition on market rate housing is to new market rate housing, but it's possible that they could apply for some form of subsidy that could require some [snorts]
form of income restriction. Section 8, for example, is a program that can go to any unit. >> And so, you know, existing units in the community can potentially be section 8 housing. So, could this be section 8? Certainly, it's not out of the realm of
possibility, but will it be? Ultimately, I suspect that this developer is pursuing tax abatement so that he does not have to deal with any sort of income restrictions, probably including section 8, but there's no guarantee. >> Yeah, there's no guarantee.
Well, I don't know if that's my questions on that. >> Sure. >> Good questions. Bob, Bob, everything? >> Um, well, with that, >> yeah, there's no questions.
>> Yeah, there's no questions. Um, no further discussion. [clears throat] Uh, entertain a motion to approve resolution 202501. >> Make a motion to approve. We >> have a motion and a second. Second.
Any further discussion? All those in favor? >> I opposed. >> I [clears throat] the just to give you some sense for what happens next. On Monday evening, the council will consider a resolution
calling a public hearing because a public hearing is required before tax abatement assistance can be provided. That public hearing is tenatively scheduled for December 22nd. So if the council chooses to proceed, a public hearing will be held on that date at
which time the council would consider a resolution and perhaps an agreement with regard to the form of assistance. So >> all right. >> Thank you very much. >> Thank you. Appreciate >> Thank you again, Shannon. Happy birthday.
>> Glad you got up bright and early to come see us. [laughter] Take care. >> Thank you. >> All right. Uh, next item is update on the social media request for proposals. Uh, so I know we've been talking about
uh, social media, well at every meeting basically for the last probably year and a half. Um uh as uh Corey alluded to earlier, our contract with Bre West Marketing um expires at the end of uh
this year through uh discussions of the EDA and at the council level. Uh staff drafted the attached uh excuse me RFP for uh social media services and uh essentially this
was just an update. This was presented to the council at their last meeting. It was approved. Um, proposals have been sent to uh several people that have shown interest in the past. I did receive a call from a gentleman yesterday that that is
interested. So, um, essentially just wanted to provide the EDA with an update as to um, where we are as far as the services to be performed. We included the what is currently being done. uh as
the minimum scope, but then also uh added an option for blog articles, um community engagement and and holiday content.
As far as the the timeline, um proposals I said have been or the RFP has been approved. It's been sent out. It's posted on our website. Uh they're due by noon on Friday, December 5th. Uh staff will
review them and um make a recommendation to the the city council uh determine and see who uh I see my dates and stuff in. Um this will be presented to the council at
their December 11th council meeting. At that time they can decide uh if they want to continue um with Westre Marketing interview or select a different firm. Uh if interviews are done, we do them the week of the 15th
and then ideally bring a contract to the city council for the December 22nd meeting. So if if [clears throat] there is um a switch, there would be a delay, but based off of this timeline,
uh staff um if we continue with our current provider, won't anticipate any delay. >> Um and because this is professional services, we don't necessarily have to go with the lowest bidder. Correct. >> That is correct. >> Okay. So even though somebody might come in cheaper,
>> we don't have to go that way. >> Don't have to use them. So >> Okay. So, that's good news. So, any other comments, questions, concerns? All right. [clears throat] Thank you, Joel.
Uh, next item. Other business development updates. Corey, or is that Joel? >> Yep. >> Okay. >> Um, a lot of these is the same from last month. Uh, continue to work with the daycare. um provided some general information to
uh technical methods but um no update to uh present um haven't heard anything from Lawndale Packaging and um nothing on um a commercial building or anything like that that uh we have talked to developers recently about
as far as the billboard that platting process is complete um and they should be um submitting their application to Mandot with the city as
the property owner cuz we still own the property. Um we platted it as I just said that's been recorded. So the next step is to uh get this closing scheduled so we can sell them that approximately half acre
lot um which is not directly east of Dollar General but essentially east of Dollar General by a couple hundred feet. Uh, as far as the the business part, um, I did have a conversation with, um, the
property owner to the east of Garfield and, uh, he indicated his interest in working with the city to, um, purchase that property. So, um, be discussing that with the council on how they want
to proceed, timeline, things like that. That's on the south side in 18, >> correct? Yep. It would just be a continuation of uh >> ideally Commerce and Pawn View. Correct. >> So, uh east of Garfield, south of uh
Trrenium. >> And then as far as residential development, we obviously just talked about the apartment complex and then uh continuing to work with the developer of the Bixby property. um that is located on the [clears throat]
uh north west side of town. Um they had their technical evaluation panel meeting basically review the wetland information that's been submitted to us. Uh that was held uh earlier this week uh Monday morning and
there's going to be a virtual follow-up meeting um to finalize that. But that's been done. So basically the process would be once the wetland delineation is done um they are working on their uh
utilities and um what is needed to uh service the the site and then the planning process obviously we'd have a developers agreement as well identifying you know what you know the
city's requirements are and then um any fees owed to the city or if there would be any credits to the developer for uh oversizing a water man or sanitary sewer, things like that.
So if uh only those two projects go through next year, it' be a first developments in a long time. >> Absolutely. So, if there's any questions, I'd be happy to answer them.
>> I was going to ask about this daycare. This is um west of Garfield. And will they be building a building there? >> Yep. >> Um [clears throat]
will they also be asking for some tax abatement or nothing like that? >> Uh at this point, I guess I'm not sure. I know she's working on um getting cost estimates with a contractor and I would assume the next step would be to
kind of figure out financing uh on her part. >> Well, this is the first time I hear about daycare, so I was just wondering on this. >> Okay. >> Yeah, it's been discussedly for a while, but >> it seems like these days no project uh gets off the ground without some city
help. All right. Anything else on development updates? Thank you, Joel. Additional items to be discussed at upcoming meetings. Anybody have anything? Okay.
Um, so yeah, items for the 2025th agenda. I guess I kind of covered both of them with that last comment. >> Yeah, I suppose the standard 10 placeholders. I guess there's really nothing >> um
unless we want to uh start the discussion on maybe some specific goals that we'd like to achieve and it's never a bad idea. >> 26. Mhm. Unless something radical comes down the pipe in the next month.
>> Yeah. Should be pretty straightforward. >> Mhm. All right. Nobody has anything else. Accept the motion to adjurnn. >> I guess so. A motion.
>> [clears throat] >> I made I made a motion. >> Yeah. Yeah. Motion. Yeah, we have a motion. Do we have a second? >> Oh, sorry. Can I [laughter] all in favor? I >> opposed. Meetings adjourned.