[music] We're sorry. >> You have reached a number that has been disconnected or is no longer in service. [laughter] If you feel you have reached this recording in error, please check the number and try your call. How about
>> you bring family? >> All right. >> Okay. We'll call this meeting to order of the Morhead Economic Development Authority. Have a roll call, please. >> Thank you, Mr. Chair. Members present today include Anderson, Belco, Kota,
Howell, Larson, Moore, Chafield, Soilick, and White. >> Full House today. Good to see. Okay. Okay. Any agenda amendments? >> There'll be none. So, >> okay. And then we have the minutes from
last meeting. >> Call for a motion and a second on that. >> Move to approve more. >> Second. Cota. >> All in favor? >> I. >> Any opposed? Motion carries.
Citizens to be heard. Number four, Staca. Thank you so much. Uh just reporting in about the Greater MBA and what we're doing. We had a fantastic holiday social over at the American Legion here in Morehead. We had over 50 people. There
were prizes. It was a great opportunity for everybody to connect and kind of unwind. Um, we also had a member survey that went out earlier and so now we're going through and taking the results of that and finding out what the members of
the greater MBA would like as far as like changes and and what they need. Um, it covered child care, it covered uh the paid time leave. So hopefully we'll get some feedback from that and we can plan
our year from there. Thank you so much. >> Thank you Staca. Any questions from any commissioners? Okay, perfect. Then I believe I'm not mistaken the next two items um can probably skip through.
No commissioners reports. Don't believe any presentations other than Mr. Molly >> certainly if I guess this would be the leadership transition if that works. Correct. All right. Um thank you
>> chair Anderson and um EDA members. >> So this isn't fun. [laughter] Um or I shouldn't say that. I just like the way this table over here looks very much. We should maybe we can keep it that way. Um, our teammate and friend Derek Leo has accepted another job. And
so, um, I'll maybe I'll come back and talk to that about that after, uh, we get through some other business. But meaning that, um, we're moving, uh, into a transition and and frankly, we wish him and his family the best. Um, from a
community, business and development perspective, this is going to require us to stretch and try to do things in in um in new ways and reach areas of achievement that uh we um that we just have to prepare and get ready to do. And
uh this is this is what working together looks like. So, let me grab my glasses here. the uh [clears throat] so we have um as you know we've um contracted with downtown Morhead Inc. for economic development services since 2019. Uh this
person is essentially Morehead's economic direct development director and uh Matt Lysath who has served on Morehead uh downtown Morehead Inc's board um previously has uh a strong reputation as a business and community leader has uh been hired is working with
DMI to provide these services to um the economic development authority and we're looking forward to working with him on our next chapter. We're going to be getting to know Matt and hearing more from him um very soon as he uh kind of works to kind of develop these bring his knowledge and expertise on that private
side into this public side as we work um through this um through this transition. As part of it, we're going to be recommending a one-year extension to our professional services agreement with downtown Morehead, Inc. Uh for the services. Um, this agreement will be on
the Morehead City Council's January 12th um, regular uh, agenda. Uh, it includes benchmarks to measure performance that we'll be able to work on with, uh, with, uh, Matt and the board at DMI. And, um,
and so, uh, that's that's kind of the plan as far as what's happening. If we want to discuss that more, we can. And so now I think we can get back to Derek. [laughter] I think I've collected myself enough. So, I think most importantly here
uh is it it is hard to imagine this place without him because so much has happened uh in this short amount of time that we've had an opportunity to work together. Um people really like working with Derek. But probably most important is this is a this is a person who's an incredible dad and a husband. He coaches
his kids. Uh he walks with them on the golf courses. He spends time doing the co coursework. Um you'll see the way he and Lauren look at each other when you're out. you can see that there these are people who really care about each other and they care about their family which is um which is paramount in his
life. I really admire and uh respect that. Um he's been an incredible friend and a colleague. Um he works upstream. He's a true believer in Morehead. He's a he's a community champion and we see that and he's even that even comes through in his commitment to continue
the work um on our efforts in Morehead and in downtown. And so I'm going to miss our chats and our laughs and regular check-ins. His good nature. He's got this unusually strong work ethic and a great sense of humor that just makes him a joy to work with and and call a
friend. And so we wish you and your wonderful family all the best, Derek, on your new journey. And as always, know that your impact in Morehead is permanent. And cheers to you and thanks for everything. So thank you. So I'll hand it over to you if there's anything you'd like to share. >> Thank you, Dan. that was uh unexpected
and certainly not needed, but uh uh extremely grateful obviously to the friendship that we've had over the number of years. I remember uh when Dan made the move to Morehead uh and I was being recruited by Downtown Morehead, Inc. Um back it was actually in 2017. So
I I look back I was actually talking to my wife last night. Uh our son was about 6 months old at the time, our first born. So, I remember we were actually in uh Florida when I was offered the job at my in-laws uh in-law's place and I called Dan immediately and we talked for
about an hour. Uh he never said do this, come join me, please. Um but the sense of encouragement that I got from Dan and the and the leadership that he's instilled in this community was something that was uh infectious and and something I wanted to be a part of. So,
I give a lot of kudos to Dan and and certainly have enjoyed the successes that we've had over the last uh eight years and I know this city will continue to to do great things certainly under uh Matt's leadership with Downtown War Morehead, Inc. and in this economic development role. Uh but so many thank
yous to go around. Uh obviously extreme gratitude to Amy uh sitting to my right here. She's been a tremendous leader as well to the economic development efforts. so much behind the scenes uh Amy uh works on and and is efficient and
productive in what she does. Uh and I know that will continue as well too. So um also got to give a big thanks to my downtown Morhead Inc. board and believing in me uh again as a as a young kind of leader at that time uh to be given uh the ability just to create and
and figure out uh and and certainly that trust came with the city as well with the contract. uh nobody really knew what it would look like, but uh I knew that we weren't going to fail. Uh we were going to put our best foot forward and and try our best to to kind of move some
things that I think this uh community historically has been wanting to see change for quite some time too. So, uh, it hasn't always been the easiest of times as we know as a border community, but I know that, uh, where we are right now, uh, certainly within our region,
uh, within the state of Minnesota, uh, we have grown our voice, uh, and we will continue to grow our voice as we, uh, look into the next chapters, uh, over the next number of years. That being said, I'm going to transition a little bit, uh, and just, I think, outline a
little bit of, uh, just the progress that we're seeing in our downtown. Uh and then I'll turn it over to John Shockley to kind of get into specifically our our business item here on 8A. Um you know, we we we've gone through a lot. This downtown uh vision
and and plan all started uh in late 2018. Uh some of our council members, I think Debbie, you were on the council at the time, too, and we created our housing goal. Uh we we we were bold in our mission and our strategy in setting a 500 uh 500 units in five years goal.
We accomplished that. Uh we also uh took on a really heavy challenge with uh just looking at the Morehead Center Mall differently and where we sit now with a landscape that looks vastly different from the structures that sit there, but the opportunity that exists there is
quite incredible. Um I give a lot of uh credit to obviously Mr. Kevin Bartram, who's been a a a great uh ambassador and and developer and leader in our community as well with uh taking a chance on it and really setting the tone. Uh that uh 650 center building
that Matt Gilbertson, Matt Laauo, and others have invested in, it's really just the first and in and many other uh projects that are come over going to come over the the next number of years. Uh as I drove in uh to to uh downtown this morning uh kind of with that little
bit of overcast and fog, I thought it was really special to see some of the light fixtures that are uh coming up in the library community center. And you can see that beacon of of light that uh wasn't necessarily there uh for the last number of decades. Certainly as you're
driving down center um seeing this welcoming business and welcoming uh building that uh I'm eagerly looking forward to seeing filled with people as you drive down Center Avenue and um get invited in with um the the nature of the design of that building as well. I even
did a full lap. I went on the north side of Red River Avenue and um and just looking at it from the opposite side and we'll talk about you know city hall and plaza area too but um the openness that's there but also the anticipation of seeing more buildings pop up is uh is
going to be a lot of fun and I know Matt and others are going to work with the developers to get the right uh fit and the right design to make sure that that building and that design really looks uh great and complimentary to uh obviously the the great work that the library community center and Kevin Bartum has
done this project as well. Um, we've had such great investors with our our downtown Morhead, Inc. program. Uh, and and I look at, you know, who's downtown, American Crystal Sugar, uh, certainly Shields. Uh, we got new things coming with, uh, other healthcare providers,
too. There's just lots of great anticipation with what's going to come. Um, you know, we we certainly wanted more buildings to come quicker. Uh the economic environment uh certainly this last year has been a little bit more challenging uh than we would have hoped to. Um but I know we got a strong
development community that's eagerly looking at the market. Uh sees the opportunity in in downtown uh and fully anticipate uh certainly around the riverfront development and stuff around the the north side of the development to really kind of take hold uh in early 26
as well. So um there's a lot to be proud of. there's still a lot of work to be done. Um the one thing that I think I look back on too is again in 2019 into 2020 when we did our downtown master plan, we had, you know, at that point in
time before the comprehensive plan, we had record number of public engagement. The public really came out. They wanted to be a part of the conversation of what happens in this community. I truly believe the vision that's been created is built on the foundation of of the community of Morehead, the residents,
the businesses of Morehead. Uh, and again, we're trying to execute on that as well. But one thing is just setting a vision, others actually doing. And the amount of investment that's happened in this this downtown core and across our our all of our community has been
substantial. partly by by being bold, by being uh ambitious, uh by having city leadership and board members and and council members that have been consistent and certain with the execution of these projects that are coming in and asking for incentives or
for creativity in the way things are designed and the way our our finances are are streamed out. And uh we've had that consistency to build a foundation upon as well. So eagerly looking forward to what's next. Uh I'm certainly not going far and I'm going to be a huge
advocate for Morehead. Morehead's our home. Morehead will continue to be our home and uh we want to see this place thrive. So uh with that, a big thank you to our EDA members. And um maybe I'll kick it over to John Shockley who's online to get into our business item for
ADA. >> Thank you, Derek. And Mr. chair, if it's okay, I can I can proceed with the uh item 8. >> Yep. Proceed. >> All right. Thank you. Um member uh Mr. Chair and members of the uh uh EDA
board. Uh wanted to present to the board today an overview of the proposed transaction regarding the financing of city hall. Um there's no particular action for the board today. uh we wanted this to be anformational session
regarding the overall structure of the financing because it might be somewhat unusual for the EDA and I wanted to make sure that there was no questions before we actually had to start with the formal resolutions. So what is being proposed uh is uh or
referred to as uh lease revenue bonds to be sold by the EDA to finance uh the reconstruction of Morehead City Hall. Currently, as part of the redevelopment project, uh the EDA uh owns all the lots
within the development of the old the old mall. Uh that includes [clears throat] the lot upon which uh city hall currently sits. Um, as part of the reconstruction of city hall, uh, we're proposing that the EDA would
continue to own the ground underneath the city hall and then would enter into a lease agreement with the city, whereby the city uh, makes payments that are equal to the bond payments for the period of the bond. At the end of the bond term, um, the city purchases the
property for a dollar. Um there's a trustee that's proposed to be involved in the transaction. Um that's US Bank and so the trustee actually collects the rent from the city. So there's no action needed by the EDA board to collect the
rent. And the city under the proposed transaction is entirely responsible for building maintenance, building operation, building security, um all of those items. And so it's just an overall transaction to allow uh the
building to be financed. Uh we've been closely working with the city and the EDA's uh financial advisor, Baker Tilly. Uh I think Jennica had provided kind of an overview of what the uh scope of the construction would be. Uh so I'm happy
to answer any questions. Um, but wanted to kind of give an opportunity for the the board to understand the entirety of the transaction before we went through with the resolutions. >> Thank you, Mr. Shockley. Um, anything else to add? Um, [clears throat]
Derek or city manager Molly? Um, in addition to what Mr. Shockley provided? >> None. Other than this was kind of contemplated as part of the the project I believe starting in earnest in around 2019. >> Thank you. >> Yeah. Only thing I would add and and Dan just kind of hit on it and maybe it's
just for the the broader group but obviously the unique complexity that was the Morehead Center Mall with multiple different owners. Um again it was contemplated that we needed one singular ownership. certainly to be able to replplat. We talked about that as a group that it took uh well over a year
just to to plat this uh um area again. So, uh to have that consistency has been a a true piece of just moving this forward as well. All right, with that Oh, was there something else from someone?
No. Okay. Uh any questions from commissioners regarding what you heard from um city attorney Shockley or anyone else? So I believe we'll see uh action on this at next month's meeting. >> Yes, there'll be a presentation and the
resolutions will be on that agenda. >> Okay. Uh, seeing none, I think if any commissioners have any follow-up questions, um, can certainly take that offline as you, um, continue to review information and we'll see this again
next month. Okay, I think that's it really it for our meeting today. Thank you. Oh, thank I just wanted to thank u uh, Attorney Shockley for being on. And then I I know probably what Deb's going for
here, but I wanted to also say thank you to Derek uh for all the years of service and echo what city manager Maldi said. I believe all the board members um agree with those sentiments and uh we look forward to working with uh Matt going forward as well. And uh Commissioner
White. >> Thank you, Mr. Chair. I just yeah I wondered I noticed how quickly they tried to skip through from from 7 to 8 conveniently and I didn't want to let them off the hook that easily particularly let Derek off the hook that easily and so I just wondered if you
know I I know I would love to say something I didn't know if other commissioners would too but I also just wanted to take the opportunity to thank Derek for his tremendous service as you mentioned I you know I started council right around the time that you came here I was started in 2018 and I'd lived in
Morehead for 18 years. And um as much as I love that our community, you know, there were a lot of years where you just there was that frustration because things weren't happening. You know, we had a lot of vacant spaces. We had a mall that was in decline and we had
hotels that were sitting empty and uh were blighted properties. And um more than that, we spent so much time sort of either looking backwards or looking across the river. And we needed leadership that was going to think differently and move us in a different
trajectory. And and we were so fortunate to be able to get those folks. And you're one of them. And I'm going to say Dan Molly's one of those people, too, that I see that as the beginning of this change in the new growth that we see in Morehead and all of the things that we see every day happening here. And I I
thought the same thing when I drove in. I every time I look at the new buildings going up, I get excited. I think about what's happening in this spring, what's happening this fall and what's going to continue happening in the next couple years. And that wouldn't have happened if we didn't have you in that position
leading us in that. And so, um, you will be for ever able to see your mark on this community and I look forward to the contributions you will make in other capacities. But, um, I know we will be in good hands. we've got somebody coming on board who has already contributed so
much um to Morehead, but I just I didn't want to end the meeting without just again expressing my sincere gratitude. Thank you. >> Thank you, Commissioner White. Anyone else? Okay, we'll save our comments and congrats for offline. All right, and
with that, thank you all. The meeting is adjourned.