Good morning. It is 8 a.m. on Tuesday, October 14th, 2025. I call this Economic Development Authority meeting to order. The first item on the agenda is roll call. We do have a quorum present. Item
2.1, EDA September 9th, 2025 minutes. So move. A second. We have a motion and a second. Further discussion. All in favor say I. I. Opposed. Motion carries. Item 3.1 administrative activities September
2025. Right. President Mark graph and commissioners um you have the report in your packet. I'll just note under the section 8 program um we did uh receive 21 enhanced vouchers for the tenants at Sunset Apartments. uh the owners opted
out of their projectbased section con section 8 contract. Um so as of October 1st um five of those vouchers are being utilized at the property. One is available to a currently unassisted tenant um that was over income and um
the other 15 were automatically converted to housing choice vouchers. So, our voucher program in total now has 204 vouchers available to serve Brown County. Um, I'll just note under the home buyer
assistance loan program, two new applications were received under the get ready loan program, one application was received. Um, and we approved that last week at our special meeting. Um and under the multifamily rental rehab loan
program um two applications were received um each in the amount of $25,000. So that will um take up the remaining funds for that program. Was it different applicants or it's um it's yes and no. It's two
separate properties, two separate LLC's, but it's the same owner. I don't have any questions. So, I'll make a motion to accept the administrative activities report for September of 2025. Second. We have a motion and a second. Any
further discussion or questions? All in favor say I. I. I. Opposed. Motion carries. Item 4.1, payment standards for section 8 housing choice voucher program. All right. Um, commissioners and president Mark graph. Uh, this is an
item we review every year. Um the Department of Housing and Urban Development issues new fair market rents for each county on an annual basis. Um we use the fair market rents um to set the payment standards for the
section 8 program. Um fair market rents are gross rent estimates that include rent and tenant paid utilities. Um, so you can see um the comparison between the 2025 FMRS and the 2026 FMRS. They
increase slightly for each bedroom size. Um, I I won't read them unless you want me to. Um, like I said, we use them for the section 8 program to determine our payment standard, which identifies the maximum
amount of rental assistance um, we can provide to a family based on their voucher size. HUD allows housing authorities to set the payment standards um, for the program within 90% to 100% of the established fair market rents for
their area. Um, with the new FMRS, um, I did an analysis of our program and, um, the goal is to have as many people on the program as possible paying 30% of their income toward their rent and utility costs. That is the way the
program is intended to work. Um, in order to do that, I did um need to go to 110% of the FMRS for the one and two-bedroom payment standards and um 103% on the three and fourbedroom payment standards. Um, so you can see uh
the numbers there. For an efficiency, I stayed at 100%, we don't have a lot of those on the program. Um, the payment standard for an efficiency or a studio apartment would be $671. A one-bedroom would be $816.
Two-bedroom $1,070. 3bedroom $1,212. And a 4bedroom $1,657. Um, as in prior years, we continue to see rents in the area increase um year after year. Um, we have a low vacancy
rate. It's a landlord's market and they're able to continue to um increasing their rent, increase the rents. Um so we recommend setting the payment standards as proposed above. Um we feel these payment standards should
be adequate for voucher holders to find suitable housing in the area and the new payment standards will be effective December 1st, 2025. Okay. There's no Go ahead, Dave. I don't have any questions. Motion to approve the updated payment standards for the section 8 housing choice
vouchure program. Second. We have a motion and a second. Any further discussion or questions? All in favor say I. I. I. Opposed. Motion carries. Thank you for your work on that. Sure. Item 5.1, public housing flat rents.
Okay. Um, same thing. When the fair market rents come out, we evaluate the flat rents for the public housing program. Um so um the public housing program are the properties that we own and manage um Broadway house apartments and then we have 10 um rental houses in
the community here in Newolm. Um we usually just um set our flat rent at the fair market rent. Um the idea is that um people that have moved into public housing, if their income goes up over time and they're um
technically over income for the program, we don't terminate their lease. They're allowed to stay, but then we do want them paying market rent if that if they can afford to. If that's 30% of their income, actually in some cases, 30% of their income would be higher than the flat rent. So, this is sort of like a
ceiling um the most that they would um have to pay if they choose to stay living in in our property. Um so, I'm recommending setting the flat rents as follows. Onebedroom 742, twobedroom 973,
3bedroom $1,177, 4bedroom $1,69. Um the idea that we um keep the flat rent at market rate is to encourage people to, you know, maybe make the choice to go out and get into home ownership or go out into another
market rate property and open up the public housing unit for someone off the waiting list. I'll make a motion to approve flat rents for the public housing program effective October 1, 2025. Second.
We have a motion and a second. Any further discussion? All in favor say I. I. I. Opposed. Motion carries. Item 5.2 EDA October 14th, 2025 claims list. [Music]
I didn't see anything unusual. So, unless there are any other questions, I'll make a motion to approve the EDA claims list for um October 14th, 2025. Second. We have a motion and a second. Any further discussion? All in favor say I. I.
I. Opposed. Motion carries. Item 6.1, commercial property rehab loan form LLC. All right. Um, typically I'm able to approve these loans, but the EDA made the decision several years ago that any
loans over $50,000 would need board approval. Um, this loan is for the full amount um we can um do under this program, $74,900, so does need board approval. Uh, the subject property is located at 203 North
Minnesota Street. It is the LLC that houses Luca Books. Um, I can't remember the coffee nom brew. Um, and they also have other space in the building they rent out to people for
things like yoga classes. And um, there's a volunteer that uses space downstairs to do bike repairs. And they're wanting to further renovate the lower level to create additional um, event and office space that can be rented out to other um, businesses to
use. um to bring in additional revenue for them. Um part of that also includes um at some point they'll convert the freight elevator to a passenger elevator for ADA access to the lower level. Um matching funds for the project will be
from one of our local lenders. Um terms of the loan are um the amount like I said $74,900 um 10-year term 2% interest rate. conditions of the loan. The property owner will sign a promisory note and mortgage um as well as a personal
guarantee um and pay the closing costs associated with the loan. Um the applications attached for your review. I'm happy to answer any questions you may have. Um the owners
are Brienne and Nick Terlson. I have reviewed this and I do have a question probably for my fellow commissioners as we look at strategic planning and looking at this. I'm not convinced that this is going to further
economic development within new. It will definitely help them and help businesses maybe that want to be in the lower level. Um, I'm just looking at ways that we can say yes, we're spending almost 75,000 and this is the economic impact it's going to have on NewM. It is quite
a bit of money, I would say. Um, in my opinion, improving those older downtown properties is in the city's best interest. We don't want those buildings falling into, you know, disrepair. They're old. They need work. I don't know, Dave, you were the former
building official. What are your thoughts? Well, the one part I did like any part of a renovation, uh, ADA access starts at the door. I do like it that the lower level ADA access with a passenger elevator. Mhm. That was one of our big items why a lot
of things could not be used on that. Comes up a lot in downtown buildings. Yeah. Um, and then Nicole, um, with a building improvement like this, would it increase the property tax revenue the city collects on a building in the
Probably not a ton. I mean, it's not going to change the value of the building that much. Okay. [Music] My thoughts would be that kind of like Heather said, keeping the integrity of the buildings is where it starts. And you can't attract good
businesses, good renters, good landlords, good building owners if you're not um taking care of these very old and fragile buildings. Um, so I would that's
um more my angle on how that supports economic development. So I would be supportive of this. It's also adding space in the downtown area for businesses to come in and operate, which has been a pretty hot commodity. There aren't a lot of downtown spaces
available um because it's it's becoming so vibrant and um that's what we want. a good vibrant downtown. So, um that's my two cents on it. I'll say I mean my comments are I guess
I I am in favor of it um for those reasons for the ADA compliancy maintaining um the integrity of the buildings. Um likely there'll be some local folks working on the project as well. I know that's not a long-term
economic impact, but um you know, if we do have the funds there for this this time around, I do I do think it's a good loan. But I do agree with Michelle like once we kind of look at strategic planning, like you know, we'll are there certain types of loans that we kind of
want to stay away from. But I mean, given it for now, I I would I would be in favor of this So, I guess I'll make a motion to um where am I? Approve with conditions a $74,900 commercial property rehab loan tom LLC.
Second. We have a motion and a second. Any further discussion? Um, I will just say that the loan uh program is a commercial property rehab loan and that's precisely what this is doing, right? Yeah. I mean, it's an existing
program. They meet the criteria for the loan. Um, you know, if you want to make changes, that's something we can look at doing in the future. But at at this time, as the program stands, this is exactly the way
it's meant to be used. Thank you for the discussion. I want to make sure that we are evaluating this as far as the EDA economic impact rather than just gut check approving it. Any further discussion?
All in favor say I. I. I. Opposed. Motion carries. Item 7.1, economic development activity report. Um I will just highlight a few items. Um at the partnership meeting last month,
we discussed the rebound partners senior housing project that's moving forward. Um and they are partnering with Oak Hills as was intended when we sold the garden terrace property to them um
in developing that outlot um for a third building. Um so that is moving forward as intended. Um one application was received for the commercial property rehab loan program um in addition to the one that was just
approved. That's a different application that um we'll be moving forward with in the future. Um, I did want to mention we h um have explored different AI platforms and we
have signed a 2-year contract with Placer AI. So, we will have access to that platform beginning in January. So, it's for year 2026 and 2027. That was an item that the city and the
EDA budgeted for. Um, so we're excited to learn how to use that program and um, help, you know, benefit our business community as they're making plans for different events and showing the
economic impact of those events on the community. Um, I guess that uh Wendy Anderson's third quarter report is attached. Um, and then next on the agenda, we have the New Brook third quarter report. And Steve's here to answer any questions you may
have. A motion to accept the economic development activity report for September 2025 activities. Second. We have a motion and a second. Any further discussion? I just had a
quick question. Does Wendy not does she um is she not required to report in person or um I can ask her to I know she's been here a few times and no one asked any questions so you know she does come over from Springfield but I can ask her to be
present at meetings if you'd like her to be. These are just ve the reports are pretty vague. So it would be probably helpful if she were in attendance or provided a little bit more detail like I guess on those reports.
Yep. I can pass that on. I do have a question about the government shutdown. Do you see any impact as far as your work? Um right now um we have have funding for
our programs through October I believe through November for public housing through mid November for section 8. So we're hoping this will be resolved before that funding runs out.
Um we'll wait and see. So, for now, the only um I mean, the website still works, but I just if I have questions, I can't contact my HUD rep at the Minneapolis field office because they're furoughed.
So, we have a motion and a second. Any further discussion or questions? All in favor say I. I opposed. Motion carries. Item 8.1, New Alm Business Resource and Innovation
Center 2025 third quarter report. Good morning. Good morning, President McGrath and commissioners. Uh I you got my report. Hopefully it's not too vague. We uh it's been a busy quarter and I
just thought I' I'd give you some quick updates uh on all the things that are happening right now. It's just and then you can ask me questions about that. Um, I know everybody's interested in our tiny home project and and it is uh it's moving along rapidly. It's taking a
little bit longer than I hoped for. Um, but basically it's been less than a year since inception. So, um, and we're pretty very very close to being able to break ground. We do uh finalized our development agreement uh with the city and it goes to city council next week
for approval. And then I think that's the last big hurdle for the uh development to continue. All our engineering uh plans are completed uh and we'll be submitting for permit and we have things out for bid right now. So
uh God willing the weather holds and we can break ground before the end of the year for sure. I I don't have a problem building through winter anyway. So um and they're small so they you get a good oneweek window. You can get a lot done on on small homes like this. So um so
that's where we are on the tiny home project. Um there are incubator project is very much alive. Uh even though the 3M construction with the big construction project that was originally planned there is is on hold right now uh due to many many
reasons. Um but the alternative sites and are being explored and we're moving along. Uh I did uh get an agreement to bring the SBDC satellite office to Newm uh which will support all of Brown
County. Um that agreement has been uh agreed on, but it's on hold right now due to the government shutdown, but I got a letter from them uh last week and passed it on to Heather that uh that's all moving forward.
We did finalize a uh uh we had a we had a request from u the Southern Minnesota Initiative Foundation, the Smith Fund that um they had money for planning for the incubator um project that could support us. And so we filed that grant
last week uh and got initial very favorable response. I gave him the budget, the timeline, everything. It's a $20,000 grant uh that that we have to match that we can match. Um so I'm hopeful that that that comes through. They're going to they're going to take
that to committee in a couple weeks. Um but that would really help with our incubator planning. The uh um they sent out a survey uh last week. Heather helped me was very appreciative to all the large businesses
in in town um regarding robotics and automation and and their needs and their workforce so that we could work on our programming for the incubator and work on our our u everything that we have to set in place so that we can support the the local
workforce and what they need because that will be a part of it in addition to the the business incubation portion. There is a international uh organizations the international business innovation association they do incubator support and uh we joined that
organization and I'm participating in a webinar with them next week to learn how they can support us in in our incubator growth. the uh CTE. We've really worked on our advisory board enhancing it to try to really promote the CTE and get it back
into the heads of ISD 888. Uh we have a um I was tasked with creating an action plan for that uh organization and and we're going to have that ready by the end of the month. I think our next meeting is October 29th.
And we've gotten a lot of support. Um, you know, we added two school board members to our advisory board. Uh, Heather from EDA came. The mayor joined. The ISD88 Foundation has since joined and Alina Health has joined. Alina
Health is very interested in in getting the nursing program in the CTE to help them and integrate with the city. So, um, in addition, we applied for a grant for the middle school for $5,000 for the robotics and automation there. We received the grant from H Heartland
Energy and we passed it on to ISD88 and then New Brick as well gave a $500 mini grant to the middle school for supplies and things for her. So anyway, so it's been very busy.
Any questions for New Brick? If construction starts on those mini homes uh this fall or early winter, uh what is uh your um timeline for occupancy? Well,
in a perfect world, they only take about six weeks to build. So, um but it's not perfect right now. So, so I'd give myself 90 days, but I I mean I would ideally want occupancy in early spring. Okay. So,
I thought the model homes can't be occupied without a storm shelter, aren't they? Just to show people what they uh I think they can be occupied. They're obtaining building permits. They're completely separate on separate lots. They've we've separated all the utilities so that they're independent,
but there's no storm shelter. I thought that was a an issue? No, I don't think so, Dave. I'm not aware of that. I'm not aware of that. Yeah. I thought I had heard that in a discussion. Okay. So, they can be occupied.
Yes. Okay. Good. Think nobody has any questions. U motion to receive the new brick 2025 third quarter report. Second. We have a We have a motion and a second. Any further discussion?
All in favor say I. I. I. Opposed. Motion carries. Thank you. Thank you. Item 9.1 adjourn November meeting due to Veterans Day holiday. So, um, we we have to reschedu this for
the following Tuesday, November 18th, um, because we won't be open on Veterans Day. I had done a doodle poll and it looks like we can get a quorum that day. So, that's the day we are going with. I'll make a motion to approve to adjourn
to Tuesday, November 18th, 2025 at 8 a.m. due to the second Tuesday in November being on Veterans Day, November 11th, 2025. Second. We have a motion and a second. Any further discussion? All in favor say I.
I. I. Opposed. Motion carries. There being no further items on the agenda, this meeting is ajourned.