this conference will now be recorded [Music] i didn't want to hear me sure that one like a cow so I have a gold hey we will officially call the meeting to order are there any additions or corrections to the agenda there are not
is there a motion to approve the agenda second all in favor i oppose motions passed meeting minutes from March 19th i was absent from the March 19th meeting
next to Brian Hogan what's that appreciate it are you present on all of the other ones okay then you probably should be motion to approve the minutes as amended
all in favor i opposed motions passed monthly financial report and account payable yes just a heads up that the we approved the hotel study so I checked for
$9,000 went out and that came from 403 from the EDA budget so that'll be in there eventually it's not in there right now because the check was just cut this week h HPS HBS thank you global Hospitality
Services i'll make a motion to approve the monthly financial report second all in favor i I oppose motions pass no public hearings old business hotel study yeah so we as
you the last meeting we approved um getting a hotel study done the last one was done in 2017 um and in doing that we I selected HBS we had three possibilities the one of the possibilities was a company that
Pan Allen is using hbs was recommended to us by Rebound the Dan's here today um and so we officially sent that in this week to get the ball rolling with that they'll be into Zumb they'll be here in
Zimrod doing research um and what they'll do is they'll basically come to the conclusion that yes a hotel will work in Zimroto or no hotel won't work in Zimro in 2017 the hotel study said yes a hotel would work one of the smaller hotels of 50 plus units not a
grand hotel uh and an example of one of those hotels that I found Cobblestone those of you that have been to Twigs in Rochester that's an example of a cobblestone company who runs hotels uh that would be an example of what we're
looking at that size so what we'll find out next month the ball's rolling now and hopefully at the meeting next month we'll have updates on the hotel we'll use that information to share with uh this group which I'll
speak about um in a little bit so that's the information on the hotel study any questions on it yeah um total cost in the study you mentioned it but I did you say 9,000 yeah so right now
the base is 9,500 and then for certain reports that you can get for that the most I believe that we would possibly spend is about 145 um but the base is 9,500 as of now okay and you said that was coming out of
which account 403 thank you and that's all I got for that discussion when do they start or do have they started or No I just got the check yesterday and I put in the mail so within the week hopefully by this time next week yeah and they say it'll take
what 60 to 90 days to get a P actually less than that i think it'll be less than 60 days oh really and they'll be in like I said they'll be interviewing Zeba and they'll be looking at different spots where a hotel would physically go within the city and they'll they'll write it up yeah should be interesting
to see what they say cuz who was the one that was in 17 do you remember the name yeah they're out of business now um Oh crap okay i didn't know i mean that's fine i just can't remember who it was so I called him his number's on there and he's retired and
he was actually taking a nap when I called so and he recommended a company HBS is out of works out of Minneapolis so it worked out pretty well there's no further discussion we'll move on to old business billboard
all right so this is I have printed off I got a hold of Ken Quattrain last week and he has listed what is it uh about seven different billboards if this is something EDA EDA
would like to do uh what I'm going to do is I'm going to leave this for us for next meeting what I want you to do is come back at your next meeting with an idea of if we do do a billboard which one would you prefer there's some of them here on 63 there's some on 52 uh
the cost is on here for the four-week rate for an example like see the four-week rate uh for this first one I'm looking at I wrote it here in pen would be $500 production cost of one time of
$1,152 last time we spent roughly $3,000 for 16 weeks and that billboard was on the south side of Canon Falls on Highway 52 so what I'm going to do is you can see where these are at our next meeting if you find a billboard
that you think would work if you do not want to do a billboard we'll vote on it next week uh that's that's fine if we do a billboard it'll come out of our promotional expenses account 403 um and then we'll work
yeah I knew you would ask that because I should have looked that up i don't so may not have enough money to do this but we'll act like we do at this point just to see what actually I'll send I'll send everybody an email this early next
week with uh the promotional budget how about that okay so we will hold table part B new business rebound presentation it is not Brett Reese though dan's here to represent rebound so
before you get started in we had a meeting todd was there brian was at the first one rebound what I want to do is I want you guys to know what rebound does uh because I'm sure that it'll leak out that we're meeting with Rebound and people you know what they're doing
they're meeting with Rebound well what is Rebound and that's what I want Dan to kind of let you know what they do uh you know to enhance the economic growth of the city uh the two meetings we've had with them have been fantastic
and I I would Dan it's safe to say that Zumbro is on the lower end of communities you deal with as far as population so um yeah what you got yeah it's nice to meet everyone um just a little background on
myself um before I come into rebound I worked at Maxfield Research Consulting i provide a housing studies and highest and best use studies all across Minnesota and the nation um worked on the DMC
um project in Rochester and um it came to my attention that you you guys have two market rate apartment developments coming up one is done this spring and that that stuck out to me because that's there's
so many communities in in greater Minnesota that can't get one you know dirt moved to build one and that's just impressive and that's very exciting um as far as rebound partners I just
kind of pull the other presentation just I won't go through it all but just showing the team uh it's Brett Ree Chris Canelli and Lori Bonn and Scott Kester um hundreds of years of experience in hotel development
um through impact investing in um greater Minnesota and Iowa if you just turn to this the community status and geography page it's probably my favorite page it just shows the communities that we worked in and the communities that
are in the pipeline and I I just think it's it's really impressive um currently we're working on two hotels in Thief Falls and Marshall and another one soon to come in Fairbell hopefully um so I
just think uh Zroto would be a great fit for it and excited to see the hospitality study when it's completed um the next page shows just our project experience with apartments
um mixeduse developments in a number of communities historic renovation and u we do commercial and industrial as well the next page just shows some of the
hotels some of our hotel experience and the next page is the really fun hotels we work challenging but very fun the next page is an example of the economic benefits of a hotel this is for
Marshall it just shows the number of jobs that are created during the development the jobs provided by the hotel and the economic activity supported annually from hotel uh I'm assuming the hotel in some broad would
be a little smaller than Yeah i think it's 50 units or less yeah yeah but it's still economic impact and this information is probably by Equ it's company Minneapolis it's nationally
recognized just showing some of the benefits of a new hotel in Zimroda read through it and you mentioned um the potential downtown development which I was very excited about and I just threw together um just some
questions and some ideas um you should be thinking about because Good Hugh County is doing a housing study is that my understanding so um once we're able to see that just really start digging in
and uh and seeing what's available one thing kind of if you kind of explain so what Rebound does correct me if I'm wrong it gets uh groups of investors together community members who want to invest in the
community and the goal would be to invest and and get an a fund going that would help bring exactly local hotel in impact investing and then you as an investor would see rates of return on your investment correct yep um for an
example we just started a fund in New and we're able to raise between um four and $5 million which is uh pretty exciting yeah so those investors own the project then
um yes they they're they're general partners yep of the project so they they see returns monthly and they're probably been required to be involved with the debt that's on that property as well
then um or no we rebound handles the big debt yep okay so do you do you run it like a capital campaign then or how does that affect how does finding those investors affect
the other things that are happening within our community um it's all private money yes correct it's all private money yes um we've had instances where the EDA has invested but it's pretty complicated
it's easier when it's it's private but but what we talked about on Tuesday a little bit is having other businesses like Comcast or DFA that can be a part of this capital improvement because they want to improve our downtown to give their workers restaurants and hotels and
their people coming in for sure so that's why they also do have businesses they try to do the capital campaign of campaigning of businesses because it makes a benefit if they have some skin in the game to help their business with meetings and hotels and food um so it's
not just personal individual it can be businesses of all different sizes um I know we talked that some of the PE minimum investments 25,000 and I think Brett had said on Tuesday there was somebody or a business that did a
million and a half or two million part of that in in the Fairbolt one or the thief river fault i can't remember which one exactly and um a lot of companies they they contribute to subordinated debt so it's a it's a
larger dollar amount but um with a lower little lower interest rate but just thinking of a hotel just having somewhere nice for for people that come into town you know to be proud of it's a it's a big impact you remember the lady
that sat next to I didn't know who she was it was the first time she I think she's from Redmond I think as well but she was she was interested because she likes the state theater would like to find a place that has something to eat and some of the businesses that were talked about
that are improving or part of their rebound could help with the different products you have is um barious property with the possible restaurant down below uh Airbnb stuff like that
um coffee mill being up for sale which has been it's out there that that's up for sale it was talked about the laundry mat was out there uh Matt Markham was there possibly something with his property too so there was some other
business owners there uh on Tuesday to discuss some different opportunities to help that downtown and rebound does help like Roxan's property um redoing that and getting restaurants open there
um there was I should have brought them papers you don't have but there's I also think it's different like this concept is is a return on people's investment where like previous things that we've been working on are really like if we're funding the pool or we're funding
something it's you know it's either we're donating to make something better but there isn't necessarily a return so I would imagine cuz I know that you know people give to the important trust and um the community band all things but like to give to something that's going to improve their town that they will
also you know possibly reap benefits from I think that's you know definitely a a a better model easier sell to get def you know new and better different things um into town versus maybe just the way we've approached it in the past
right and that's where I think you kind of cleaned up my lang language a little bit do these a project like this does it hinder our donations to our trust does it hinder the donations to the other
organizations in town i don't think it's a kind of a different a different way to give so like people who are already donating to the trust this is a an opportunity for them to donate into a project into Zumba but then also invest
investing get some return instead of like a rate off and one of the questions from one of the groups is obviously what was the cap rate in a smaller town the cap rate's not going to be as high i think Brett had said in the cities or a bigger town at 15 20%
here in some bar and probably at that 8 to 12 and I think they even talked about that at the first meeting that Brian but it was also talked about that was one of what the cap rate what what am I going to get back and obviously you can't read the future but that's kind of what they shoot for is 8 to 12% today you can't
read it but if I was doing right now say 8 and a half that's what I would start with so and I mean and I know uh Roxan and what's her husband's name steve dave dave are going to work with rebound of I
think they're working on doing a uh uh appraisal to work on that stuff to see what the market rate is on stuff like that and I think rebounds possibly and help with some investors on that we also talked on Tuesday there's four or five different restaurant groups that
maybe try to get in the I don't want to call it a supper club but Blue Duck or the Loop Group if you know the people that own the Loop restaurants um in Minneapolis no well there's a Loop 508 and there's Loop in Rochester they own
four or five restaurants uh is the Purple Goat part of that group too i don't know there was a couple of groups what that's ones yeah so there were some uh Blue Duck has been real active what's their name they even said their names
it's Jenny Parker jenny and Jack lester lester yeah so I know they're interested in trying to get in here too so um I've never had someone mention that there's not a restaurant open after
football games or sporting events for people in a restaurant open after three oh uh yeah are they well they're closed Monday Tuesdays but I mean kick out by 9 on Friday right now so really they weren't open after
the football game i mean we came back from something and they're like we talked about on Tuesday the right operator definitely crucial so like this discussion is primarily downtown so what if our hotel study comes back that there's not room for a hotel
downtown i don't think be downtown probably 52 corridor okay well that's my like everything right now that you've talked about is improving downtown like are we looking to improve anything else or bringing business anywhere else in Zamroa or are we only focusing downtown
i don't think we're focusing downtown i think downtown has been a different avenue that rebound has worked with Roxan being there um not just well Paul was down there and Matt Markham was down there that was down a different avenue that
rebound started our very first meeting but this hotel study which we talked about first we kind of went off path is going to be a corridor and in a perfect world it's going to be a better if we had a hotel attached to a restaurant because it's better and cheaper and more
economic to have a restaurant attached to a hotel on the 52 corridor because they're not going to come out here to like the skate park or something like it's going to be have to be here so Miles had brought up a couple of different locations that possibly could
be thing but yeah so hotel is definitely going to be a 52 corridor without seeing the ECS study I'm assuming they'll provide at least three sites and I'm assuming all three will be on the corridor just based on signage opportunities
is it not limited though so like we could do the hotel study and and that would be on the 52 corridor but then is there still like you would work with the downtown as well so it would not just be limited to the hotel it would be up to there there's a lot of uh investment groups in different
communities where the yeah one major project and then you know sprinkled in smaller projects within the fund so it isn't limited to just or restaurant no it's preferably three or four projects yeah that's kind of where came in what
they did to business owners in the EDA and then they found out so Roxan went down to that avenue and we as a city went down to the hotel study in the Cordell corridor and then they started talking about a couple other businesses laundry mat the coffee mill up for sale
uh Burks towing stuff like that we need one but not that we don't need the drug the drunk laundry mat laundering brainstorm right so I think I'm just curious too as a business owner but like when you are
approaching people to be investors do you approach them with a specific project in mind or do you approach them with a project as a whole we've we've done both um it's nice to have something to put in front of people but funds have
been started where there hasn't been a project in mind and um to have these brainstorming sessions come up with it was comes to mind and um the the big project there is uh I think it's 70 unit
market rate department it's first one there in 30 years so like gives an example he drove up on 694 there was four big apartment complexes 200 units all boom boom boom and wasa hasn't had
new apartments in 35 years yeah it's it's and they're what 10,000 people and and these like Sro's got two wow that's I mean you should take that town and just go from the apartment complexes so yeah it's amazing um just to to develop
because construction costs are the same everywhere but rents are not the same everywhere that's why there's where Brett was headed up that's why there's so many apartments you can get those rents you know 2,000 to 3,000 a month it's a lot of money to pay for apartment
each month yeah so it's if anybody asks what rebound is you know hopefully have a little idea what rebound does you know no negative thought of rebound at all i don't believe it's a negative thing at
this for for us at this point and they have a great website too i mean so if you want information I mean their website is great too that's I found out about it a month and a half ago because I was approached what do you think and I'm like I can see the interest the
city may have in certain parts because there was a lot of private investors so that's how this whole initial meeting happened was it March 4th i think it was our first one so I mean Yeah yeah thanks for coming down D yeah
thank you how does somebody invest like is that something that you just is it go out to our community well the church is after me right now so but nutell campaigning they do where
they have a project or they're trying to work money they will figure out who they want to go to and find out what they want to do with an actual idea or present something that here's what we want to do and there's a lot of don't
they really resolve after five ten years once this campaign does you'll get your paid out and stuff like that so I mean there's a lot of different things because I talked about that uh on Tuesday too is that how do you start that how do you know what to invest they will have a campaign or if we get this
hotel study and they find out a property and and we need to raise $3 million to get it going they'll have a campaign say this is what we have here's some drawings here's this and they'll and they'll do so that community members
know definitely right yeah and it's nice to have spokesman for it you know like people you might know that we can reach out to who decides priority what who decides priority of what like if we have a list
of six things that we want how do you decide well we're going to get a hotel before we get a restaurant or we want this restaurant in this location before we get this other part probably part of the investor's part i mean yeah I mean that's going to be invest but everything that we're hearing and seeing it's a
hotel restaurant combo is what I mean is kind of I would say is kind of what these meetings been made have focused got pushed this downtown stuff this last meeting a little bit more because that's
what they do too questions because it jos thanks to my brain but the investor meetings are fun people throwing out ideas but take those ideas run formas do the research next investor meeting present it back and
it's it's fun brainstorming and and it's fun to think what Brett said he just had two investor meetings one at four and one at five I can't remember where they're at one here and one there that that's what they do they have meetings where they want to go and how they want to push it so it's it's who knows i mean
if something works in a certain part or I mean people talk about covered bridge if the money was right i think this Tom and Cherry sell and do something there with the hotel restaurant i mean who knows i mean that was talked about too the hotel actually
motel is a hotel well been discussed i've never been in there that's not I mean not a hotel i mean concept wise it is but right so anyhoo
so I mean it could help the city as a whole and it can also help other business owners as a whole depending on which way they want to go i think um the barers are using rebound for one of their
avenues to do their thing yeah even your other housing needs i'm sure there's more housing needs than just I'm sure the market rate apartments doesn't solve everything right and I think Brent even maybe we need to talk
to color department maybe they need some financial investment part of this too so maybe that's the first thing too is we have enough investors we can raise $2 million to help department and I I don't know what that looks like but that Brett brought that up have we talked to Color
Bartman do they need financial advice or investors that's a a good first investment yeah and then I mean as an investor you can say "Hey I own part of that i own part of that hotel."
So So to the church as an EDA you know we've had a a list of strategic things that we've been trying to focus on and daycare is yes large part of that how would you potentially help us with that
uh that daycare is the the challenge of greater Minnesota what a challenge um I know Farbo um is opening a new daycare it's pod style have you heard of that where they
have the building and then there's multiple daycarees oh yeah kind of a co-op yeah yeah where they use the licenses of a number of individuals that daycare is a challenge but we can definitely work with you on that you know because there are um some buildings
um Christ Lutheran for instance is um a school that is available now is vacant that was set up really for our daycare um purposes and it has a fenced in area and everything so it's just a matter of
getting somebody excited about opening a daycare in that building yeah what a challenge the daycare is yep absolutely the more employees you have the higher the rates becomes unaffordable for people to have daycare so
if you answer that question that's a million dollar question yeah thank you yeah thank you thank you perfect yeah I wish Brett was here um I'm the the market research perform
financial analysis guy and I wish I was more [Music] exciting brett's very knowledgeable i met him and you didn't really speak on Tuesday it was Brett okay yeah so I've heard Brett speak twice and you did very good fred is very knowledgeable and has
been doing it has done different avenues yes of so many different projects and that was the first meeting that we had he talked about reop what they did and have done and different communities and what they've done to grow i mean Northfield are the two big ones they've
done a lot of projects so it was neat to see yeah um and Kenyon just took a the sunset homes they closed they redid all that open that into apartments market rate
apartments and they're selling out that's a great idea my kiddos's um apartment next fall in Pine City because their uh long-term facility closed and they turned it all into student housing oh really with a
link i'm not sure he's never going to study housing in Mano I bet oh my god um in Lassour uh the old elementary school which my wife went to we're converting into Mercury apartments
they're beautiful nice and I have to listen to my wife say "You need to do this you need to do that." And I do what I told my best yeah it's fun
all right if there's nothing else we'll move on to reports update on the Keller Bartman apartments here's the update we got from Brian andy Bartman is reviewing the TIFF developments agreement city engineer and attorney to
develop the local developers agreements basically he's got the tiff mr bartman's got the tiff he's reviewing it and that's what we've heard nothing from him since then uh and Miles and I are
working on the development agreement with Keller Bartman once we're kind of let we're not going ahead of what he's doing so once he looks at the TIFF and agrees of what's going on then we continue on it's a slow process
is there like a deadline for reviewing the TIF like you got 30 days and the agreement expires or so that's it yeah I can tell you when they'll break ground on it or
I think they're still doing final adjustments to but yeah it's close yeah it's good nothing else