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HomeMy WebLinkAboutCommunity Development Agency - CDA-Packet-12-16-2024 Supporting Documents - 12/16/2024 OTTER TAIL COUNTY – MINNESOTA COMMUNITY DEVELOPMENT AGENCY AGENDA Government Services Center, Otter Tail Lake Room 515 West Fir Avenue, Fergus Falls, MN December 16, 2024 | 1pm CDA Board Member, Dave Schornack, will be attending the meeting virtually from Security Bank & Trust, 2202 11th St E., Glencoe, MN 55336 in the Wealth Management Conference Room 1. Call to Order 2. Approval of Agenda 3. Approval of Consent Agenda A. October 15, 2024 Regular Meeting Minutes B. October 29, 2024 Special Meeting Minutes C. November 18, 2024 Work Session Notes D. October and November 2024 Financial Reports 4. Reports and Presentations A. Director Status Report B. Committee Reports  Housing Growth and Investment (did not meet)  Workforce Support and Digital Equity  Business Development C. ‘On the Map’ Report D. Board Member Updates 5. Regular Business: A. New York Mills Community Growth Partnership Application B. Consideration of Community Growth Partnership Guidelines Modification C. Consideration of Contribution to the West Central Small Business Development Center D. Resolution Authorizing Execution of Purchase Agreements for Pinewood Estates by Executive Director E. Closed session: Authorized under Minn. Stat. Sec. §13D.05, Subd. 3, to develop counteroffers for the sale of real property located at 76000220022001 6. Discussion and Communications A. 2025 Work Plan B. Project Updates: a. The Lincoln, Battle Lake b. Pinewood Estates, Pelican Rapids c. Westridge Mall, Fergus Falls C. 2025 Board Meeting Dates D. Other Communications 7. Adjourn MINUTES OF THE COMMUNITY DEVELOPMENT AGENCY OF OTTER TAIL COUNTY Government Services Center, County Board Room 515 W Fir Ave, Fergus Falls MN 56537 October 15, 2024 Call to Order The Otter Tail County Community Development Agency convened at 1:00 p.m., Tuesday, October 15, 2024. Attendance was as follows: Present in person Present via Technology Absent Board Members: Jeff Ackerson x Dena Johnson x Val Martin x Kurt Mortenson x Dave Ripley x Betsy Roder x Lee Rogness x Heidi Samuelson x Dave Schornack x Staff: Amy Baldwin, CDA Director x Tanya Westra, Housing Program Supervisor x Erik Osberg, Rural Rebound Initiative Coordinator x Aann Christopherson, Accountant x Paula Grunewald, HRA Administrative Assistant x Others: Jordan Grossman, CEDA Consultant for Vergas and Pelican Rapids x Jay Paulson, Highpoint Homes - The Lincoln, LLC x Approval of Agenda The Agenda was to stand as presented Approval of Consent Agenda Motion by Dena Johnson, second by Jeff Ackerson to approve the Consent Agenda. Motion passed unanimously. Reports and Presentations A. Director’s Report:  Press Release on Otter Tail County Property Tax Rebate Program to promote application deadline. Pelican Rapids has requested to continue the program.  Workforce Support and Digital Equity – 48 people attended the September Workforce Convening. Empowered Worker Program monthly report reviewed and barriers of participants were discussed. Strong interest in CDL with some referrals being close to testing. OTTERTAIL COUNTY -MINNESOTA  Lender focused events are coming up with RSVP coming in; invites sent by email and direct mail.  Park Region has been awarded a Low Density Broadband Grant from the State of Minnesota to provide service to a large area in southwest part of county that is sparsely populated. Project is just under $5M and the award was approximately $3.7M. Project to be completed by 2026. C. On the Map Report Erik Osberg, Rural Rebound Initiative Coordinator, presented the “On the Map Metrics Report” from 1/1/24 thru 9/30/24. His report included: Did people see it? Did they Care? Did they Act? D. Board Member Updates CDA Commissioners, Dena Johnson, stated that both roundabouts in Pelican Rapids were to be finished that week; Dave Schornack stated that in Perham a lot of businesses have been adversely affected by road construction; Dave Ripley stated that the water and sewer are in place in Pelican Rapids. Regular Business Items A. Vergas Community Growth Partnership Application Amy Baldwin, CDA Director stated the City of Vergas was requesting a grant in the amount of $25,000 for Business Façade Improvement in Vergas. Matching funds would be provided by a $15,000 CEDA grant as well as $5,000 each from the Vergas Community Club and Vergas State Bank. Loans would be forgivable over 5 years. She also stated that Jordan Grossman, representing the Vergas request, was available virtually if there were any questions. Staff recommends approval. Motion by Kurt Mortenson, second by Lee Rogness to approve the grant request and direct staff to prepare necessary agreement with the City of Vergas for signature. Motion passed unanimously. B. Pelican Rapids Community Growth Partnership Application Amy Baldwin, CDA Director stated that the City of Pelican Rapids was requesting a grant in the amount of $25,000 for Business Façade Improvement in Pelican Rapids. This is similar to the Vergas application. Matching funds would be provided $25,000 through Pelican Rapids EDA. Motion by Dena Johnson, second by Val Martin to approve the grant request and direct staff to prepare necessary agreement with the City of Pelican Rapids for signature. Motion passed unanimously. C. Battle Lake Youth Center / The Lincoln Amy Baldwin, CDA Director stated that Jay Paulson, Highpoint Homes – The Lincoln, LLC. was available virtually for questions. She gave an overview: the property was purchased in October 2023, CDA removed asbestos, cleared the site, solicited a Developer, entered into a MOU with the City of Battle Lake and Highpoint Homes and the City applied for funds through the Minnesota Housing Workforce Housing Program for a 10 unit workforce housing project. A letter of Intent in the amount for $18,600 to Highpoint Homes for the purchase of the property was authorized. Highpoint Homes established the Lincoln, LLC for the project. The developer has requested a gap loan through CDA’s Multi-Family New Construction Loan program in the amount of $495,000. The loan will be repaid through tax increment generated by the project. State statutes requires that a public hearing must be held prior to the sale of property. i. Call for Public Hearing regarding the sale of CDA property at 106-108 N. Lincoln Ave., Battle Lake, MN. Motion by Lee Rogness, second by Dave Ripley to approve holding a Public Hearing on Monday, November 18 at 1:15pm with a notice to be placed in the Daily Journal. Motion passed with Ackerson, Johnson, Mortenson, Ripley, Rogness, Samuelson and Schornack voting in the affirmative and Martin abstaining from the vote. After further discussion this motion was retracted (see iii). Revised motion by Lee Rogness, second by Dave Ripley to approve holding a Public Hearing on Tuesday, October 29 at 11:00am at the Operations Center, Ottertail, MN with a Joint Session to follow. A notice will be placed in the Daily Journal. Motion passed with Ackerson, Johnson, Mortenson, Ripley, Rogness, Samuelson and Schornack voting in the affirmative, with Martin abstaining from the vote. ii. Development Agreement for The Lincoln Amy Baldwin, CDA Director stated that the TIF agreement will be with the City of Battle Lake, The Lincoln and CDA. The CDA should be able to recoup costs that are not covered in the sale of property within the 22 years remaining in the redevelopment TIF district. 90% of net new taxes paid by the development (increment). CDA receives direct repayment of costs incurred related to acquisition and demolition (less the purchase price). Motion by Dena Johnson, second by Kurt Mortenson to approve the basic form as we still need loan terms and the final contract. Motion passed with Ackerson, Johnson, Mortenson, Ripley, Rogness, Samuelson and Schornack voting in the affirmative, with Martin abstaining from the vote. iii. Gap Loan Application: The Lincoln Amy Baldwin, CDA Director, stated that the draft of loan application was in the packet. The proposed terms is $495,000 at 0%, repaid through an assignment of the developer’s tax increment financing payments. Repayments would start in 2027. Commissioners requested that a personal guarantee be included. Jay Paulson, The Lincoln, LLC developer, stated he is a Battle Lake native, has been constructing properties on his own since 1999, and has built a 16 unit in Battle Lake that he owns and manages. He stated that numbers are coming in high for the 10-unit apartment building with a projected cost of $2.4M. The site is 1 block off Main St. and will be 3 stories with an elevator. He also asked if there was any chance to start earlier. Amy Baldwin, CDA Director stated time is of the essence and that the Public Meeting could be moved Tuesday, October 29 at 11:00am at the Operations Center, Ottertail, MN with a Joint Session to follow. Motion by Kurt Mortenson, second by Jeff Ackerson to approve the gap loan with a personal guarantee from Mr. Paulson. Motion passed with Ackerson, Johnson, Mortenson, Ripley, Rogness, Samuelson and Schornack voting in the affirmative, with Martin abstaining from the vote. D. Pinewood Estates Lots i. Affirm three lots for CDA house construction and general design criteria. Amy Baldwin, CDA Director stated the infrastructure has been installed in Pelican Rapids. The water, sewer, street, etc., storm management should be completed by the end of the month. The Pelican Rapids Housing Study indicates that the average age is 37, homes need to have 3+ bedrooms and be affordable. Residents are interested in home ownership with barriers of lack of affordable options and lack of availability. Support is needed in financial assistance and housing counseling. The recommendation is to build homes that are 3 bedroom, 2 bath, 1300- 1400 sq ft. upper level, with lower level unfinished. basement to include 2 egress windows and roughed in plumbing for future bedrooms and a bathroom. The remaining lots will be listed for sale. The board affirmed concurrence with the recommendation. All Commissioners were in favor. Discussion and Communications A. Redevelopment Opportunity The potential redevelopment of the West Ridge Mall was discussed. Special funding through the State of Minnesota is currently available to support projects in Fergus Falls due to the economic impact of the Hoot Lake Power Plan closure. The County is working as a partner with the City of Fergus Falls. An application is being prepared to support the acquisition and selective demolition of the property. Commissioners commented that this could become a community asset and is a great opportunity for redevelopment. B. Other Communications - none C. Upcoming meeting:  October 29 at 11:00 a.m. CDA Public Hearing and Joint Work Session with CDA and OTLCA Board at Sheriff’s Operations Center, 469 Main Street, Ottertail, MN  Monday, November 18, 2024 @ 1:00 p.m., Commissioner’s Room, Government Services Center with HRA Board meeting @ 11:45 a.m. Adjourned Meeting adjourned at 2:30 p.m. MINUTES OF THE COMMUNITY DEVELOPMENT AGENCY OF OTTER TAIL COUNTY Sheriff’s Operations Center 469 Main Street, Ottertail, MN October 29, 2024 Call to Order The Otter Tail County Community Development Agency convened at 11:00am, Tuesday, October 29, 2024. Dave Schornack, CDA Board Chair, led the meeting. Attendance was as follows: Present in person Present via Technology Absent Board Members: Jeff Ackerson x Dena Johnson x Val Martin x Kurt Mortenson x Dave Ripley x Betsy Roder x Lee Rogness x Heidi Samuelson x Dave Schornack x Staff: Amy Baldwin, CDA Director x Sarah Schake, Project Manager x Paula Grunewald, HRA Administrative Assistant x Approval of Agenda The Agenda was to stand as presented. Public Hearing A Public Hearing was held regarding the Sale of Property at 106-108 N. Lincoln Avenue, Battle Lake, MN and was opened by Chair Schornack at 11:02 a.m. Chair Schornack asked the public three times if there were any comments. No comments were provided, and the hearing was closed at 11:04am. Regular Business A. The Purchase Agreement Regarding the Sale of 106-108 N. Lincoln Avenue, Battle Lake. Motion made by Leland Rogness, seconded by Jeff Ackerson, to approve the sale and conveyance of real property and authorizing the execution of a Purchase Agreement and other actions related thereto with the sale of 106-108 N. Lincoln Avenue to The Lincoln, LLC. Motion passed, with Ackerson, Ripley, Rogness, Samuelson and Schornack in favor and Martin abstaining. Discussion and Communications A. Upcoming Meetings:  November 18, 2024 (Monday) at 1:00 p.m., Commissioner’s Room, Government Services Center with HRA Board meeting beginning at 11:45 a.m. Adjourned Meeting adjourned. OTTERTAIL COUNTY -MINNESOTA MINUTES OF THE COMMUNITY DEVELOPMENT AGENCY OF OTTER TAIL COUNTY WORK SESSION November 19, 2024 The Otter Tail County Community Development Agency Work Session convened at 1:00 p.m., Tuesday, November 19, 2024. Attendance was as follows: Present in person Present via Technology Absent Board Members: Jeff Ackerson x Dena Johnson x Val Martin x Kurt Mortenson x Dave Ripley x Betsy Roder x Lee Rogness x Heidi Samuelson x Dave Schornack x Staff: Amy Baldwin, CDA Director x Tanya Westra, Housing Program Supervisor x Sarah Schake, Project Manager x Aann Christopherson, Accountant x Paula Grunewald, HRA Administrative Assistant x Erik Osberg, Rural Rebound Initiative Coordinator x Reports and Presentations A&B Director’s & Committee Report:  The Countywide Property Tax Rebate Program will no longer accept applications after the end of this calendar year. Lumber yards and other referral partners will be informed of the deadline date. Two communities – Pelican Rapids and Ottertail intend to continue the program for non- lakeshore residents.  State Housing Tax Credit Contribution Fund – open for contributions until December 6. North Fields Open House on Friday, November 22.  Monthly Empowered Worker Program Report – 26 people are active in the program. Testing for participants has occurred in CDL, Otter Tail Power has had job shadowing, and Lund Boats has hired participants. In 2025, we are looking for more Employer Partners.  Childcare - Currently there is one Child Care Emergency Grant submitted.  Business Development o The Lender Convenings were held Friday, November 15. o Westridge Mall – Funding application has been submitted to DEED. o Plans to push on Agriculture Focused Business Development in 2025. C. On the Map Report – Erik Osberg, Rural Rebound Initiative Coordinator, reported on the “On The Map Metrics Report”. He also highlighted the new video ‘What is the Rural Rebound Initiative’ OTTERTAIL COUNTY· MINNESOTA Discussion and Communications A. Housing Project Updates Pinewood Estates (Pelican Rapids)  Infrastructure is complete. Discussion on promotional handouts including aerial shots, GIS, overlay plat. The Lincoln (Battle Lake)  Possibly closing on Friday – waiting for tax ID number for developer. B. Joint CDA-OTLCA Meeting Recap Nick reviewed the resorts and how to make preservation happen. The next step is to bring the resorts together. C. 2025 Initiatives and Priorities Amy would like to see the work plan more laid out and asked “what are the priorities?” as they will needed to be balanced for staff capacity. D. 2025 Meeting Dates A survey will be sent out to determine meeting dates in 2025 – Monday or Tuesdays have not been working. May need to split meetings up between CDA and HRA. Other items discussed:  Lee Rogness and Dave Ripley terms will be up January 1, 2025.  The CDA Housing Committee needs to move the December 9th meeting date. Upcoming meeting: Monday, December 16, 2024 @ 1:00 p.m., Commissioner’s Room, Government Services Center with HRA Board meeting @ 11:45 a.m. FUND 23 705 Dept Community Development Agency OCTOBER VARIANCE 2024 2024 YTD POSITIVE/2022 2023 Revenues BUDGET ACTUAL (NEGATIVE)ACTUAL ACTUAL PROPERTY TAXES 541,800$ 499,626$ (42,174)$ 502,899$ 533,366$ GRANTS/OTHER REVENUES/INTEREST 3,000$ 2,849$ (151)$ 2,848$ 4,061$ GENERAL LEVY TRANSFER -$ -$ Total Revenues 544,800$ 502,475$ (42,325)$ 505,747$ 537,427$ Expenditures PER DIEM 12,960$ 9,540$ (3,420)$ 10,335$ 8,640$ PUBLISHING & ADVERTISING 9,000$ 1,780$ (7,220)$ 4,629$ 2,009$ MEMBERSHIP DUES 5,000$ 4,070$ (930)$ 3,025$ 4,195$ REGISTRATION FEES 2,000$ 1,583$ (418)$ 1,510$ 1,675$ ELECTRIC -$ -$ -$ -$ 200$ AUDIT COST 2,300$ 1,152$ (1,148)$ -$ 1,204$ CONTRACTED SERVICES 300,140$ 123,964$ (176,176)$ 163,614$ 249,345$ MILEAGE 4,000$ 2,500$ (1,500)$ 2,064$ 2,321$ MEALS AND LODGING 7,000$ 1,384$ (5,616)$ 5,944$ 5,645$ LIABILITY INSURANCE 2,400$ 2,804$ 404$ 2,309$ 2,568$ MISC CHARGES -$ -$ -$ 179$ -$ OFFICE SUPPLIES -$ -$ -$ -$ 24,461$ COMMUNITY GROWTH PARTNERSHIP GRANT 200,000$ 56,000$ (144,000)$ 3,443$ 55,752$ BATTLE LAKE YOUTH CENTER REDEVELOPMENT -$ 38,378$ 38,378$ -$ 25,076$ PELICAN HIGHWAY DEVELOPMENT - PRE TIF DISTRICT -$ 36,936$ 36,936$ -$ 2,142$ PELICAN HIGHWAY SITE DEVELOPMENT - TIF 8,250$ PELICAN HIGHWAY DEVELOPMENT - IMPACT FUND -$ 386$ 386$ -$ -$ Total Expenditures 544,800$ 288,726$ (264,324)$ 197,052$ 385,233$ Revenue 544,800$ 502,475$ 505,747$ 537,427$ Expenditures 544,800$ (288,726)$ 197,052$ 385,233$ Obligations -$ (925,253)$ Net/Unallocated -$ (711,504)$ 308,694$ 152,194$ Fund Balance - Beginning 1,321,505$ 860,617$ 1,169,311$ Fund Balance - Ending 610,002$ 1,169,311$ 1,321,505$ FUND 23 706 Dept Non Special Benefit Levy Programming OCTOBER VARIANCE 2024 2024 YTD POSITIVE/2022 2023 Revenues BUDGET ACTUAL (NEGATIVE)ACTUAL ACTUAL PROPERTY TAXES -$ -$ -$ -$ -$ GRANTS/OTHER REVENUES/INTEREST 200,000$ 212,000$ 12,000$ 2,000,000$ 200,000$ Total Revenues 200,000$ 212,000$ 12,000$ 2,000,000$ 200,000$ Expenditures PUBLISHING AND ADVERTISING 1,000$ -$ 1,000$ -$ 209$ ELECTRIC 500$ -$ 500$ -$ 565$ GAS AND OIL 400$ -$ 400$ -$ 400$ WATER AND SEWER 600$ -$ 600$ -$ 408$ CONTRACTED SERVICES 50,000$ 14,283$ 35,718$ -$ 17,671$ INFRASTRUCTURE -$ -$ -$ -$ 100,000$ COMMUNITY GROWTH PARTNERSHIP GRANT -$ 158,559$ (158,559)$ -$ -$ DOWN PAYMENT ASSISTANCE 24,000$ 25,080$ (1,080)$ -$ HOUSING REHABILITATION -$ 30,046$ (30,046)$ -$ MISC -$ 86$ (86)$ 12,245$ 16$ Total Expenditures 76,500$ 228,053$ (151,553)$ 12,245$ 119,269$ Revenue 200,000$ 212,000$ 2,000,000$ 200,000$ Expenditures -$ (228,053)$ 12,245$ 119,269$ Obligations -$ (495,000)$ -$ -$ Net/Unallocated 200,000$ (511,053)$ 1,987,755$ 80,731$ Fund Balance - Beginning 2,068,486$ -$ 1,987,755$ Fund Balance - Ending 1,557,433$ 1,987,755$ 2,068,486$ Obligations INFRASTRUCTURE -$ -$ -$ MF GAP LOAN 495,000$ DOWN PAYMENT ASSISTANCE -$ -$ -$ Total Obligations -$ 495,000$ (495,000)$ FUND 23 705 Dept Community Development Agency NOVEMBER VARIANCE 2024 2024 YTD POSITIVE/2022 2023 Revenues BUDGET ACTUAL (NEGATIVE)ACTUAL ACTUAL PROPERTY TAXES 541,800$ 537,422$ (4,378)$ 502,899$ 533,366$ GRANTS/OTHER REVENUES/INTEREST 3,000$ 3,202$ 202$ 2,848$ 4,061$ GENERAL LEVY TRANSFER -$ -$ Total Revenues 544,800$ 540,624$ (4,176)$ 505,747$ 537,427$ Expenditures PER DIEM 12,960$ 9,540$ (3,420)$ 10,335$ 8,640$ PUBLISHING & ADVERTISING 9,000$ 1,780$ (7,220)$ 4,629$ 2,009$ MEMBERSHIP DUES 5,000$ 4,070$ (930)$ 3,025$ 4,195$ REGISTRATION FEES 2,000$ 1,583$ (418)$ 1,510$ 1,675$ ELECTRIC -$ -$ -$ -$ 200$ AUDIT COST 2,300$ 1,152$ (1,148)$ -$ 1,204$ CONTRACTED SERVICES 300,140$ 123,964$ (176,176)$ 163,614$ 249,345$ MILEAGE 4,000$ 2,500$ (1,500)$ 2,064$ 2,321$ MEALS AND LODGING 7,000$ 1,545$ (5,455)$ 5,944$ 5,645$ LIABILITY INSURANCE 2,400$ 2,804$ 404$ 2,309$ 2,568$ MISC CHARGES -$ -$ -$ 179$ -$ OFFICE SUPPLIES -$ -$ -$ -$ 24,461$ COMMUNITY GROWTH PARTNERSHIP GRANT 200,000$ 86,000$ (114,000)$ 3,443$ 55,752$ BATTLE LAKE YOUTH CENTER REDEVELOPMENT -$ 38,977$ 38,977$ -$ 25,076$ PELICAN HIGHWAY DEVELOPMENT - PRE TIF DISTRICT -$ 36,936$ 36,936$ -$ 2,142$ PELICAN HIGHWAY SITE DEVELOPMENT - TIF 8,250$ PELICAN HIGHWAY DEVELOPMENT - IMPACT FUND -$ 386$ 386$ -$ -$ Total Expenditures 544,800$ 319,486$ (233,564)$ 197,052$ 385,233$ Revenue 544,800$ 540,624$ 505,747$ 537,427$ Expenditures 544,800$ (319,486)$ 197,052$ 385,233$ Obligations -$ (925,253)$ Net/Unallocated -$ (704,115)$ 308,694$ 152,194$ Fund Balance - Beginning 1,321,505$ 860,617$ 1,169,311$ Fund Balance - Ending 617,391$ 1,169,311$ 1,321,505$ FUND 23 706 Dept Non Special Benefit Levy Programming NOVEMBER VARIANCE 2024 2024 YTD POSITIVE/2022 2023 Revenues BUDGET ACTUAL (NEGATIVE)ACTUAL ACTUAL PROPERTY TAXES -$ -$ -$ -$ -$ GRANTS/OTHER REVENUES/INTEREST 200,000$ 212,000$ 12,000$ 2,000,000$ 200,000$ Total Revenues 200,000$ 212,000$ 12,000$ 2,000,000$ 200,000$ Expenditures PUBLISHING AND ADVERTISING 1,000$ -$ 1,000$ -$ 209$ ELECTRIC 500$ -$ 500$ -$ 565$ GAS AND OIL 400$ -$ 400$ -$ 400$ WATER AND SEWER 600$ -$ 600$ -$ 408$ CONTRACTED SERVICES 50,000$ 15,283$ 34,718$ -$ 17,671$ INFRASTRUCTURE -$ -$ -$ -$ 100,000$ COMMUNITY GROWTH PARTNERSHIP GRANT -$ 207,117$ (207,117)$ -$ -$ DOWN PAYMENT ASSISTANCE 24,000$ 25,080$ (1,080)$ -$ HOUSING REHABILITATION -$ 57,342$ (57,342)$ -$ MISC -$ 86$ (86)$ 12,245$ 16$ Total Expenditures 76,500$ 304,907$ (228,407)$ 12,245$ 119,269$ Revenue 200,000$ 212,000$ 2,000,000$ 200,000$ Expenditures -$ (304,907)$ 12,245$ 119,269$ Obligations -$ (495,000)$ -$ -$ Net/Unallocated 200,000$ (587,907)$ 1,987,755$ 80,731$ Fund Balance - Beginning 2,068,486$ -$ 1,987,755$ Fund Balance - Ending 1,480,579$ 1,987,755$ 2,068,486$ Obligations INFRASTRUCTURE -$ -$ -$ MF GAP LOAN 495,000$ DOWN PAYMENT ASSISTANCE -$ -$ -$ Total Obligations -$ 495,000$ (495,000)$ DATE: December 11, 2024 TO: CDA Board of Directors FROM: Amy Baldwin, Community Development Director SUBJECT: Director Status Report Housing Growth Initiative / The Big Build: Tax rebate program: 88 applications year-to-date: 14 in Fergus Falls, 5 in Ottertail, 2 in Vergas, 2 in Pelican Rapids, 1 in Dalton, and balance from township areas. Approximately $180,000 in property tax rebates will be paid before the end of the year. To date, the Cities of Pelican Rapids and Ottertail have officially requested the County’s partnership on local tax rebate programs for eligible new single family homes. November Housing Convening was attended virtually by 35 people from various housing partner organizations. Topics of discussion included MN Housing Local Government Housing Programs, State Housing Tax Credit Program, and a project highlight on The Lincoln in Battle Lake. Workforce Support Strategy / OTC Works: The Empowered Worker Program has received 50 referrals as of December 2. Active participants are enrolling in M State spring semester courses, completing training, and looking for job placements. The program had our first participant successfully complete a credential (passed his CDL road test and received his CDL endorsement) and obtain employment. (See attached monthly report) Business Development: Lender Convenings were hosted on November 15 with 38 lender and partner attendees. Presenters from the Small Business Development Center, West Central Initiative, SBA, Midwest Minnesota Community Development Corporation, Clean Energy Resource Teams, City of Perham and City of Fergus Falls emphasized collaboration for small business clients. Gap funding and stacking financial resources to serve business clients was a key message. Received notification of $650,000 award from DEED Community Energy Transition Grant to support redevelopment planning of the Westridge Mall property. Staff is working to revise budgets and work plans to align with the partially funded request. Child Care: First Children’s Finance published the 2024 Child Care Needs Analysis showing a 7% decrease in child care capacity, 4% decrease in number of children under 5, and overall child care need of 1,135 spots. (see attached) Attachments: Empowered Worker Monthly Report Child Care Needs Analysis: 2020-2024 > > > > > > > > > 218-998-8060 ® COMMUNITY DEVELOPMENT AGENCY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER LIVE YOUR best life HERE. Government Services Center 520 West Fir Avenue Fergus Falls, MN 56537 @ ottertailcounty.gov CDA Workforce Committee Update Empowered Worker Program Date: December 2, 2024 50 referrals received to date Participants Seeking Employment Only: 14 Participants Seeking Training and Employment: 36 Program Eligibility/Barriers to Employment and/or Training: 39 Number of participants with a Criminal Record 10 Number of participants with a Disability 19 Number of participants with Unstable Housing 2 Number of participants with Limited English Proficiency 46 Number of participants at or below 200% of the Federal Poverty Guideline Summary: The Empowered Worker Program has received eight additional referrals since we last met, bringing the total referral county to 50. Of those, 30 are currently active and engaged in the program. Those that are not engaged are individuals that obtained employment on their own and no longer request services, are non-responsive to outreach, or returned to jail and/or substance abuse. Of the 30 on the active caseload, 11 are actively job searching, and 18 are either enrolled in a credential/certification program or planning to enroll. Recent Success Story #1: A referral from the Children & Family department of Human Services is a stay-at-home mom with six children 10-years old and older. Now that her children are all in school full-time, she is ready to re- enter the workforce. Her last job was 15 years ago at a gas station. She has a minimal criminal background and no driver’s license. She wants to get her CNA and work at Lake Region Healthcare, which is walking distance from her house. She requested to take the CNA course with her daughter (a 17-year old high school student). After some searching, we were able to find different funding through Human Services to pay for her daughter’s CNA class, and the Empowered Worker program would pay for the participant’s. The two are scheduled to go through the CNA training in Fergus Falls starting in December, and both plan to work following receipt of the certification. Recent Success Story #2: An early referral from the Children & Family department of Human Services succeeded all of the steps leading up to the CDL Road test, secured fulltime daycare, secured an in-town part time truck driving job, and then failed the road test due to taking too many turns to park “in the box”. After she failed the road test, and 45 40 c 35 5 30 u c 25 :120 "i:i t: 15 "' c.. 10 5 0 Total Number of Referrals by Division 41 Human Services 3 -Minnesota Department of Correction 5 -Probation Referring Division 1 Self 25 C: ::, 20 8 15 c: 10 "' C. 5 'ij t 0 "' 0. Total Number of Referrals by Department 20 9 3 4 5 2 -4 ---• Referring Department 2 - after speaking to Vector Windows about how important it is for these participants to have people in their corner, Vector called the participant to let her know that they are going to wait for her to take her CDL test re-take. They feel she is a great candidate for the position, would fit in great with the team, and the work hours fit in exactly with what the participant is looking for. The program paid for an additional 10 hours of training focused on backing up, and she is re-taking the road test on Dec 9th. Supportive Services Provided to date: Laptop Computer (8) Cell Phone (2) Gas Card (8) Internet Bill (5) Transportation Auto Repair (2) Electric Bill (5) Phone Bill (4) Incentive Gift Card (12) Copy of Birth Certificate (4) School Supplies Work Clothes (7) Child Care Assistance Emergency Financial Assistance (2) Vehicle Repair (3) Credentials Enrolled or In Progress: Credential Status Projected Completion Date Funding Source CDL In Process 12/09/24 D45 CDL In Process 12/15/24 D45 CDL In Process 12/31/24 D45 CDL In Process 2/15/25 D45 IRS Enrolled Agent Testing 01/01/25 NTRA Boiler Operator License Tested 01/15/25 NTRA CNA (x2) Enrolling 02/15/25 D45 IT Cybersecurity (x2) Enrolling 12/15/25 NTRA Licensed Addiction & Dependency Counselor (2) Enrolling 12/20/26 NTRA Skin Esthetician Enrolling 5/15/25 NTRA Credentials Completed: Credential Projected Completion Date Funding Source Boiler Operator License 11/06/24 NTRA Job Shadows Completed: Otter Tail Power, Line Personnel Lake Region Healthcare (Nursing and EMT) Perham Health (Lab, Radiology, Nursing, EMS, Med/Surge) Otter Tail Power, Cybersecurity (x2) Job Placements Pending (In conversation with Employer): Green Plains, Fergus Falls – Boiler Operator Apprenticeship (Two positions) Vector Windows – Part-time CDL Smith & Sem, Fergus Falls – Enrolled Agent Job Placements: BIMBO Bakeries – FT Production Carr’s Tree Service – FT Labor Brunswick, NYM Operation – Welder in Training Fleet Farm – Cashier/Stocker 3,000 2,500 2,000 1,032 1,500 1,000 500 0 2020 Child Care Needs Analysis 2020-2024 1,059 1,035 2021 2022 1,123 2023 -capacity -child Care Need -Total Children Under 5 1,135 2024 Workforce Support & Digital Equity Committee Meeting Notes Date/Time: December 2 @ 2pm Committee members: Kurt Mortenson (in person), Dave Ripley (in person) Outline of key actions discussed: 1.Empowered Worker Program update a. Received 50 referrals as of December 2 and common referring departments/partners include human services (children and family) and the jail (behavioral health). b.Discussion about interest from community organizations to be able to refer participants that do not have existing relationship with County staff. Committee recommended continuing to focus on county-served clients to maintain the quality of in-depth navigator services c.Workforce Navigator providing education to employers about overcoming barriers and the importance of having people in your corner for participants d.Discussion about supportive services and incentives provided when training milestones are reached and job shadows are completed 2.Review Child Care Emergency Fund application a.Committee approved application as it aligned with program guidelines and goals 3.Discussion of plans for Child Care Project Managers a.Existing project manager contracts expire at the end of December b.City of Fergus Falls is seeking contracted project manager for project-specific work c.Staff will look into additional West Central Initiative funding and provide recommendation after conversations with current project managers 4.Review First Children’s Finance 2024 Child Care Needs Analysis data Next meeting: Tuesday, January 7 @ 9am 218-998-8060 ® COMMUNITY DEVELOPMENT AGENCY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER LIVE YOUR best life HERE. Government Services Center 520 West Fir Avenue Fergus Falls, MN 56537 @ ottertailcounty.gov Business Development Committee Meeting Notes Date/Time: December 4 @ 2pm Committee members: Dave Schornack (virtual), Heidi Samuelson (virtual) Outline of key actions discussed: 1. Recap of Lender Convenings a. Good attendance at both convenings from lenders and business development partners b. Discussion about sharing resources directly with businesses in the future 2. Review updated business development page on the County’s website 3. Community Growth Partnership Grant a. Review New York Mills application request for $25,000 to expand the Downtown Revitalization Grant Fund i. Existing funds available have been committed to projects and the city has identified additional interest from downtown businesses ii. Committee was supportive of the application pending revisions to the eligible uses within the guidelines b. Discuss guidelines regarding non-profit commercial rehabilitation projects i. Committee recommended having a discussion with the full board with the recommendation not to expand program eligibility to non-profits 4. Update on mall project a. Received award notification from DEED for the Community Energy Transition Grant. $650,000 was awarded which is less than the $1 million request, so staff is working with the City of Fergus Falls and partners to revise the work plan and budget. b. Discussion about project next steps and the role of new Fergus Falls mayor and council members in project progress Next meeting: TBD 218-998-8060 ® COMMUNITY DEVELOPMENT AGENCY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER LIVE YOUR best life HERE. Government Services Center 520 West Fir Avenue Fergus Falls, MN 56537 @ ottertailcounty.gov OTTER TAIL COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION December 16, 2024 BOARD MEETING DATE AGENDA ITEM #5A Amy Baldwin 12/11/2024 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Authorize approval of the grant request and direct staff to prepare necessary agreement with the City of New York Mills for signature PROPOSED REQUEST/JUSTIFICATION An application has been submitted for the CDA’s Community Growth Partnership Grant Program from the City of New York Mills. Following is a summary of the application; attached is the application.  City of New York Mills – Downtown Revitalization Program o Project overview: The City is seeking a grant in the amount $25,000 to support the re- establishment of a fund that would be available to businesses in the downtown area to use to enhance their store fronts as well as eligible interior projects that will benefit the community. The funds previously awarded to the City have all been committed to projects. The projects funded are listed in the attached. Matching funds for this request would be provided by the New York Mills EDA. o Requested amount: $25,000 o Attached are the initially proposed guidelines, which have been revised to include interior uses. The City is working on updated the revised guidelines to ensure consistency with the allowed uses to be consistent with the uses allowed based on the source of CDA grant funding. Applicants to the program would be required to provide their own matching funds on a $1 to $1 basis as well. The funding would be structured as a forgivable loan, forgiven at a rate of 20% per year for five years. Commercial rehabilitation is a permitted use of the funds. The Business Development Committee reviewed at its December 4 committee meeting and recommended approval. Staff also recommends approval, contingent on receipt of the revised guidelines and the authorizing resolution from the City Council. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED: EXECUTIVE DIRECTOR DATE: Amy Baldwin 12/11/2024 ATTACHMENT LIST: a. Application b. Draft Program Guidelines c. Funded Projects To Date FINANCIAL IMPLICATIONS: TBD BUDGETED: X YES NO FUNDING: Community Growth Partnership Program Funds COMMENTS OTTER TAIL COUNTY -MINNESOTA 2024 Community Growth Partnership Grant Application GENERAL INFORMATION Project Name: City of NYM 2025 Downtown Revitalization Grant Fund Project Type: Planning Activity D Commercial Rehabilitation ~ Affordable Housing D Redevelopment D Applicant City/Township: _C~ity,__of_N_ew_Y_o_r_k_M_il_ls _____________________ _ Application /Project Contact: _J_u_l_ie_R_o_b_e_rt_s _______________________ _ Contact Email Address: Cityclerk@cityofnewyorkmills.org Phone Number: 218-385-2213 ---------------------------------- Authorized Official(s) for Execution of Contract (name and title): Julie Roberts, City Clerk Treasurer or Marsha Maki, Mayor How much funding is being requested? $ $25,000 ~~---------------------- PI ease provide a brief statement summarizing the proposal that will be reviewed as part of the approval process. Also include in the summary where this project is in the process (i.e., City process, site control, etc.). The City of New York Mills would like to create a grant fund for business in the community for the enhancement of their businesses both on the exterior and interior projects. Interior projects must meet the criteria of rehabilitation of commercial property that is linked to the elimination or preventions of blight, or correction of building code deficiencies. The funds received from the CDA on the application in 2023 for business revitalization have all been committed to projects that will be completed by Fall of 2025. The EDA has funds available to match this grant. I. PRE-DEVELOPMENT PLANNING ACTIVITY GRANT QUESTIONS 1. Describe the planning activity for which funds are being requested and how this planning work will advance the potential for an affordable housing or redevelopment project. Attach any work proposals from consultants and/or contractors who would be completing the planning activity. 2. Leverage: List all other funding sources and uses for the planning activity. Source of Funds Amount Committed Pending $ $ $ $ Total: $ $0.00 Itemized Use of Funds/Expenses Amount Funding Source $ $ $ Total: I : $0.00 II. COMMERCIAL REHABILITATION GRANT QUESTIONS 1. Describe the rehabilitation program for which funds are being requested. Who will administer the program? Is this an existing program? Please attach proposed program guidelines. I have attached the guideline for the proposed new program. The City of NYM will administer the program. 2. Describe how the proposed project will benefit the community or area in which it is located, including direct and indirect employment benefits, effects on the tax base (if any), and benefits to other businesses. As a growing small community, our businesses frequently are looking for that extra spark to convince them to do projects that will benefit the business and the community. The grants would help businesses do projects that they may not have been able to do otherwise. 3. Leverage: List all sources and uses of funding for the Commercial Rehabilitation Program. Source of Funds Amount Committed Pending Cit of New York Mills $ 25,000 $25,000 CDA $ $25,000 $25,000 $ $ Total: $ $50,000 Itemized Use of Funds/Expenses Amount Funding Source Loan Fund $ $25,000 Cit ofNYM Loan Fund $ $25,000 CDA $ $ Total: $ $50,000 Ill. AFFORDABLE HOUSING AND REDEVELOPMENT PROJECT GRANT QUESTIONS Project site address(es): Acreage of site: --------------Number of parcels: Is the Project site publicly or privately owned? Publicly Owned ___ Privately Owned Current Project site owner(s): 2 New York Mills Economic Development Authority (EDA) Downtown Matching Grant Program 2025 Purpose: The purpose of the Downtown Matching Grant Program is to establish a fund to assist building owners with the implementation of the vision for Downtown of New York Mills, which is to encourage continuation of a viable downtown by allowing prime retail sales and service uses, office, entertainment facilities, public and semi-public uses, and in special circumstances, residential use; and to preserve and build on the historic character of the downtown using the historic and natural resources available to create a tourist destination as well as to provide a unique blend of retail and service businesses for the convenience of local residents. "Downtown" is defined as the greater business community of New York Mills. Duration: Matching grants (forgivable loans) may be made under these policies to the extent funds are available, as allocated to the fund by the New York Mills Economic Development Authority. Eligible Applicants: Applicants may include building owners and tenants of downtown businesses in New York Mills. Applicants may be individual owners, partnerships, corporations, tenant operators or contract for deed purchasers of property within Downtown of New York Mills. Each applicant must provide all documentation of entity status requested on the application form. The property, upon which the improvements will be made, must be of a conforming use or legal non-conforming use under the New York Mills Zoning Ordinance. Matching grants are available to properties within appropriate Zoning Districts which are making visible changes to the facades or exteriors of buildings including parking and landscaping improvements as defined by the Zoning Administrator. Additionally, interior renovations that fall under the rehabilitation of a commercial property that is linked to the elimination or prevention of blight, or correction of building code deficiencies. Required Match: All applicants must provide matching funds on a minimum 1: 1 ratio for grants up to $5,000. Eligible Uses: Matching grant dollars may be used for improvements to the exterior of buildings including brick replacement and repair, window and door replacement/repair, awnings and signs, exterior steps/entrances, landscaping and parking. Additionally, interior renovations including resurfacing of floors, wall coverings, ceilings, and other individual improvements to interior of building may be approved at the discretion of the New York Mills Economic Development Authority. Number of Grants: Each applicant is generally el igible for one matching grant per calendar year; exceptions to be made by the New York Mills EDA and City Council. Size of Grant: To the extent funds are available, the EDA may offer up to five $5,000 matching grants for projects with a total cost of at least $10,000. Dollar amounts are subject to change and can be reallocated depending on amount budgeted and project proposed. Design Standards: All projects must meet the criteria identified in the New York Mills Zoning Ordinances and approved by the Zoning Administrator. Project Commencement: Projects utilizing the matching grant program may not begin prior to approval of the Design review, approval of the matching grant or issuance of a building permit. Grant Payments: Applicants shall submit a copy of the invoice for the matching grant related improvement to the City . Grant payments shall typically be made directly to the owner/ tenant after verification of completion the work or supplying the product, following certification or inspection of the approved project by the City in accordance with the Zoning Ordinance and other city regulations. Under no circumstances will work completed prior to approval of the application be allowed to qualify for funds. Timing of Approval of Funds: To be considered for approval in the same month, please have applications submitted to the City Office no later than the first of the month. Applications will be reviewed by the EDA loan committee, then sent to EDA board for approval, with the final approval coming from the City Council. Timing of Use of Grant Funds: Applicants shall have one (1) year to complete the project and have applicant's contractor(s) receive the matching grant disbursements from the date that the matching grant received approval from the City of New York Mills City Council. If the project is not started or completed within the allocated timeframe a written notice to the City of New York Mills EDA shall be provided as to the reasons to the delay in the project. The EDA may request an individual to attend a meeting in order to discuss the project in detail again. Once a written response is received from the EDA then one (1) additional year may be granted to continue to use the allocated funds. Security: At the City Council's discretion, the City Council may require the applicant and property owner (if different from the applicant) to execute a subsidy agreement and promissory note upon the approval of the matching grant. In addition, the City Council may require the property owner to execute a mortgage as security for the repayment pursuant to the terms of the promissory note. Repayment: The amount of the loan (without interest) will be due and payable to the City of New York Mills EDA five (5) years following the distribution of loan funds. If; however, the business to which the loan was granted remains in business in the improved building five (5) years following the distribution of loan funds or the applicant transfers ownership to another entity that maintains the business the improved building for at least five years following the distribution of loan funds, the loan shall be forgiven by the New York Mills EDA If the borrower is to sell the building prior to 5 years since disbursement date, the loan amount will be forgiven 20% for each year since the disbursement. If it is within first year, funds will be due, unless the borrower sold to an eligible operating entity as determined by the City of New York Mills. Conflict of Interest: The applicant shall submit the name(s) of the owner(s), shareholder(s), partner(s), sole proprietor, corporation member(s) or other person(s) or business(es) with any financial interest in the project and its financing in order to preclude any conflict of interest in the loan review and approval process. For More Information: Building owners/tenants interested in applying for the EDA matching grant program may contact the City of New York Mills at: 218-385-2300 or email Julie Roberts, City Clerk at cityclerk@cityofnewyorkmills.org The matching grant application form may be downloaded from the City's website at: https://newyorkmills.govoffice2.com/ Select the "Ordinance" and "Economic Development Authority" links. CITY OF NEW YORK MILLS, MINNESOTA RESOLUTION NO. 12-10-2024b RESOLUTION ACKNOWLEDGING COUNCIL SUPPORT FOR THE OTTER TAIL COUNTY COMMUNITY DEVELOPMENT AGENCY GRANT FOR THE NEW YORK MILLS DOWNTOWN REVITALIZATION GRANT FUND WHEREAS, the City of New York Mills is currently working on a project to establish a new downtown revitalization grant program, WHEREAS, the City of New York Mills has been made aware of grant funds available through the Otter Tail Community Development Agency, WHEREAS, the City of New York Mills is working with the Otter Tail County CDA to establish a fund for the downtown revitalization grant program, NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF NEW YORK MILLS, MINNESOTA THAT: the City Council of New York Mills is in support of submitting an application for grant money from the Otter Tail County Community Development Agency to be used for a downtown revitalization grant program. Adopted this 10th day of December, 2024, by the City Council of the City ofNew York Mills. ' NYM EDA DOWNTOWN MATCHING GRANT APPLICANTS 12/3/2024 Total Project Quote Grant Funds Actual Cost Paid Date PaidAmts Centennial Realty $ 6,064.00 $ 3,032.00 $ 5,640.00 12/10/2024 $ 2,820.00 Repair asphalt parking lot, pave additional area, sealcoat Continental Divide Brew Publ LLC $ 4,782.97 $ 2,391.49 $ 4,782.97 6/24/2024 $ 2,391.49 Put Window tint on Store front windows, installed a patio area Designs Byles (Sign)) $ 1,374.40 $ 687.20 $ 1,374.40 6/24/2024 $ 687.20 New sign for her business Designs Byles (Window) $ 1,500.00 $ 750.00 $ 1,265.61 12/10/2024 $ 632.81 Replaced window in store front Designs By Tes (Exterior Door) $ 1,391.02 $ 695.51 $ 1,391.02 12/10/2024 $ 695.51 Replaced exterior door Caleb Monson, Old Ten Center $ 12,805.00 $ 5,000.00 $ 12,805.00 9/19/2024 $ 5,000.00 Paved parking lot on Old Ten Center Miriam Mursu $ 12,116.00 $ 5,000.00 $ 12,116.00 8/20/2024 $ 5,000.00 Replaced rotten deck on business with composite decking Tammy Anderson, NYM Family Dentistry $ 20,000.00 $ 5,000.00 $ 2,145.22 12/10/2024 $ 1,072.61 Sign , Sealcoat, replace exterior doors, landscaping MattWedde $ 10,100.00 $ 5,000.00 Tuck Point on bldg Vaughn Auto & Marine $ 5,800.00 $ 2,900.00 $ 5,800.00 12/10/2024 $ 2,900.00 Paved parking area NYM Library $ 7,504.49 $ 3,752.25 $ 7,504.49 8/26/2024 $ 3,752.25 Landscaping of Library Lakeland Auto $ 3,134.00 $ 1,567.00 $ 3,134.00 10/1/2024 $ 1,567.00 Replace broken concrete pad and extend pad Mills Country Market $ 6,750.00 $ 3,375.00 $ 6,750.00 10/1/2024 $ 3,375.00 Repairs and Sealcoat parking lot VFW $ 10,719.18 $ 5,000.00 Replace rotten facia on VFW Bldg Mills Lanes $ 9,500.00 $ 4,750.00 Handicap Ramp Replacement $ 48,900.44 $29,893.86 Initial Funds Available $ 50,000.00 Funds Remaining $ 1,099.56 $ 1,099.56 OTTER TAIL COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION December 16, 2024 BOARD MEETING DATE AGENDA ITEM #5B Amy Baldwin 12/11/2024 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Consider Amendment to the Community Growth Partnership Guidelines PROPOSED REQUEST/JUSTIFICATION A request to consider a modification to the current Community Growth Partnership guidelines to include non-profit entities as eligible recipients of funding for individual, private commercial rehabilitation projects was reviewed by the Business Development subcommittee at its December 4 meeting. To date, the interpretation of a private commercial entity has been a for-profit business. Examples of projects funded to-date include:  NYM Continental Divide Brew Pub  Perham Karvonen’s  Battle Lake Neverbetter After discussion, the Committee does not recommend changes to the current guidelines but recommended a discussion by the full board. It was noted that local communities can apply for matching funds through the CDA program to administer their own program, which can have more flexibility in how the funds are invested within the community (i.e., including non-profits). PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED: EXECUTIVE DIRECTOR DATE: Amy Baldwin 12/11/2024 ATTACHMENT LIST: a. Current Program Guidelines FINANCIAL IMPLICATIONS: N/A BUDGETED: YES NO FUNDING: COMMENTS 1 OTTER TAIL COUNTY - MINNESOTA 2024 Community Growth Partnership Grant Guidelines I. PURPOSE The Community Growth Partnership Grant Program was established and funded by the Otter Tail County Community Development Agency (CDA). The goals of the Program are to increase the tax base and improve the quality of life in Otter Tail County through four strategies: Affordable Housing: Promote the development of affordable workforce and supportive housing. Redevelopment: Assist with redevelopment of blighted and under-utilized areas to maximize their potential economic value and minimize their negative impact on the livability of a community. Commercial Rehabilitation: Support business creation/retention and main street revitalization through exterior improvements and reinvestment. Public Infrastructure: Expand new residential sewer, water, stormwater, road, and sidewalk construction within cities necessary to support new housing development. II. PROGRAM INFORMATION ELIGIBLE APPLICANTS Eligible applicants for this program are cities or townships in Otter Tail County, except Fergus Falls. APPLICATION INSTRUCTIONS The city or township seeking to apply must contact the CDA at cda@ottertailcounty.gov to review the project, determine preliminary eligibility, and review application and match requirements and availability of program funding. Applications must be submitted prior to commencement of Eligible Activities. It is the city or township’s responsibility to be aware of the submission requirements needed to prepare an application with the applicable sections completed in accordance with this guide and the type of grant requested. The applicant shall submit a Community Growth Partnership Resolution adopted by the governing body, along with the application and necessary attachments. Applications are due by 4 pm on 1st of each month to the Otter Tail County CDA, 520 West Fir Avenue, Fergus Falls, MN 56537 or via email at cda@ottertailcounty.gov. Applications determined by the CDA to be incomplete or not legible will not be accepted and will be returned to the applicant. Contact Amy Baldwin at 218-998-8050 or cda@ottertailcounty.gov with questions or if you require assistance with completing or submitting your application. FUNDING AVAILABLE Maximum individual application amounts are: Affordable Housing and Redevelopment: $25,000 > > > > > 218-998-8730 @ COMMUNITY DEVELOPMENT AGENCY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 520 West Fir Avenue Fergus Falls, MN 56537 @ ottertailcounty.gov 2 Commercial Rehabilitation: $25,000 for the establishment or funding of a locally administered commercial rehab program. $10,000 or 5% of the total project cost, whichever is less, for an individual private commercial rehabilitation project. Pre-development planning: $5,000 Public Infrastructure: $100,000 Each request must be matched with a minimum $1 of other funds for every $1 requested. Matching funds need to be identified at the time of application and should be reviewed with CDA staff prior to application submittal. Maximum funding per applicant, excluding Public Infrastructure grant awards, is $50,000 in a calendar year, with multiple applications by eligible applicants allowed. III. ELIGIBILITY CRITERIA The application must meet the following threshold criteria to be reviewed: The application and a resolution of support must be approved by the respective city council or township board. There must be a minimum leverage rate of 1 to 1 ($1 of other funds for every $1 of Grant funds). PRE-DEVELOPMENT PLANNING GRANTS Eligible Activities: Pre-Development Housing and Redevelopment Planning Grant funding is restricted to activities directly related to: Housing studies or planning activities (e.g. financial analysis, market analysis, concept development, site design) Redevelopment project planning (e.g. financial analysis, market analysis, concept development, site design, engineering studies, and environmental studies) to be developed as part of a Redevelopment Plan, as defined below. Redevelopment Planning Grants may be used to fund activities that are required to establish a Redevelopment Plan. As such, the Redevelopment Plan is not required to be in place to be eligible for a Redevelopment Planning Grant, so long as the Redevelopment Planning Grant is intended to be used to assist in the development of a Redevelopment Plan. AFFORDABLE HOUSING, REDEVELOPMENT, AND COMMERCIAL REHABILITATION GRANTS Eligible Activities: Affordable Housing, Redevelopment, and Commercial Rehabilitation Grant funding is restricted to the following activities: Property acquisition (see Other Requirements below) Necessary public improvements including, but not limited to parking structures, sewer and water, sidewalks, street reconstruction, stormwater management, and streetscape within the redevelopment area Relocation payments to occupants of property acquired with program funds > > > > > > > > > > 218-998-8730 @ COMMUNITY DEVELOPMENT AGENCY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 520 West Fir Avenue Fergus Falls, MN 56537 @ ottertailcounty.gov 3 Clearance and demolition expenses related to site assemblage for redevelopment and consistent with the Redevelopment Plan Clean up of pollution or other contaminants on the impacted site Historic preservation (rehabilitation of properties with national or local significance in order to preserve that significance) Corrections to soil conditions that require extraordinary expense to remediate Rehabilitation of a commercial property that is linked to the elimination or preventions of blight, or correction of building code deficiencies Ineligible Activities: The Project Grant cannot be used for the following activities: Costs not included in the application Costs incurred prior to approval of a grant application Interior improvements or rehabilitation temporary in nature Administration expenses Public facilities (non-parking) Other Requirements: Property acquisition may be undertaken by a public, private or non-profit entity as part of a project. In all instances, the CDA will provide the Grant to the applicant as grantee, which in turn, will provide those funds to another acquiring entity if necessary. The corresponding grant agreement will specify conditions whereby the acquiring entity will have no recourse to the CDA in matters related to the acquisition of real property. If federal funds are used in whole or in part for a project, including property acquisition, clearance and/or construction, all provisions of 49 CFR 24.101 (the Uniform Relocation Act or URA) must be followed. With all funding sources, the cost of property acquisition must be based on a determination of fair market value as derived from an independent appraisal and/or county assessed value. Minnesota Statutes 117.50 et. seq. and related case law also requires that in all acquisitions undertaken by an acquiring entity without federal participation, the authority must provide relocation assistance as a cost of acquisition. Additionally, the Minnesota Supreme Court held that an authority may be responsible for certain relocation costs when the property is acquired by a private developer if the activities of the authority and the developer are so intertwined to produce a joint acquisition of the project. PUBLIC INFRASTRUCTURE Eligible Activities: Public Infrastructure Grant funding is restricted to the following activities: Construction of new residential sewer, water, stormwater, road, and sidewalk improvements related to new housing development Infrastructure must be located within city limits of the city applying. > > > > > > > > > > > 218-998-8730 @ COMMUNITY DEVELOPMENT AGENCY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 520 West Fir Avenue Fergus Falls, MN 56537 @ ottertailcounty.gov 4 IV. REVIEW CRITERIA THRESHOLD CRITERIA Applicants must meet the following minimum criteria to be considered for funding. The application must demonstrate a minimum leverage rate of 1 to 1 ($1 of other funds for every $1 of the requested grant). The application must be approved by the respective city council/township board by resolution that includes the Required Resolution Provisions (attached). The applicant must be supportive of the CDA’s goals, as demonstrated by the applicant’s adoption of the Required Resolution Provisions. COMPETITIVE CRITERIA If the application meets all threshold criteria, the application will then be reviewed and rated on the following criteria. To be eligible for Community Growth Partnership Grant funding, the application must meet a minimum of 40 points in Competitive Criteria, as defined here: Leverage: Applications should include a variety of other funding sources committed to the project. Other funding sources could include TIF, DEED, or other public and private resources. Evidence of funding commitments must be submitted with the application. [25 Maximum Points] Readiness to Proceed: The applicant should be ready to proceed with the identified project upon funding award (e.g. zoning approvals in place, site control secured, financing commitments in place). [15 Maximum Points] Housing Affordability: To receive points under Housing Affordability, the housing project must be either (a) rental–available to households at/below 60% of the area median income (AMI) or; (b) owner–available to households at/below 115% of AMI or the income limits established by the State for Tax Increment Financing (TIF) Districts. If the project is a rental project, the owner must be willing to accept Tenant Based Rental Assistance (Housing Choice Voucher and other tenant based rental assistance). [10 Maximum Points] Economic Benefit: The project should have a defined impact on the local economy. This impact is measurable through growth in property taxes and new and/or retained jobs. [15 Maximum Points] Environmental Improvement: Redevelopment Plans that will clean-up, prevent and protect from environmental hazards are encouraged. Applicants should work with state agencies and professional consultants to identify the optimum remedy and create sustainable redevelopment. [10 Maximum Points] Removal and/or Prevention of Blight: Points will be awarded to projects that remove blight or blighted properties and/or properties with obsolete structures beyond their useful life. [25 Maximum Points] V. SELECTION Applications will be reviewed by CDA staff and applicable committee. Applications must be completed and received by the CDA by the 1st of the month. Applications meeting the threshold criteria and scoring highly on > > > > > > > > > 218-998-8730 @ COMMUNITY DEVELOPMENT AGENCY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 520 West Fir Avenue Fergus Falls, MN 56537 @ ottertailcounty.gov 5 the competitive criteria will be submitted to the CDA Board of Commissioners for approval. After selection and approval by the CDA Board of Commissioners, the CDA will issue a letter of commitment and enter into a grant agreement with the applicant. VI. GRANT AGREEMENT CDA staff will work with the applicant and enter into a Grant Agreement. This agreement will detail the terms and conditions of the grant and allow for the release of funds to the applicant. The grant agreement will require funds to be spent within 18 months of the date of the agreement. Waivers and extensions to any provision in the agreement requested by the grantee will be considered on a case-by-case basis depending on the merits of the request. Grants will be paid on a reimbursement basis. Grantees will be required to submit semi-annual progress reports to the CDA. VII. DEFINITIONS Activity: Components of the Project described in the application. Activities do not in and of themselves comprise the Project for which Grant funds are requested. Commercial Rehabilitation: Permanent exterior improvements to upgrade and improve the facades and appearance of commercial/retail buildings or the correction of building code deficiencies. Housing Affordability: “Affordable” is defined as (a) rental–available to households at/below 60% of the area median income (AMI); (b) owner–available to households at/below 115% of AMI or the income limits established by the State for Tax Increment Financing (TIF) Districts. Pre-Development Planning Activity: Activities intended to define or refine an identified future housing or redevelopment project. Project: Component of the Activity or Plan for which Grant funds are requested. The grant funding is restricted to the eligible activities as defined in Minnesota Statutes, 469.001 – 469.047. Redevelopment: The reconstruction, re-use or change in use of any developed property that improves the economic use and value of property. Redevelopment is usually characterized by the clearance of existing structures and new construction. The new use may be residential, commercial, retail, industrial or other use that the applicant supports. Redevelopment Plan: as defined by Minnesota Statutes 469.002 Subd. 16: "Redevelopment plan" means a plan approved by the governing body, or by an agency designated by the governing body for the purpose of approving such plans or authorized by law to do so, of each city in which any of a redevelopment project is to be carried out, which plan provides an outline for the development or redevelopment of the area and is sufficiently complete (1) to indicate its relationship to definite local objectives as to appropriate land uses; and (2) to indicate general land uses and general standards of development or redevelopment. A Redevelopment Plan will identify a redevelopment area and activities to be undertaken within the area, as well as city objectives. > > > > > > > 218-998-8730 @ COMMUNITY DEVELOPMENT AGENCY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 520 West Fir Avenue Fergus Falls, MN 56537 @ ottertailcounty.gov 6 EXAMPLE RESOLUTION WHEREAS, the City/Township of ___________ has identified and reviewed a proposed project of ________________ within the City/Township that meets the Otter Tail County Community Development Agency (CDA) Community Growth Partnership Grant program’s purposes and criteria; and WHEREAS, the City has the capability and capacity to ensure the proposed project be completed and administered within the Community Growth Partnership Grant program guidelines; and WHEREAS, the City has the legal authority to apply for financial assistance; and NOW THEREFORE BE IT RESOLVED that the City/Township of __________ approves the application for funding from the Otter Tail County CDA Community Growth Partnership Grant program. BE IT FURTHER RESOLVED that upon approval of its application by the Otter Tail County CDA, the {insert authorized official’s name here}, the {insert authorized official’s title here}, is hereby authorized to execute such agreements as are necessary to receive and use the funding for the proposed project. 218-998-8730 @ COMMUNITY DEVELOPMENT AGENCY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 520 West Fir Avenue Fergus Falls, MN 56537 @ ottertailcounty.gov OTTER TAIL COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION December 16, 2024 BOARD MEETING DATE AGENDA ITEM #5D Amy Baldwin 12/11/2024 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution Authorizing Execution of Purchase Agreements for Pinewood Estates PROPOSED REQUEST/JUSTIFICATION Purchase offers for the lots and ultimately the new homes to be constructed in Pinewood Estates may be presented at times not in alignment with an upcoming board meeting. In order to avoid delays in the process, it is recommended that the Board consider authorizing the Executive Director to execute the Purchase Agreements, subject to the following:  Review of the purchase agreement by the Board Chair and Vice Chair;  Recommendation of the realtor;  Determination of buyer eligibility for the new home (lots do not have an income eligibility) In this way, the CDA can be responsive to potential buyers, and if approved, accomplish timely execution of purchase agreements. Staff recommends the Board adopt the attached resolution. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED: EXECUTIVE DIRECTOR DATE: Amy Baldwin 12/11/2024 ATTACHMENT LIST: a. Resolution FINANCIAL IMPLICATIONS: N/A BUDGETED: YES NO FUNDING: COMMENTS RESOLUTION NO. 2024- RESOLUTION AUTHORIZING EXECUTION OF PURCHASE AGREEMENTS FOR PINEWOOD ESTATES WHEREAS, the Otter Tail County Community Development Agency (the “Agency”) has been working to advance the redevelopment of the Pinewood Estates subdivision (Project); and WHEREAS, the infrastructure has been installed and the Project has been platted into nine single family lots; and WHEREAS, on September 20, 2024, the Agency authorized execution of an Agreement with Andrew Yaggie Real Estate – eXp Realty for realtor services; and WHEREAS, it is prudent to complete the due diligence expeditiously in order to complete the Project in a timely and cost-efficient manner; and WHEREAS, it is proposed that the Executive Director execute the purchase agreements (the “Agreements”) after review by the Agency Board Chair and Vice-Chair. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. The Executive Director is hereby authorized to execute the Agreements subject to: a. Receiving a recommendation from the realtor; b. Reviewing the proposed Agreements with the Board Chair and Vice-Chair; c. Determination of buyer eligibility, as applicable; d. Such changes to the Agreements that the Board Chair, Vice-Chair and Executive Director deems reasonable and necessary; 2. The Executive Director is hereby authorized, empowered, and directed to execute and deliver in the name and on behalf of the Agency any other documents and instruments in such form and on such terms and conditions as she deems necessary or appropriate in connection with the Agreements. 3. The Executive Director is hereby authorized, empowered, and directed to do all other acts and things as she deems necessary or desirable in her discretion to effectuate the purposes of the foregoing Resolutions. Upon the motion of ___________, seconded by ___________ and passed on a unanimous vote, the above resolution is hereby adopted by the Otter Tail County Community Development Agency Board of Commissioners. Adopted this 16th day of December, 2024. Dated: _______________________________ OTTER TAIL COUNTY CDA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________