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HomeMy WebLinkAboutCommunity Development Agency - CDA-Packet-02-04-2026 Supporting Documents - 02/04/2026 OTTER TAIL COUNTY – MINNESOTA COMMUNITY DEVELOPMENT AGENCY AGENDA - Annual Meeting Government Services Center, Otter Tail Lake Room 515 West Fir Avenue, Fergus Falls, MN February 4, 2026 | 11:00 am Commissioners may participate in the meeting by interactive technology. 1. Call to Order 2. Annual Election of Officers A. Chair, Vice Chair, Treasurer/Secretary, and Assistant Treasurer 3. Approval of Agenda 4. Approval of Consent Agenda A. January 7, 2026 Regular Meeting Minutes B. January 7, 2026 Joint CDA/HRA Work Session Meeting Notes C. December 2025 Financial Reports D. Annual Conflict of Interest Policy 5. Reports and Presentations A. Community Development and Housing Annual Report B. Director Status Report C. Committee Reports Housing and Development Workforce Support and Digital Equity Business Development D. ‘On the Map’ Report E. Board Member Updates 6. Regular Business A. 2026 CDA/County Service Agreement B. CDA/HRA Tax Forfeited Land Development Policy C. Community Growth Partnership Grant Application: New York Mills Housing Study D. Community Growth Partnership Grant Extensions 7. Discussion and Communications A. 2026+ Housing Strategy B. 2026 Committee Assignments C. Other Communications D. Upcoming Meetings: 1/46 a. Wednesday, March 11, 2026 at 11:00 am, Otter Tail Lake Room, Government Services Center b. HRA Board meeting will be Monday, March 9 at 12:45 pm, Otter Tail Lake Room, Government Services Center 8. Adjourn 2/46 MINUTES OF THE COMMUNITY DEVELOPMENT AGENCY OF OTTER TAIL COUNTY Government Services Center, County Board Room 515 W Fir Ave, Fergus Falls, MN 56537 January 7, 2026 Call to Order The Otter Tail County Community Development Agency convened at 11:00 am, Wednesday, January 7, 2026. 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 Betsy Roder X Heidi Samuelson X Bob Schempp Jr. X Dave Schornack X Sean Sullivan X Staff: Amy Baldwin, CDA Director X Tanya Westra, Housing Program Supervisor X Sarah Schake, Project Manager X Erik Osberg, Rural Rebound Initiative Coordinator X Julie Bakken, HRA Accountant X Paula Grunewald, HRA Administrative Assistant X 2. Approval of Agenda The agenda was to stand as presented. 3. Approval of Consent Agenda Motion by Dena Johnson, second by Kurt Mortenson to approve the Consent Agenda. Motion passed unanimously. Amy Baldwin, CDA Director stated the Year End Numbers will be presented at February’s meeting. 4. Reports and Presentations A. Director’s Status Report:  Reappointment of CDA Commissioners Sean Sullivan and Val Martin at the January 6th County Board Meeting for six year terms.  Open House at The Lincoln, a newly constructed 10 unit apartment building in Battle Lake on Thursday, January 15, discussed CDA’s involvement in the project.  Sarah Bernstetter, Project Manager and OTC Finance processed 265 payments for the Single Family Tax Rebate Program totaling $274,811 in 2025 – next year will be the peak year and the year after payments should decrease. 3/46 OTTERTAIL COUNTY -MINNESOTA  Received the 2025 Outstanding Economic Development Award by the Minnesota Association of Professional County Economic Developers (MAPCED) for the Empowered Worker Program.  Referrals have been paused to the Empowered Worker Program as the County was not awarded a second round of DEED Drive for 5 funding. 12 students are enrolled at M State. County was awarded funding for the Agriculture Career Grant; waiting on contract signatures.  Workforce Summit was held on December 11, 2025 with presenters including a DEED data analyst. The summit was livestreamed and is available on County’s YouTube page.  CDA is facilitating an application with Bongards to the State of Minnesota Tax Exempt Waster Water Bond Allocation. Sarah Bernsetter, CDA Project Manager shared information on the Child Care Needs Analysis and How Many Additional Child Care Spots Are Needed in Otter Tail County. She described how the need is calculated; there has been a slight decrease in capacity as well as the number of children who need care. The data does not include friends and family care. B. Committee Reports were included in the meeting packet Housing Growth and Investment - A tax forfeit opportunity was discussed at the December committee meeting. Property did not sell at tax forfeit auction; staff is looking into what rehab work needs to be completed for the home to be resold to a new buyer. C. On the Map Report Erik Osberg, Rural Rebound Initiative Coordinator, reported on the Otter Tail Lakes Country “Year End Social Metrics 2025” including output, social audience size, total impressions, total engagement and video views. All results showed that we finished strong. D. Board Member Updates  Val Martin o Battle Lake EDA has their Annual Meeting on February 5 at noon with Ben Winchester as the presenter. o The new Vet Clinic is open in Battle Lake with an Open House on January 30. o The City purchased 70 acres by Glendalough that has a project hold on it. 5. Regular Business Items A. Community Growth Partnership Grant Application: City of New York Mills The City of New York Mills is seeking a grant in the amount of $25,000 to further support the Downtown Revitalization Program available to businesses enhancing their store fronts as well as eligible interior projects that will benefit the community. The program is proposed to be expanded to allow for larger matches in conjunction with larger projects. Matching funds would be provided by the New York Mills EDA. Last round of funds were used for improvements such as a new roof, siding, windows, signage, parking lot work, exterior remodeling, and brick work. Motion by Val Martin, second by Kurt Mortenson to approve $25,000 funding for the City of New York Mills 2026 Downtown Revitalization Grant Fund. Motion passed unanimously with Board Commissioner Betsy Roder abstaining from the vote. 6. Discussion and Communications A. Other Communications 4/46  There will be a Joint CDA/HRA work session starting at noon.  The Annual Report will be presented at the next meeting.  Committee Assignments - will be discussed at the next meeting.  Many Board Commissioners will be unavailable for the March 4, 2026 Board Meeting - a new date will be scheduled.  Drivers are needed for the Volunteer Driving Program: o This is a volunteer service that drivers will receive paid mileage. o Background checks required. o Goal to have enough volunteers to help with the Empowered Worker Program. o Partner with Wilkin County. B. Upcoming Meeting: Wednesday, February 4, 2026 at 11:00 am, Otter Tail Lake Room, Government Services Center with HRA Board meeting at 12:45 pm. 7. Adjourned 5/46 NOTES OF THE JOINT WORK SESSION BETWEEN OTTER TAIL COUNTY COMMUNITY DEVELOPMENT AGENCY AND HOUSING AND REDEVELOPMENT AUTHORITY OF OTTER TAIL COUNTY Government Services Center, County Board Room 515 W Fir Ave, Fergus Falls, MN 56537 January 7, 2026 Call to Order The Joint Work Session between the Otter Tail County Community Development Agency and the Housing and Redevelopment Authority convened at 12:02 pm, Wednesday, January 7, 2026. Attendance was as follows: CDA HRA Present in person Present via Tech Absent Board Members: Jeff Ackerson CDA/HRA X Dena Johnson CDA X Wayne Johnson HRA X Val Martin CDA X Kurt Mortenson CDA/HRA X Megan Myers HRA X Betsy Roder CDA X Leland Rogness HRA X Heidi Samuelson CDA X Bob Schempp Jr. CDA X Dave Schornack CDA X Sean Sullivan CDA X Staff: Amy Baldwin, CDA Director/HRA Executive Director X Tanya Westra, HRA Housing Program Supervisor X Sarah Schake, CDA Project Manager X Julie Bakken, HRA Accountant X Paula Grunewald, HRA Administrative Assistant X Introductions were made and Amy Baldwin, Community Development Director (CDA) and Housing and Redevelopment (HRA) Director reviewed and discussed:  2025 Review of Housing Activities: Community Outreach and Support; Pinewood Estates – Pelican Rapids; Senior Housing – North Fields of Dalton; Small Cities Development Program – Pelican Rapids.  Community Investment Efforts: OTC Works - Empowered Worker Program; Childcare: Community driven project support in Ottertail and PioneerCare; Family Resource Centers  Tax Forfeiture Draft Policies  2026 + Beyond o What’s known: Seven single family home builds - funded (2026-28) in three communities: Pelican Rapids, New York Mills and Parkers Prairie; Small Cities Development Program in Pelican Rapids; Possible New York Mills application; Launching Bring it Home Rent Voucher Program; Continuing administration of existing housing programs. o What’s ahead: Westridge Mall (unsure); Continue affordable senior housing efforts in New York Mills and Perham (in discussion phase). What are we missing? We currently focus on 1) single family, 2) senior housing and 3) market rate/workforce rental 6/46 OTTERTAIL COUNTY· MINNESOTA opportunities. Community Outreach and Support: Community focused housing events - Perham Housing Symposium scheduled for March 12; Creating action events; Strategic Partner Summit; Community staff meetings – intentional outreach; Continue grant/funding applications.  Where do we go from here: Work plans will be presented at the next monthly CDA and HRA meetings. Community outreach meetings are important. 7/46 25156.000000-DFB 25156.000001-DFB PctReportCode1 11:52:19AM Achristoph 12/2025 12/2025Cash 8% 12/2025War# 8 Char Invoice# Description Copyright 2010-2025 Integrated Financial Systems 23 COMMUNITY DEVELOPMENT AUTHORITY 705 ECONOMIC DEVELOPMENT/TOURISM 000 ... 23-705-000-0000-6140 12,000.00 012,000 0.00Per Diem 0.00 23-705-000-0000-6240 9,000.00 09,000 0.00Publishing & Advertising 0.00 23-705-000-0000-6241 5,000.00 05,000 0.00Membership Dues 0.00 23-705-000-0000-6242 1,275.00 362,000 725.00Registration Fees 725.00 COM 12/16/2025 250.00 198010 12/16/25 TABLE RENTAL FOR BUILDER EXPO COM 12/23/2025 475.00 198451 75874 2025 AMC ANNUAL CONFERENCE 23-705-000-0000-6266 2,250.00 102,500 250.00Audit Cost 250.00 COM 12/16/2025 250.00 197992 PREP OF AUDIT LETTER 23-705-000-0000-6290 215,369.87 38350,000 134,630.13Contracted Services.134,630.13 J/E 12/31/2025 134,630.136 MO CONTRACTED SERVICES 23-705-000-0000-6330 3,000.00 03,000 0.00Mileage0.00 23-705-000-0000-6331 7,000.00 07,000 0.00Travel Expenses 0.00 23-705-000-0000-6333 82.00 0082.00Meeting/Event Costs 82.00 COM 12/2/2025 82.00 197698 11/5/25 MEALS FOR BOARD MTG 11/5/25 23-705-000-0000-6355 3,000.00 03,000 0.00Liability Insurance 0.00 23-705-000-0000-6369 197,909.98 00197,909.98Miscellaneous Charges 197,909.98 MVC 12/31/2025 9.98 901327 1634-46P6-7L3Y A2RJVV5AA0WI1P CALENDAR AUD 12/31/2025 197,900.00 198634 12/31/25 REFUND OF APPLICATION DEPOSIT 23-705-000-0000-6822 165,000.00 18200,000 35,000.00Community Growth Partnership Grant 35,000.00 AUD 12/19/2025 5,000.00 307483 2025-05 CDA GRANT REIMBURSEMENT AUD 12/19/2025 5,000.00 307486 2025-06 CDA GRANT REIMBURSEMENT COM 12/31/2025 25,000.00 307506 2023-02 CDA GRANT REIMBURSEMENT 23-705-000-7001-6828 577,930.61 125650,000 627,930.61Site Development (TIF)627,930.61 COM 12/16/2025 2,754.00 197992 PINEWOOD ESTATES PROF SVCS COM 12/23/2025 625,176.61 307489 3263 PINEWOOD INFRASTRUCTURE 23-705-000-7001-6829 1,132,485.91 61,200,000 67,514.09Impact Fund Expenses 67,514.09 COM 12/2/2025 475.00 197816 25-OTC-0001F FINAL INSPECTION COM 12/2/2025 475.00 197816 25-OTC-0003F FINAL INSPECTION COM 12/2/2025 475.00 197816 25-OTC-002F FINAL INSPECTION AUD 12/5/2025 44,059.39 197854 6 PINEWOOD ESTATES RETAINAGE 1 AUD 12/31/2025 22,029.70 198638 DEC2025 PINEWOOD ESTATES RETAINAGE 2 706 NON SPECIAL BENEFIT LEVY PROGRAMMING 000 ... ...581,064,041.81 1,064,041.811,843,500.00 779,458.19 ECONOMIC DEVELOPMENT/TOURISM 581,064,041.81 1,064,041.811,843,500.00 779,458.19 Page 2 Report For: ToReport Basis:Percent of Year: Actual For Tran Date Bdgt - Act Difference12/2025 - 12/2025 - - - PROGRAM DEPT 1/28/2026 000 705 Actual ForType2025 BUDGET EXPENDITURE GUIDELINE - DETAIL MTD Otter Tail County Auditor 8/46 EAt PctReportCode1 11:52:19AM Achristoph 12/2025 12/2025Cash 8% 12/2025War# 8 Char Invoice# Description Copyright 2010-2025 Integrated Financial Systems 23-706-000-0000-6240 1,000.00 01,000 0.00Publishing & Advertising 0.00 23-706-000-0000-6290 18,390.00 820,000 1,610.00Contracted Services 1,610.00 COM 12/16/2025 305.00 197977 103845 PREPARE TAX ABATEMENTS COM 12/23/2025 412.50 198480 101578 BONGARDS FACILITY CONSULTING COM 12/23/2025 206.25 198480 100585 BONGARDS FACILITY CONSULTING COM 12/23/2025 686.25 198480 102837 BONGARDS FACILITY CONSULTING 23-706-000-0000-6822 100,000.00 0100,000 0.00Community Growth Partnership Grant 0.00 807 SPECIAL ALLOCATION HOUSING PROGRAM 23-706-807-0000-6825 24,000.00 024,000 0.00Down Payment Assistance 0.00 23-706-807-0000-6830 30,162.35 2540,000 9,837.65Housing Rehabilitation 9,837.65 COM 12/16/2025 9,837.65 198078 1082 MATERIALS FOR JOHNSON PROJECT ...11,610.00 1,610.00121,000.00 119,390.00 SPECIAL ALLOCATION HOUSING PROGRAM 159,837.65 9,837.6564,000.00 54,162.35 NON SPECIAL BENEFIT LEVY PROGRAMMING 611,447.65 11,447.65185,000.00 173,552.35 COMMUNITY DEVELOPMENT AUTHORITY 531,075,489.46 1,075,489.462,028,500.00 953,010.54 531,075,489.46 1,075,489.462,028,500.00 953,010.54 Page 3 Report For: ToReport Basis:Percent of Year: Actual For Tran Date Bdgt - Act Difference12/2025 - 12/2025 PROGRAM PROGRAM DEPT FUND Final Totals 19 Accounts 1/28/2026 000 807 706 23 Actual ForType2025 BUDGET EXPENDITURE GUIDELINE - DETAIL MTD Otter Tail County Auditor 9/46 EAt Pct 21 Accounts 10:17:13AM Achristoph 01/2025 12/2025Cash 23 COMMUNITY DEVELOPMENT AUTHORITY 12/2025 Copyright 2010-2025 Integrated Financial Systems 23 COMMUNITY DEVELOPMENT AUTHORITY 705 ECONOMIC DEVELOPMENT/TOURISM 000 ... 6140 PER DIEM 2,910.00 760.00 9,090.00 6240 PUBLISHING & ADVERTISING 9,000.00 00.00 0.00 6241 MEMBERSHIP DUES 785.00 840.00 4,215.00 6242 REGISTRATION FEES 355.00 82725.00 1,645.00 6266 AUDIT COST 1,426.00 43250.00 1,074.00 6290 CONTRACTED SERVICES.65,893.41 81134,630.13 284,106.59 6330 MILEAGE 111.10 960.00 2,888.90 6331 TRAVEL EXPENSES 5,687.02 190.00 1,312.98 6333 MEETING/EVENT COSTS 1,749.50 082.00 1,749.50 6355 LIABILITY INSURANCE 127.00 1040.00 3,127.00 6369 MISCELLANEOUS CHARGES 468,709.38 0197,909.98 468,709.38 6822 COMMUNITY GROWTH PARTNERSHIP GRANT 155,000.00 2335,000.00 45,000.00 6828 SITE DEVELOPMENT (TIF)622,073.87 1344627,930.61 672,073.87 6829 IMPACT FUND EXPENSES 137,671.24 11167,514.09 1,337,671.24 706 NON SPECIAL BENEFIT LEVY PROGRAMMING 000 ... 6240 PUBLISHING & ADVERTISING 1,000.00 00.00 0.00 6290 CONTRACTED SERVICES 17,210.00 1861,610.00 37,210.00 6369 MISCELLANEOUS CHARGES 18.00 00.00 18.00 6822 COMMUNITY GROWTH PARTNERSHIP GRANT 100,000.00 00.00 0.00 807 SPECIAL ALLOCATION HOUSING PROGRAM 6825 DOWN PAYMENT ASSISTANCE 10,350.00 1430.00 34,350.00 6830 HOUSING REHABILITATION 15,827.55 609,837.65 24,172.45 6832 LOAN ASSISTANCE PROGRAM 595,003.00 00.00 595,003.00 ...2,832,663.46 1541,064,041.81 989,163.46 ECONOMIC DEVELOPMENT/TOURISM 2,832,663.46 1541,064,041.81 989,163.461,843,500.00 ...37,228.00 311,610.00 83,772.00 SPECIAL ALLOCATION HOUSING PROGRAM 653,525.45 10219,837.65 589,525.45 NON SPECIAL BENEFIT LEVY PROGRAMMING 690,753.45 37311,447.65 505,753.45185,000.00 COMMUNITY DEVELOPMENT AUTHORITY 2,028,500.00 3,523,416.91 1741,075,489.46 1,494,916.91 174 1,075,489.46 3,523,416.91 2,028,500.00 -1,494,916.91 Page 2 Report For: ToReport Basis: FUND Percent of Year: Actual For Account Description Actual For BDGT - ACT Difference01/2025 - 12/2025 - - - - - TOTAL - TOTAL - - - TOTAL - - TOTAL - TOTAL - TOTAL - Final Totals - 1/7/2026 100 EXPENDITURE GUIDELINE - YTD SUMMARY 12,000.00 9,000.00 5,000.00 2,000.00 2,500.00 350,000.00 3,000.00 7,000.00 0.00 3,000.00 0.00 200,000.00 50,000.00 1,200,000.00 1,000.00 20,000.00 0.00 100,000.00 24,000.00 40,000.00 0.00 1,843,500.00 121,000.00 64,000.00 2025 BUDGET Otter Tail County Auditor 10/46 DATE: January 30, 2026 TO: CDA Board of Directors FROM: Amy Baldwin, CDA Executive Director SUBJECT: Annual Conflict of Interest Review Attached is a copy of Minnesota State Statutes, Section 469.098, which is the basis for the CDA’s conflict of interest policy. Annually, the Statute is distributed to board members. Board member signatures will be collected, affirming that board members agree to comply with the Statute. 11/46 218-998-8060 @ 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 469.098 CONFLICT OF INTEREST.​ Subdivision 1.Disclosure; criminal penalty.(a) Before taking an action or making a decision which​ could substantially affect the commissioner's or an employee's financial interests or those of an organization​ with which the commissioner or an employee is associated, a commissioner or employee of an authority​ shall:​ (1) prepare a written statement describing the matter requiring action or decision and the nature of the​ potential conflict of interest; and​ (2) submit the statement to the commissioners of the authority.​ (b) The disclosure under paragraph (a) shall be entered upon the minutes of the authority at its next​ meeting. The disclosure statement must be submitted no later than one week after the employee or​ commissioner becomes aware of the potential conflict of interest. However, no disclosure statement is​ required if the effect on the commissioner or employee of the decision or act will be no greater than on other​ members of the business, profession, or occupation or if the effect on the organization with which the​ commissioner or employee is affiliated is indirect, remote, and insubstantial.​ (c) A potential conflict of interest is present if the commissioner or employee knows or has reason to​ know that the organization with which the commissioner or employee is affiliated is, or is reasonably likely​ to become, a participant in a project or development which will be affected by the action or decision.​ (d) Any individual who knowingly fails to submit a statement required by this subdivision or submits​ a statement which the individual knows contains false information or omits required information is guilty​ of a misdemeanor.​ Subd. 2.Effect of disclosure; criminal penalty.(a) If an employee has a potential conflict of interest,​ the employee's superior shall immediately assign the matter to another employee who does not have a​ potential conflict of interest.​ (b) A commissioner who has a potential conflict of interest shall not attempt to influence an employee​ in any matter related to the action or decision in question, shall not take part in the action or decision, and​ shall not be counted toward a quorum during the portion of any meeting of the authority in which the action​ or decision is to be considered.​ (c) Any individual who knowingly violates this subdivision is guilty of a misdemeanor.​ Subd. 3.Conflicts forbidden; criminal penalty.A commissioner or employee of an authority who​ knowingly takes part in any manner in making any sale, lease, or contract in the commissioner's or employee's​ official capacity in which the commissioner or employee has a personal financial interest is guilty of a​ misdemeanor.​ Subd. 4.Agent or attorney.For one year after termination of a position as a commissioner or employee​ of an authority, no former commissioner or former employee of an authority shall appear personally before​ any court or governmental department or agency as agent or attorney for anyone other than the authority in​ connection with any proceeding, application, request for ruling or other determination, contract, claim,​ controversy, charge, accusation, arrest, or other particular matter in which the authority is substantially​ interested, and with respect to which the commissioner or employee took any action or made any decision​ as a commissioner or employee of the authority at any time within a period of one year prior to the termination​ of that position.​ Official Publication of the State of Minnesota​ Revisor of Statutes​ 469.098​MINNESOTA STATUTES 2025​1​ 12/46 Subd. 5.Limitations.With respect to each program established by the authority to provide financial​ assistance or financing for real property other than rental assistance programs, an employee or commissioner​ may not receive such financial assistance or financing more than once.​ Subd. 6.Injunction.The county attorney may seek an injunction in the district court to enforce the​ provisions of this section.​ Subd. 7.Exceptions.The exceptions in section 471.88 apply to this section.​ History: 1987 c 291 s 99; 2008 c 197 s 1​ Official Publication of the State of Minnesota​ Revisor of Statutes​ 2​MINNESOTA STATUTES 2025​469.098​ 13/46 DATE: January 30, 2026 TO: CDA Board of Directors FROM: Amy Baldwin, Community Development Director SUBJECT: Director Status Report Housing Growth Initiative / The Big Build: 2025 year-end Big Build progress included $87.2 million in housing investment from 390 new and rehabbed housing units, 336 of these being new construction and 54 being rehabbed units. An open house and tours at The Lincoln apartments in Battle Lake were hosted on January 15 with good attendance from community members. Amy presented with Ben Winchester on the topic of “Rethinking (Rural) Housing: How We’re Getting It Wrong, Why It Matters Everywhere, and What to Do About It” on January 29. Staff attended the Lake Region Builders Association Builder’s Expo on January 30 to promote upcoming project opportunities, share information about our housing finance programs, and build relationships with area contractors and builders. The City of Perham is hosting a Housing Symposium on March 12 from 9am-12pm at Perham Lakeside Event Center. The agenda includes presentations on Perham’s newly completed housing study and needs analysis, a State of Rural presentation from the Center for Rural Policy and Development, Otter Tail County’s Community Development and Housing Annual Report, and updates from the Perham EDA. Registration is open: perham-housing- 2026.eventbrite.com Workforce Support Strategy / OTC Works: Referrals to the Empowered Worker Program continue to be paused. Staff will be developing a strategy for agriculture industry engagement and resume referrals with an agriculture focused now that we have signed the grant contract for our Growing Careers Agriculture Workforce funding. Child Care: An open house is planned for February 7 from 1-4 pm at the Ottertail Family Center. Business Development: Lender Convening is being planned for the morning of February 18 at West Central Initiative with confirmed key speakers including the SBDC, WCI, USDA, MMCDC and SBA. Quarterly business development newsletter was distributed to 1,219 recipients with highlights on visitor data, Fergus Falls Child Care Expansion Project, PROMISE Act Grants, AI and automation training, and transition planning resources: members.ottertaillakescountry.com/ap/EmailViewer/LbnY1RkL 14/46 > > > > > > > > > 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 Page 2 Attachments:  Ottertail Family Center open house flyer 15/46 Open House OTTERTAIL FAMILY CENTER DAYCARE UNITS SATURDAY, FEB 7TH Maple Ave. S Ottertail, MN, 56571 1 PM – 4 PM Unit 223 Mckayla Small 218-579-0681 Unit 225 Donna Sworski 218-275-9175 Unit 227 Jessica Sarago 801-718-7802 Unit 229 Anika Miller 218-770-7585 16/46 Housing Growth & Development Committee Meeting Notes Date/Time: January 12 @ 1:00pm Committee members: Dena Johnson (in person), Jeff Ackerson (in person), Dave Schornack (virtual) Outline of key actions discussed: 1. Discuss extension of Tax Rebate Program construction start deadline a. Committee reviewed extenuating circumstances of Tax Rebate Program participant and approved a one year extension of the construction start deadline to December 31, 2026 2. Review Tax Forfeit Policy a. Policy draft presented reviews how the process happens currently and the process for a request from government or non-government entity to purchase tax forfeited property for the purposes of affordable housing, removal of blight, etc. b. Government entity and non-government entity would complete the same application to request the property purchase. c. Committee discussed process, fees, and deposit requirements proposed. d. Board of Commissioners and full CDA boards will review the draft policy in February 3. Review housing strategy discussions from joint CDA/HRA meeting in January Next meeting: TBD 17/46 218-998-8060 ® 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 Workforce Support & Digital Equity Committee Meeting Notes Date/Time: January 20 @ 3:00pm Committee members: Kurt Mortenson (in person), Bob Schempp (in person), Betsy Roder (virtual) Outline of key actions discussed: 1. Empowered Worker Program update a. Referrals to the program are still paused. While paused, staff has been able to process participant exits, clean up case load, and monitor participant needs with new semester at M State b. In February, staff will do strategy planning for employer and training outreach to agriculture industry and re-open referrals with an agriculture careers focus aligning with the DEED Growing Careers Agriculture Grant. c. Continuing exploration of additional funding sources. Potential applications include Bush Foundation, St. Paul and Minnesota Foundation, and federal EDA Disaster Supplemental Grant Program 2. Employment services transition updates a. The timeline for transitioning Minnesota Family Investment Program (MFIP) employment services internally to the County has been confirmed. Transition benchmarks include accepting new cases starting in summer 2026, transitioning existing case load in stages through fall 2026, and all services transitioned by year end. b. Human services project team with support from Community Development Director and Workforce Navigator are leading the transition. c. Members of the project team are engaging with other counties who have gone through the transition to deliver employment services internally. Wilkin County employment services will also be administered by the new service team staff. 3. Child care updates a. Fergus Falls Child Care Expansion Project led by PioneerCare and Fergus Falls Area Habitat for Humanity plans to break ground on the first twin home in May. They plan to build one twin home each year for a total of three homes (6 child care units). DEED Child Care Economic Development grant funding could expedite their construction timeline, so staff is monitoring for the announcement that the grant is open for applications. b. Children’s Corner expressed operational sustainability challenges at their Fergus Falls location which prompted the Board of Commissioners and community stakeholders to discuss potential support. c. Ottertail Family Center project construction is completed and providers are moving in. All four providers will be licensed by the first week of February and an open house is being planned in early February. Staff anticipates processing and closing out their DEED Child Care Economic Development Grant in the next month as well. 4. Broadband updates a. DEED Broadband Line Extension Connection Program will be open for an application round in March. b. Blandin on Broadband county profiles were released, and Otter Tail County remained ranked at 40 out of 87 counties. 90.16% of the county has access to 100/20 broadband speeds. Next meeting: TBD 18/46 218-998-8060 ® 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: January 15 @ 1pm Committee members: Val Martin (virtual), Sean Sullivan (virtual) Outline of key actions discussed: 1. Discuss Lender Convening a. Due to speaker availability, committee was supportive of doing one in-person event with a virtual option for presenters on February 18. Potential locations for the convening are West Central Initiative, Sheriff’s operations center, or Lakes Country Service Cooperative b. Confirmed speakers include West Central Initiative and the SBDC. Staff will outreach for additional speakers from MMCDC to present on New Market Tax Credits, SBA, and USDA. 2. Discuss grant extension policy for Community Growth Partnership Grant Program a. Committee was supportive of administrative authorization to extend a Community Growth Partnership Grant beyond the 12 month grant term when requested by cities. Review with CDA board to affirm the extension process for future circumstances. 3. Westridge Mall redevelopment updates a. Working with a planning firm to draft concept plans with parking, new streets, new building uses, and retail layout. b. Mall property sold to mortgage holders at the Sheriff’s Sale, but sale won’t be recorded until all property taxes are paid. Next meeting: TBD 19/46 218-998-8060 ® 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 County of Otter Tail, Minnesota Services Agreement This “Agreement” is entered into the _______________, 2026 (“Effective Date”) between Community Development Agency of Otter Tail County, (“CDA”), and Otter Tail County, (“County”). For good and valuable consideration, the parties agree as follows: 1. Service. The County agrees to engage the CDA for the following “Service” and the CDA agrees to perform the “Service” on behalf of the County: • Advance economic, commercial, housing, and/or industrial development and redevelopment goals and objectives 2. CDA’s Responsibilities: In furtherance of performing the Service, and in addition to any other obligations described herein, the CDA shall: • Work to expand housing opportunities, promote business development, and foster the coordination of public and private resources, thereby supporting growth and investment throughout Otter Tail County. 3. County’s Responsibilities: The County will provide on-site workspace, internet access, technology (e.g. phone, computer, etc.), technological support, financial and office related functions including but not limited to mail, print, copy, and fax capability to the CDA as needed to complete the Service. The County will make the Otter Tail County Community Development Director, Deputy Administrator and additional designated staff available to support the CDA Board of Directors and as otherwise needed by the CDA to provide the Service. Financial responsibilities, including the issuance of checks and preparation of financial statements, are specifically delegated to the County as authorized by Minnesota Statues Chapter 469.097. 4. Term: The Service under this Agreement will begin January 1, 2026 and continue through December 31, 2026. Either party may terminate this Agreement early, upon not less than 90-days’ notice given in writing prior to the end of the fiscal year. 5. Law Governing: This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. All proceedings related to this Agreement shall be venued in the State of Minnesota, County of Otter Tail. 6. Insurance: The CDA agrees to hold and maintain general liability insurance, errors and omissions insurance, directors and officers’ insurance, and “hired and nonowned” auto liability insurance. The County agrees to maintain general liability insurance and insurance necessary to cover claims related to the Service. Nothing in this Agreement shall constitute a waiver by either party of any statutory limitations, exclusions, or exceptions on liability. 20/46 7. No Waiver. Nothing herein shall be construed to waive or limit any immunity from, or limitation on, liability available to either party, whether set form in Minnesota Statues Chapter 466 (Tort Liability, Political Subdivisions) or otherwise. 8. Modification. This writing contains the entire agreement between the parties and no alterations, variations, modifications, or waivers of the provisions of this agreement are valid unless reduced to writing, signed by both the CDA and the County, and attached hereto. 9. Severability. The provisions of this Agreement shall be deemed severable. If any part of this Agreement is rendered void, invalid, or otherwise unenforceable, such rendering shall not affect the validity and enforceability of the remainder of this Agreement. IN WITNESS WHEREOF, Parties hereto have executed this agreement this _____ day of __________, 2026. COMMUNITY DEVELOPMENT AGENCY OTTER TAIL COUNTY OF OTTER TAIL COUNTY By:__________________________ By:__________________________ Its: __________________________ Its: __________________________ Date:_________________________ Date:________________________ 21/46 OTTER TAIL COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION February 4, 2026 BOARD MEETING DATE AGENDA ITEM #6b Amy Baldwin 01/30/2026 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Recommendation for Approval of the Otter Tail County, Minnesota Tax Forfeited Land Policy and Approval of the Otter Tail County Community Development Agency Tax Forfeited Land Development Policy Staff has developed the draft Otter Tail County, Minnesota Tax Forfeited Land Policy to guide County Commissioners when considering requests for reductions in the cost of tax-forfeited parcels. The policy establishes procedures for determining when a cost reduction is appropriate and the extent of such reduction. Under the policy, a potential buyer requesting a cost reduction must submit an application and required documentation to the Community Development and Housing Department. Staff will review the application and determine whether it should be processed through the HRA or the CDA, based on the type and location of the proposed project. When a city is the applicant, staff will review the application, but it will not be processed through either agency. The proposed project must either eliminate blight or be used for the development of affordable housing. Once this determination is made, staff will present the project to the appropriate board, which will either deny the application or recommend approval. Projects recommended for approval will then be forwarded to the County Board for final consideration and action. The Otter Tail County HRA/CDA Tax Forfeited Land Development Policy provides developers and staff clear procedures and timelines as to the process of applying for and ultimately obtaining a tax forfeited parcel at a reduced cost. Developers will complete an application in which they will clearly describe their proposed project to ensure that it corrects blighted conditions and/or will be developed for affordable housing. The policy addresses the responsibilities of the HRA/CDA and the developer. Staff recommends the CDA board provide a recommendation to the County Board for the approval of the County policy as well as the approval of the CDA Policy. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED: N/A EXECUTIVE DIRECTOR DATE: Amy Baldwin 01/30/2026 ATTACHMENT LIST: • Draft Policies FINANCIAL IMPLICATIONS: collection of application fee BUDGETED: X YES NO FUNDING: applicant COMMENTS 22/46 1 OTTER TAIL COUNTY, MINNESOTA TAX FORFEITED LAND POLICY INTENT AND PURPOSE It is the intent of the Tax Forfeited Land Policy (the “Policy”) to provide County Administration with guidelines with regard to the disposition of tax forfeited lands upon request by a Governmental Subdivision. Government Subdivision is defined in the same way as the term “political subdivision” is defined for property tax purposes. This definition includes the following local taxing districts: counties, cities, townships, school districts, and special taxing districts, including HRAs and EDAs. The purpose of the Policy is to: 1. Return tax forfeited land to productive use and thereby increase Otter Tail County’s tax base; 2. Promote opportunities for development that align with local community need; 3. Provide opportunities to correct blighted conditions or develop affordable housing. PROCESS Initial Public Sale. The Otter Tail County Auditor-Treasurer’s Office administers the disposition of tax-forfeited lands. These properties default to the State of Minnesota ownership after three years of non-payment of taxes from the judgment year. Property owners have an opportunity to repurchase their forfeited property subject to certain requirements. If parcels are not repurchased, the County Auditor-Treasurer’s Office will conduct an initial public auction to the highest bidder. Any tax forfeited lands not sold at the public sale can be added to the next public auction. Governmental Subdivision Request. From time to time, however, certain non-conservation tax forfeited lands may provide opportunities to accomplish the purposes of this Policy. The Governmental Subdivision shall submit to the County Auditor-Treasurer and the County Board, a written request that certain tax forfeited lands be withheld from a subsequent public auction for six months (the “Request”). The repurchase time frame for the property owner(s) of the affected tax forfeited land must have expired, and a Confession of Judgement has not been issued. The Request must also include a completed Application to Acquire Tax Forfeited Property that contains sufficient information conforming to the requirements of Minnesota State Statute 282.01(a)(d), which include 1) the specific plans for correcting the blighted conditions or developing affordable housing, 2) the specific law or laws that empower it to acquire real 23/46 2 property in furtherance of the plans; and 3) a preliminary development financial analysis that a reduced sale price at twenty-five (25) percent of the current year estimated market value (as determined by the County Assessor), is in the public interest because it is necessary to provide an incentive to correct the blighted conditions and/or the reduced price will lead to the development of affordable housing. Determination by the County Board. The County Board shall review the Request within forty- five (45) days and determine if the Request is consistent with and furthers the purposes of this Policy. The County Board shall adopt a resolution rejecting or approving the Request and/or directing the County Auditor-Treasurer to withhold the property from further public auctions. 24/46 3 OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY / COMMUNITY DEVELOPMENT AGENCY TAX FORFEITED LAND DEVELOPMENT POLICY The Otter Tail County HRA/CDA, acting on behalf of Otter Tail County, has established the following procedures to apply to the sale of certain tax forfeited lands (the “Properties”): A. Application: The Otter Tail County HRA/CDA (“OTC HRA/CDA”) may solicit proposals from interested parties interested in the purchase and development of Properties (the “Developers”) or will consider proposals received from Developers without solicitation. The OTC HRA may require that interested Developers submit a proposal in the form of an “Application to Acquire Tax Forfeited Property” (the “Application”). Applications may be for affordable housing or for the elimination or prevention of blight on the Property. B. Relocation: If a Property contains an occupied building, relocation costs may apply. The Developer will be responsible for any relocation costs. The OTC HRA/CDA will clarify whether relocation costs will apply and assist the Developer to estimate the amount of payment required. C. Acquisition Price: Properties will be made available to Developers at a discounted price targeted at 25% of the estimated market value. “Estimated market value” means the current-year market value of the Property as determined by the Otter Tail County Assessor. D. Due Diligence: The Developer will have 45 days to complete its due diligence, including title review, and to confirm its intent to move forward with the approval process for the Application or to withdraw its Application. Developers will be responsible for all costs of obtaining marketable title for the Property. E. Contract: When an Application has been submitted and confirmed, OTC HRA/CDA staff will negotiate a purchase and development contract (the “Contract”) with the Developer. OTC HRA/CDA staff will require the following from the Developer before presenting the Contract to the OTC HRA/CDA Board for approval: 1. Contract signed by the Developer. 2. Acquisition price (“Acquisition Price”): The Acquisition Price will be targeted at 25% of the estimated market value (as determined by the County Assessor), plus recording fees and costs. 3. A non-refundable administrative fee of $500 per application payable to either the OTC HRA or CDA. 4. A check in the amount of any outstanding special assessments levied against the Property, payable to the County (the “Special Assessments Payment”). F. HRA/CDA Board Approval: Upon receipt of the items listed above, staff will seek OTC HRA/CDA Board approval of the Contract. If approved, the OTC HRA/CDA will execute the Contract contingent upon County approval, then proceed to request conveyance of the Property from the County. If the OTC HRA/CDA Board denies the Application and Contract, the Acquisition Price, , and Special Assessments Payment will be refunded to the Developer. The OTC HRA/CDA may then solicit other proposals for the Property or will release its hold on the Property. G. County Approval: Once the OTC HRA/CDA Board approves the Contract, staff will send the approving resolution, the Developer’s Application and the Acquisition Price to the County Board, requesting conveyance of the Property to the OTC HRA/CDA. Following approval by the County and acquisition 25/46 4 of the Property from the State of Minnesota, the OTC HRA/CDA will schedule closing with the Developer. 1. Closing: Once the County has recorded the deed for the Property and the OTC HRA/CDA has received the recorded deed, the OTC HRA/CDA will schedule a closing with the Developer. At the closing, the Developer will be responsible to pay all closing costs and any additional fees charged by the County. 2. Post-Closing Obligation: After closing, the Developer will be solely responsible for all property maintenance and construction costs. The Contract will require that improvements must be completed within 12 months after closing or as negotiated. 3. Failure to Perform: If the Developer fails to complete the improvements on the Property within 12 months after closing or as negotiated, no additional Property may be acquired by the Developer through the Tax Forfeited Hold Sale Procedure until the default is cured. If the default is not cured in accordance with the terms of the contract, the property title reverts back to the OTC HRA/CDA. 26/46 OTTER TAIL COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION February 4, 2026 BOARD MEETING DATE AGENDA ITEM #6D Amy Baldwin 01/29/2026 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 PROPOSED REQUEST/JUSTIFICATION An application has been submitted to 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 and housing study proposal. The City Council resolution authorizing application will be provided following the City Council’s next meeting. • City of New York Mills – Housing Study o Project overview: The City is requesting funds to support a housing study to be completed in collaboration with the New York Mills Economic Development Authority. The City is looking for the study to help with information about what types of housing development should be focused on for the South Point property and also on the newly acquired 24 acres that the city purchased in 2025. o Requested Grant Amount: $5,000 is requested; the balance of the study will be funded by the New York Mills EDA. Planning work such as a housing study is a permitted use of the funds through the program. Staff recommends approval. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED: EXECUTIVE DIRECTOR DATE: Amy Baldwin 1/29/2026 ATTACHMENT LIST: a. Application and Proposal FINANCIAL IMPLICATIONS: N/A BUDGETED: YES NO FUNDING: Community Growth Partnership Program Funds (23-705) 27/46 - D OTTER TAIL COUNTY -MINNESOTA 2026 Community Growth Partnership Grant Application GENERAL INFORMATION Project Name: City of NYM 2026 Housing Study Project Type: Planning Activity D Commercial Rehabilitation D Affordable Housing D Redevelopment D Applicant City/Township: _C�ity�of_N_ew_Y_o_r _k _M_il _ls ______________________ Application /Project Contact: Julie Roberts ----------------------------- 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 Latham Hetland, Mayor How much funding is being requested? $ $10,000 ---'--'---------------------- 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 is planning to do a local housing study. The information from the county wide study done a few years ago has been very valuable to the community, but we would like to do a local study to help us in determining our next steps for planning housing in New York Mills. 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. The City of New York Mills would like to do a local housing study. With all the lots in Country View housingdevelopment sold, we are now looking to form our plan for future developments. We would like to hireMaxfield Research & Consulting to perform a housing study for New York Mills. This will help us to knowwhat type of developing should be done on the South Point property and also on the newly acquired 24acre that the city purchased in 2025. 2.Leverage: List all other funding sources and uses for the planning activity. Source of Funds Amount Cit of New York Mills EDA $ 10,000 CDA Grant $ 10,000 $ $ Total: $ 20,000 Itemized Use of Funds/Expenses Amount Maxfield Research & Consultin $ 20,000 $ �; 9o!Jf�N!��� Committed Pending 10,000 10,000 Funding Source Cit and CDA Grant 1 ----------- $5,000----------- $5,000 ---------- $5,000 ---------- $5,000 ---------- $15,000 ---------- $15,000 28/46 29/4620,000 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. 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. 3. Leverage: List all sources and uses of funding for the Commercial Rehabilitation Program. Source of Funds Amount Committed Pending $ $ Total: $ Itemized Use of Funds/Expenses Amount Funding Source $ $ 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 30/46A Proposal to Prepare a Comprehensive Housing Needs Analysis for the City of New York Mills, Minnesota Prepared for: City of New York Mills New York Mills, MN September 2025 901 Twelve Oaks Center Drive Suite 922 Wayzata, MN 55391 612.338.0012 www.maxfieldresearch.com 31/46Breaking Ground since 1983 September 19, 2025 Mr. Latham Hetland Mayor-City of New York Mills PO Box H 28 Centennial 84 Drive West New York Mills, MN 56567 Mr. Hetland: Thank you for contacting Maxfield Research and Consulting for a proposal to prepare a Comprehensive Housing Needs Analysis for New York Mills, Minnesota. The study would examine demographic and eco-nomic trends along with current housing market conditions to determine the market potential for devel-oping additional housing products in the City. We would provide detailed recommendations for the housing types identified as being needed in the short-and long-term, and recommendations would be provided on programs and incentives that could be initiated to attract various housing products. The work program for this housing market study is outlined on the following pages. The total fee for staff time would be $18,700, including out-of-pocket expenses (i.e. data purchases, etc.) and an elec-tronic version of the report. Travel costs are additional and would be billed at our direct costs. Costs are presented for each major component of the work program. Maxfield Research and Consulting would be able to deliver a draft report of the housing needs analysis in approximately 120 days. Along with the proposal is a statement of qualifications for our firm which provides a company back-ground and outlines our services and representative clients. We welcome the opportunity to work with you on this project. If you have questions, please contact me at (612) 802-5094 or email at jhollman@maxfieldresearch.com. If the proposal meets with your approval, please date and sign one copy and return it to our offices and we will schedule this work to be completed. Sincerely, MAXFIELD RESEARCH AND CONSULTING Joe Hollman Director of Research (main) 612-338-0012 (fax) 612-904-7979 901 Twelve Oaks Center Drive, Suite 922, Wayzata, MN 55391 www.maxfieldresearch.com 32/46Breaking Gmuncl since 1983 September 19, 2025 Mr. Latham Hetland Mayor-City of New York Mills PO Box H 28 Centennial 84 Drive West New York Mills, MN 56567 CONTRACT FOR PROFESSIONAL SERVICES Maxfield Research and Consulting proposes to provide market research and consulting services to the City of New York Mills, Minnesota (the "Client"} to prepare a Comprehensive Housing Needs Analysis. The study will determine the market potential for developing different types of owned and rented housing in the City through 2035 based on an examination of demographic and employment growth trends and current housing market conditions. Detailed recommen-dations (number of units/lots; unit mix and sizes; prices/rents; housing features and amenities, etc.} for the housing types identified as needed in the short-term (2025 to 2030} and long-term (2031 to 2035} would be provided. DESCRIPTION AND BIOGRAPHY OF FIRM Maxfield Research and Consulting has 40 years of experience in assisting communities to deter-mine market conditions for planning and development efforts, providing demographic esti-mates and projections, and analyzing county and municipal commercial and residential real es-tate needs. Our thorough knowledge of market trends in the real estate industry allows us to support our clients with valuable information that affects planning and development. We are able to determine viable solutions to the issues that communities face. We are local, regional and national with work completed in over 40 states. Maxfield Research and Consulting provides market analysis services in the areas of general oc-cupancy market rate housing, affordable housing, student housing, senior housing, office, retail, hospitality, industrial, and financial institutions. Maxfield also has experience in organizing and conducting focus groups, preparing and administering on-line and mail surveys, holding public forums for large scale planning documents, and organizing and making presentations to city councils, planning commissions, and economic development authorities. A more detailed com-pany overview is located in the Appendix. (main) 612-338-0012 (fax) 612-904-7979 901 Twelve Oaks Center Drive, Suite 922, Wayzata, MN 55391 www.maxfieldresearch.com 33/46Mr. Latham Hetland City of New York Mills METHODOLOGY September 19, 2025 Page 4 It is our understanding that the primary objective of this study is to provide a market-based analysis that will identify current and future housing needs in the community and help decision makers develop a greater understanding of the City's housing market. Maxfield Research and Consulting will provide detailed recommendations and an action plan for housing development (both short-term and long-term) and recommend tools and policies that will assist implementa-tion. Our findings will provide a basis for community leaders, stakeholders, and decision-mak-ers to guide future efforts when addressing housing needs. The hallmark of Maxfield Research and Consulting's approach to comprehensive housing stud-ies is a thoughtful, in-depth combination of primary and secondary research. Primary research includes surveys of existing housing properties, interviews with major employers, developers, builders, Realtors, property managers, city and government agency staff, and others familiar with housing issues and the local housing market. Secondary research includes data obtained from reliable published sources including the Census Bureau, ESRI (a national demographics firm), state demographic centers, and economic development agencies, among others. Published secondary data is always re-viewed carefully considering other local factors revealed through primary re-search that may have an impact on the analysis. The result is a custom report that provides the Client with information that is timely and locally pertinent. Our work approach draws on our experi-ence and expertise in conducting eco-nomic and market studies on behalf of public entities and private developers. Maxfield Research and Consulting is a market leader in real estate research and consulting in the Upper Midwest. MAXFIELD RESEARCH AND CONSULTING Comprehensive Housing Needs Analysis 34/46Mr. Latham Hetland City of New York Mills WHY MAXFIELD RESEARCH? We Know the Region September 19, 2025 Page 5 • Benefit: Our past experience in Otter Tail County and throughout West Central Minnesota will allow us to work efficiently Housing Inventory • Benefit: Maxfield Research's proprietary housing data includes detailed information on multifamily properties across the Upper Midwest ~ • .J • Experience Counts • Benefit: Committed team of senior-level leaders; the team members dedicated to this project have over 60 years of experience Local Knowledge -National Experience • Benefit: Our work is grounded in local issues/reality and we can integrate best practices from elsewhere ~ --•-., --.. • l • -Relationships • Benefit: We have deep relationships with the development community; we understand their barriers and opportunities, we know what they want, and they will talk to us Full-Service Real Estate Advisory Firm • Benefit: We understand the connection between all real estate types and we advise both public-and private-sector clients Comprehensive Approach • Benefit: Data-driven analyses generate conclusions and recommendations based on market realities 1 •• ,4 T p --~ ----~ On the Ground Field Research • Benefit: Hands-on field work and interviews via telephone or in person combined with the analysis of Census and other data to gain the most information possible. -, ,. r Proven Methodologies & Results Oriented • Benefit: Our process for projecting housing demand has proven to be effective and we deliver action-oriented strategies MAXFIELD RESEARCH AND CONSULTING 35/46Mr. Latham Hetland City of New York Mills KEY RESEARCH STAFF September 19, 2025 Page 6 Mary Bujold, CRE, President of Maxfield Research and Consulting, will be principle-in-charge of the project and serve as a consultant for the rec-ommendations. Ms. Bujold has over 40 years of experience in housing market research and is regarded as a market expert in the field of resi-dential real estate. Ms. Bujold has been involved in numerous housing and commercial analyses for private developers and public agencies over the past several years. Mr. Joe Hollman, Director of Research, would be the principal analyst overseeing project execution, completing a portion of the data gathering, preparing conclusions and recommendations, and overseeing compila-tion of the report. Mr. Hollman was the project lead on several similar housing needs analyses, including studies for the Minnesota communities of Elbow Lake, Mora, Lake City, Montgomery, Red Wing, Pope County, and Hubbard County. Mr. Hollman is currently preparing a housing mar-ket study for the City of Grinnell, Iowa and is directing the completion of a housing needs analysis for the City of Perham, Minnesota. Mr. Max Perrault, GIS Technician/Senior Associate, will be responsible for mapping, compiling demographic and employment data, and gather-ing base market information. Mr. Perrault has assisted on several com-prehensive housing needs analyses during his tenure with Maxfield Re-search and Consulting, including recent studies for Storm Lake, Iowa, the City of Braham, Minnesota, and Anoka County, Minnesota. Mr. Perrault is currently providing mapping services for multiple market studies across the Upper Midwest and is working on a housing needs analysis for Forest County, Wisconsin. MAXFIELD RESEARCH AND CONSULTING 36/46Mr. Latham Hetland City of New York Mills Consultant's Name: Maxfield Research and Consulting Year Established: 1983 Type of Ownership: LLC Federal ID Number: 41-1463801 Employees: 8 Primary Contact: Mr. Joe Hollman Director of Research Maxfield Research and Consulting 901 Twelve Oaks Center Drive, Suite 922 Wayzata, MN 55391 (612) 904-7973 email: jhollman@maxfieldresearch.com www.maxfieldresearch.com Maxfield Research & Consulting Team Members • Mary Bujold, President, 41 years experience • Joe Hollman, Director of Research, 28 years experience • Brian Smith, Senior Associate, 23 years experience • Rob Wilder, Senior Associate, 10 years experience • David Sajevic, Senior Associate, 15 years experience September 19, 2025 Page 7 • Max Perrault, GIS Technician/Associate, 9 years experience • Jessica Van Voorhis, Associate, 10 years experience • Nathan Ross, Associate, 1 year experience SCOPE AND COST OF SERVICES -Comprehensive Housing Needs Analysis A. Project Kickoff 1. Meet with Client representatives and other stakeholders to review project goals and objectives. This report will require some assistance from the stakeholders; data re-quests and other project assistance will be discussed during this time. 2. Obtain information on past housing studies/planning documents, ordinances, or other research reports/publications with information pertinent to the assignment. Review these documents and identify information that is relevant to this analysis; identify how current conditions have changed. 3. Conduct a windshield assessment of the housing stock in the community. MAXFIELD RESEARCH AND CONSULTING 37/46Mr. Latham Hetland City of New York Mills 8. Demographic Analysis September 19, 2025 Page 8 1. Define a primary housing draw area for the City of New York Mills. 2. Provide population and household growth trends and projections to 2035. 3. Examine demographic information on: a) Population age distribution b) Household incomes by age of householder c) Household tenure by age of householder d) Household incomes be tenure e) Household tenure by household size f) Household type 4. Summarize diversity/ethnicity of the Market Area's population. 5. Present information on mobility trends. 6. Discuss the implications of the findings on housing demand. C. Employment Trends 1. Examine local data on labor force and resident employment trends. 2. Examine local data on industry employment and wage trends. 3. Identify major employers. 4. Identify commuting patterns of area workers. 5. Project job growth to 2035. Analyze any business expansions/contractions and their impact on the local housing market. 6. Interview economic development specialists and major employers regarding the im-pact housing has on their ability to attract/retain workers. D. Housing Characteristics & Condition 1. Compile statistics on the age of the housing stock. 2. Compile residential building permit data to the most current available figures. Data to be provided by Client. If Client is unable to provide building permit information, then secondary data {i.e. Census Building Permit Survey) will be utilized if available. 3. Analyze U.S. Census {2010 and 2020) and American Community Survey {ACS) find-ings on housing units by structure type and tenure in the community. 4. Interview housing professionals and municipal staff regarding housing conditions, economic development trends, and other factors that affect the housing markets. E. For-Sale Housing Market Analysis 1. Provide data on detached single-family and multifamily (i.e. twin homes, townhomes, condominiums) housing resale values, and examine price distribution and average/median price of home resales. If available, data will be sourced from local Multiple Listing Service {MLS). If MLS data is not available, information will come from the City or County Assessor which may require Client assistance. 2. Analyze data on the inventory and list price of homes currently for sale. 3. Survey active and recently completed for-sale housing developments {detached single-family homes, townhomes, twin homes, etc.). MAXFIELD RESEARCH AND CONSULTING 38/46Mr. Latham Hetland City of New York Mills September 19, 2025 Page 9 4. Analyze information on product types, lot sizes, home sizes, sale prices, and absorption (if available}. 5. Identify the residential lot supply in the community and evaluate the impact on potential housing production. To the extent data is available, present information on vacant lots by year platted, subdivision, pricing, etc. Lot supply data to be provided by Client through GIS or Assessor parcel databases. 6. Identify pending for-sale housing developments and discuss the likely impact of these developments on the housing market. 7. Interview real estate professionals to assess the overall strength of the for-sale housing market, buyer profiles, desired housing types, price points, and unmet market niches. F. General Occupancy Rental Market Analysis 1. Provide a general overview of rental housing market conditions. 2. Survey larger (eight units or more} general occupancy rental housing projects, in-cluding subsidized, affordable, workforce/moderate income housing, and market rate properties. 3. Analyze data collected from the rental survey on year built, monthly rents, vacan-cies, and rents per square foot. 4. Map locations of the surveyed rental housing properties. 5. Inventory pending rental developments and evaluate their impact on the market. 6. Interview owners/managers of rental housing in the area to assess rental trends and the need for additional rental housing. 7. Identify appropriate rental rates and the target markets for new rental construction in the community. G. Senior Housing Market Analysis 1. Inventory existing senior housing properties, including subsidized, affordable, and market rate developments. Projects will include rental and for-sale active adult, in-dependent living, assisted living, and memory care facilities. 2. Provide information on year opened, number of units, and service level. 3. Map locations of the senior housing stock. 4. Inventory pending senior developments and evaluate their impact on the market. 5. Interview managers/sponsors of senior housing in the area to assess market trends and the potential need for additional senior housing. H. Housing Affordability 1. Provide income limits, maximum gross rents, fair market rents by household size. 2. Utilizing income guidelines, present maximum rents based on household size and Area Median Income. 3. Based on the average rents and median home resale values from the General Occu-pancy Rental Market Analysis and the For-Sale Housing Market Analysis sections, present information on income-qualified renter and owner households. MAXFIELD RESEARCH AND CONSULTING 39/46Mr. Latham Hetland City of New York Mills September 19, 2025 Page 10 4. Identify the number of cost burdened households (i.e. households paying more than 30% of their income on housing) for renter and owner households. 5. Evaluate Housing Choice Voucher program utilization in the community. I. Conclusions and Recommendations 1. Calculate demand through 2035 for new general occupancy for-sale housing, general occupancy rental housing (subsidized, affordable, and market rate), active adult sen-ior housing (subsidized, affordable, and market rate), and service enhanced senior housing (independent living, assisted living, memory care). 2. Identify potential target markets for new for-sale, rental, and senior housing. 3. Identify potential housing gaps and opportunities in the community. 4. Based on residential lot supply and absorption trends, discuss whether additional lots should be platted to meet projected demand. 5. Suggest appropriate development concepts in the short-term (developments needed by 2030) and longer-term (2031 to 2035), including number of units, unit mix, sale prices or monthly rents, and in-unit features and common area amenities. 6. Prioritize housing needs and action steps to implement recommendations. 7. Discuss the potential need for public/private partnerships to achieve housing devel-opment goals and support economic development. 8. Review current programs offered in the community (data to be provided by Client). 9. Discuss other potential housing programs and resources that may be administered to help achieve housing goals. 10. Provide recommendations on other challenges and opportunities that relate to the existing housing stock and housing development. J. Meetings and Client Contact 1. One kick-off meeting with Client (in person or via teleconference). 2. Review of the Draft analysis (via teleconference) that would address report findings. 3. One formal presentation (in person or teleconference) to governing body. 4. Report Preparation. MAPPING Maxfield Research and Consulting will utilize mapping software to present key data visu-ally and spatially. To the extent Geographic Information System (GIS) data is available, Maxfield Research and Consulting will prepare housing related parcel-based maps of the community. Maxfield Research will require assistance from the Client to obtain parcel level data. Cost for Comprehensive Housing Needs Analysis (Staff Time) $18.700.00 MAXFIELD RESEARCH AND CONSULTING 40/46Mr. Latham Hetland City of New York Mills COST OF SERVICES September 19, 2025 Page 11 The work outlined under the Scope of Services -Comprehensive Housing Needs Analysis will be performed for Eighteen Thousand Seven Hundred Dollars ($18,700.00), including out-of-pocket expenses such as data purchases and an electronic version of the report; but excluding travel expenses (meals, mileage or car rental, lodging, incidentals, etc.) estimated to not exceed $900.00. Work completed on the assignment would be billed to the Client monthly as costs are incurred. Additional research or meeting time requested by the Client beyond that set forth in the ac-companying Scope of Services will be billed at our normal hourly rates ($65 to $160). The following fee proposal provides a detailed summary of staff hours needed to complete this project. The fee proposal includes a breakdown of costs by project task and by Maxfield Re-search and Consulting staff position. FEE PROPOSAL COMPREHENSIVE HOUSING NEEDS ANALYSIS FOR NEW YORK MILLS, MINNESOTA Maxfield Research and Consulting Staff Hours President Project Project Total Cost by Project Task I Director Analyst Hours Task I --Project Kick-off 0 I 8 0 8 $1,200 Review of Past Studies 0 0 4 4 $340 Demographic Analysis 0 4 16 20 $1,960 Employment Trends 0 I 2 14 16 $1,490 Housing Characteristics and Condition 0 I 2 12 14 $1,320 For-Sale Housing Market Analysis 0 4 18 22 $2,130 General Occupancy Rental Analysis 0 I 2 20 22 $2,000 Senior Housing Market Analysis 0 2 12 14 $1,320 Housing Affordability 0 4 6 10 $1,110 Conclusions and Recommendations 6 I 10 6 22 $2,970 Meetings and Report Preparation 0 8 4 12 $1,540 Mapping 0 2 12 14 $1,320 Total Hours 6 48 124 178 (times) Hourly Rate $160 $150 $85 Total Cost for Staff Time $960 $7,200 $10,540 $18,700 (Plus) Travel Cost (estimate)* I $900 Total Cost for Staff Time plus Travel $960 $7,200 $10,540 $19,600 *Mileage, lodging, meals, etc.; Mileage billed at the standard IRS rate of $0. 70 per mile (2025 rate) MAXFIELD RESEARCH AND CONSULTING 41/46Mr. Latham Hetland City of New York Mills WORK PRODUCT Findings will be presented in an electronic PDF format. September 19, 2025 Page 12 The Comprehensive Housing Needs Analysis is accepted by many lenders, limited partners, in-vestors or governmental bodies who require such documentation to satisfy their financing cri-teria. COMPLETION TIME The work outlined under Scope of Services will be completed in draft form within 120 days of the execution of this agreement unless delayed by unexpected emergencies, forces beyond the control of the parties, or by written agreement of the parties. A final report would be issued within two weeks of receiving all comments and feedback from the Client. PROPOSED COMPLETION TIMEFRAME COMPREHENSIVE HOUSING NEEDS ANALYSIS FOR NEW YORK MILLS, MINNESOTA Month 1 Month 2 Month 3 Month 4 Month 5 Project Task I -, I I I Project Kickoff ' I -F--I I Review of Past Studies ,1""", Demographic Analysis I I I I I I I I Employment Trends ,-, I I Housing Characteristics & Condition I I -I I ..,... I I I I I I I .:-.. I I For-Sale Market Analysis I :-: I I I ,_ Rental Market Analysis I I I I 1-Senior Housing Market Analysis I -I I -I I -Housing Affordability I ! -I I :1 Conclusions and Recommendations I I I Delivery of Draft Report I ! .,. I I Formal Presentation I I --MAXFIELD RESEARCH AND CONSULTING 42/46Mr. Latham Hetland City of New York Mills PAYMENT September 19, 2025 Page 13 All invoices are payable to Maxfield Research and Consulting within fifteen (15) days of receipt of an invoice showing the work completed and the direct costs for expenses. A finance charge of one and one-half percent (1.5%) per month will be added to the unpaid balance of each invoice not paid within thirty (30) days. All invoices are sent via email. A current email address needs to be supplied to Maxfield Research for billing purposes. A final invoice will be sent with the release of the draft report. DISCLAIMER The objective of this research assignment is to gather and analyze as many market components as is reasonable within the time limits and projected staff hours set forth in this agreement. We assume no responsibility for matters legal in character. The property/land is assumed to be free and clear of any indebtedness, liens or encumbrances; and good and marketable title and competent management are assumed, unless otherwise stated. If building plans or site plans are included in the report, they are to be considered only approximate and are submitted to assist the reader in visualizing the property. We assume no responsibility for the accuracy of any building or site plans. Certain information and statistics contained in the report, which are the basis for conclusions contained in the report, will be furnished by other independent sources. While we believe this information is reliable, it has not been independently verified by us and we assume no responsibility for its accuracy. The conclusions in the report are based on our best judgments as market research consultants. Maxfield Research and Consulting disclaims any express or implied warranty of assurance of representation that the projections or conclusions will be realized as stated. The result of the proposed project may be achieved, but also may vary due to changing market conditions characteristic of the real estate industry, changes in facts that were the basis of conclusions in this report, or other unforeseen circumstances. This agreement will be construed according to the laws of the State of Minnesota. MAXFIELD RESEARCH AND CONSULTING 43/46Mr. Latham Hetland City of New York Mills TERMINATION September 19, 2025 Page 14 This agreement may be terminated upon written notification of either party to the other. In the event of termination, the Client will pay Maxfield Research and Consulting for staff hours performed at the firm's normal hourly rates, plus all expenses incurred through the date ofter-mination. If this proposal meets with your approval, please sign and return one copy to the offices of Maxfield Research and Consulting. The costs outlined in the Scope of Services shall remain in effect for a period of 90 days from the date listed at the top of this contract. Agreed to this ____ day of ____________ 2025. MAXFIELD RESEARCH AND CONSULTING Mary C. Bujold President MAXFIELD RESEARCH AND CONSULTING CITY OF NEW YORK MILLS (Signature of Authorized Signer) By: ____________ _ (Print Name of Authorized Signer) Its: ---------------(Print Title of Authorized Signer) 44/46Mr. Latham Hetland City of New York Mills SELECTED HOUSING STUDIES/REFERENCES Maxfield Research and Consulting 1. Comprehensive Housing Needs Analysis for Pope County, Minnesota Client: Pope County HRA/EDA Contact: Jason Murray, (320) 760-0722, jason@daviddrown.com 2. Comprehensive Housing Needs Analysis for Red Wing, Minnesota Client: City of Red Wing Contact: Brandy Howe, (651) 385-5137, Brandy.Howe@redwingmn.gov 3. Comprehensive Housing Needs Analysis for Mora, Minnesota Client: City of Mora Contact: Kirsten Faurie, (320) 225-4807, k.faurie@cityofmora.com 4. Comprehensive Housing Needs Analysis for Waverly, Iowa Client: City of Waverly Contact: Connie Tolan, (319) 352-9210, ctolan@waverlyia.com 5. Comprehensive Housing Needs Analysis for Carrington, North Dakota Client: Carrington Chamber & Economic Development Corporation Contact: Laurie Dietz, (701) 652-2524, chambergal@daktel.com September 19, 2025 Page 15 2025 2025 2025 2024 2024 6. Comprehensive Housing Needs Analysis for Montgomery, Minnesota 2024 Client: City of Montgomery Contact: Joshua Mankowski, (507) 364-8888, JMankowski@CityofMontgomeryMN.com 7. Comprehensive Housing Needs Analysis for Elbow Lake, Minnesota Client: Elbow Lake Economic Development Authority Contact: Gene Wenstrom, (218) 685-4483, grwenstr@runestone.net 8. Housing Study and Needs Analysis for Hubbard County, Minnesota Client: Heartland Lakes Development Commission Contact: Mary Thompson, (218) 699-7010, mthompson@heartlandlakesdc.org 9. Comprehensive Housing Needs Analysis for Lake City, Minnesota Client: Lake City Port Authority Contact: Rob Keehn, (651) 345-6813, rkeehn@ci.lake-city.mn.us 10. Comprehensive Housing Needs Analysis for Carver County, Minnesota Client: Carver County Community Development Agency Contact: Allison Streich, (952) 448-7715, allisons@carvercda.org MAXFIELD RESEARCH AND CONSULTING 2024 2024 2024 2024 OTTER TAIL COUNTY CDA & HRA 2026+ HOUSING STRATEGY PROJECT ROLES CONVENER SUPPORTIVE CAPACITY FUNDING PROVIDER PROJECT LEAD/ DEVELOPER PRIORITY HOUSING TYPES Single-family entry level Market rate workforce rental Affordable senior rental PROJECT PLANNING KNOWN PROJECTS • Pelican Rapids, Parkers Prairie, and New York Mills single-family supported by MN Housing grant award LIKELY PROJECTS • Tax forfeit policy for acquisition, rehab, resale projects and house relocation projects o Fergus Falls-Vine Street tax forfeit home • New York Mills senior triplexes ON THE RADAR • Small footprint homes • Multi-family workforce projects o Pelican Rapids • Affordable senior rental o Perham • Westridge Mall redevelopment • Acquisition and preservation of naturally occurring affordable housing (NOAH) units o Preservation of USDA Section 515 properties • Innovative financing and partnerships PLANNED OUTREACH • Local housing events o Perham Housing Symposium • Check-ins with city staff o City zoning challenges o Redevelopment opportunities • Community housing studies analysis for coordination of needs to planned projects 45/46 * ~ It O O O II Local housing events Perham Housing Symposium Check-ins with city staff City zoning challenges Redevelopment opportunities Acquisition and preservation of naturally occurring affordable housing (NOAH) units Preservation of USDA Section 515 properties Small footprint homes Multi-family workforce projects Pelican Rapids Single-family supported by MN Housing grant award Pelican Rapids, Parkers Prairie & New York Mills Westridge Mall redevelopment New York Mills senior triplexes Tax forfeit policy for acquisition, rehab, resale projects Fergus Falls-Vine Street tax forfeit home Affordable senior rental Perham = Known & confirmed project = Likely project = On the radar project 46/46 • m\l ii. <I) * <I) ~ 0 ~ ~ ~ ~ l(o O ojl <I) ~ •• i •• ~