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Community Development Agency - CDA-Packet-09-02-2026 Supporting Documents - 09/02/2026
OTTER TAIL COUNTY – MINNESOTA COMMUNITY DEVELOPMENT AGENCY AGENDA Government Services Center, Otter Tail Lake Room 515 West Fir Avenue, Fergus Falls, MN September 2, 2026 | 11:00 am Commissioners may participate in the meeting by interactive technology. 1.Call to Order 2. Approval of Agenda 3. Approval of Consent Agenda A. August 5, 2026 Regular Meeting Minutes B. July 2026 Financial Reports 4. Reports and Presentations A. Director Status Report B. Committee Reports Housing and Development Workforce Support and Digital Equity Business Development (did not meet) C. ‘On the Map’ Report D. Board Member Updates 5. Regular Business A. City of Fergus Falls Community Growth Partnership Grant Application: Northeast Residential Park Conceptual Layout 6. Discussion and Communications A. Project Updates: a. Vine Street b. Westridge Mall B. Other Communications C. Upcoming Meetings: a. Wednesday, October 7 at 11:00 am, Otter Tail Lake Room, Government Services Center with HRA Board meeting beginning at 12:45 pm 7. Adjourn 1/28 2/28 MINUTES OF THE COMMUNITY DEVELOPMENT AGENCY OF OTTER TAIL COUNTY Government Services Center, County Board Room 515 W Fir Ave, Fergus Falls MN 56537 August 5, 2026 Call to Order The Otter Tail County Community Development Agency convened at 11:00 am, Wednesday, August 5, 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 Joined at 12:02 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 Bernstetter, Project Manager x Paige Carlson, Project Manager x Kendra Huseth, Assistant Finance Director x Ava Hastings, Intern 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 Kurt Mortenson, second by Dena Johnson to approve the Consent Agenda. Motion passed unanimously. 4. Reports and Presentations A/B/C. Director’s Status Report / Committee Reports / On the Map Placier.ai Report Closed on a lot in Pinewood Estates. The city of Rothsay will partner on a local Property Tax Rebate Program for new single family housing development. Commissioner Sean Sullivan and CDA Director Amy Baldwin attended the Fergus Falls Housing Developer Summit. Paige Carlson, Project Manager, submitted an application to support the Empowered Worker Program with a focus on Peer Support Specialists. 3/28 Children’s Corner has hired a new Executive Director and has added a Perham Representative to its board. Summer Intern, Ava Hastings, has worked on a business development marketing campaign to increase awareness of business resources offered by the County and partners. She drafted articles, social posts and news releases. The Business Development Newsletter was included in the packet. Sara Bernsetter, Project Manager, presented a Placer.ai Report on Retail Leakage. D. Board Member Updates - none 5. Regular Business Items A. Resolution Approving Special Benefit Levy and Requesting a General Levy Appropriation for Taxes Payable in 2027 Staff recommendation, based on discussion, is to maintain the same request as the 2025 and 2026 budget years. $644,287 Special Benefit Levy (Fund 23-705) to be utilized for operations and qualifying projects under the Housing and Redevelopment Authority statues (affordable housing, redevelopment, elimination of blight) in areas excluding Fergus Falls and Perham. And $200,000 General Levy (Fund 23-706) that can be used county wide (Including Fergus Falls and Perham through Community Growth Partnership Grants). Motion by Dena Johnson, second by Val Martin, to approve maintaining $644,287 Special Benefit Levy and $200,000 General Levy. Motion passed unanimously. 6. Discussion and Communications A. Project Updates Vine Street Westridge Mall B. Other Communications - none C. Upcoming meeting: Wednesday, Wednesday, September 2, 2026, at 11:00 am, Otter Tail Lake Room, Government Services Center with HRA Board meeting beginning at 12:45 pm. 7. Adjourned 4/28 PctReportCode1 12:39:09PM csteinbach 07/2026 07/2026Cash 8% 07/2026War# 8 Char Invoice# Description Copyright 2010-2025 Integrated Financial Systems 23 COMMUNITY DEVELOPMENT AUTHORITY 705 ECONOMIC DEVELOPMENT/TOURISM 000 ... 23-705-000-0000-6140 11,370.00 512,000 630.00Per Diem 630.00 COM 7/28/2026 90.00 307886 7/8/26 CDA - PER DIEM COM 7/28/2026 90.00 307889 7/8/26 CDA - PER DIEM COM 7/28/2026 90.00 202417 6/18/26 CDA - PER DIEM COM 7/28/2026 90.00 202419 6/16/26 CDA - PER DIEM COM 7/28/2026 90.00 307885 7/8/26 CDA - PER DIEM COM 7/28/2026 90.00 307890 7/8/26 CDA - PER DIEM COM 7/28/2026 90.00 307886 6/18/26 CDA - PER DIEM 23-705-000-0000-6240 5,000.00 05,000 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 2,000.00 02,000 0.00Registration Fees 0.00 23-705-000-0000-6266 1,400.00 01,400 0.00Audit Cost 0.00 23-705-000-0000-6290 350,000.00 0350,000 0.00Contracted Services.0.00 23-705-000-0000-6330 3,379.92 33,500 120.08Mileage120.08 COM 7/28/2026 28.88 307885 7/8/26 CDA - MILEAGE COM 7/28/2026 30.40 307886 7/8/26 CDA - MILEAGE COM 7/28/2026 60.80 307890 7/8/26 CDA - MILEAEGE 23-705-000-0000-6331 2,967.48 13,000 32.52Travel Expenses 32.52 AUD 7/28/2026 32.52 202293 7/24/26 EDA - MEALS DURING MEETING 23-705-000-0000-6333 4,877.00 25,000 123.00Meeting/Event Costs 123.00 COM 7/28/2026 71.75 202326 4/1/26 MEALS FOR CDA/HRA BOARD MTG COM 7/28/2026 51.25 202326 7/8/26 MEALS FOR CDA/HRA BOARD MTG 23-705-000-0000-6355 4,000.00 04,000 0.00Liability Insurance 0.00 23-705-000-0000-6822 200,000.00 0200,000 0.00Community Growth Partnership Grant 0.00 23-705-000-0000-6828 47.65 0047.65Pelican Highway Site Development 47.65 AUD 7/17/2026 46.00 202196 7/17/26 RECORDING FEE - PINEWOOD AUD 7/17/2026 1.65 202196 7/17/26 DEED TAX - PINEWOOD 23-705-000-7001-6828 5,000.00 05,000 0.00Site Development (TIF)0.00 706 NON SPECIAL BENEFIT LEVY PROGRAMMING 000 ... 23-706-000-0000-6240 500.00 05000.00Publishing & Advertising 0.00 23-706-000-0000-6290 20,000.00 020,000 0.00Contracted Services 0.00 23-706-000-0000-6822 100,000.00 0100,000 0.00Community Growth Partnership Grant 0.00 ...0953.25 953.25595,900.00 594,946.75 ECONOMIC DEVELOPMENT/TOURISM 0953.25 953.25595,900.00 594,946.75 Page 2 Report For: ToReport Basis:Percent of Year: Actual For Tran Date Bdgt - Act Difference07/2026 - 07/2026 - PROGRAM DEPT 8/6/2026 000 705 Actual ForType2026 BUDGET EXPENDITURE GUIDELINE - DETAIL MTD Otter Tail County Auditor 5/28 BB-DPA-2026-04 PctReportCode1 12:39:09PM csteinbach 07/2026 07/2026Cash 8% 07/2026War# 8 Char Invoice# Description Copyright 2010-2025 Integrated Financial Systems 807 SPECIAL ALLOCATION HOUSING PROGRAM 23-706-807-0000-6685 1,793.17 001,793.17Remodeling Expenses 1,793.17 AUD 7/10/2026 43.17 201987 JUN2026 ACCT 2312 UTILITIES AUD 7/17/2026 1,750.00 202187 7/10/26 JUNK REMOVAL - 1209 S VINE ST 23-706-807-0000-6825 9,000.00 6324,000 15,000.00Down Payment Assistance 15,000.00 AUD 7/17/2026 15,000.00 202178 DOWN PAYMENT ASSIST - DT 23-706-807-0000-6830 40,000.00 040,000 0.00Housing Rehabilitation 0.00 23-706-807-0000-6832 200,000.00 0200,000 0.00Loan Assistance Program 0.00 ...00.00120,500.00 120,500.00 SPECIAL ALLOCATION HOUSING PROGRAM 616,793.17 16,793.17264,000.00 247,206.83 NON SPECIAL BENEFIT LEVY PROGRAMMING 416,793.17 16,793.17384,500.00 367,706.83 COMMUNITY DEVELOPMENT AUTHORITY 217,746.42 17,746.42980,400.00 962,653.58 217,746.42 17,746.42980,400.00 962,653.58 Page 3 Report For: ToReport Basis:Percent of Year: Actual For Tran Date Bdgt - Act Difference07/2026 - 07/2026 PROGRAM - PROGRAM DEPT FUND Final Totals 20 Accounts 8/6/2026 000 807 706 23 Actual ForType2026 BUDGET EXPENDITURE GUIDELINE - DETAIL MTD Otter Tail County Auditor 6/28 Pct 24 Accounts 1:14:41PM csteinbach 01/2026 07/2026Cash 23 COMMUNITY DEVELOPMENT AUTHORITY 07/2026 Copyright 2010-2025 Integrated Financial Systems 23 COMMUNITY DEVELOPMENT AUTHORITY 705 ECONOMIC DEVELOPMENT/TOURISM 000 ... 6140 PER DIEM 4,980.00 59630.00 7,020.00 6240 PUBLISHING & ADVERTISING 5,000.00 00.00 0.00 6241 MEMBERSHIP DUES 775.00 850.00 4,225.00 6242 REGISTRATION FEES 1,185.00 410.00 815.00 6266 AUDIT COST 383.00 730.00 1,017.00 6290 CONTRACTED SERVICES.184,574.78 470.00 165,425.22 6330 MILEAGE 1,661.49 53120.08 1,838.51 6331 TRAVEL EXPENSES 1,989.36 3432.52 1,010.64 6333 MEETING/EVENT COSTS 4,405.94 12123.00 594.06 6355 LIABILITY INSURANCE 323.00 1080.00 4,323.00 6369 MISCELLANEOUS CHARGES 265,253.20 00.00 265,253.20 6822 COMMUNITY GROWTH PARTNERSHIP GRANT 175,000.00 130.00 25,000.00 6828 PELICAN HIGHWAY SITE DEVELOPMENT 47.65 047.65 47.65 6828 SITE DEVELOPMENT (TIF)4,874.78 30.00 125.22 6829 IMPACT FUND EXPENSES 243.72 00.00 243.72 706 NON SPECIAL BENEFIT LEVY PROGRAMMING 000 ... 6240 PUBLISHING & ADVERTISING 500.00 00.00 0.00 6290 CONTRACTED SERVICES 17,939.00 100.00 2,061.00 6333 MEETING/EVENT COSTS 549.42 00.00 549.42 6822 COMMUNITY GROWTH PARTNERSHIP GRANT 100,000.00 00.00 0.00 807 SPECIAL ALLOCATION HOUSING PROGRAM 6670 SITE ACQUISITION 4,372.18 00.00 4,372.18 6685 REMODELING EXPENSES 88,904.69 01,793.17 88,904.69 6825 DOWN PAYMENT ASSISTANCE 23,880.00 20015,000.00 47,880.00 6830 HOUSING REHABILITATION 32,150.88 200.00 7,849.12 6832 LOAN ASSISTANCE PROGRAM 199,954.00 00.00 46.00 ...476,938.22 80953.25 118,961.78 ECONOMIC DEVELOPMENT/TOURISM 476,938.22 80953.25 118,961.78595,900.00 ...2,610.42 20.00 117,889.58 SPECIAL ALLOCATION HOUSING PROGRAM 149,051.99 5616,793.17 114,948.01 NON SPECIAL BENEFIT LEVY PROGRAMMING 151,662.41 3916,793.17 232,837.59384,500.00 COMMUNITY DEVELOPMENT AUTHORITY 980,400.00 628,600.63 6417,746.42 351,799.37 64 17,746.42 628,600.63 980,400.00 351,799.37 Page 2 Report For: ToReport Basis: FUND Percent of Year: Actual For Account Description Actual For BDGT - ACT Difference01/2026 - 07/2026 - - - - TOTAL TOTAL - TOTAL - - - TOTAL TOTAL TOTAL Final Totals 8/6/2026 58 EXPENDITURE GUIDELINE - YTD SUMMARY 12,000.00 5,000.00 5,000.00 2,000.00 1,400.00 350,000.00 3,500.00 3,000.00 5,000.00 4,000.00 0.00 200,000.00 0.00 5,000.00 0.00 500.00 20,000.00 0.00 100,000.00 0.00 0.00 24,000.00 40,000.00 200,000.00 595,900.00 120,500.00 264,000.00 2026 BUDGET Otter Tail County Auditor 7/28 8/28 9/28 DATE: August 26, 2026 TO: CDA Board of Directors FROM: Amy Baldwin, Community Development Director SUBJECT: Director Status Report Workforce Support Strategy / OTC Works: One participant has been enrolled in the Empowered Worker Program under the new guidelines and focus on agriculture careers. Paige has been focused on outreach to agriculture and other key employers, internal teams within Human Services, and community partners. Staff received an invitation from Just Transition Fund to submit a full grant application for the Empowered Worker Program to their funding program available to coal-impacted communities. Otter Tail County is leading a collaborative group of economic development professionals in other eligible Minnesota communities interested in setting up their own pilot Empowered Worker Programs. Staff welcomed M State student athletes to Fergus Falls with an introduction to relevant County services and promotion of the jobs portal, available career pathways, and Otter Tail Lakes Country events calendar on a community bus tour. Business Development: In partnership with Elevate again this year, Manufacturing Month tours are scheduled in October at Lund Boats (10/6), Tag Up (10/12), North Circle Seeds (10/13), Paul's Metal Petals (10/20), Thousand Lakes Brewing (10/27). Save the date and promotion will start by September 1. The business development marketing campaign launched on June 30 to increase awareness of business resources offered by the County and partners. Three articles and corresponding social media posts and Chamber news posts have been distributed to date. Content Topic Website article views Website article engagements Social media post views Social media post engagements Business resources 41 16 1,688 24 AI 48 44 1,705 19 Succession planning 55 13 1,623 25 Financial resources 69 33 2,030 45 SBA 2 0 0 0 10/28 Page 2 Miscellaneous: Staff continue to meet with city staff for individualized community development check-ins to discuss current projects and future opportunities where the CDA can be additive and supportive. Third quarter meetings are scheduled with Henning, Vergas, Pelican Rapids, New York Mills, Parkers Prairie, Fergus Falls, Perham and Ottertail. Quarterly community development newsletter was distributed to 543 recipients with highlights on housing finance programs, Community Growth Partnership Grants, Broadband Line Extension Program, and Family, Friend, and Neighbor child care resources: https://members.ottertaillakescountry.com/ap/EmailViewer/rJBKk26r Otter Tail Lakes Country is planning their annual Marketing Summit for November 5 from 9am-12pm at East Silent Lake Resort. Registration is free for members and $20 for non- members: marketing-summit-2026.eventbrite.com Attachments: Community Growth Partnership Program Press Release Workforce Inflows/Outflows 11/28 FOR IMMEDIATE RELEASE Community development grants drive growth across Otter Tail County August 20, 2026 – Otter Tail County, MN – The Otter Tail County Community Development Agency (CDA) has awarded more than $804,000 to 11 communities for projects that strengthen local economies, expand housing opportunities, expand the tax base, and improve quality of life. The Community Growth Partnership Grant Program was created in 2019 by the Otter Tail County CDA and has awarded 42 grants to eligible cities and townships to help turn local ideas into projects that create lasting community impact. The Community Growth Partnership Grant Program helps communities move projects from the idea phase to implementation by providing funding in four priority areas—affordable housing, redevelopment, commercial rehabilitation, and public infrastructure. Since 2019, grant funding has created new housing opportunities, revitalized downtown businesses, removed blighted properties, installed public infrastructure, and leveraged millions of dollars of public and private investment. Many cities have used multiple grants over several years to build on previous successes, creating momentum that continues to support growth across Otter Tail County. The City of Vergas is one example of how strategic planning can lead to long-term community growth. The City’s first grant was used to complete a housing study that identified community needs and opportunities for future housing development. With that information, another grant helped redevelop the former grocery store site into Altona Square, a mixed-use project with new commercial space and apartments. Additional grants supported blight removal, preparation of four new residential lots, construction of a downtown parking lot, and the creation of a commercial rehabilitation program that encouraged local businesses to reinvest in their properties. The community has since added more than 30 new housing units and increased its tax base by $1.6 million through the Altona Square redevelopment project. The City of Battle Lake has also used multiple Community Growth Partnership Grants to advance its long-term vision. Beginning with the acquisition of the Hatchery Row property in 2019, the city continued investing in demolition, cleanup, redevelopment planning, and a community housing study that helped guide future residential development. Those efforts have contributed to more than 40 new housing units and supported the $5.2 million Hatchery Row redevelopment project. More recently, commercial rehabilitation grants have helped local businesses invest in building renovations and improvements. The impact of the Community Growth Partnership Grant Program extends well beyond Vergas and Battle Lake. Across the county, grant-funded projects have supported the development of more than 100 new housing units, prepared dozens of residential lots for future development, revitalized downtown commercial buildings, expanded business opportunities, and transformed underutilized properties into productive community assets. By investing in projects that address local priorities, the grant program helps communities grow and improve the quality of life for residents. The Community Growth Partnership Grant Program is open to applications from cities and townships within the County. If you have an idea for your community that will advance affordable housing, redevelopment, or rehabilitation of commercial buildings, visit ottertailcounty.gov/community-growth for more information about the program and connect with your local city staff. ### 12/28 13/28 Housing Growth & Development Committee Meeting Notes Date/Time: August 17, 2026 @ 3:30pm Committee members: Dave Schornack (in person), Dena Johnson (in person), Jeff Ackerson (virtual) Outline of key actions discussed: 1. Vine Street rehab project updates a. Work is progressing on windows and external and should move faster with contractors there full time 2. Fergus Falls Norgren Property updates a. Staff met with city and engineers to discuss infrastructure needs and feasibility for future development b. City of Fergus Falls will likely be submitting Community Growth Partnership Grant application for planning efforts c. Outreach to additional partners including Otter Tail Power and developer is anticipated 3. Discuss plans for housing roundtables a. Staff proposed stakeholder meetings focused on creating a shared understanding of current housing market and County’s priority housing efforts and robust discussion about what should be next b. Committee provided direction to do roundtables in each submarket of the County to have more specific conversations with builders, land holders, cities, and engaged partners. Next meeting: Monday, September 14, 2026 @ 1pm 14/28 Workforce Support & Digital Equity Committee Meeting Notes Date/Time: August 18 @ 3:00pm Committee members: Kurt Mortenson (in person) and Betsy Roder (virtual) Outline of key actions discussed: 1. Empowered Worker Program update a. Received first referrals from child protection and enrolled one participant. b. Workforce Project Manager attended Minnesota Association of Workforce Boards conference and networked with other Growing Careers grant awardees to learn about challenges and ideas c. Workforce Project Manager has met with several ag employers who seem open to engaging with program participants regardless of criminal background d. Received an invitation from Just Transition Fund to submit a full application to the grant program with a maximum award of $150,000 instead of the initial $300,000 request. Staff will work with other counties collaborating on the application to revise the work plan 2. Workforce outreach updates a. Paige has attended Fergus Falls and Perham Chamber meetings to introduce herself and her work. She continues to meet in person with key employers to understand their workforce needs. 3. MFIP employment services transition update a. Two Employment Service Specialists started at the beginning of August. They are participating in training, learning their roles, and developing policies and practices b. Adjusted transition timeline to start providing services by Otter Tail County submarket this fall and Wilkin County starting in January 2027 4. Review Child Care Emergency Fund application a. The Child Care Emergency Fund provides grants to child care providers required to make physical improvements to their program to remain compliant with licensing. b. Provider requested $500 to support costs of hooking up to city water after personal well failure. c. Committee approved the application request and recommended checking with the City of Perham about additional resources for the provider. 5. Digital equity update a. Heard from provider that take rate and construction costs may be prohibitive to use of the BEAD funding award, so staff will outreach to providers for updates and identify how we can continue supporting broadband efforts Next meeting: Tuesday, September 15 at 3pm 15/28 OTTER TAIL COUNTY - MINNESOTA Community Growth Partnership Grant Application GENERAL INFORMATION Project Name: Project Type: Planning Activity Affordable Housing Redevelopment Commercial Rehabilitation Public Infrastructure Applicant City/Township: City/Township Address: Application Contact: Application Contact Email Address: Phone Number: Project Contact (if different): Project Contact Email Address: Phone Number: Authorized City/Township Official(s) for Execution of Contract (name and title): How much funding is being requested? $ Please provide a brief statement summarizing the proposal that will be reviewed as part of the approval process. Include in the summary where this project is in the process (i.e., City process, site control, etc.). 16/28 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: $ Itemized Use of Funds/Expenses Amount Funding Source $ $ $ $ Total: $ 17/28 EJCDC® E-520, Short Form of Agreement Between Owner and Engineer for Professional Services. Copyright ©2020 National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers. All rights reserved. Page 1 SHORT FORM OF AGREEMENT BETWEEN OWNER AND ENGINEER FOR PROFESSIONAL SERVICES This is an Agreement between City of Fergus Falls (Owner) and Interstate Engineering Inc (Engineer). Owner's Project, of which Engineer's services under this Agreement are a part, is generally identified as Northeast Residential Park Conceptual Layout (Project). Engineer's services under this Agreement (Services) are generally identified as See Appendix 2. Owner and Engineer further agree as follows: 1.01 Services of Engineer A. Engineer shall provide or furnish the Services set forth in this Agreement, and any Additional Services authorized by Owner and consented to by Engineer. 2.01 Owner's Responsibilities A. Owner shall provide Engineer with existing Project-related information and data in Owner's possession and needed by Engineer for performance of Engineer's Services. Owner will advise the Engineer of Project-related information and data known to Owner but not in Owner's possession. Engineer may use and rely upon Owner-furnished information and data in performing its Services, subject to any express limitations applicable to the furnished items. 1. Following Engineer's assessment of initially-available Project information and data, and upon Engineer's request, Owner shall obtain, furnish, or otherwise make available (if necessary through retention of specialists or consultants) such additional Project- related information and data as is reasonably required to enable Engineer to complete its Services; or, with consent of Engineer, Owner may authorize the Engineer to obtain or provide all or part of such additional information and data as Additional Services. B. Owner shall provide necessary direction and make decisions, including prompt review of Engineer's submittals, and carry out its other responsibilities in a timely manner so as not to delay Engineer's performance. Owner shall give prompt notice to Engineer whenever Owner observes or otherwise becomes aware of (1) any relevant, material defect or nonconformance in Engineer's Services, or (2) any development that affects the scope or time of performance of Engineer's Services. 3.01 Schedule for Rendering Services A. Engineer shall complete its Services within the following specific time period: Conceptual Plans and Updated PER completed within two months of receiving a signed contract. If no specific time period is indicated, Engineer shall complete its Services within a reasonable period of time. B. If, through no fault of Engineer, such periods of time or dates are changed, or the orderly and continuous progress of Engineer's Services is impaired, or Engineer's Services are delayed or suspended, then the time for completion of Engineer's Services, and the rates and amounts of Engineer's compensation, shall be adjusted equitably. 18/28 EJCDC® E-520, Short Form of Agreement Between Owner and Engineer for Professional Services. Copyright ©2020 National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers. All rights reserved. Page 2 4.01 Invoices and Payments A. Invoices: Engineer shall prepare invoices in accordance with its standard invoicing practices and submit the invoices to Owner on a monthly basis. Invoices are due and payable within 30 days of receipt. B. Payment: As compensation for Engineer providing or furnishing Services and Additional Services, Owner shall pay Engineer as set forth in this Paragraph 4.01, Invoices and Payments. If Owner disputes an invoice, either as to amount or entitlement, then Owner shall promptly advise Engineer in writing of the specific basis for doing so, may withhold only that portion so disputed, and must pay the undisputed portion. C. Failure to Pay: If Owner fails to make any payment due Engineer for Services, Additional Services, and expenses within 30 days after receipt of Engineer's invoice, then (1) the amounts due Engineer will be increased at the rate of 1.5% per month (or the maximum rate of interest permitted by law, if less) from said thirtieth day; (2) in addition Engineer may, after giving 7 days' written notice to Owner, suspend Services under this Agreement until Engineer has been paid in full all amounts due for Services, Additional Services, expenses, and other related charges, and in such case Owner waives any and all claims against Engineer for any such suspension; and (3) if any payment due Engineer remains unpaid after 90 days, Engineer may terminate the Agreement for cause pursuant to Paragraph 5.01.A.2. D. Reimbursable Expenses: Engineer is entitled to reimbursement of expenses only if so indicated in Paragraph 4.01.E or 4.01.F. If so entitled, and unless expressly specified otherwise, the amounts payable to Engineer for reimbursement of expenses will be the Project-related internal expenses actually incurred or allocated by Engineer, plus all invoiced external expenses allocable to the Project, the latter multiplied by a factor of 1.0, unless for Survey Materials, then a factor of 1.25 is applicable. including Engineer's subcontractor and subconsultant charges, with the external expenses multiplied by a factor of 1.1, unless geotechnical services, then a factor of 1.15 is applicable. E. Basis of Payment 1. Hourly Rates. Owner shall pay Engineer for Services as follows: a. An amount equal to the cumulative hours charged to the Project by Engineer's employees times standard hourly rates for each applicable billing class, plus reimbursement of expenses incurred in connection with providing the Services. b. Engineer's Standard Hourly Rates are attached as Appendix 1. c. The Standard Hourly Rates and Reimbursable Expenses Schedule will be adjusted annually (as of approximately February of each year) to reflect equitable changes in the compensation payable to Engineer. d. The total compensation for Services and reimbursement of expenses is estimated to be $18,000. F. Additional Services: For Additional Services, Owner shall pay Engineer an amount equal to the cumulative hours charged in providing the Additional Services by Engineer's employees, times standard hourly rates for each applicable billing class; plus reimbursement of expenses incurred in connection with providing the Additional Services. Engineer's standard hourly rates are attached as Appendix 1. 19/28 EJCDC® E-520, Short Form of Agreement Between Owner and Engineer for Professional Services. Copyright ©2020 National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers. All rights reserved. Page 3 5.01 Termination A. Termination for Cause 1. Either party may terminate the Agreement for cause upon 30 days' written notice in the event of substantial failure by the other party to perform in accordance with the terms of the Agreement, through no fault of the terminating party. a. Notwithstanding the foregoing, this Agreement will not terminate under Paragraph 5.01.A.1 if the party receiving such notice begins, within 7 days of receipt of such notice, to correct its substantial failure to perform and proceeds diligently to cure such failure within no more than 30 days of receipt thereof; provided, however, that if and to the extent such substantial failure cannot be reasonably cured within such 30-day period, and if such party has diligently attempted to cure the same and thereafter continues diligently to cure the same, then the cure period provided for herein will extend up to, but in no case more than, 60 days after the date of receipt of the notice. 2. In addition to its termination rights in Paragraph 5.01.A.1, Engineer may terminate this Agreement for cause upon 7 days' written notice (a) if Owner demands that Engineer furnish or perform services contrary to Engineer's responsibilities as a licensed professional, (b) if Engineer's services for the Project are delayed or suspended for more than 90 days for reasons beyond Engineer's control, (c) if payment due Engineer remains unpaid for 90 days, as set forth in Paragraph 4.01.C, or (d) as the result of the presence at the Site of undisclosed Constituents of Concern as set forth in Paragraph 6.01.I. 3. Engineer will have no liability to Owner on account of any termination by Engineer for cause. B. Termination for Convenience: Owner may terminate this Agreement for convenience, effective upon Engineer's receipt of notice from Owner. C. Payments Upon Termination: In the event of any termination under Paragraph 5.01, Engineer will be entitled to invoice Owner and to receive full payment for all services performed or furnished in accordance with this Agreement, and to reimbursement of expenses incurred through the effective date of termination. Upon making such payment, Owner will have the limited right to the use of all deliverable documents, whether completed or under preparation, subject to the provisions of Paragraph 6.01.F, at Owner's sole risk. 1. If Owner has terminated the Agreement for cause and disputes Engineer's entitlement to compensation for services and reimbursement of expenses, then Engineer's entitlement to payment and Owner's rights to the use of the deliverable documents will be resolved in accordance with the dispute resolution provisions of this Agreement or as otherwise agreed in writing. 2. If Owner has terminated the Agreement for convenience, or if Engineer has terminated the Agreement for cause, then Engineer will be entitled, in addition to the payments identified above, to invoice Owner and receive payment of a reasonable amount for services and expenses directly attributable to termination, both before and after the effective date of termination, such as reassignment of personnel, costs of terminating contracts with Engineer's subcontractors or subconsultants, and other related close-out costs, using methods and rates for Additional Services as set forth in Paragraph 4.01.F. 20/28 EJCDC® E-520, Short Form of Agreement Between Owner and Engineer for Professional Services. Copyright ©2020 National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers. All rights reserved. Page 4 6.01 General Considerations A. The standard of care for all professional engineering and related services performed or furnished by Engineer under this Agreement will be the care and skill ordinarily used by members of the subject profession practicing under similar circumstances at the same time and in the same locality. Engineer makes no warranties, express or implied, under this Agreement or otherwise, in connection with any services performed or furnished by Engineer. Subject to the foregoing standard of care, Engineer may use or rely upon design elements and information ordinarily or customarily furnished by others, including, but not limited to, specialty contractors, manufacturers, suppliers, and the publishers of technical standards. B. Engineer shall not at any time supervise, direct, control, or have authority over any Constructor's work, nor will Engineer have authority over or be responsible for the means, methods, techniques, sequences, or procedures of construction selected or used by any Constructor, or the safety precautions and programs incident thereto, for security or safety at the Project site, nor for any failure of a Constructor to comply with laws and regulations applicable to that Constructor's furnishing and performing of its work. Engineer shall not be responsible for the acts or omissions of any Constructor. C. Engineer neither guarantees the performance of any Constructor nor assumes responsibility for any Constructor's failure to furnish and perform its work. D. Engineer's opinions of probable construction cost (if any) are to be made on the basis of Engineer's experience, qualifications, and general familiarity with the construction industry. However, because Engineer has no control over the cost of labor, materials, equipment, or services furnished by others, or over contractors' methods of determining prices, or over competitive bidding or market conditions, Engineer cannot and does not guarantee that proposals, bids, or actual construction cost will not vary from opinions of probable construction cost prepared by Engineer. If Owner requires greater assurance as to probable construction cost, then Owner agrees to obtain an independent cost estimate. E. Engineer shall not be responsible for any decision made regarding the construction contract requirements, or any application, interpretation, clarification, or modification of the construction contract documents, other than those made by Engineer. F. Paragraph Omitted G. All intellectual property rights, including, but not limited to, all copyrights, patents, patent disclosures and inventions (whether patentable or not), trademarks, service marks, trade secrets, know-how and other confidential information, trade dress, trade names, logos, corporate names and domain names, together with all of the goodwill associated with the foregoing, derivative works and all other rights (collectively, "Intellectual Property Rights") in and to all documents, work product, and other materials that are invented, created, owned by, licensed to, controlled by or otherwise originated with Engineer whether delivered to Owner under this Agreement or not, shall be owned by Engineer. Engineer hereby grants Owner a non-exclusive, non-assignable, non-transferrable, non- sublicensable, revocable license, to use the documents created by Engineer in furtherance of the Project and delivered to Owner (whether complete or incomplete) solely for the purposes of completing the Project, subject to receipt by Engineer of full payment due and 21/28 EJCDC® E-520, Short Form of Agreement Between Owner and Engineer for Professional Services. Copyright ©2020 National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers. All rights reserved. Page 5 owing for all Services relating to preparation of such documents, and subject to the following limitations: 1. Owner acknowledges that such documents are not intended or represented to be suitable for use on the Project unless completed by Engineer, or for use or reuse by Owner or others on extensions of the Project, on any other project, or for any other use or purpose, without written verification or adaptation by Engineer; 2. any such use or reuse, or any modification of the documents, without written verification, completion, or adaptation by Engineer, as appropriate for the specific purpose intended, will be at Owner's sole risk and without liability or legal exposure to Engineer or to its officers, directors, members, partners, agents, employees, and subconsultants; 3. Owner shall indemnify and hold harmless Engineer and its officers, directors, members, partners, agents, employees, and subconsultants from all claims, damages, losses, and expenses, including attorneys' fees, arising out of or resulting from any use, reuse, or modification of the documents without written verification, completion, or adaptation by Engineer; and 4. such any limited license granted to Owner shall not grant or create any rights in to third parties; and 5. Nothing herein limits the Engineer’s right of use or reuse of Previously/Independently Created Works or any of Engineer’s non-Document work product. 6. Engineer reserves all rights not expressly granted to Owner in this Agreement. Except for any limited licenses expressly granted under this Agreement, nothing in this Agreement grants, by implication, waiver, estoppel, or otherwise, to Owner or any third-party any Intellectual Property Rights or other right. 7. Without limiting the generality of the foregoing, nothing in this Agreement shall be interpreted to transfer ownership of or license to Intellectual Property Rights in any video footage prepared by the Engineer whether for this Project or otherwise. Engineer grants to Owner a limited, revocable, non-transferable, non-sublicensable, license to use drone footage captured by Engineer of the Project for purposes of [insert for what purpose the Owner will use the footage, which can be limited in time]. This license is conditioned on receipt by Engineer of full payment due and owing from Owner. 8. such limited license is subject to the remaining section of this Section 6.01. H. Owner and Engineer agree to transmit, and accept, Project-related correspondence, documents, text, data, drawings, information, and graphics, in electronic media or digital format, either directly, or through access to a secure Project website, in accordance with a mutually agreeable protocol. I. Waiver of Damages; Limitation of Liability: To the fullest extent permitted by law, Owner and Engineer (1) waive against each other, and the other's officers, directors, members, partners, agents, employees, subconsultants, and insurers, any and all claims for or entitlement to special, incidental, indirect, or consequential damages arising out of, resulting from, or in any way related to this Agreement or the Project, from any cause or causes, and (2) agree that 22/28 EJCDC® E-520, Short Form of Agreement Between Owner and Engineer for Professional Services. Copyright ©2020 National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers. All rights reserved. Page 6 Engineer's total liability to Owner under this Agreement shall be limited to $20,000 or the total amount of compensation received by Engineer, whichever is greater. J. The parties acknowledge that Engineer's Services do not include any services related to unknown or undisclosed Constituents of Concern. If Engineer or any other party encounters, uncovers, or reveals an unknown or undisclosed Constituent of Concern, then Engineer may, at its option and without liability for consequential or any other damages, suspend performance of Services on the portion of the Project affected thereby until such portion of the Project is no longer affected, or terminate this Agreement for cause if it is not practical to continue providing Services. K. Owner and Engineer agree to negotiate each dispute between them in good faith during the 30 days after notice of dispute. If negotiations are unsuccessful in resolving the dispute, then the dispute will be mediated. If mediation is unsuccessful, then the parties may exercise their rights at law. L. This Agreement is to be governed by the laws of the state in which the Project is located. M. Engineer's Services do not include: (1) serving as a "municipal advisor" for purposes of the registration requirements of Section 975 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (2010) or the municipal advisor registration rules issued by the Securities and Exchange Commission; (2) advising Owner, or any municipal entity or other person or entity, regarding municipal financial products or the issuance of municipal securities, including advice with respect to the structure, timing, terms, or other similar matters concerning such products or issuances; (3) providing surety bonding or insurance- related advice, recommendations, counseling, or research, or enforcement of construction insurance or surety bonding requirements; or (4) providing legal advice or representation. 7.01 Definitions A. Constructor—Any person or entity (not including the Engineer, its employees, agents, representatives, subcontractors, and subconsultants), performing or supporting construction activities relating to the Project, including but not limited to contractors, subcontractors, suppliers, Owner's work forces, utility companies, construction managers, testing firms, shippers, and truckers, and the employees, agents, and representatives of any or all of them. B. Constituent of Concern—Asbestos, petroleum, radioactive material, polychlorinated biphenyls (PCBs), lead based paint (as defined by the HUD/EPA standard), hazardous waste, and any substance, product, waste, or other material of any nature whatsoever that is or becomes listed, regulated, or addressed pursuant to laws and regulations regulating, relating to, or imposing liability or standards of conduct concerning, any hazardous, toxic, or dangerous waste, substance, or material. 8.01 Successors, Assigns, and Beneficiaries A. Successors and Assigns 1. Owner and Engineer are hereby bound and the successors, executors, administrators, and legal representatives of Owner and Engineer (and to the extent permitted by Paragraph 8.01.A.2 the assigns of Owner and Engineer) are hereby bound to the other party to this Agreement and to the successors, executors, administrators, and legal 23/28 EJCDC® E-520, Short Form of Agreement Between Owner and Engineer for Professional Services. Copyright ©2020 National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers. All rights reserved. Page 7 representatives (and said assigns) of such other party, in respect of all covenants, agreements, and obligations of this Agreement. 2. Neither Owner nor Engineer may assign, sublet, or transfer any rights under or interest (including, but without limitation, money that is due or may become due) in this Agreement without the written consent of the other party, except to the extent that any assignment, subletting, or transfer is mandated by law. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement. B. Beneficiaries: Unless expressly provided otherwise, nothing in this Agreement shall be construed to create, impose, or give rise to any duty owed by Owner or Engineer to any Constructor, other third-party individual or entity, or to any surety for or employee of any of them. All duties and responsibilities undertaken pursuant to this Agreement will be for the sole and exclusive benefit of Owner and Engineer and not for the benefit of any other party. 9.01 Total Agreement A. This Agreement (including any expressly incorporated attachments), constitutes the entire agreement between Owner and Engineer and supersedes all prior written or oral understandings. This Agreement may only be amended, supplemented, modified, or canceled by a duly executed written instrument. Attachments: Appendix 1, Engineer's Standard Hourly Rates Appendix 2, Scope of Work 24/28 EJCDC® E-520, Short Form of Agreement Between Owner and Engineer for Professional Services. Copyright ©2020 National Society of Professional Engineers, American Council of Engineering Companies, and American Society of Civil Engineers. All rights reserved. Page 8 This Agreement’s Effective Date is July 6, 2026. Owner: Engineer: City of Fergus Falls Interstate Engineering Inc (name of organization) (name of organization) By: By: (authorized individual’s signature) (authorized individual’s signature) By signing, I certify that I am authorized to bind the entity to a contract. I also understand that a corporate resolution may be requested as evidence. Date: Date: 7/13/2026 (date signed) (date signed) Name: Name: Alex Schwarzhoff (typed or printed) (typed or printed) Title: Title: Office Manager (typed or printed) (typed or printed) Address for giving notices: Address for giving notices: 112 W Washington Ave 116 E Washington Ave Fergus Falls, MN 56537 Fergus Falls, MN 56537 Designated Representative: Designated Representative: Name: Name: Alex Schwarzhoff (typed or printed) (typed or printed) Title: Title: Office Manager (typed or printed) (typed or printed) Address: Address: 112 W Washington Ave 116 E Washington Ave Fergus Falls, MN 56537 Fergus Falls, MN 56537 Phone: Phone: 218-739-5545 Email: Email: Alex.schwarzhoff@interstateeng.com 7/23/26 Klara Beck Port Authority Exec Director Klara Beck Community Development Director/ Port 25/28 01/11/2026 SCHEDULE OF RATES ATTACHMENT #1 CHARGEABLE EXPENSES Subsistence ......................................... Actual cost Travel Vehicle ............................. $0.85 per mile Subconsultant Services – Geotechnical ... Actual cost plus 15% Survey Vehicle ............................ $0.95 per mile Subconsultant Services – Other .............. Actual cost plus 10% ATV .......................................... $75.00 per day Survey Materials Required ..................... Actual cost plus 25% ATV with Tracks ....................... $125.00 per day Plat Certification per Certification .......... $35.00 UTV ........................................ $150.00 per day Recordation per Monument ................... $35.00 UTV with Tracks ....................... $200.00 per day 24” x 36” Prints per Page ..................... $9.00 Snowmobile ............................ $200.00 per day Other Miscellaneous Project Expenses .... Actual cost Any and all sales and use tax, TERO or other special fees which apply to this contract. Hourly Rate Hourly Rate Hourly Rate Engineers Planners Technicians ENG I 137.00$ PLANNER I 125.00$ TECH I 92.00$ ENG II 152.00$ PLANNER II 150.00$ TECH II 107.00$ ENG III 167.00$ PLANNER III 175.00$ TECH III 122.00$ ENG IV 182.00$ PLANNER IV 200.00$ TECH IV 137.00$ ENG V 197.00$ PLANNER V 225.00$ TECH V 152.00$ ENG VI 212.00$ TECH VI 167.00$ ENG VII 227.00$ Landscape Architects TECH VII 182.00$ ENG VIII 242.00$ LA I 120.00$ TECH VIII 197.00$ ENG IX 262.00$ LA II 140.00$ TECH IX 212.00$ ENG X 280.00$ LA III 160.00$ TECH X 235.00$ LA IV 180.00$ Surveyors LA V 200.00$ GIS SURV I 113.00$ GIS I 120.00$ SURV II 128.00$ Funding GIS II 140.00$ SURV III 143.00$ FUNDING I 125.00$ GIS III 160.00$ SURV IV 158.00$ FUNDING II 150.00$ GIS IV 180.00$ SURV V 173.00$ FUNDING III 175.00$ GIS V 200.00$ SURV VI 188.00$ FUNDING IV 200.00$ SURV VII 203.00$ Information Technologists SURV VIII 218.00$ Administrative IT I 145.00$ SURV IX 233.00$ ADMIN I 93.00$ IT II 195.00$ SURV X 255.00$ ADMIN II 100.00$ ADMIN III 107.00$ Expert Witness 400.00$ APPENDIX #1 26/28 APPENDIX 2: Scope of Work: Conceptual Layout and Plans for Northeast Residential Park(Norgren Property) Fergus Falls, MN 1. Attend an initial coordination meeting with the OWNER. 2. Prepare conceptual layout for review and comment by the City. 3. Meet with City to review layout 4. Update layout based on City comments and prepare conceptual drawings and layouts for review and comment by the City. conceptual plans shall include a. Street plan and lot layout including potential parks, highway department garage, multifamily and trails. b. Stormwater design including potential detention pond locations c. Preliminary Water and sewer plan views 5. Meet with the OWNER to review the conceptual plans. 6. Revise conceptual plans to reflect comments received from the City 7. Prepare updated infrastructure analysis and costs. 8. Provide City with pdf’s of conceptual plans and updated preliminary engineering report. Not Included 1. Platting 2. Complete utility design 3. Building design 4. Geotechnical Investigation 5. Curb and gutter or sidewalk design 27/28 28/28