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Home My WebLink AboutCommunity Development Agency - CDA-Packet-10-14-2026 Supporting Documents - 10/14/2026 OTTER TAIL COUNTY – MINNESOTA COMMUNITY DEVELOPMENT AGENCY AGENDA Government Services Center, Otter Tail Lake Room 515 West Fir Avenue, Fergus Falls, MN October 14, 2026 | 12:30 pm Commissioners may participate in the meeting by interactive technology. 1.Call to Order 2. Approval of Agenda 3. Approval of Consent Agenda A. September 2, 2026 Regular Meeting Minutes B. August 2026 Financial Reports 4. Reports and Presentations A. Director Status Report B. Committee Reports Housing and Development Workforce Support and Digital Equity Business Development C. ‘On the Map’ Report D. Board Member Updates 5. Regular Business A. Resolution No. 2026-03 Awarding Construction Bid and Authorizing Execution of Construction Contracts for Pinewood Estates 6. Discussion and Communications A. Project Updates: a. Vine Street b. Westridge Mall B. Other Communications C. Upcoming Meetings: a. Wednesday, November 4 at 11:00 am, Otter Tail Lake Room, Government Services Center with HRA Board meeting beginning at 12:45 pm 7. Adjourn 1/26 2/26 MINUTES OF THE COMMUNITY DEVELOPMENT AGENCY OF OTTER TAIL COUNTY Government Services Center, County Board Room 515 W Fir Ave, Fergus Falls MN 56537 September 2, 2026 Call to Order The Otter Tail County Community Development Agency convened at 11:02 am, Wednesday, September 2, 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 Joined at 11:32 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 Bernstetter, Project Manager X Erik Osberg, Rural Rebound Initiative Coordinator X Aann Christopherson, CDA Accountant X Paige Carlson, Project Manager X Paula Grunewald, HRA Administrative Assistant X 2. Approval of Agenda Approval of Agenda motion was made by Sean Sullivan, second by Val Martin, and unanimously carried to approve as presented with the addition of 5B Community Growth Partnership Grant Application: 917 Pebble Lake Road, Fergus Falls. 3. Approval of Consent Agenda Motion by Kurt Mortenson, second by Jeff Ackerson to approve the Consent Agenda. Motion passed unanimously. 4. Reports and Presentations A. Director’s Status Report:  Workforce – enrollment has started with one participant in the ag field.  Received an invite to a non-profit that supports coal impacted communities to submit a full application for funding to support the Empowered Worker Program.  M State Student Welcome Bus Tour was held with Sarah Bernstetter in attendance.  Manufacturing month – coordinating with Elevate with tours in New York Mills, Fergus Falls, rural Vergas, Battle Lake, and Parkers Prairie.  Business resource marketing efforts will continue. 3/26 OTTERTAIL COUNTY -MINNESOTA B. Committee Reports Housing Growth and Investment  Pelican Rapids Housing Workshop will be held this fall.  New York Mills Housing Workshop will take place later this year.  Commissioner Schornack asked if we could get the West Initiative Funds involved. Workforce  Discussed during the Director’s Status Report. C. On the Map Report Erik Osberg, Rural Rebound Initiative Coordinator stated  The Digital Marketing Summit will be held November 5 at East Silent Lake Resort.  The Gopher relationship carries on with football and hockey attendance on the same night. Sarah Bernstetter, CDA Project Manager, shared the workforce inflow and outflow report from Census.gov. D. Board Member Updates – none 5. Regular Business Items A. City of Fergus Falls Community Growth Partnership Grant Application: Northeast Residential Park Conceptual Layout Amy Baldwin, CDA Director stated that the City of Fergus Falls is requesting planning funds to support conceptual planning on a Port Authority owned site identified for residential development. Interstate Engineering will prepare a conceptual site layout, infrastructure analysis, and update preliminary engineering report for the property. The request is $5,000 with the balance to be funded by the Fergus Falls Port Authority at $9,000 and Otter Tail County Highway Department at $4,000. Staff recommends approval. Motion by Kurt Mortenson, second by Sean Sullivan to approve the $5,000 grant application. Motion passed unanimously. B. City of Fergus Falls Community Growth Partnership Grant Application: 917 Pebble Lake Rd Commercial Rehabilitation The property is located at 917 Pebble Lake Road, Fergus Falls and owned by Frustol Management LLC. The purpose is to rehab and renovate the building, for RZN Athletics. Amount requested is $10,000, with total project costs exceeding $500,000. Grant funds would be used toward new signage and exterior improvements. The City of Fergus Falls will be meeting next Tuesday to consider the resolution of support, the application and sources of funds completed. Two options were discussed 1. Approve on the condition that we receive complete application by the City, receive city resolution and refer to Business Development Committee for review and final approval; or 2. Acknowledge that work may commence prior to approval and then bring back to board in October to approve. Motion by Sean Sullivan, second by Kurt Mortenson to approve the $10,000 grant amount with stipulations that the full application must be received from the City of Fergus Falls, reviewed by the Business Development Committee, and the resolution of support from the City of Fergus Falls be received, with an acknowledgement that work may commence prior to execution of the Grant Agreement. Motion passed unanimously. 6. Discussion and Communications A. Project Updates: a. Vine Street Rehabilitation – work is progressing. b. Westridge Mall – Adjoining property separation work continues. County Facilities Staff are monitoring. 4/26 B. Other Communications: a. Either Amy Baldwin or Tanya Westra will be unable to attend October’s meeting due to NAHRO conference. b. Dave Schnorack will be unable to attend October’s meeting as scheduled. C. Upcoming meeting: a. Wednesday, October 7, 2026, at 11:00 am, Otter Tail Lake Room, Government Services Center with HRA Board meeting at 12:45 pm. 7. Adjourned 5/26 PctReportCode1 2:52:33PM csteinbach 08/2026 08/2026Cash 8% 08/2026War# 8 Char Invoice# Description Copyright 2010-2025 Integrated Financial Systems 23 COMMUNITY DEVELOPMENT AUTHORITY 705 ECONOMIC DEVELOPMENT/TOURISM 000 ... 23-705-000-0000-6140 11,100.00 812,000 900.00Per Diem 900.00 COM 8/25/2026 90.00 202906 7/21/26 CDA - PER DIEM COM 8/25/2026 90.00 202906 8/5/26 CDA - PER DIEM COM 8/25/2026 90.00 307898 8/5/26 CDA - PER DIEM COM 8/25/2026 90.00 307898 7/13/26 CDA - PER DIEM COM 8/25/2026 90.00 307899 8/5/26 CDA - PER DIEM COM 8/25/2026 90.00 307902 8/5/26 CDA - PER DIEM COM 8/25/2026 90.00 307902 7/13/26 CDA - PER DIEM COM 8/25/2026 90.00 307897 7/13/26 CDA - PER DIEM COM 8/25/2026 90.00 307901 8/5/26 CDA - PER DIEM COM 8/25/2026 90.00 307901 7/21/26 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 3,203.60 83,500 296.40Mileage296.40 COM 8/25/2026 60.80 307902 8/5/26 CDA - MILEAGE COM 8/25/2026 60.80 307902 7/13/26 CDA - MILEAGE COM 8/25/2026 30.40 307899 8/5/26 CDA - MILEAGE COM 8/25/2026 28.88 307898 8/5/26 CDA - MILEAGE COM 8/25/2026 57.76 202906 8/5/26 CDA - MILEAGE COM 8/25/2026 57.76 202906 7/21/26 CDA - MILEAGE 23-705-000-0000-6331 3,000.00 03,000 0.00Travel Expenses 0.00 23-705-000-0000-6333 5,000.00 05,000 0.00Meeting/Event Costs 0.00 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 23-705-000-7001-6828 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 ...01,196.40 1,196.40595,900.00 594,703.60 ECONOMIC DEVELOPMENT/TOURISM 01,196.40 1,196.40595,900.00 594,703.60 Page 2 Report For: ToReport Basis:Percent of Year: Actual For Tran Date Bdgt - Act Difference08/2026 - 08/2026 PROGRAM DEPT 9/4/2026 000 705 Actual ForType2026 BUDGET EXPENDITURE GUIDELINE - DETAIL MTD Otter Tail County Auditor 6/26 EAt BB-DPA-2026-05 PctReportCode1 2:52:33PM csteinbach 08/2026 08/2026Cash 8% 08/2026War# 8 Char Invoice# Description Copyright 2010-2025 Integrated Financial Systems 807 SPECIAL ALLOCATION HOUSING PROGRAM 23-706-807-0000-6685 42.77 0042.77Remodeling Expenses 42.77 AUD 8/7/2026 42.77 202501 JUL2026 ACCT 2312 UTILITIES 23-706-807-0000-6825 9,480.00 6124,000 14,520.00Down Payment Assistance 14,520.00 AUD 8/7/2026 14,520.00 202499 DOWN PYMT ASSIST - TUMAN 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 614,562.77 14,562.77264,000.00 249,437.23 NON SPECIAL BENEFIT LEVY PROGRAMMING 414,562.77 14,562.77384,500.00 369,937.23 COMMUNITY DEVELOPMENT AUTHORITY 215,759.17 15,759.17980,400.00 964,640.83 215,759.17 15,759.17980,400.00 964,640.83 Page 3 Report For: ToReport Basis:Percent of Year: Actual For Tran Date Bdgt - Act Difference08/2026 - 08/2026 PROGRAM - PROGRAM DEPT FUND Final Totals 19 Accounts 9/4/2026 000 807 706 23 Actual ForType2026 BUDGET EXPENDITURE GUIDELINE - DETAIL MTD Otter Tail County Auditor 7/26 EAt 8/26 V V 9/26 V V Pct 24 Accounts 2:52:43PM csteinbach 01/2026 08/2026Cash 23 COMMUNITY DEVELOPMENT AUTHORITY 08/2026 Copyright 2010-2025 Integrated Financial Systems 23 COMMUNITY DEVELOPMENT AUTHORITY 705 ECONOMIC DEVELOPMENT/TOURISM 000 ... 6140 PER DIEM 4,080.00 66900.00 7,920.00 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 1,365.09 61296.40 2,134.91 6331 TRAVEL EXPENSES 1,989.36 340.00 1,010.64 6333 MEETING/EVENT COSTS 4,405.94 120.00 594.06 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 00.00 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 88,947.46 042.77 88,947.46 6825 DOWN PAYMENT ASSISTANCE 38,400.00 26014,520.00 62,400.00 6830 HOUSING REHABILITATION 32,150.88 200.00 7,849.12 6832 LOAN ASSISTANCE PROGRAM 199,954.00 00.00 46.00 ...478,134.62 801,196.40 117,765.38 ECONOMIC DEVELOPMENT/TOURISM 478,134.62 801,196.40 117,765.38595,900.00 ...2,610.42 20.00 117,889.58 SPECIAL ALLOCATION HOUSING PROGRAM 163,614.76 6214,562.77 100,385.24 NON SPECIAL BENEFIT LEVY PROGRAMMING 166,225.18 4314,562.77 218,274.82384,500.00 COMMUNITY DEVELOPMENT AUTHORITY 980,400.00 644,359.80 6615,759.17 336,040.20 66 15,759.17 644,359.80 980,400.00 336,040.20 Page 2 Report For: ToReport Basis: FUND Percent of Year: Actual For Account Description Actual For BDGT - ACT Difference01/2026 - 08/2026 - - - - TOTAL TOTAL - TOTAL - - - TOTAL TOTAL TOTAL Final Totals 9/4/2026 67 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 10/26 DATE: October 8, 2026 TO: CDA Board of Directors FROM: Amy Baldwin, Community Development Director SUBJECT: Director Status Report Housing Growth Strategy / Big Build: Pelican Rapids Housing Workshop will be hosted on November 5 from 7:30-9:30 am at Lake Region Electric Cooperative. Presentations and discussions will focus on local housing needs, housing progress, and brainstorming of solutions. Registration link: https://pelican-rapids-housing-2026.eventbrite.com/ Workforce Support Strategy / OTC Works: Staff attended the Center for Rural Policy and Development’s Pathways After High School presentation on September 29. The research demonstrated college/career pathways that high school students in Northwest Minnesota pursued and the characteristics of their high school experience that influenced their workforce participation. The research is available at: ruralmn.org/pathways-after-high-school-in-northwest-minnesota/ Attended an open house hosted by Rural MN CEP at the Fergus Falls office. Participated in the West Central MN Career Fair hosted by the Fergus Falls School District. Quarterly workforce newsletter was distributed to 242 recipients with highlights on Workforce Development Month, CareerForce job portal updates, Employer Child Care Tax Credit, and Good Jobs Employer Designation: https://members.ottertaillakescountry.com/ap/EmailViewer/LW3ezywL Empowered Worker Program: o one active and one pending enrollment. o received notice that the MN Department of Human Services innovation grant to support peer support credentialing was not funded. Business Development: 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). The remaining tours have open spots for additional attendees to join. Register through Elevate at www.elevateotc.org/events Quarterly business development newsletter was distributed to 1,202 recipients with highlights on SBA disaster loan program, Manufacturing Month, Greater MN Marketing Summit, and transition planning resources: https://members.ottertaillakescountry.com/ap/EmailViewer/P77ZmwmP 11/26 > > > > > > > > 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 Staff attended a DEED Economic Development Roundtable to learn about state resources and provide insight to DEED staff on greater Minnesota economic development efforts, priorities, and needs. Child Care: Child care partner group has been working on the attached “Child Care Resources for Families” flipbook. It is a collaborative publication that highlights resources from several organizations to help families find child care, pay for child care, begin the process to become a licensed provider, or equip family/neighbor caregivers with funding and tools. 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. Fourth quarter meetings are scheduled with Henning, Vergas, Pelican Rapids, New York Mills, Parkers Prairie, Fergus Falls, Perham and Ottertail. Otter Tail Lakes Country is hosting 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:  Child Care Resource flipbook 12/26 > > > > for families Child Care Resources for families 13/26 About this Guide about this guide This guide was created to give families one easy place to find child care resources. There are supportive resources to help with finding child care providers, paying for care, and even becoming a provider yourself. We’ve also included support for family, friend, and neighbor caregivers, plus tools to make your child care journey easier. 14/26 Finding Child Care finding child care Looking for child care? The Otter Tail County Child Care Locator App can help you find a provider in your area. Scan the QR code for the app to: View a map of child care providers in Otter Tail County Search for providers within a distance you set from home or work Find contact information for providers to ask about openings 15/26 > > > Paying forChild Care paying for child care There are financial assistance programs to help families pay for child care. Several tax credits and deductions on your income tax can help make care more affordable. Scan the QR code for more information about: Free early learning and child care for income- eligible families with Head Start Child Care Assistance Program offered by MAHUBE-OTWA in Otter Tail County Early Learning Scholarships Child and Dependent Care Credit Child Tax Credit Minnesota Working Family Credit 16/26 > > > > > > Become A Provider become a provider Child care providers are highly competent, dedicated, and caring professionals. They teach, love, and keep our children safe. Scan the QR code for more information about: Deciding if you want to be licensed. Anyone caring for more than one unrelated family member is required to be licensed. Applying to become licensed. Otter Tail County’s licensor will share helpful training and resources to get started with the licensing process. Connecting with step-by-step support. Child Care Wayfinder offers personalized support and resources to help you get licensed and succeed. Contact Otter Tail County Human Services 218-998-8150 17/26 > > > Family, Friend & Neighbor Resources family, friend & neighbor resources Do you care for children of relatives, friends, or neighbors? There are Family, Friend, and Neighbor care resources to help you provide the best care possible. Scan the QR code for more information about: Family, Friend, and Neighbor Navigators that can connect you with support Registering as a family, friend, or neighbor caregiver Safety and preparedness classes Nutritional guides Educational resources and activities Caregiver grants for health, safety, literacy, and educational materials Contact MAHUBE-OTWA Family, Friend, and Neighbor Navigator 612-360-5035 18/26 > > > > > > Child CareBuilds Communities Child care is essential for strong communities. It helps families balance work and home, supports children’s growth, and allows parents to work. In Otter Tail County, the need for quality child care is growing as families seek reliable options for their children. To help families and caregivers, there are many other child care resources including Family Resource Centers, Child Care Aware, Parent Aware, and public health early childhood programs. These organizations provide services that help every family feel supported and give every child a chance to thrive. 19/26 ~ ■• west Central r lni\tive @ Publi. cHealth. .fjJ WostCa,tral MinnosulaCumm ... mosActiu■ p~:~:: mr.HEAD START Commumty Health Services f.~~~ FAMILY Parent ;-... ~.•"; RESOURCE CENTERS A 11 H1 11"/'J ' L..,X_J SERVING OTTER TAIL COUNTY VV "1,,f C,I' ~•~-Child Care War§-iM er -rn II II MAHUBE•OTWA C.Af,i LJ?, M communtty Action Partnership, Inc. ~ 2!.J~!t!:~~~ Housing Growth & Development Committee Meeting Notes Date/Time: September 14, 2026 @ 9am Committee members: Dave Schornack (in person), Dena Johnson (in person), Jeff Ackerson (in person) Outline of key actions discussed: 1. Pinewood Estates updates a. Enough funds remain from the current MN Housing Impact Fund award to build another single-family home in Pinewood Estates. b. Timeline would require construction and home sale be completed by April 30, 2027 c. Committee supportive to seek bids for modular construction and move forward soon enough to begin foundation this fall. d. With this additional unit and the two units projected, staff will remove active lot listings. 2. Parkers Prairie project updates a. Pre-bid meeting had 4-6 contractors in attendance and good interest overall. Bid proposals are due September 25. 3. Pelican Rapids Housing Workshop a. Confirmed for November 5 from 7:30-9:30 at Lake Region Electric Cooperative. b. Discussed potential invites and agenda items with committee members. 4. Department staff update a. Hiring full-time Construction Specialist to support Housing Project Manager and backfill staff retirement Next meeting: Monday, October 12, 2026 @ 1pm 20/26 218-998-8060 @ 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: September 15 @ 3:00pm Committee members: Kurt Mortenson (in person), Bob Schempp (in person) Outline of key actions discussed: 1. Empowered Worker Program update a. Follow up communication with Just Transition Fund on funding request 2. Workforce outreach updates a. Paige continues to meet with employers 3. Discussion about child care direction a. Reviewed countywide child care fund materials b. Planned survey of providers Next meeting: Tuesday, October 20 at 3pm 21/26 218-998-8060 ® 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: September 17 @ 1pm Committee members: Val Martin (virtual), Heidi Samuelson (virtual) Outline of key actions discussed: 1. Review Community Growth Partnership Grant application from Fergus Falls a. Fergus Falls requested $10,000 for a commercial rehabilitation of 917 Pebble Lake Rd for RZN Athletics. b. Following board direction from the September CDA meeting, the committee reviewed updated application with full/complete narrative responses and sources and uses. c. Committee approved the application and preparation of grant agreements. 2. Manufacturing Month tours a. Discussed Manufacturing Month tours scheduled around the County throughout the month of October. b. Committee members were hearing about the tours in their communities and agreed support promotion. 3. Westridge Mall project updates a. Harbor Freight and Dollar Tree system separation work is ongoing. City and County staff are working together on exterior maintenance and mowing. b. Staff is awaiting an update from DEED on the Demolition Loan Program application or other potential funding opportunity. c. Ongoing work includes planning for asbestos abatement with updated quotes and phased demolition planning. Next meeting: October 15 at 1pm 22/26 218-998-8060 ® COMMUNITY DEVELOPMENT AGENCY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER LIVE YOUR best life HERE. Government Services Center 520 West Fir Avenue Fergus Falls, MN 56537 @ ottertailcounty.gov OTTER TAIL COUNTY COMMUNITY DEVELOPMENT AGENCY REQUEST FOR BOARD ACTION October 14, 2026 BOARD MEETING DATE AGENDA ITEM #5A Amy Baldwin October 8, 2026 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Approval of Resolution No. 2026-03 Awarding Construction Bid and Authorizing Execution of Construction Contracts for Pinewood Estates PROPOSED REQUEST/JUSTIFICATION Through a grant from the Minnesota Housing Finance Agency’s (Minnesota Housing) Community Impact Fund, the CDA constructed and sold three homes in Pinewood Estates in 2025. The original MN Housing Value Gap Grant award was $762,000, with approximately $265,000 remaining after the development of these three homes. These funds could be used to support the construction and sale of a fourth home. Following discussion with the Housing Committee in September, staff issued a Request for Proposals (RFP) for a modular home and onsite construction services. Five proposals were received for the modular home, and three proposals were received for the onsite work. One modular proposal was deemed non-responsive because it did not include the required floor plans and was therefore disqualified. MODULAR BIDDER BID AMOUNT Alexandria Homes – Dynamic Homes Dealer $226,955.00 Northstar System Built $259,600.00 GFY Custom Crafts LLC – Champion $190,475.00 – incomplete bid packet GFY Custom Crafts LLC – Dynamic Homes Plan $234,481.00 GFY Custom Crafts LLC – Northstar System Built Plan $246,254.00 ONSITE BIDDER BID AMOUNT GFY Custom Crafts LLC $289,160.00 Novelty Construction LLC $237,057.77 HighPoint Homes $269,400.00 Staff reviewed and scored the proposals based on the established evaluation criteria. Alexandria Homes was identified as the highest-scoring responsible bidder for the modular home, and Novelty Construction LLC was identified as the highest-scoring responsible bidder for onsite construction. The Value Gap Grant agreement with Minnesota Housing expires April 30, 2027. Under the agreement, construction must be completed and the home sold before the expiration date. Minnesota Housing has advised staff that a short extension may be possible; however, a formal extension request cannot be submitted until closer to the agreement’s expiration in 2027. Certain exterior improvements, including final grading, hydroseeding, and concrete work, may need to be deferred until spring 2027. If the home is sold before the grant expires, Minnesota Housing may consider an extension of a few months to allow completion of these remaining improvements. Approval of an extension is not guaranteed. 23/26 Additionally, the Value Gap Grant requires a Home Energy Rating System (HERS) evaluation, which includes an inspection of the insulation during construction and a blower door test upon completion. The modular home proposed by Alexandria Homes has already been constructed and will include an Energy Rating Certificate. Staff have contacted Minnesota Housing to confirm whether this certificate will satisfy the grant’s HERS evaluation requirements in lieu of the required insulation inspection. As of the date of this memo, staff have not received an answer. Confirmation from Minnesota Housing is needed to determine whether the proposed modular home meets this grant requirement. Total development costs are estimated at approximately $487,500. Assuming an appraised value of $315,000, the projected value gap would be approximately $172,500. Based on these estimates, the remaining grant balance of approximately $265,000 appears sufficient to cover the projected value gap. Final project feasibility remains subject to confirmation of the HERS requirement, adherence to the grant timeline, and the final development costs and appraised value. Recommendation: Staff will review with the Housing Committee at its meeting on Monday, October 12. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED: N/A EXECUTIVE DIRECTOR DATE: Amy Baldwin 10/08/2026 ATTACHMENT LIST: Resolution 2026-03 FINANCIAL IMPLICATIONS: BUDGETED: YES X NO FUNDING: MN Housing COMMENTS 24/26 RESOLUTION NO. 2026-03 RESOLUTION AWARDING CONSTRUCTION BID AND AUTHORIZING EXECUTION OF CONSTRUCTION CONTRACTS FOR PINEWOOD ESTATES WHEREAS, the Otter Tail County Community Development Agency (the “CDA”) received a Value Gap Grant award of $762,000 through the Minnesota Housing Finance Agency’s Community Impact Fund to support the construction and sale of homes in Pinewood Estates; and WHEREAS, the CDA has constructed and sold three homes in Pinewood Estates using grant funds, with approximately $265,000 remaining available under the grant; and WHEREAS, the CDA has identified the potential to use the remaining grant funds to support the construction and sale of a fourth home in Pinewood Estates; and WHEREAS, a Request for Proposal was issued with five proposals received for the modular home and three proposals received for onsite construction services, with one modular proposal disqualified for failure to include the required floor plans; and WHEREAS, staff reviewed and scored the proposals in accordance with the established evaluation criteria and identified Alexandria Homes, a Dynamic Homes dealer, as the highest scoring responsible bidder for the modular home at a proposed cost of $226,955.00; and WHEREAS, staff identified Novelty Homes LLC as the highest scoring responsible bidder for onsite construction services at a proposed cost of $237,057.77; and WHEREAS, the estimated total development cost for the fourth home is approximately $487,500, and, assuming an appraised value of $315,000, the projected value gap is approximately $172,500; and WHEREAS, the Value Gap Grant agreement expires April 30, 2027, and requires construction to be completed and the home sold before the agreement expires, although Minnesota Housing has indicated that a short extension may be considered upon request; and WHEREAS, the grant requires a Home Energy Rating System (HERS) evaluation, and staff has requested confirmation from Minnesota Housing that the Energy Rating Certificate provided with the previously constructed modular home will satisfy the applicable grant requirements; and WHEREAS, final grading, hydroseeding, concrete work, and other exterior improvements may need to be completed in spring 2027, and any extension of the grant agreement remains subject to Minnesota Housing’s approval; 25/26 NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. Staff shall make every reasonable effort to complete construction and sell the home by April 30, 2027. If necessary, staff is authorized to request an extension of the grant agreement from Minnesota Housing, subject to their approval. 2. The Executive Director is hereby authorized to execute construction contracts with Alexandria Homes, in the amount of $226,955.00 and Novelty Homes LLC, in the amount of $237,057.77, subject to confirmation of compliance from MN Housing on or before October 31, 2026. 3. The Executive Director is hereby authorized, empowered, and directed to execute and deliver in the name and on behalf of the CDA any other documents and instruments in such form and on such terms and conditions as she deems necessary or appropriate in connection with the construction as contemplated above. 4. The Executive Director is hereby authorized, empowered, and directed to do all other acts and things as she deems necessary or desirable in her discretion to effectuate the purposes of the foregoing Resolutions. Upon the motion of _________________________seconded by _______________________ and passed on ____________________vote, the above resolution is hereby adopted by the Otter Tail County Community Development Agency Board of Commissioners. Adopted this 14th day of October 2026. Dated: _______________________________ OTTER TAIL COUNTY CDA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 26/26