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Home My WebLink AboutCommunity Development Agency - CDA-Packet-11-04-2026 Supporting Documents - 11/04/2026 OTTER TAIL COUNTY – MINNESOTA COMMUNITY DEVELOPMENT AGENCY AGENDA Government Services Center, Otter Tail Lake Room 515 West Fir Avenue, Fergus Falls, MN November 4, 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. October 14, 2026 Regular Meeting Minutes B. September 2026 Financial Reports 4. Reports and Presentations A. Director Status Report Family Resource Centers 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 None 6. Discussion and Communications A. Tax abatement discussion B. Project Updates: a. Pinewood Estates b. Westridge Mall c. Vine Street C. 2027 Board Meeting Schedule D. Other Communications E. Upcoming Meetings: a. Wednesday, December 2 at 11:00 am, Otter Tail Lake Room, Government Services Center with HRA Board meeting beginning at 12:45 pm 7. Adjourn 1/23 2/23 MINUTES OF THE COMMUNITY DEVELOPMENT AGENCY OF OTTER TAIL COUNTY Government Services Center, County Board Room 515 W Fir Ave, Fergus Falls MN 56537 October 14, 2026 Call to Order The Otter Tail County Community Development Agency convened at 12:37 pm, October 14, 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 Erik Osberg, Rural Rebound Initiative Coordinator X Kendra Huseth, Assistant Finance Director X Paige Carlson, Project Manager X Paula Grunewald, Administrative Assistant X Roll call was taken with Commissioners Jeff Ackerson, Val Martin, Betsy Roder, Bob Schempp Jr., Dave Schornack and Sean Sullan in attendance. 2. Approval of Agenda Approval of Agenda motion was made by Val Martin, second by Sean Sullivan. Roll call vote was taken with Commissioners Jeff Ackerson, Val Martin, Betsy Roder, Bob Schempp Jr., Dave Schornack and Sean Sullan voting yes to approve the agenda with the addition of the Norgren Residential Project discussion. Motion passed unanimously. 3. Approval of Consent Agenda Motion by Sean Sullivan, second by Val Martin to approve the Consent Agenda. Roll call vote was taken with Commissioners Jeff Ackerson, Val Martin, Betsy Roder, Bob Schempp Jr., Dave Schornack and Sean Sullan voting yes. Motion passed unanimously. 4. Reports and Presentations A.& B. Director’s Status Report: and Committee Reports Pelican Rapids Housing Workshop is set for November 5. Staff attended the Center for Rural Policy and Development’s Pathways After High School presentation. Manufacturing Month Tours are underway. There are two tours left. 3/23 OTTERTAIL COUNTY -MINNESOTA  Sarah Bernstetter has been working on “Child Care Resource for Families” flipbook with a child care partner group.  Otter Tail Lakes Country Annual Marketing Summit will be on November 5.  The City of Fergus Falls grant for the RZN Athletics project was approved following review by the Business Development Committee, and grant agreements were prepared. C. On the Map Report Erik Osberg, Rural Rebound Initiative Coordinator reported on:  Personnel updates.  Marketing Summit on November 5 at East Silent Lake Resort.  50th Anniversary of Otter Tail Lakes County – started in 1976.  Gopher Partnership will be up in July 2027.  Gopher Football game day November 7. D. Board Member Updates - none 5. Regular Business Items A. Resolution No. 2026-03 Awarding Construction Bid and Authorizing Execution of Construction Contracts for Pinewood Estates Amy Baldwin, CDA Director stated we had received an award through Minnesota Housing to help support three single family home construction in Pelican Rapids within the Pinewood Estates. The leftover funds from the MN Housing Value Gap Grant could support the construction and sale of a fourth home in the Pinewood Estates. A Request for Proposals (RFP) for a 3-bedroom 2-bath modular home and onsite construction services was issued to build the fourth home. Five proposals were received for modular homes with Alexandria Homes – Dynamic Homes Dealer identified as the highest-scoring responsible bidder. Three proposals were received for onsite construction with Novelty Construction LLC being the highest-scoring responsible bidder. The Value Gap Grant agreement with Minnesota Housing expires April 30, 2027, and they have advised staff that a short extension may be possible. Certain exterior improvements including final grading, hydroseeding and concrete work will 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. This extension is not guaranteed. Also the Value Gap Grant requires energy rating requirements. A confirmation of the waiver to accept the energy rating requirements of the modular home will be needed from Minnesota Housing by October 31, 2026. Motion by Sean Sullivan, second by Val Martin to award construction bids and authorize execution of construction contracts for Pinewood Estates pending the waiver from Minnesota Housing on the energy rating requirements being approved by October 31, 2026. Roll call vote was taken with Commissioners Jeff Ackerson, Val Martin, Betsy Roder, Bob Schempp Jr., Dave Schornack and Sean Sullan voting yes. 6. Discussion and Communications A. Project Update a. Vine Street Rehabilitation b. Westridge Mall c. Norgren Property B. Other Communications a. Construction Specialist Position C. Upcoming meeting: Wednesday, Wednesday, November 4, 2026, at 11:00 am, Otter Tail Lake Room, Government Services Center with HRA Board meeting at 12:45 pm. 7. Adjourned 4/23 PctReportCode1 2:02:24PM csteinbach 09/2026 09/2026Cash 8% 09/2026War# 8 Char Invoice# Description Copyright 2010-2026 Integrated Financial Systems 23 COMMUNITY DEVELOPMENT AUTHORITY 705 ECONOMIC DEVELOPMENT/TOURISM 000 ... 23-705-000-0000-6140 11,190.00 712,000 810.00Per Diem 810.00 COM 9/17/2026 90.00 307981 9/2/26 CDA PER DIEM COM 9/17/2026 90.00 307985 9/2/26 CDA PER DIEM COM 9/17/2026 90.00 307986 8/17/26 CDA PER DIEM COM 9/17/2026 90.00 307983 9/02/26 CDA PER DIEM COM 9/17/2026 90.00 307985 8/18/26 CDA PER DIEM COM 9/17/2026 90.00 307982 9/2/26 CDA PER DIEM COM 9/17/2026 90.00 307982 9/2/26 CDA PER DIEM COM 9/17/2026 90.00 307986 9/2/26 CDA PER DIEM COM 9/17/2026 90.00 307981 8/17/26 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 2,914.04 173,500 585.96Mileage585.96 COM 9/17/2026 28.88 307982 9/2/26 CDA MILEAGE COM 9/17/2026 60.80 307986 9/2/26 CDA MILEAGE COM 9/17/2026 60.80 307986 8/17/26 CDA MILEAGE COM 9/17/2026 28.88 307982 9/2/26 CDA MILEAGE COM 9/17/2026 30.40 307983 9/02/26 CDA MILEAGE COM 9/17/2026 8.36 307981 9/2/26 MILEAGE CDA BOARD MEETING COM 9/29/2026 367.84 203477 09/16/2026 MILEAGE ROOTED & RISING CONF 23-705-000-0000-6331 3,000.00 03,000 0.00Travel Expenses 0.00 23-705-000-0000-6333 4,909.07 25,000 90.93Meeting/Event Costs 90.93 AUD 9/25/2026 90.93 203443 09/25/2026 ED-LUNCH FOR CDA/HRA BOARD 23-705-000-0000-6355 4,000.00 04,000 0.00Liability Insurance 0.00 23-705-000-0000-6369 14.00 0014.00Miscellaneous Charges 14.00 AUD 9/25/2026 14.00 203443 09/25/2026 PC-CARWASH 23-705-000-0000-6822 194,747.50 3200,000 5,252.50Community Growth Partnership Grant 5,252.50 AUD 9/25/2026 5,252.50 307989 2024-08 CDA GRANT REIMBURSEMENT 23-705-000-0000-6828 900.00 00900.00Pelican Highway Site Development 900.00 COM 9/8/2026 900.00 203076 JUL2026 MOWING CDA LOTS MAY-JUL 2026 23-705-000-7001-6828 4,703.75 65,000 296.25Site Development (TIF)296.25 COM 9/29/2026 296.25 203487 INV108485 2025 TIF REPORTING Page 2 Report For: ToReport Basis:Percent of Year: Actual For Tran Date Bdgt - Act Difference09/2026 - 09/2026 - - 10/5/2026 Actual ForType2026 BUDGET EXPENDITURE GUIDELINE - DETAIL MTD Otter Tail County Auditor 5/23 EAt PctReportCode1 2:02:24PM csteinbach 09/2026 09/2026Cash 8% 09/2026War# 8 Char Invoice# Description Copyright 2010-2026 Integrated Financial Systems 706 NON SPECIAL BENEFIT LEVY PROGRAMMING 000 ... 23-706-000-0000-6240 500.00 05000.00Publishing & Advertising 0.00 23-706-000-0000-6242 250.00 00250.00Registration Fees 250.00 COM 9/29/2026 250.00 203476 10000158 MAWB SUMMER CONF P.CARLSON 23-706-000-0000-6250 22.61 0022.61Electric22.61 AUD 9/18/2026 22.61 203406 9/8/26 ACCT 20148172 23-706-000-0000-6290 20,000.00 020,000 0.00Contracted Services 0.00 23-706-000-0000-6331 535.28 00535.28Travel Expenses 535.28 AUD 9/25/2026 535.28 203443 09/25/2026 PC-LODGING WORKFORCE CONF 23-706-000-0000-6822 100,000.00 0100,000 0.00Community Growth Partnership Grant 0.00 807 SPECIAL ALLOCATION HOUSING PROGRAM 23-706-807-0000-6670 124.00 00124.00Site Acquisition 124.00 COM 9/29/2026 124.00 203509 17558 ACCT 7639 ADD DWELLING 23-706-807-0000-6685 7,380.47 007,380.47Remodeling Expenses 7,380.47 AUD 9/11/2026 42.77 203169 AUG2026 ACCT 2312 UTILITIES 1209 VINE COM 9/29/2026 7,337.70 203501 5204 HVAC/PLUMBING DOWNPAYMENT 23-706-807-0000-6825 24,000.00 024,000 0.00Down Payment Assistance 0.00 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 ...17,949.64 7,949.64595,900.00 587,950.36 ECONOMIC DEVELOPMENT/TOURISM 17,949.64 7,949.64595,900.00 587,950.36 ...1807.89 807.89120,500.00 119,692.11 SPECIAL ALLOCATION HOUSING PROGRAM 37,504.47 7,504.47264,000.00 256,495.53 NON SPECIAL BENEFIT LEVY PROGRAMMING 28,312.36 8,312.36384,500.00 376,187.64 COMMUNITY DEVELOPMENT AUTHORITY 216,262.00 16,262.00980,400.00 964,138.00 216,262.00 16,262.00980,400.00 964,138.00 Page 3 Report For: ToReport Basis:Percent of Year: Actual For Tran Date Bdgt - Act Difference09/2026 - 09/2026 PROGRAM DEPT - - - PROGRAM - - PROGRAM DEPT FUND Final Totals 25 Accounts 10/5/2026 000 705 000 807 706 23 Actual ForType2026 BUDGET EXPENDITURE GUIDELINE - DETAIL MTD Otter Tail County Auditor 6/23 EAt Pct 8:35:20AM csteinbach 01/2026 09/2026Cash 23 COMMUNITY DEVELOPMENT AUTHORITY 09/2026 Copyright 2010-2026 Integrated Financial Systems 23 COMMUNITY DEVELOPMENT AUTHORITY 705 ECONOMIC DEVELOPMENT/TOURISM 000 ... 6140 PER DIEM 3,270.00 73810.00 8,730.00 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 779.13 78585.96 2,720.87 6331 TRAVEL EXPENSES 1,989.36 340.00 1,010.64 6333 MEETING/EVENT COSTS 4,315.01 1490.93 684.99 6355 LIABILITY INSURANCE 323.00 1080.00 4,323.00 6369 MISCELLANEOUS CHARGES 265,267.20 014.00 265,267.20 6822 COMMUNITY GROWTH PARTNERSHIP GRANT 169,747.50 155,252.50 30,252.50 6828 PELICAN HIGHWAY SITE DEVELOPMENT 947.65 0900.00 947.65 6828 SITE DEVELOPMENT (TIF)4,578.53 8296.25 421.47 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 6242 REGISTRATION FEES 250.00 0250.00 250.00 6250 ELECTRIC 22.61 022.61 22.61 6290 CONTRACTED SERVICES 17,939.00 100.00 2,061.00 6331 TRAVEL EXPENSES 535.28 0535.28 535.28 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 4,496.18 0124.00 4,496.18 6685 REMODELING EXPENSES 96,327.93 07,380.47 96,327.93 6825 DOWN PAYMENT ASSISTANCE 38,400.00 2600.00 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 ...486,084.26 827,949.64 109,815.74 ECONOMIC DEVELOPMENT/TOURISM 486,084.26 827,949.64 109,815.74595,900.00 ...3,418.31 3807.89 117,081.69 SPECIAL ALLOCATION HOUSING PROGRAM 171,119.23 657,504.47 92,880.77 Page 2 Report For: ToReport Basis: FUND Percent of Year: Actual For Account Description Actual For BDGT - ACT Difference01/2026 - 09/2026 - - - - TOTAL TOTAL - - - - TOTAL - - - TOTAL 10/8/2026 75 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 0.00 0.00 20,000.00 0.00 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 7/23 Pct 27 Accounts 8:35:20AM csteinbach 01/2026 09/2026Cash 23 COMMUNITY DEVELOPMENT AUTHORITY 09/2026 Copyright 2010-2026 Integrated Financial Systems NON SPECIAL BENEFIT LEVY PROGRAMMING 174,537.54 458,312.36 209,962.46384,500.00 COMMUNITY DEVELOPMENT AUTHORITY 980,400.00 660,621.80 6716,262.00 319,778.20 67 16,262.00 660,621.80 980,400.00 319,778.20 Page 3 Report For: ToReport Basis: FUND Percent of Year: Actual For Account Description Actual For BDGT - ACT Difference01/2026 - 09/2026 TOTAL TOTAL Final Totals 10/8/2026 75 EXPENDITURE GUIDELINE - YTD SUMMARY 2026 BUDGET Otter Tail County Auditor 8/23 9/23V V 10/23V V DATE: October 30, 2026 TO: CDA Board of Directors FROM: Amy Baldwin, Executive 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 pathways towards local housing solutions. Invited to be a guest presenter at a Humphrey School of Public Affairs class discussing rural housing challenges and opportunities with Kelly Asche of the Center for Rural Policy and Development as the instructor of the class. Attended a meeting hosted by M State President Carrie Brimhall regarding preliminary plans to construct new, on-campus student housing. Workforce Support Strategy / OTC Works: Workforce Project Manager attended Perham Chamber ‘Power Hour’. Presented at the Association of Minnesota Counties District Meeting to County Commissioners and Administrators from area Counties on the Empowered Worker Program. Empowered Worker Program: o two active enrollments o continued employer outreach Child Care: “Child Care Resources for Families” flipbook has been printed and will be distributed to various outreach partners. Miscellaneous: Attended the MN Department of Employment and Economic Development Redevelopment Conference. Presented Placer.ai data to Board of Commissioners and Otter Tail Lakes Country board about internal county department use cases and to show marketing campaign impacts on visitor metrics, respectively. County staff are also presenting about Placer.ai for the Association of Minnesota Counties Annual Conference in December. Otter Tail Lakes Country is hosting the annual Marketing Summit on November 5 from 9am- 12pm at East Silent Lake Resort. 78 individuals (max capacity: 80) are registered to attend with informative sessions and a panel about email marketing, digital reputation building, marketing content creation, and real world strategies. 11/23 > > > > > > > > > > 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 Otter Tail Lakes Country’s annual meeting is being planned for Monday, November 23. Partners and stakeholders will be invited to hear about the organization’s marketing efforts over the past year, 2027 marketing campaign plans, and general community development updates. 12/23 > What is a Family Resource Center? Family Resource Centers (FRCs) are community hubs for all families to access supports and opportunities. FRCs help families connect with existing resources such as healthcare, food, and nutrition support or clothing. They help caregivers feel more supported in and informed about the important responsibility of raising children. FRCs are responsive to the needs of the community, which may look different in various parts of the County. FRCs are researched-based and strengthen families in a way that helps caregivers promote optimal child development. They are open and available to all families. FRCs exist across the country, including in other Minnesota counties. The experience of raising children can be rewarding and joyful as well as challenging and lonely at times. We all share the goal of wanting our children to grow into happy, healthy adults. That’s what FRCs are here to help with. FAMILY RESOURCE CENTER Examples of Family Resource Center Services Parent LeadershipDevelopment Child Development Information & ResourcesCommunity Events Parenting Support FAMILY RESOURCE CENTER Access to Resources 13/23 f~~ii FAMILY ;••.Y..•"'; RESOURCE CENTERS l...X...J SERVING OTTER TAIL COUNTY Family Resource Centers (FRCs) are being developed in various regions of the county and are led by parent advisory councils within communities. The FRC in New York Mills is the first to employee a full-time director. WHAT IS THE GOAL? Programming at an FRC is offered at no cost or a low cost to families, and helps families build: Resilience Social connections with other families Knowledge about effective parenting Social and emotional understanding of their children Some FRCs will be housed in physical locations, while others in the county are yet to be determined. The center will be staffed with welcoming, nonjudgmental people to provide direct assistance and help connect families with organizations that can assist them. The county is looking to build core teams of parents and other community members in various regions: Continue planning in their respective communities Create an implementation plan and timeline Secure additional funding WHERE ARE WE NOW? Work on the project so far includes: Conducting surveys and in-person community outreach to hear about unmet needs in our communities Conversations with partners and families to share what FRC services could look like Building a network of individuals and organizations interested in supporting this work Renovation on the New York Mills location Hiring a coordinator for NY Mills location Seeking community volunteers to serve on a parent advisory committee FAMILY RESOURCE CENTER For more information regarding the progress of Family Resource Centers, please visit or scan the QR code. 14/23 > > > > > > > > > > > > > LJ Housing Growth & Development Committee Meeting Notes Date/Time: October 12, 2026 @ 1 pm Committee members: Dave Schornack (in person), Dena Johnson (in person), Jeff Ackerson (in person) Outline of key actions discussed: 1. Fergus Falls Area Habitat for Humanity a. Met with staff last week b. They have an executed purchase agreement for 213 4th Ave NE, Pelican Rapids, this will be a modular build, likely in 2028. 2. 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. Modular and Onsite construction bids received i. Modular floor plan is approximately 1340 sq feet, slightly smaller than what was constructed last year. ii. Would be placed on an unfinished basement with 2 egress windows and roughed in plumbing for a future bathroom. iii. Open floor plan, no vaulted ceilings. d. Committee recommends approval of modular bid from Alexandria Homes and Novelty Homes LLC contingent on affirmative answer from MN Housing regarding HERS Rating Certification. e. With this additional unit and the two units projected, staff will remove active lot listings. 3. Pelican Rapids Housing Workshop a. Confirmed for November 5 from 7:30-9:30 a.m. at Lake Region Electric Cooperative. 4. Vine Street Update a. Construction delay, anticipated completion is approximately 4 weeks. b. Egress windows, gutters and electrical to be installed this week. Next meeting: Monday, November 9, 2026 @ 1pm 15/23 218-998-8060 @ 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: October 20 @ 3:00pm Committee members: Kurt Mortenson (in person), Bob Schempp (virtual), Betsy Roder (virtual) Outline of key actions discussed: 1. Employer outreach and engagement update a. Manufacturing Month tours have been a great opportunity for Workforce Project Manager to engage with employers. b. Outreach to gauge employer willingness to offer job shadows for Empowered Worker Program participants. 2. Empowered Worker Program update a. Two participants are enrolled with career interests in small engine mechanic and veterinary tech. We’ve received additional referrals and conducted intakes but those individuals did not meet eligibility criteria. b. Met with DEED grant coordinator and received clarity on Dislocated Worker eligibility requirements. c. Just Transition Fund application was not funded, but program staff encouraged another application in their Spring 2027 round that is more focused on Otter Tail County, rather than the coalition effort with five coal-impacted counties. d. Staff are looking into on-demand work readiness training options for participants. 3. Youth workforce discussion a. Center for Rural Policy and Development Pathways After High School research indicated participation in career and technical education (CTE) opportunities in high school increased the likelihood that students are employed in their home region after school. b. Discussion with committee about previous youth workforce efforts, current gaps in awareness of opportunities, and CDA role. c. Committee recommended an assessment of what has happened with Work-Based Learning and career exploration since Youth Workforce Navigation Program was active. The assessment would identify gaps that still exist and how the CDA could play a more active role again. Next meeting: Tuesday, November 17 at 3pm 16/23 218-998-8060 ® 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: October 15 @ 1pm Committee members: Val Martin (virtual), Sean Sullivan (in person) Outline of key actions discussed: 1. Resort tax abatement preliminary request a. Received an inquiry about tax abatement from a new resort owner in the northeastern part of the county. b. New owner is planning rehabilitation of cabins and the addition of a lodge. c. Affirmed with committee that the County’s Tax Abatement Policy does not abate any base taxes and resorts are a priority. d. Staff will continue working with the resort owner to get financial information and full application. The application would be discussed with the committee before getting a recommendation from the CDA Board and take it to the Board of Commissioners for approval. 2. Westridge Mall project updates a. DEED Demolition Loan application was not funded, but DEED staff recommended another program from EPA to apply for. Staff is waiting on additional information about process for accessing that program. b. Staff is working on updated hazardous material testing estimates for the different areas of the building. Next meeting: November 19 at 1pm 17/23 218-998-8060 ® 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 18/23 WHISPERING PINES RESORT Five-Year Capital Improvement & Expansion Plan Property: Whispering Pines Resort Address: 46362 County Highway 8, Perham, Minnesota 56573 Whispering Pines Resort has developed a five-year capital improvement and expansion plan focused on transitioning the property toward year-round operation, improving existing accommodations and infrastructure, expanding guest amenities, and strengthening the resort's long-term viability. The projects below represent our current priorities and anticipated progression of improvements. Actual timing may vary based on permitting, construction schedules, operational needs, financing, and other project considerations. Initial Priority Improvements Our initial investments will focus on strengthening the existing resort and creating the infrastructure necessary to transition Whispering Pines from the seasonal operation toward a year-round resort destination. HVAC & Insulation Improvements -Upgrade heating, cooling, insulation, and related building systems as necessary to support year-round operation of the resort. Extending the operating season will create opportunities to attract guests throughout the year, increase tourism during traditionally slower months, and provide greater stability for resort operations and employment. Maintenance & Indoor Recreational Facility -Develop a facility that provides dedicated space for resort maintenance and operational needs while incorporating indoor recreational opport_unities for guests. Indoor recreation will be particularly important as Whispering Pines expands beyond seasonal operation and provides guests with activities during winter months and inclement weather. Replacement of One Existing Cabin -Replace one existing cabin with an updated accommodation designed to improve the guest experience, address aging infrastructure, and support the long-term quality and sustainability of the resort. Major Expansion & Guest Experience Improvements Following the initial property and infrastructure improvements, our next major phase will focus on expanding the amenities available to guests and creating a centralized area for resort services and activities. A significant component of this phase is the proposed development of an Aquatic Center and Guest Services Complex. Aquatic and indoor recreational amenities Central guest check-in and reservation services Lodge and guest gathering area Guest laundry facilities Restrooms and supporting facilities Whispering Pines Resort I Capital Improvement & Expansion Plan I Page 1 19/23 Additional guest services and amenities as the project develops Centralizing these services will create a welcoming arrival point for guests while bringing important resort amenities together in one convenient location. The aquatic center will also provide an additional year-round recreational attraction, further supporting the resort's transition from seasonal operation to a destination capable of welcoming guests throughout the year. During this phase, we also anticipate the replacement of an additional existing cabin, continuing the systematic improvement of the resort's lodging accommodations. Resort-Wide Completion & Long-Term Improvements Throughout the five-year investment period, improvements to existing cabins, buildings, infrastructure, grounds, waterfront areas, and guest amenities will continue as needed. Our goal by the conclusion of the five-year plan is to have completed the remaining necessary renovations to the resort's existing cabins, providing guests·with consistently updated, high-quality accommodations throughout the property. Additional improvements may also be undertaken as opportunities and needs are identified, particularly those that enhance guest experiences, support year-round operation, improve efficiency, or strengthen the long-term sustainability of the resort. Long-Term Vision These projects represent more than individual property improvements. Together, they are intended to transform Whispering Pines into a stronger, more sustainable resort capable of operating throughout the year while preserving the traditional Minnesota lake-resort experience that has made the property successful. The proposed investments would allow Whispering Pines to accommodate additional visitors, offer expanded recreational opportunities, improve the quality of guest accommodations, extend the tourism season, maintain and potentially expand employment opportunities, and generate additional economic activity throughout Otter Tail County. The requested tax abatement would provide additional financial capacity during this critical five-year investment period, allowing resources to be directed toward these improvements and expansion projects. Our long-term objective is to ensure that Whispering Pines remains not only an operating Otter Tail County resort, but a continually improving, year-round destination that contributes to the County's tourism economy and serves guests for generations to come. Whispering Pines Resort I Capital Improvement & Expansion Plan I Page 2 20/23 WHISPERING PINES RESORT Development Assistance Financing Application -Tax Abatement Property: Whispering Pines Resort Address: 46362 County Highway 8, Perham, Minnesota 56573 Background and Purpose of Request The purpose of this request for development assistance is to support the continued operation, preservation, improvement, and long-term growth of Whispering Pines Resort as an operating resort in Otter Tail County. Whispering Pines represents the type of traditional Minnesota lake resort that has historically contributed to the character, tourism economy, employment base, and recreational opportunities of Otter Tail County. Our intent in acquiring the property is to preserve Whispering Pines as a resort, maintain its existing operations and employment opportunities, continue investing in the property, and pursue responsible improvements and expansion that will allow the resort to remain successful for generations to come. This objective is particularly important given the significant decline in the number of traditional resorts operating within Otter Tail County. Research conducted in partnership with the University of Minnesota Extension and Otter Tail County found that the County had approximately 126 resorts in 1985 and fewer than 65 remaining by 2016-a decline of more than 50 percent. The loss of resorts affects more than the individual properties themselves. Resorts attract visitors who support local restaurants, retail businesses, recreational businesses, contractors, suppliers, and service providers. They provide local employment, contribute to the tax base, and allow families to experience Otter Tail County's lakes without requiring private lake-home ownership. Our goal is to ensure that Whispering Pines does not become another resort lost to redevelopment or conversion to private residential use. Alignment with Otter Tail County Public Policy Goals The requested assistance directly supports the public purposes identified by Otter Tail County for economic development assistance. Most importantly, Otter Tail County specifically identifies the development, preservation, and creation of resorts in Otter Tail County among its public policy goals for development assistance. Preserving and investing in Whispering Pines directly advances that objective while also supporting additional County goals, including maintaining employment opportunities, encouraging private investment, supporting tourism, strengthening local businesses, and preserving and enhancing the County's tax base. The proposed project is not simply the acquisition of an existing property. It is a commitment to maintain Whispering Pines as an operating resort and invest in its continued success. Why Development Assistance Is Needed Purchasing and operating an established resort requires substantial capital beyond the initial acquisition of the real estate. Continued investment is necessary to maintain and improve cabins, infrastructure, shoreline, Whispering Pines Resort I Tax Abatement Application I Page 1 21/23 docks, recreational amenities, common areas, equipment, utilities, grounds, and other facilities expected of a competitive modern resort. In addition to maintaining the existing property, we see significant opportunities to improve and responsibly expand Whispering Pines in ways that will enhance the guest experience and attract additional visitors to Otter Tail County. The requested tax abatement would provide critical financial flexibility during the acquisition, transition, and reinvestment period. Rather than directing those resources toward property taxes during the initial five years of ownership, the financial benefit of the abatement would provide additional capacity to reinvest directly into Whispering Pines through improvements, renovations, amenities, infrastructure, and future expansion. Without the requested assistance, available capital following the acquisition would necessarily be directed toward the immediate costs of ownership and operation. This would significantly limit the scope and timing of planned improvements and expansion projects, potentially requiring certain projects to be postponed, reduced in scope, or eliminated. With the assistance, we would have greater ability to move forward with those investments during the critical first five years of ownership. Five-Year Reinvestment, Improvement & Expansion Plan The requested tax abatement is an important component of our five-year plan for the continued preservation, improvement, and expansion of Whispering Pines Resort. Our intention is to use the increased financial capacity created through the abatement period to make meaningful investments back into the property. These investments would be focused on strengthening the existing resort while also creating opportunities for responsible future growth. Renovations and improvements to existing cabins and guest accommodations Improvements to resort infrastructure and utilities Shoreline, dock, beach, and waterfront improvements Improvements to grounds, landscaping, common areas, and gathering spaces New or enhanced recreational amenities and guest activities Improvements to existing resort buildings and facilities Equipment upgrades and replacement Modernization of guest accommodations and services Potential expansion of lodging, amenities, recreational opportunities, or other resort offerings Other capital improvements that increase the resort's ability to attract and accommodate visitors As we continue evaluating the property and developing the long-term plan, individual projects will be prioritized based upon need, feasibility, guest demand, and their ability to strengthen the resort's long-term operation. Whispering Pines Resort I Tax Abatement Application 1. Page 2 22/23 • Our objective is not simply to maintain the property in its current condition. We Intend to build upon the resort's existing success through thoughtful improvements and responsible expansion while preserving the character and traditional Minnesota resort experience that makes Whispering Pines valuable to Otter Tail County. Economic and Public Benefit The benefit of these investments extends beyond Whispering Pines itself. Continued improvements and expansion create opportunities to increase occupancy, extend guest stays, attract new and returning visitors, maintain existing employment, and potentially create additional employment opportunities. Visitors to Whispering Pines also contribute to the surrounding economy through spending at area restaurants, grocery stores, retail businesses, recreational businesses, attractions, service providers, and other establishments throughout Otter Tail County. Capital improvements also generate economic activity through the use of contractors, tradespeople, suppliers, materials, equipment, and professional services. The requested assistance therefore creates a direct connection between the County's investment and additional private investment into an existing Otter Tail County tourism property. Importance of the Tax Abatement The tax abatement is important to the feasibility and timing of our proposed five-year reinvestment plan. Without the requested assistance, our immediate priority would necessarily be the acquisition, operation, and essential maintenance of the existing resort. The additional improvements and expansion opportunities described above would need to occur at a substantially slower pace, and some may not be financially feasible. Approval of the tax abatement would allow us to dedicate greater financial resources toward improvements during the first five years of ownership, when investment in the property will be particularly important. This assistance would help transform the tax abatement into direct reinvestment in an Otter Tail County resort, creating a broader public benefit through resort preservation, private capital investment, tourism, employment, economic activity, and future growth. Commitment to Whispering Pines and Otter Tail County Our goal is straightforward: keep Whispering Pines a resort and make it an even stronger one. Rather than allowing another traditional Otter Tail County resort property to disappear or transition away from resort use, we intend to preserve Whispering Pines, continue its operations, maintain jobs, invest in its facilities, improve the guest experience, and responsibly pursue opportunities for future expansion. The requested development assistance would help provide the financial capacity to accomplish those goals during the critical first five years of ownership. Our goal during those five years is not simply to maintain Whispering Pines Resort. It is to preserve it, improve ii, invest in it, and responsibly expand it so that it can continue serving residents, visitors, and Otter Tail County for generations to come . . Whispering Pines Resort I Tax Abatement Application I Page 3 23/23 Providing development assistance for Whispering Pines would accomplish the type of public purpose contemplated by Otter Tail County's economic development policies: preserving an existing resort, maintaining and potentially creating employment, encouraging substantial private investment, supporting tourism, strengthening the local economy, and preserving an important part of Otter Tail County's resort tradition. Whispering Pines Resort I Tax Abatement Application I Page 4