Economic Development Authority (EDA) Board Agendas & Packets

APPROVED MINUTES OF THE REGULAR MEETING OF THE BOARD MEMBERS OF THE EAST GRAND FORKS ECONOMIC DEVELOPMENT AUTHORITY (EDA) A regular meeting of the Board Members of the East Grand Forks Economic Development Authority was held at Noon on January 23, 2024. Roll Call: Meeting was called to order by President Grinde at 12:00 pm. EDA Board present at roll, President Josh Grinde, Board Members: Dale Helms, Ben Horken, Justin Hecht and Brian Larson Absent: Daniel Black Staff present: Paul Gorte (EDD), Economic Development Director; Brenda Ault (EA), Executive Assistant; Karla Anderson (FD), Finance Director; Reid Huttunen (CA), City Administrator Also Present: Diane Blair, Mark Schill, Praxis; Janelle Ward, Chamber 1. Roll Call: President Grinde determined a quorum was present. 2. Recognition of Blair (outgoing member): President Grinde thanked Blair for her 6 years of service. 3. Approval of Minutes a. November 21, 2023, Regular Meeting A Motion was made to approve the November 21, 2023, Regular Meeting Minutes, by Board Member Larson, seconded by Board Member Hecht. M/S/P-Larson, Hecht; 6-0, mc. 4. Bills and Communications a. Review of Accounts Payable, December 5, 2023 December 19, 2023, January 2, 2024, and January 16, 2024 President Grinde asked if there was anything unusual in those bill periods. FD Anderson stated it was normal activities, plus repairs on a couple of apartments. 5. Reports a. Delinquencies – 1 late payment EDD Gorte reported that he was working on getting the issue resolved. b. Director’s Reports: November 2023 & December 2023- EDD Gorte stated that the report was in the packet. No questions. c. Financial Reports: November 2023 & December 2023- FD Anderson stated that the fund reports were emailed out and the Cash Balance sheets are in the packet. Normal transactions. Account 620 will be reconciled once the end of year transfer is done. No questions. January 23, 2024 MINUTES OF THE REGULAR MEETING OF THE EAST GRAND FORKS ECONOMIC DEVELOPMENT AUTHORITY (EDA) (continued) d. MIF Loans EDD Gorte stated that the MIF Loans are for Minnesota Investment Fund, which is a 10-year loan for expansion, with a 1-4% rate. It is a tool for businesses, and the report is in the packet. No questions. e. AE2S 2023 Report on social media. EDD Gorte stated that they had reached more people in 2023. Report is in the packet, and it details the top posts of each month, average viewers, and page views. 6. Unfinished Business a. None 7. New Business a. AE2S Agreement CA Huttunen stated social media was discussed at the strategy meeting in October, to market East Grand Forks. The topic got a lot of discussion, $9,000 to market the EDA. They also discussed once a month coffee meeting with business owners and department heads, to discuss promotions, connect and coordinate all City social pages together. This is something that will be revisited later in the year since this is not a contract. A Motion was made to approve the agreement for AE2S, by Board Member Horken, seconded by Board Member Larson; M/S/P- Horken, Larson; RCV: Larson-Y, Grinde -Y, Hecht-Y, Horken -Y, Helms-Y; 5-0, mc. b. 2024 renewal of City Revitalization Program (Gate City Bank) EDD Gorte reported that 7 loans had been given last year, over $100,000 in loans for home improvement. Last year the staff had problems with loan recipients who were referred to the program but, after successfully receiving a loan, never returned to the City for a permit. Some of these loan recipients either performed the work without permits or called for inspections without having obtained permits. In addition, some loan recipients sought Utility rebates without having received a permit or having inspections. The City has requested that all successful loan recipients be provided with a written reminder to obtain a permit from the City. Gate City Bank is reviewing the request for a written reminder. The City may also look at having each person referred to Gate City Bank sign a release to allow the City to obtain information whether their loan application was successful. Gate City Bank also asked the City to review the attached eligibility parameters for the loan program. Because of inflation, the Director suggests that the maximum assessed value be increased to $400,000. The City staff believes that the program provides a valuable opportunity for people to reinvest in their homes but is concerned about the non-compliance regarding permitting. The City staff will continue to seek ways to improve compliance with the permitting requirements. Page | 2 January 23, 2024 MINUTES OF THE REGULAR MEETING OF THE EAST GRAND FORKS ECONOMIC DEVELOPMENT AUTHORITY (EDA) (continued) A Motion was made to raise the maximum assessed value on the home to $400,000 and to work on ways to improve compliance with the permitting requirements, by Board Member Hecht, seconded by Board Member Horken; M/S/P- Hecht, Horken; RCV: Larson-Y, Grinde -Y, Hecht-Y, Horken -Y, Helms-Y; 5-0, mc. b. Use of Border Cities Tax Credits for employee retention EDD Gorte stated that the City receives about $106,000 of Border Cities tax credits for economic development and business development. To date the City has used the tax credits to provide property tax relief tied to business expansion, either for additional building space or for equipment purchases. There are other State programs available to assist businesses with training or the purchase of capital equipment. Unfortunately, lately at least one business has been running into roadblocks in accessing such State funding. The tax credits can be used in other ways. One of the easiest ways to use the credits is to use them for job retention or creation. For each job retained, the City can award up to $1500 per job in tax credits to be used against the income taxes. The amount can be awarded annually. For each new job, the amount increases to $3000 per job. The difficulty of using the tax credits to offset income taxes is that a business must have enough taxable income to make the credits worthwhile. The other difficulty, which is a management problem, is making sure that the awards of tax credits remain within the limits of the credits available to the City. He would like to explore the possibility of using the tax credits for the business, and other businesses, when other forms of assistance may not be available. A Motion was made to allow the use of Border Cities tax credits, subject to normal approval procedures, for job retention and job creation, by Board Member Larson, seconded by Board Member Hecht; M/S/P- Larson, Hecht; RCV: Larson-Y, Grinde -Y, Hecht-Y, Horken -Y, Helms-Y; 5-0, mc. d. Draft Economic Development Strategy for discussion by EDA, City Council and invitees; January 30 meeting for all invitees. Mark Schill presented the report. Schill stated that the key takeaways were Desire for Action/importance of EDA, Lack of space and sites for businesses, communications, marketing, positioning, EGF community strengths are important and should be emphasized. EDA should no longer serve as a primary developer of residential lots. Employment is fairly flat in EGF and the surrounding areas; our highest sector is manufacturing. Priorities for EGF are growth and retention of businesses already here, communications, coordination, outreach and partnership building. Supporting retail and hospitality economy, housing, industrial park land, marketing, attracting businesses from outside the area, cultivating new entrepreneurs, childcare. Page | 3 January 23, 2024 MINUTES OF THE REGULAR MEETING OF THE EAST GRAND FORKS ECONOMIC DEVELOPMENT AUTHORITY (EDA) (continued) Going forward core work areas for EDA: local business development, new business development, connect, convene, communicate, land and site development. The Board Members thought that they should concentrate on a few issues at a time and have more tangible goals. President Grinde asked Janelle Wald, from the Chamber to address the Board. Wald stated that the Chamber wishes to thank EDA for co-sponsoring the event, they were very pleased that 40 members of the Council, EDA and Planning Boards, as well as community members attended. The Chamber is very involved in this Development Strategy and wishes to thank the Board for its support. EDD Gorte stated that this effort is like planting an orchard, in time you see a return from the trees and occasionally you need to plant a new tree. 8. Adjournment Motion to adjourn the meeting was made at 12:56 by Board Member Horken, was seconded by Board Member Hecht. M/S/P- Horken, Hecht; mc. The next regular meeting is February 27, 2024. Respectfully Submitted, Brenda Ault, Executive Assistant Page | 4