[PAGE 1]
Economic Development Authority
Regular Meeting
Wednesday, February 21, 2024
4:00 p.m.
Charles S. Crandall Center - Meeting Room
City Hall
1. EDA Agenda - February 21, 2024
Documents:
EDA AGENDA 02-21-2024.PDF
2. Roll Call: Boeke, Cowell, DeVinny, McDermott, Mensink, Raney, Voss
3. Approval Of Minutes: January 17, 2024
Documents:
EDA MINUTES 01-17-2024.PDF
4. Treasurer's Report
Documents:
TREASURERS REPORT JANUARY.PDF
3. B. JANUARY CASH BALANCES.PDF
5. Loan Report
Documents:
4. LOAN REPORT JANUARY.PDF
6. Reports
6.I. OACCT / OPED Report
Documents:
EDA UPDATE OACCT -2-2024.PDF
LEADS EDA REPORT FEBRUARY.PDF
6.I.i. Leads
Documents:
LEADS EDA REPORT FEBRUARY.PDF
6.II. OABDC Report
Documents:
OABDC EDA REPORT 2402.PDF
6.III. EDA Projects
Documents:
EDA REPORT FEBRUARY 2024.PDF
7. Old Business
7.I. Update On 224 Cedar Avenue N
8. New Business
8.I. Forgivable Loan - 605 Cedar Avenue N
8.II. Downtown Second Floor Commercial Space Contest
9. Schedule Next Meeting - March 20, 2024
10. Adjournment

[PAGE 2]
Economic Development Authority
Regular Meeting
Wednesday, February 21, 2024
4:00 p.m.
Charles S. Crandall Center - Meeting Room
City Hall
1. EDA Agenda - February 21, 2024
Documents:
EDA AGENDA 02-21-2024.PDF
2. Roll Call: Boeke, Cowell, DeVinny, McDermott, Mensink, Raney, Voss
3. Approval Of Minutes: January 17, 2024
Documents:
EDA MINUTES 01-17-2024.PDF
4. Treasurer's Report
Documents:
TREASURERS REPORT JANUARY.PDF
3. B. JANUARY CASH BALANCES.PDF
5. Loan Report
Documents:
4. LOAN REPORT JANUARY.PDF
6. Reports
6.I. OACCT / OPED Report
Documents:
EDA UPDATE OACCT -2-2024.PDF
LEADS EDA REPORT FEBRUARY.PDF
6.I.i. Leads
Documents:
LEADS EDA REPORT FEBRUARY.PDF
6.II. OABDC Report
Documents:
OABDC EDA REPORT 2402.PDF
6.III. EDA Projects
Documents:
EDA REPORT FEBRUARY 2024.PDF
7. Old Business
7.I. Update On 224 Cedar Avenue N
8. New Business
8.I. Forgivable Loan - 605 Cedar Avenue N
8.II. Downtown Second Floor Commercial Space Contest
9. Schedule Next Meeting - March 20, 2024
10. Adjournment

[PAGE 3]
Economic Development Authority
Regular Meeting
Wednesday, February 21, 2024
4:00 PM
Charles S. Crandall Center – Meeting Room
City Hall
Agenda
1. Roll Call: Boeke, Cowell, DeVinny, McDermott, Mensink, Raney, Voss
2. Approval of Minutes: January 17, 2024
3. Treasurer’s Report
4. Loan Report
5. Reports
a. OACCT / OPED
b. OABDC
c. EDA Projects
6. Old Business
a. Update on 224 Cedar Avenue N
7. New Business
a. Forgivable Loan – 605 Cedar Avenue N (MO Fitness / Olson)
b. Downtown Second Floor Commercial Space Contest
8. Schedule Next Meeting – March 20, 2024
9. Adjournment

[PAGE 4]
EDA
Minutes
January 17, 2024
The Owatonna Economic Development Authority met in regular session at 4:00 PM in the
Charles S. Crandall Center – Meeting Room at City Hall Building with President Raney
presiding. Commissioners present: Andrew Cowell, Brenda DeVinny, Pat McDermott, Corey
Mensink, Kevin Raney, and Doug Voss. Commissioners absent: Dan Boeke. Also present were
Troy Klecker, Brad Meier, Lisa Cochran, Glenda Smith, Sean Williams, Dave Beaver, and
Kristen Kopp.
Approval of Minutes. Commissioner DeVinny moved approval of the minutes of the December
20, 2023 meeting with second by Commissioner Cowell. All Commissioners voting Aye, the
motion passed.
Klecker said that Tom Peterson resigned from EDA and the Mayor appointed Pat McDermott to
take his place. McDermott said he’s the director of manufacturing operations at Climate by
Design. He was born and raised in Owatonna and served on a number of boards.
Treasurer’s Report. Troy Klecker presented the revenue and expense reports for December. He
said this is not a final report as invoices are trickling in yet. It will be close, though. The good
things are, lodging tax revenue is up this year—more than what we budgeted. That’s a good sign.
We had an oddity, a grant that was funneled through our budget that kind of throws things off a
bit. There were some consulting fees and we were under budget on that, as well. In the end, we’ll
be under budget, it’s just a matter of by how much. Our activity is pretty consistent year after
year. There isn’t a lot of deviation. The most deviation is consulting fees. We’ve budgeted for
about three projects every year. There are usually 12-15 projects going on at a time. Those are
either incentives or EDA Land projects. He said all of the public parking lots are City owned,
except for one. The parking lot by Curly Girls is rented from Brian Stendel and has been for
many years. There has been some discussion on whether we should own that. He hasn’t been in
the position taxwise to sell it. The lease will end the end of April. The fund balance is pretty
good, and we’ve got the ability to do some things. Cowell said he still thinks there is opportunity
for the south corridor. He said that he believes the vet clinic is moving their operations out of
that area. It would be an idea of where to begin, to kind of get the ball rolling. He said that
corridor and where the Budget Inn is next to Perkins, would be interesting projects. Klecker said
he’s had many discussions with developers about that. It has the highest potential for
development. To be along and interstate at an interchange next to a Walmart. Raney said that
utilities earmarks $100,000 a year for beautification of corridors. Would that be an opportunity to
do that? Klecker said they did adopt that for a five-year period and we’re beyond that. They’re
doing some burying of lines by Ascend. If there is another area, that would be a separate
conversation. OPU has always been very good at working with us on projects. Raney said he
agrees with Cowell, right off the interstate along old 14 would be intriguing. He said we should
expect a pretty good return on investment should we acquire that. Klecker said that is one small
piece of property. (The hotel) He said that is best suited for a developer as it is probably too large
for us. Cowell asked if there was a Phase 2 environmental study on the building across from the
Chamber office. Klecker said we did complete that. There is some vapor concerns that could be

[PAGE 5]
fixed with the flooring (sealing it). The tank sits in the right of way of the street, toward the
Chamber, which adds a little twist to it all. There are some soils corrections that will have to be
done. There has been much discussion on that. There are some possibilities with a developer.
We’re working with a local business as a possible tenant. His hope is we can get a project
without having to acquire anything. That is the role of the EDA—to throw out development ideas
and figure out if it’s something we should do or not. Mensink asked if we are still in the process
of acquiring the US Bank parking lot. Klecker said the City Attorney is working on presenting a
counter purchase agreement back. The goal is to get that purchase agreement together, have them
agree on it, and go to bid by the end of February and do a construction project this summer. The
layout is figured out. It will be two parking lots separated by a drive going to US Bank’s
property. One lot will be short-term and the other long-term. We’d also be acquiring the green
space next to US Bank and we’d create a walkway there. Raney asked about the property owner
north of Perkins. Klecker said we have a ton of I-35 frontage available for commercial
development. Conceptually there is a lot of potential. The owner wants to sell a bigger chunk to a
developer who has key businesses that will help make the rest of his property more valuable.
Maybe a mall with three or four tenants. Mensink asked if there was an update on Scooters.
Klecker said it’s a different franchisee and they will pursue the store just as it was approved.
There is still the odd piece of property that may end up sitting there. That will be a summer 2024
project.
Loan Report. Sean Williams presented the loan report for December. He said there was an
email outage in mid-December, which has been rectified. Klecker said they did approve
HotWorx forgivable loan. Williams said there were a number of checks that were going to be cut
at that City Council meeting. There is a permit for 206 W Rose that is waiting for approval. The
PFHS at 301 N Cedar is waiting for materials to arrive. There is an entrepreneur at 605 N Cedar
who is putting in an ADA compliant ramp on the building and has booked the contractor to start
next week. Williams explained that he can’t start work until the loan is approved by the EDA.
There is no precedent with moving forward and he said he would rather wait and get the
forgivable loan. He said his recommendation is to tell him to wait and follow the process. He
said literally yesterday was the first time we’ve heard about it. Cochran said she talked to him as
well and told him to get the application in as soon as possible. The Commissioners agreed that he
should follow the process and apply for the loan. He said that they built out an online
application, which was sent to the EDA members. Klecker said that has all of the information on
the Forgivable Loan Program. He said he thought it was very well done. Klecker said that for the
Cars N Credit EDA MIF Flood Recovery Loan still has a balance of one more payment. They
thought they were done, and we thought they were done, but their payments started one month
after the payment plan, and they have one more payment to make. We’ve made contact with
them that there is one more payment and that should be coming in.
OACCT / OPED Report. Chamber Director Brad Meier presented the OACCT Report for
December. He said they received a $40,000 grant for work experience over the summer months.
OPED conducted their strategic planning process. They’ll bring more detail back to this group.
He highlighted some business changes.
MainStreet. MainStreet Director Lisa Cochran presented the quarterly MainStreet Report. She
said this quarter was not as happy as third quarter as there were some business closures. They’re

[PAGE 6]
excited the hardware store is going to Ace. She said new holiday banners will go up in 2024. She
said she loves working with businesses and building owners. She excited to be working with
Sean and having a full time position is good for the loan program. She said they ended the year
with a successful holiday parade. She’s really excited for 2024 and doing what they do even
better. She thanked the EDA for their support.
Tourism. Tourism Director Glenda Smith presented the quarterly Tourism Report. She said
lodging tax revenue is a little higher than budgeted. At the end of the year, they ended up with an
average occupancy rate of (48.1%). The number of trips coming to Owatonna increased by 3.1%.
Visitor days decreased by 11%. She said they want to find ways to continue to bring people into
town. She spoke about branding and creating a seamless visitor process. They’ve been working
on the new Visitor Guide. She said she went to the Chicago Travel Show. They are working with
an organization called Bandwango. They’ve reached out to restaurants and retail for a challenge.
She highlighted Play Easy, a free program that matches tournament planners to tournament
venues. Raney said he likes that occupancy is up and asked what the average is. Smith said we’re
lower than the average, but not too far off. Klecker said the occupancy rate will go down when
Home 2 Suites and Double Tree open. Smith said that construction was at least 20% of the
occupancy at one point.
OABDC Report. Sean Williams presented the OABDC Report. He said that they had a strategic
planning session. Consulting hours were down in December because we were limited in contract
hours with the regional office. For this year, we’ve contracted for 150 hours of consulting.
Hopefully we’ll pass that 150. The SBDC is a federal program that funds half of their consulting
hours. Last year they secured a grant through DEED for the other half. CDI moved out of the
center today. What is reassuring about that is the new tenants have offset their revenue. They’re
working on a couple ideas to generate some activity out there. He connected with an individual
who is interested in running the maker space. He said they’re also converting an office to a drop-
in office.
Airport Report. Airport Manager Dave Beaver presented the quarterly Airport Report.
He said 2023 was a good year and they continue to see good numbers on fuel volumes. Activity
has been good and the flight school has been busy. They’re hopefully filling some of the hotels
as their students are sometimes here for months. They are budgeting to be self-sufficient.
Operational revenues are covering the expenses. They finished the T-hangar last year and it’s
fully occupied. The security fence is in process. The Airport Commission is interested in
discussions on economic development and how the airport can support Ihlenfeld’s property.
They have a very long runway and that’s driving their performance. They’re interested in
bringing corporations into town. There are only two airports in the Cities that have runways
longer than us, and that’s MSP and downtown St. Paul. Raney said he sees the airport as an
economic driver in Owatonna. Is the Airport Commission working toward short-term and long-
term economic goals. Beaver said that’s a great question. They’ve discussed their next steps.
They’re looking at their master plan and talking about a mechanic school. He said he and
Klecker have talked about that. Klecker said that they had a plan to fill the vacant hangar space
and be self-sufficient. We’ve accomplished both of those goals. They’re at a good point to
reassess.

[PAGE 7]
EDA Projects. Community Development Director Troy Klecker presented the EDA Projects for
December. He said that he took CDI off the list because they are in the building now. This is
typically our slowest time of year. We’ll have an update from Oscar at the next meeting.
New Business: Approve the 2024 Forgivable Loan Program. Klecker said they sent out what
Sean had put together. We’ve had discussions at the last couple meetings. We’d be looking at
$100,000 for 2024. Criteria would be much the same. Looking to get rid of application fee. There
is the question if someone has already used the program and is looking to do another project,
would they be eligible? There has been some discussion on second floors. Williams said that 12
month deadline was in the application the whole time, but not enforced. Klecker said we’re at a
point we can enforce that now. Raney asked if it meets expectations if someone comes in, can
they go through the process in 12 months. Mensink said some of these projects got much more
involved than anticipated. Raney said we do not have a fine. Klecker said they can ask for an
extension. Raney said that Martin’s is still not done. Mensink said on the flip side, if the catalyst
wasn’t there, it wouldn’t get done. Cochran said she will be meeting with Al. Cowell said we’re
in a new environment than we were before. There aren’t as many projects for architects. That has
eased. Overall access to contractors has eased. A lot has to do with the interest rates. Cowell said
a 12-month time frame is fine for 2024. Mensink said we might have to adjust on the fly if
needed. Mensink said why not apply for a second one—our dollars are getting leveraged. He said
this isn’t a perpetual program. Klecker said the message is we have money set aside for this year
and this year only. Voss said it seems more important to go by location. Mensink said this may
not be something we continue. Klecker said there is a five-year period before it’s forgiven. Some
of the very first ones we did are at the five-year point. Technically you could owe some of that
money should you leave. Mensink said you’re leveraging your dollars over and over. He said he
doesn’t see a big issue. Raney asked if a first time applicant earn more points. Cochran said they
don’t usually come in at the same time. Mensink said if it’s a competitive situation that could
factor in. Cochran said that there is already $20,000 for 605 N. Cedar. There are a few who will
reapply. She said there is a potential to use all $100,000. Mensink said there are other projects
that could use it downtown. Raney asked if we should use language for a second time loan.
Meier said we used to have to beg people to put a nickel in. You have erred on the side of
generosity and it’s been good. Cowell said the language in the loan indicates it’s a one-time use.
Klecker said if we want to allow it, we’d have to change the wording. Mensink said you could
evaluate as needed. Cowell said there’s always been more demand than supply. If that flips, we
could change it. Mensink said he agreed with that. Maybe someone new will be slower to act. He
suggested leaving it in and we can reevaluate and adjust. We can restrict it on the front end to
encourage new applicants. Cochran said there can always be some sort of adjustment made.
Mensink said we’ve pivoted almost every time. The idea is to get the money out. Cowell said
he’s all for the second story. Mensink said for sure if it’s office space. He said he likes the idea
of windows. Raney asked if it’s maintenance or upgrading your apartment. Klecker said they
could specify commercial use of second floor. He said that doesn’t have to be tied into this. Do
you have a commercial second floor contest? We did a retail challenge. Maybe this would be a
separate program. Klecker said this is all to bring people downtown. Klecker said he likes
keeping it separate. Meier said they can talk to other MainStreets and get some ideas. Raney said
his suggestion is to put that under new business in February.

[PAGE 8]
A motion was made by Mensink and seconded by DeVinny to approve the 2024 EDA Forgivable
Loan Program for $100,000 total, removing the application fee, and specifying new applicants.
All Commissioners voting Aye, the motion carried.
Schedule Next Meeting. The next EDA meeting is scheduled for February 21, 2024 at 4:00 PM
in Charles S. Crandall Center – Meeting Room at City Hall.
Adjournment. There being no further business, a motion was made by Commissioner Mensink
and seconded by Commissioner Cowell to adjourn the meeting at 5:29 pm. All Commissioners
voting Aye, the motion passed.

[PAGE 9]
EDA Administration
Account Description Current Budget Current YTD Budget Remaining
REVENUE
290‐31000‐690‐691‐000000 PROPERTY TAXES ‐ 200,000.00 ‐ 16,685.00 ‐ 183,315.00
290‐31410‐690‐691‐000000 LODGING TAX ‐ 3% ‐ 250,000.00 ‐ 250,000.00
290‐34950‐690‐691‐000000 TIF ADMINISTRATIVE F ‐ 71,773.00 ‐ 71,773.00
290‐36210‐690‐691‐000000 INTEREST EARNINGS
290‐36220‐690‐691‐000000 RENT/RENTALS ‐ 3,600.00 ‐ 300.00 ‐ 3,300.00
290‐36231‐690‐691‐000000 GRANT FUNDS
TOTAL REVENUE ‐ 525,373.00 ‐ 16,985.00 ‐ 508,388.00
EXPENDITURES
290‐41000‐690‐691‐000000 WAGES ‐ REGULAR FT 86,568.00 6,529.04 80,038.96
290‐41300‐690‐691‐000000 WAGES ‐ OT
290‐41410‐690‐691‐000000 PERA 6,493.00 485.22 6,007.78
290‐41420‐690‐691‐000000 FICA 6,622.00 482.52 6,139.48
290‐41500‐690‐691‐000000 INSURANCE 7,445.00 547.17 6,897.83
290‐41550‐690‐691‐000000 WORKERS COMP INSURAN 493.00 36.88 456.12
290‐42000‐690‐691‐000000 OFFICE SUPPLIES 400.00 400.00
290‐42300‐690‐691‐000000 SMALL TOOLS & MINOR 400.00 400.00
290‐43010‐690‐691‐000000 OTHER PROFESSIONAL S 35,000.00 35,000.00
290‐43121‐690‐691‐000000 PHONE 200.00 200.00
290‐43122‐690‐691‐000000 POSTAGE 300.00 300.00
290‐43220‐690‐691‐000000 TRAVEL & TRAINING 1,000.00 105.62 894.38
290‐43231‐690‐691‐000000 OBD ‐ MARKET SERVICE 80,000.00 80,000.00
290‐43232‐690‐691‐000000 OBD ‐ LOAN SERVICES 20,000.00 20,000.00
290‐43233‐690‐691‐000000 OBD ‐ SMALL BUSINESS 4,000.00 4,000.00
290‐43234‐690‐691‐000000 DOWNTOWN ENHANCEMENT 5,000.00 5,000.00
290‐43235‐690‐691‐000000 PARTNERS FOR PROGRES 12,000.00 12,000.00
290‐43320‐690‐691‐000000 ADVERTISING & PROMOT 1,000.00 1,000.00
290‐43400‐690‐691‐000000 MEMBERSHIPS & SUBSCR 200.00 200.00
290‐43720‐690‐691‐000000 REPAIR & MAINT ‐ EQU 200.00 200.00
290‐43810‐690‐691‐000000 RENTS/LEASES 6,700.00 6,700.00
290‐43972‐690‐691‐000000 SOUTHERN MN INITIATI 1,667.00 1,667.00
290‐43990‐690‐691‐000000 MISCELLANEOUS
290‐43991‐690‐691‐000000 TOURIST DEVELOPMENT 237,500.00 237,500.00
290‐47000‐690‐691‐000000 TRANSFER TO OTHER FU 12,000.00 1,000.00 11,000.00
TOTAL EXPENDITURES 525,188.00 9,186.45 516,001.55
EDA LOANS
Account Description Current Budget Current YTD Budget Remaining
REVENUE
292‐34109‐690‐692‐000000 OTHER REVENUE
292‐34960‐690‐692‐000000 INTEREST ON LOANS ‐ 55.11 55.11
292‐36210‐690‐692‐000000 INTEREST EARNINGS ‐ 16,000.00 ‐ 16,000.00
TOTAL REVENUE ‐ 16,000.00 ‐ 55.11 ‐ 15,944.89
EXPENDITURES
292‐48300‐690‐692‐000000 LOAN PROGRAM DISBURS
TOTAL EXPENDITURES

[PAGE 10]
EDA LAND
Account Description Current Budget Current YTD Budget Remaining
REVENUE
294‐34950‐690‐694‐000000 TIF ADMINISTRATIVE F ‐ 1,362.00 ‐ 1,362.00
294‐34960‐690‐694‐000000 INTEREST ON LOANS ‐ 43,235.00 ‐ 43,235.00
294‐36210‐690‐694‐000000 INTEREST EARNINGS ‐ 12,000.00 ‐ 12,000.00
294‐36220‐690‐694‐000000 RENT/RENTALS ‐ 30,000.00 ‐ 850.00 ‐ 29,150.00
294‐39101‐690‐694‐000000 SALE OF CAPITAL ASSE
TOTAL REVENUE ‐ 86,597.00 ‐850.00 ‐ 85,747.00
EXPENDITURES
294‐43004‐690‐694‐000000 LEGAL FEES
294‐43010‐690‐694‐000000 OTHER PROFESSIONAL S 20,000.00 20,000.00
294‐43320‐690‐694‐000000 ADVERTISING & PROMOT
294‐43500‐690‐694‐000000 PROPERTY & LIABILITY 4,100.00 4,100.00
294‐43711‐690‐694‐000000 RENTAL PROPERTY EXPE
294‐43910‐690‐694‐000000 REAL ESTATE TAXES 20,000.00 20,000.00
294‐45100‐690‐694‐000000 LAND
294‐45300‐690‐694‐000000 OTHER IMPROVEMENTS
TOTAL EXPENDITURES 44,100.00 44,100.00

[PAGE 11]
City of Owatonna
Balance Statement by Fund
31-Jan-24
FUND 292: EDA LOANS
Account Number Account Name Ending Balance
ASSETS
292-10100-000-000 BANK ACCOUNTS $ 17,822.24
292-10400-000-000 INVESTMENTS 800,000.00
FUND 294: EDA LAND
Account Number Account Name Ending Balance
ASSETS
294-10100-000-000 BANK ACCOUNTS $ 267,531.51
294-10400-000-000 INVESTMENTS 500,000.00

[PAGE 12]
CITY OF OWATONNA
EDA - LOAN PROFILE
As of : January 2024
prepared 2/15/2024
EDA - Improvement Notes
Original Current Monthly
Borrower Loan Date Int Rate Years Balance Balance Payment Status Type Notes
Wagner's 10/1/2018 2.500 7 43,480.63 20,038.20 564.78 Current Retail
Total 43,480.63 20,038.20 564.78
Number Original Current % of Current
Profile by Loan Performance Status of Loans Balance Balance Balance
Current 1 43,480.63 20,038.20 100.00%
Non-current 0 - - 0.00%
1 43,480.63 20,038.20 100.00%

[PAGE 13]
EDA - Low Doc Notes
Original Current Monthly
Borrower Loan Date Int Rate Years Balance Balance Payment Status Type Notes
Selective Looks 6/16/2020 2.500 7 25,000.00 10,334.12 259.78 Current
Selective Looks 6/16/2020 - 3 5,000.00 0.00 138.89 Current Paid in Full
Vesterby 12/13/2021 1.625 7 12,500.00 8,927.10 157.53 Current
Vesterby 12/13/2021 - 3 5,000.00 1,527.75 83.33 Current
47,500.00 20,788.97 639.53
Number Original Current % of Current
Profile by Loan Performance Status of Loans Balance Balance Balance
Current 4 47,500.00 20,788.97 100.00%
Non-current 0 - - 0.00%
4 47,500.00 20,788.97 100.00%

[PAGE 14]
EDA - MIF Flood Recovery
Original Current Monthly
Borrower Loan Date Int Rate Years Balance Balance Payment Status Type Notes
Plemel (direct loan) 6/22/11 - 10 27,378.50 - 228.15 Current Paid in Full Oct 2020
Marks Repair (direct loan) 4/5/12 - 10 39,327.50 - 254.85 Current Paid in Full Nov 2021
Owatona Country Club (direct) 5/7/12 - 10 82,363.50 - 686.36 Current Paid in Full Aug 2022
Cars-N-Credit (direct loan) 4/30/13 - 10 71,657.00 - 597.14 Current Paid in Full Jan 2024
Plemel (deferred loan) 6/22/11 - 10 27,378.50 - - Forgiven after 6/22/21
Marks Repair (deferred loan) 4/5/12 - 10 39,327.50 - - Forgiven after 4/1/22
Owatonna Country Club (deferred) 5/7/12 - 10 82,363.50 - - Forgiven after 5/1/22
Cars-N-Credit (deferred loan) 4/30/13 - 10 71,657.00 - - Forgiven after 4/30/23
Total 441,453.00 - 1,766.50
Number Original Current % of Current
Profile by Loan Performance Status of Loans Balance Balance Balance
Current 8 441,453.00 - #DIV/0!
Non-current 0 - - #DIV/0!
8 441,453.00 - #DIV/0!
EDA Land Fund
Original Current Annual
Borrower Loan Date Int Rate Years Balance Balance Payment Status Type Notes
Gateway #2 TIF note 12/31/16 3.000 25 472,889.00 425,262.87 Current TIF Guarantee
Arrow Ace TIF note 12/1/17 3.000 25 350,000.00 313,732.13 Current TIF Guarantee
Nicolai TIF note 12/31/17 3.000 25 524,845.17 518,820.84 Current TIF Guarantee
Marriott TIF note 3.000 25 268,000.00 268,000.00 Current TIF Guarantee
224 Cedar TIF note 3.000 25 225,000.00 225,000.00 Current TIF Guarantee
Total 1,840,734.17 1,750,815.84 -
Number Original Current % of Current
Profile by Loan Performance Status of Loans Balance Balance Balance
Current 4 1,840,734.17 1,750,815.84 100.00%
Non-current 0 - - 0.00%
4 1,840,734.17 1,750,815.84 100.00%

[PAGE 15]
Owatonna Area
Chamber of Commerce
& Tourism
Memo
To: Economic Development Authority
From: Brad Meier, President/CEO
Date: 2/21/2024
Re: OACCT Economic Development Update
Economic Development
 See report for leads and ‘in progress’ reports.
Workforce
 Made in Owatonna Day-Healthcare was held today
 Federated Insurance intern process
 Junior & Senior survey follow ups
Other
 OPED: Livability new articles (5) have been published at Livability.com
 OPED: Focus areas over the next three years:
Attract/Educate Quality Workforce - A quality workforce is vital to continued economic growth in
Owatonna. We also seek opportunities to attract a workforce that doesn’t actually live in Owatonna,
and also attract people to live in Owatonna that work elsewhere.
Marketing and Communications - Provide updates to key partners and brand Owatonna as the
place to be. (Visit – Work – Live) Extra mile ends here. Focus on the value of relationships that
exist. Easy to do business with and live in.
New Development/Redevelopment – Achieve private and public investment in infrastructure at
levels which support a population growth projection of 40,000 by 2040.
 Grand Rapids downtown association group coming to spend night and tour Owatonna’s
renovations.
 Chamber Annual Dinner recognized 8 large donors to the new OHS with the Extra Mile Award
 Website updating for VisitOwatonna, Chamber, and Owatonna Partners for Economic
Development-collecting proposals
1

[PAGE 16]
Project Outcome: Green
Company Date of Inquiry Service Provided (progressing), yellow
Follow ups Conclusion (probable); red (not moving)
Received some promotional
Looking for ideas on a new information and have been
Franchise director for DQ
franchise owner for the DQ sharing it out to business
US looking for a new
in Owatonna. They'd like community. 01/09/24:
person to run DQ
to fill the space just franchisor they had lined up fell
franchise for Owatonna
vacated on Bridge. through, so still looking for one
10/9/2023 for Owatonna.
Some questions about
what is needed by the city Ken Beck & Brad Meier met with Owner still working on details
Wants to run an adult of owatonna to complete business owner to discuss what with architect. 2/15/24:
daycare in his existing this project in current is needed and a realistic conditional use permit
location downtown 12/4/2023 space. timeline. approved at city.
Lead pastor has moved Building on the south end of
church to temporary Owatonna has come on the
location, wants to find an market. Discussed some
Looking for new site for existing building with at informtion about the site with
their church 1/25/2024 least 10,000 sq ft him.
Group has purchase
agreement on building Redevelopment project
looking for feedback on that has high visitor Provided ideas on the building
needs/use 1/8/2024 attraction potential. and possible uses/needs.

[PAGE 17]
EDA Report for January 2024
Updates:
- CDI moved out of OABDC and into their new space.
- One tenant moved out of an office and onto manufacturing floor with same rent.
- Vacated office converted into “Drop-in Office” to accommodate up to five
entrepreneurs instead of one.
- Utilities standardized for all tenants, bringing in additional revenue and reducing costs.
- Habitat 4 Humanity occupying 2,000 sq ft. of space, in partnership with OHS. Building
walls for homes for Chatfield and Owatonna, bringing region-wide marketing of space
through sponsorship.
- DEED Small Business Assistance Partnership grant contract in-process.
o Funding: Small Business Development Center (SBDC) consulting match dollars;
Makerspace; Software Studio; community events and workshops; Co.Starters
curriculum; teleconferencing equipment; translation expenses; administration.
Upcoming:
- Owatonna Community Education partnership, using Co.Starters curriculum:
o Starting Your Business Bootcamp – March 2nd & 3rd
o Small Business Academy – Monday evenings, March 18th – May 20th
o Scholarships available
o Sponsored by SMIF and SBDC
Consulting
Hours
Clients Sessions Hours New Operating 2024 YTD 2023 YTD
14 23 19.25 4 5 19.25 10.00
Occupancy
Manufacturing Offices
Total Leasable Space 34,325 Total Leasable Offices 10
Total Leased Space 19,375 Total Number of Leased Offices 9
Present Occupancy % 56% Present Occupancy % 90%
Budget Occupancy % 70% Budget Occupancy % 70%
YTD Performance to Budget $ $ (699) YTD Performance to Budget $ $ 635
YTD Performance to Budget % 89% YTD Performance to Budget % 130%
Number of Tenants 7 Number of Tenants 8
Future Makerspace 1,600

[PAGE 18]
EDA Forgivable Loan Program – January 2024
Updates:
- 116 N. Cedar – Hotworx/Scholljegerdes
o Loan paperwork being drafted by Walbran. Project estimated to be completed
by end of February.
New Business:
- 605 N. Cedar – MO Fitness/Olson
o $20,000
§ Exterior – Ramp
§ Interior – ADA Bathrooms

[PAGE 19]
February 21, 2024
EDA Meeting
EDA Projects Report
 The developer has sold the site for the second building on the old Hardees/Budget Mart
site to Redline Development Group, LLC. TIF was approved for this project. There is
enough TIF being generated from the first building to pay the City back for costs
associated with realigning Barney Street. Any additional TIF generated from a second
building would assist the developer for costs associated with the development.
 The land swap between the City and Cemstone is completed. The City now owns the
current Cemstone site and Cemstone owns 14 acres of vacant land in the industrial park.
Cemstone will have 5 years to build a new facility on the new site. The City will then
redevelop the current site once Cemstone moves out. Tax Increment Financing is being
used to assist with the project. Cemstone has completed the plant on their new site. They
will be building an office and storage space next year.
 The property at 224 North Cedar Avenue has been conveyed to Oscar and Tammy
Mazariego to renovate the building into a wine lounge. Tax Increment Financing has
been approved for the project. A development agreement was approved and signed for
the project. Costs has gone up on the project from the time the development agreement
was signed and the owner is developing a new plan. The EDA gave the owner until
February to get a contract signed for the project.
 The City has purchased the property at 117 West Bridge Street formerly owned by Centro
Campesino. Construction of a new roof on the building is complete as well as other
improvements. The EDA paid for the roof and other improvements with the intent of
redeveloping the property and utilizing tax increment financing to recoup those costs
from the project. A redevelopment project is being sought for that property.
 The City owns the property at 148 West Main Street that was damaged from a collapsed
roof. A redevelopment project is being sought for that property.
 Tax Increment Financing has been approved for the redevelopment of 202 West Bridge
Street. The project will renovate the entire building into retail and office space.
Construction is complete on the first floor and Graif has moved into that space. A tenant
has now moved into the upper level of the building.
 Kamp Automation is proposing to purchase a city owned lot to construct 50,000 square
foot manufacturing facility. The company is currently in Waseca and would be moving
25 jobs here as well as adding 23 more jobs. Tax Increment Financing has been
approved for the project. The company has applied for the State’s Job Creation Fund and
Minnesota Investment Funds to help with the project costs. The development agreement
and business subsidy agreement are approved. The property has been sold to KAMP and
construction has begun on the site. KAMP has occupied the building.

[PAGE 20]
 Plans have been announced for the riverfront redevelopment project north of West Vine
Street and west of North Oak Avenue. Redline Development Group will be demolishing
5 buildings, including the Chamber of Commerce building and constructing a bank
building and a second building which will contain Mineral Springs Brewery, 20,000
square feet of commercial space and 70 luxury apartments. The EDA owns one of the
buildings at 216 North Oak Avenue. Tax Increment Financing has been approved for this
project. A development agreement has been approved. The property is being platted and
easements and streets are being vacated as part of the project. Demolition of the buildings
is complete and construction has begun.
 Scooter’s Coffee is proposing to build a drive-through coffee shop on city owned land at
the corner of South Cedar Avenue and 18th Street SW. The City Council has approved a
conditional use permit for the project and purchase agreement for the property. The
property has been sold. Scooters is trying to purchase the tower property and incorporate
it into the site before beginning the project. Construction is planned for next year.
 The City has purchased the property at 126 East Fremont Street. Plans will begin to
demolish the house and garage on the site. A redevelopment project is being sought for
this property and the 4 other lots the City owns. The house was burned on October 22 and
the rest of the site has been cleaned up. Staff is working on a plan to develop the
property.
 Foamcraft is proposing to construct a 15,000 square foot addition to their existing facility
in the industrial park. Tax Increment Financing has been approved for the project.
Construction has begun on the site.
 The City Council approved the purchase of 139 East Pearl Street. Closing on the property
occurred on October 18th. The City will be demolishing the house in the spring.