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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

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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

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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.

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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.

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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.