[PAGE 1]
Economic Development Authority
Regular Meeting
Wednesday, May 15, 2024
4:00 p.m.
Charles S. Crandall Center -- Meeting Room
City Hall
1. EDA Agenda - May 15, 2024
Documents:
EDA AGENDA - 05-15-2024.PDF
2. Roll Call: Boeke, Cowell, DeVinny, McDermott, Mensink, Raney, Voss
3. Approval Of Minutes: April 10, 2024
Documents:
EDA MINUTES 04-10-2024.PDF
4. Treasurer's Report
Documents:
TREASURERS REPORT MAY.PDF
APRIL CASH BALANCES.PDF
5. Loan Report
Documents:
LOAN REPORT.PDF
6. Reports
6.I. OACCT / OPED Report
Documents:
OACCT EDA UPDATE-5-2024.DOCX
LEADS EDA REPORT MAY.PDF
6.II. OABDC Report
Documents:
OABDC EDA REPORT 2405.PDF
6.III. EDA Report
Documents:
EDA REPORT MAY 2024.PDF
7. Old Business
7.I. Downtown Second Floor Commercial Space Contest
7.II. Approve Repayment Agreement For 224 Cedar Avenue North
8. New Business
8.I. Swap Lots With Alexander Lumber
8.II. Exterior Forgivable Loan - 141 W. Bridge Street
8.III. Exterior Forgivable Loan - 120 Oak Avenue S.
8.IV. Exterior Forgivable Loan - 315 Cedar Avenue N.
9. Schedule Next Meeting - June 19, 2024 Is A Holiday - Reschedule?
10. Adjournment

[PAGE 2]
Economic Development Authority
Regular Meeting
Wednesday, May 15, 2024
4:00 p.m.
Charles S. Crandall Center -- Meeting Room
City Hall
1. EDA Agenda - May 15, 2024
Documents:
EDA AGENDA - 05-15-2024.PDF
2. Roll Call: Boeke, Cowell, DeVinny, McDermott, Mensink, Raney, Voss
3. Approval Of Minutes: April 10, 2024
Documents:
EDA MINUTES 04-10-2024.PDF
4. Treasurer's Report
Documents:
TREASURERS REPORT MAY.PDF
APRIL CASH BALANCES.PDF
5. Loan Report
Documents:
LOAN REPORT.PDF
6. Reports
6.I. OACCT / OPED Report
Documents:
OACCT EDA UPDATE-5-2024.DOCX
LEADS EDA REPORT MAY.PDF
6.II. OABDC Report
Documents:
OABDC EDA REPORT 2405.PDF
6.III. EDA Report
Documents:
EDA REPORT MAY 2024.PDF
7. Old Business
7.I. Downtown Second Floor Commercial Space Contest
7.II. Approve Repayment Agreement For 224 Cedar Avenue North
8. New Business
8.I. Swap Lots With Alexander Lumber
8.II. Exterior Forgivable Loan - 141 W. Bridge Street
8.III. Exterior Forgivable Loan - 120 Oak Avenue S.
8.IV. Exterior Forgivable Loan - 315 Cedar Avenue N.
9. Schedule Next Meeting - June 19, 2024 Is A Holiday - Reschedule?
10. Adjournment

[PAGE 3]
Economic Development Authority
Regular Meeting
Wednesday, May 15, 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: April 10, 2024
3. Treasurer’s Report
4. Loan Report
5. Reports
a. OACCT / OPED
b. OABDC
c. EDA Projects
6. Old Business
a. Downtown Second Floor Commercial Space Contest
b. Approve repayment agreement for 224 Cedar Avenue North
7. New Business
a. Swap lots with Alexander Lumber
b. Exterior Forgivable Loan – 141 W. Bridge Street
c. Exterior Forgivable Loan – 120 Oak Avenue South
d. Exterior Forgivable Loan – 315 Cedar Avenue North
8. Schedule Next Meeting – June 19, 2024 is a holiday – reschedule?
9. Adjournment

[PAGE 4]
EDA
Minutes
April 10, 2024
The Owatonna Economic Development Authority met in regular session at 4:04 PM in the
Charles S. Crandall Center – Meeting Room at City Hall Building with Vice President Voss
presiding. Commissioners present: Dan Boeke, Andrew Cowell, Brenda DeVinny, Pat
McDermott, and Doug Voss. Commissioners absent: Corey Mensink and Kevin Raney. Also
present were Troy Klecker, Brad Meier, Lisa Cochran, Glenda Smith, and Kristen Kopp.
Approval of Minutes. Commissioner Boeke moved approval of the minutes of the March 13,
2024 meeting with second by Commissioner McDermott. All Commissioners voting Aye, the
motion passed.
Treasurer’s Report. Troy Klecker presented the revenue and expense reports for March.
Checks are out for the first half contract with the Chamber and OABDC.
Loan Report. Troy Klecker presented the loan report for March. He said that Selective Looks,
who was not current due to an oversight at the last meeting, is now caught up and paid through
March.
OACCT / OPED Report. OACCT Director Brad Meier presented the OACCT Report for
March. The next Made in Owatonna Day, Ag Day, is next week. The Chamber was fortunate to
get a grant to pay for some work experiences for students. We can pay up to $15/hour for limited
hours for work experience. We’ve been pushing that out and he welcomed the Commissioners to
share with others. Signing Day will be the end of May. SteeleCoWorks Coordinator Missy Koch
took a new job at OHS as their second Career Navigator. He said they’re looking at changing the
way the role works, working together with Brian and Missy. He said it’s very positive. Meier
congratulated the City of Owatonna for being on the list as a nominee for Real Estate Journal
awards. The next Chamber Growth Breakfast will feature the MNSCU Chancellor and Riverland
President. The Chamber has been working on their new building and this summer they will be
doing some exterior work. They would technically qualify for the forgivable loan, but has
reservations because of their contract with the City. He asked the Commissioners what they
thought. Boeke said his impression is to use the funds that are available. Cowell asked if
nonprofits were excluded from applying. Voss said it’s within the boundaries of downtown.
Meier said they didn’t apply for interior money when they did interior alterations. The
Commissioners agreed that it was fine. Boeke asked about the OPED Annual Report. Meier said
he can send out a copy of it.
MainStreet Report. MainStreet Director Lisa Cochran presented the quarterly MainStreet
Report. She said her quarterly stats to the state aren’t due until next week, so there is a different
style of update in the packet. It gives you an overall idea of what’s been happening first quarter.
She’s met with three businesses about forgivable loans. She’s followed up with the dress shop
and Family First Insurance. She hasn’t heard back, but hopefully will. She completed the
accreditation application and they do get to retain their accreditation. They implemented a new
event with the Winter Walk: Beverages, Bites and Bar-ingo. They will plan on doing that again

[PAGE 5]
with Bold and Cold. They went to the Capitol to advocate for additional funding for MainStreet
Programs in 2026 and 2027. A couple of businesses closed: Bellebrook Boutique and Elwood
Cleaners. She is trying to set up a meeting with that building owner. HotWorx opened, as well as
The Clubhouse and Daryl Bauer Home Resource Group. Central Park Coffee has new owners
and Flemke Agency moved to a new location.
Tourism Report. Tourism Director Glenda Smith presented the quarterly Tourism Report. She
has been meeting with lodging properties to see how things are going and how we can help. The
properties are a little nervous with Home 2 Suites opening. We expect to see occupancy rates
down. Home 2 Suites is planning to open the end of May and are starting to take reservations for
June. Double Tree is in the works and they have started to enter some contracts for April 2025.
Visitor Guides are complete and have started to be delivered around town. They structured their
marketing meetings differently—they did a big kickoff in January and are focusing on a different
topic each month. Corky’s Earlybird is their big spring event. National Travel and Tourism
Week is May 19-25. Foremost will be doing a tourism focused trivia on May 22. She highlighted
meetings and group tours coming up. They’re working with the associations and trying to engage
baseball, basketball, la crosse, gymnastics associations to see if they want to host something in
our community. A lot of tournaments have scaled back to one night. Voss asked about the 24-
hour welcome center. Smith said they are working on becoming a welcome center. It’s not
officially opened or unlocked yet, but it will be.
Airport Report. Klecker said that Accelerated Aviation will be hiring three more instructors, for
a total of 16 instructors, and adding three planes. There are a number of projects going on at the
airport this year. They’re also working on a business plan for the airport now that they’ve met
previous goals, including becoming financially self-sufficient.
EDA Projects. Community Development Director Troy Klecker presented the EDA Projects for
March. He gave an update on former Bubba’s. They know that Oscar isn’t moving forward with
the wine lounge. Klecker had a conversation with him today. There is the $8,500 payback clause
for the TIF consulting fees and also unpaid taxes. In discussions with him today, he wants to
move forward with signing the property over to the City. He can’t make the payments right
away, but is willing to do a repayment agreement. If everyone is okay with that, Klecker will
proceed with getting a repayment agreement drafted and work with Mark Walbran to get that
property turned back over to us. Boeke asked how soon the property will come back into our
hands. Klecker said he’s hoping 30 days. He thinks it’s a good compromise, as we were looking
to get the building back and set up a repayment plan. The monthly payments will go to EDA
Land Account. Cowell said there should be some interest on it to incent him to get it paid. He
wondered if we’d be setting a precedent. Klecker said that this is so unusual that it would be hard
to set a precedent. Cowell asked if we had a new buyer of the property and they wanted to do
something similar or different, would the TIF district be transferred to them, or would the new
owner would pay for the difference? Klecker said, in reality, even though the TIF district is
established, they will still need to do another TIF plan. We’ll still have a consultant and will need
to amend the TIF plan. Cowell said that Nicolai TIF was able to be transferred. Klecker said that
that was a similar situation. There was a repayment clause and they did write a check for that
amount. They had their taxes paid. The new developer came in and we did have to amend the
TIF plan and still incurred some consulting fees. That would be as similar a situation as we’ve

[PAGE 6]
had. There will be some consulting expenses on the new one. The Commissioners agreed that
they were good with that. Klecker said he will see if we can get some interest. Cowell asked
what the rate is the County uses for past due taxes. Klecker said that interest will be included in
his payments.
There was some discussion of Scooter’s Coffee and the adjacent tower property. Klecker said, to
his knowledge, Scooter’s was not able to purchase the property. He reached out to the tower
company to let them know that they will still be responsible for maintenance and property taxes
for the property.
Old Business:
Downtown Second Floor Commercial Space Contest. Cochran said she and Klecker met and
went through some criteria. She handed some copies out. Klecker said it’s up to the
Commissioners how quickly they want to roll this out. The sooner we get it out and people start
thinking about it, the better. He said he and Cochran were looking at it from a really broad sense
and did not specify too much. They laid out some objectives, but are leaving it pretty wide open.
They’re proposing $20,000. Boeke said this would be big for downtown. Cochran said that
Rethos will have a grant that businesses can apply for at the end of the month. Meier said the
application comes from MainStreet first. Cochran said she is the grantor to the grantee. She
heard about this last year in Boston. Not every building will qualify because it has to be in the
historic district. Klecker said that it might be best to keep the EDA contest separate. Cochran
said Rethos is exciting. Voss said he doesn’t feel like this is enough information to vote on.
Cochran said that this isn’t the form. Boeke said he likes it. Klecker said if the Commissioners
want another month to review it and vote next month, that’s fine, too. He said they will go with
what they have here and if the Commissioners have any suggestions, get their feedback to
Cochran in the next two weeks. Cowell said he doesn’t care if it’s for an existing business as
long as it’s driving people downtown. Voss said he likes that we reserve the right to say yes or
no.
New Business:
151 Bridge Street West. Klecker said that Darrin Stadheim is working on a lot of projects right
now and this isn’t one he feels he can make work. There is some work to do on the lower level to
get a tenant in there. He is anxious to sell. He’s talked to the neighbor to the west and there is
some interest there. He is offering it to us for $325,000 and will reimburse us for the
environmental study that we did. He does want the City to own it. It will increase the values
downtown. When the Governor was here, he brought his entourage. The DEED Commissioner is
good friends with Tim Penny. Klecker said he gave them a tour of the city and they pointed that
property out. It stands out like a sore thumb. If anything’s going to happen, we have to take the
lead. We have stuck out our neck on a number of projects downtown: the Arnold House, the
Smersh House, the old Theater. He said that they will all eventually be occupied and look good.
The good part about this one is that it’s bringing in revenue and we’ll have money to put back
into it. We can make some improvements to it. He feels much better about this one. He laid out
what he thinks we can do right away, such as constructing a dumpster screen, air conditioning in
the apartments so the window units can come out, new windows on the restaurant side, and a

[PAGE 7]
new sprinkler system. We could do tuckpointing and painting. There is a tank under Oak Avenue
that will have to be removed. When the City owns it, we have access to some grant dollars
through DEED. If we have a project, it’s easier to get those dollars. Eventually we would like to
enclose that overhang and make it part of the building. We’ll still be looking for a tenant all the
while. People will visually see what the City is doing to the building. He thinks it’s a good
opportunity for us to do something. It’s the one building he gets the most complaints about. He
would be asking for EDA approval to move forward with purchasing it for $325,000. It would
still need to get City Council approval. Cowell abstained from the conversation and the motion
as he has a business relationship with the property owner. Boeke said if government doesn’t do
this, who will? He would vote yes on this. McDermott says it seems like a building that the next
person that owns it will sink a lot of money into it; it might be hard to find a buyer. Klecker said
it cashflows as it is. With improvements, it will eliminate some obstacles. Worst case scenario,
we own it for three to five years and sell it as is, it will at least look better than it would have
before. Boeke said it will be safer with the sprinkler system. Klecker said they can figure out
what makes sense to do. Voss asked if we’re eligible for money to get rid of the gas tank.
Klecker said that DEED has some funds. With Main Street being redone, he’d like to see the
tank taken care of by the County. He’d also like to get the water service in for the sprinkler
system. We’d be very strategic about what the improvements are and when they happen. Voss
asked if there were other DEED grants we’d qualify for. Klecker said he’s not aware of anything
else. Voss said the fear is that we get stuck with another building. This does cashflow, so it’s a
better scenario. Boeke said it will be a better-looking building than it is now. Klecker said we
can sell it, but it will look better. Voss said just with the list, it would look 90% better. They still
have the Council vote. A motion was made by Boeke and seconded by DeVinny to recommend
approval of the purchase of 151 Bridge Street West for $325,000. With Cowell abstaining, all
Commissioners voting Aye, the motion passed.
Stendel Parking Lot Lease. Klecker said that we’ve rented this from Brian Stendel every year
for 15 years. Every year Council asks if we could buy the lot. Stendel is getting to the point
where he might be selling the building and would sell this portion of the parking lot to the City.
Klecker suggested a six-month lease through October, and at that time, Stendel should know
what is happening. If he decides to sell it, the City could purchase it at that time. If it is
purchased, it would not be purchased with EDA dollars. It is a vital parking lot.
Online Low Doc Application. Lisa said that this is now online like the forgivable loan
application.
Forgivable Loan – 210 Main Street West (Vanity LLC / Miranda) Klecker said that this is
for the building right behind the Chamber. The EDA approved an exterior loan at the last
meeting. The applicant found out that they need an air exchange unit which is a building code
requirement for a salon. They did not anticipate this when they started. Our forgivable loan
criteria is things that will stay with the building and make things meet code. Technically she is
doing this to meet code, but it is specific to a hair salon. If she were to move out, the next owner
wouldn’t necessarily need that. The bathroom is not handicap accessible, and if she doesn’t touch
it, it is not required to become handicap accessible. She asked the question and Klecker said they
wanted to run it by the EDA. Voss said he likes the way it’s set up so it can accomplish things
that are painful to do. A venting system for a hair salon is part of the cost of having a hair salon.

[PAGE 8]
Boeke said he could go either way. DeVinny and McDermott agreed with Voss. Cowell said he
could go either way, but he agrees that it’s specifically intended for her business and not
improving accessibility. It was agreed that the ventilation improvements would not meet the
requirements of the forgivable loan program. Lisa said the Low Doc Loan would be available to
her.
Forgivable Loan – 306 Cedar Avenue North. Klecker said that InstyPrints used to own the
entire space, but they have reduced their space and there is another space available. They are
interested in doing a wine bar. They have an application in for both interior and exterior. The
building is owned by the real estate fund. Someone from the fund would sign the guarantee.
They’re looking at $10,000 interior and $10,000 exterior. They are doing a handicap accessible
building. They wouldn’t change the exterior brick work, but they are looking to take the arch
window and put in a garage door behind it, which would be an access point. Lisa said she’s
already seen what they’re thinking. Cowell asked if the real estate fund can provide a corporate
guarantee instead of an individual guarantee. Klecker said that’s probably what they were talking
about. They’re okay with the repayment and will sign a corporate guarantee. Cowell said he’s
comfortable with that. A motion was made by Cowell and seconded by McDermott to approve a
$10,000 exterior and $10,000 interior forgivable loan for 306 Cedar Avenue North. All
Commissioners voting Aye, the motion passed.
Klecker said he thinks they decided not to go with the low doc application.
Schedule Next Meeting. The next EDA meeting is scheduled for May 15, 2024 at 4:00 p.m. in
Charles S. Crandall Center – Meeting Room at City Hall.
Adjournment. There being no further business, a motion was made by Commissioner Boeke
and seconded by Commissioner DeVinny to adjourn the meeting at 5:32 pm. All Commissioners
voting Aye, the motion passed.

[PAGE 9]
EDA ADMINISTRATION
Account Description Current Budget Current YTD Budget Remaning
REVENUE
290-31000-690-691-000000 PROPERTY TAXES - 200,000.00 - 66,680.00 - 133,320.00
290-31410-690-691-000000 LODGING TAX - 3% - 250,000.00 - 52,449.43 - 197,550.57
290-33424-690-691-000000 STATE - OTHER PROGRA - 140,000.00 140,000.00
290-34950-690-691-000000 TIF ADMINISTRATIVE F - 71,773.00 - 71,773.00
290-36210-690-691-000000 INTEREST EARNINGS - 1,277.21 1,277.21
290-36220-690-691-000000 RENT/RENTALS - 3,600.00 - 1,200.00 - 2,400.00
290-36231-690-691-000000 GRANT FUNDS
TOTAL REVENUE - 525,373.00 - 261,606.64 - 263,766.36
EXPENDITURES
290-41000-690-691-000000 WAGES - REGULAR FT 86,568.00 29,835.13 56,732.87
290-41300-690-691-000000 WAGES - OT 1.40 - 1.40
290-41410-690-691-000000 PERA 6,493.00 2,219.86 4,273.14
290-41420-690-691-000000 FICA 6,622.00 2,211.47 4,410.53
290-41500-690-691-000000 INSURANCE 7,445.00 2,190.28 5,254.72
290-41550-690-691-000000 WORKERS COMP INSURAN 493.00 168.73 324.27
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 40,000.00 40,000.00
290-43232-690-691-000000 OBD - LOAN SERVICES 20,000.00 10,000.00 10,000.00
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 3,312.00 3,388.00
290-43972-690-691-000000 SOUTHERN MN INITIATI 1,667.00 1,666.00 1.00
290-43990-690-691-000000 MISCELLANEOUS 140,000.00 - 140,000.00
290-43991-690-691-000000 TOURIST DEVELOPMENT 237,500.00 34,959.06 202,540.94
290-47000-690-691-000000 TRANSFER TO OTHER FU 12,000.00 4,000.00 8,000.00
TOTAL EXPENDITURES 525,188.00 270,669.55 254,518.45
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 - 275.59 275.59
292-36210-690-692-000000 INTEREST EARNINGS - 16,000.00 - 7,707.60 - 8,292.40

[PAGE 10]
TOTAL REVENUE - 16,000.00 - 7,983.19 - 8,016.81
EXPENDITURES
292-48300-690-692-000000 LOAN PROGRAM DISBURS 30,000.00 - 30,000.00
TOTAL EXPENDITURES 30,000.00 - 30,000.00
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 - 7,326.05 - 4,673.95
294-36220-690-694-000000 RENT/RENTALS - 30,000.00 - 17,920.00 - 12,080.00
294-39101-690-694-000000 SALE OF CAPITAL ASSE
TOTAL REVENUE - 86,597.00 -25246.05 - 61,350.95
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 2,050.00 2,050.00
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 2,050.00 42,050.00

[PAGE 11]
City of Owatonna
Balance Statement by Fund
30-Apr-24
FUND 292: EDA LOANS
Account Number Account Name Ending Balance
ASSETS
292-10100-000-000 BANK ACCOUNTS $ 12,649.35
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 $ 302,306.79
294-10400-000-000 INVESTMENTS 500,000.00

[PAGE 12]
CITY OF OWATONNA
EDA - LOAN PROFILE
As of : April 2024
prepared 5/10/2024
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 18,465.83 564.78 Current Retail
Total 43,480.63 18,465.83 564.78
Number Original Current % of Current
Profile by Loan Performance Status of Loans Balance Balance Balance
Current 1 43,480.63 18,465.83 100.00%
Non-current 0 - - 0.00%
1 43,480.63 18,465.83 100.00%

[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 9,496.97 259.78 Non Current Last payment received in March
Vesterby 12/13/2021 1.625 7 12,500.00 8,490.71 157.53 Current
Vesterby 12/13/2021 - 3 5,000.00 1,111.08 83.33 Current
42,500.00 19,098.76 500.64
Number Original Current % of Current
Profile by Loan Performance Status of Loans Balance Balance Balance
Current 2 17,500.00 9,601.79 50.27%
Non-current 1 25,000.00 9,496.97 49.73%
3 42,500.00 19,098.76 100.00%
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 4 25,262.87 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 5/18/21 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
Ascend TIF note 7/31/2023 5.000 25 100,000.00 100,000.00 Current TIF Guarantee
KAMP TIF note 2/1/23 3.500 8 155,074.00 155,074.00 Current TIF Guarantee
Total 2,095,808.17 2,005,889.84 -
Number Original Current % of Current
Profile by Loan Performance Status of Loans Balance Balance Balance
Current 7 2,095,808.17 2,005,889.84 100.00%
Non-current 0 - - 0.00%
7 2,095,808.17 2,005,889.84 100.00%

[PAGE 14]
Owatonna Area
Chamber of Commerce
& Tourism
Memo
To: Economic Development Authority
From: Brad Meier, President/CEO
Date: 5/15/2024
Re: OACCT Economic Development Update
Economic Development
 See report for leads and ‘in progress’ reports.
Workforce
 April 17th Made in Owatonna Day-Agriculture Day: 70 students
 Work experience grant, received 12 applications, grant is up to $15/hour for up to 160 hours.
 2024 ‘Signing Day’ is May 29th at 4pm at Torey’s conference room.
 SteeleCoWorks Coordinator-reconfiguring position with plan to hire new coordinator this summer.
Other
 OPED: Did not win city of the year
 OPED: Next Real Estate Journal event May 30th-Restaurant & Retail
 OPED: Sean Williams hosted non-traditional financing event
 Growth Breakfast, May 16th features local health care leaders from Mayo, Allina, and OMC
 Ted G Ringhofer scholarship presented to Ethan Armstrong-$1,000.
1

[PAGE 15]
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 Church is going to purchase
their church 1/25/2024least 10,000 sq ft him. land to put up a new structure.
Group has purchase 2/22/24: meeting with the key
agreement on building Redevelopment project investors of the project to
looking for feedback on that has high visitor Provided ideas on the building discuss possible uses and
needs/use 1/8/2024attraction potential. and possible uses/needs. operators.
Discussed redevelopment
sites at I35 & Hoffman as Did not seem like a project this
Discussion with developer well as south end individual was interested in
about future projects. 2/27/2024wholesale tires buildings taking on at this time.
Early stages of the idea and it
Developer presented an has some overlap with another Set up meeting between the
Development project idea idea for a new building in downtown project being two project developers for
for downtown Owatonna. 2/29/2024downtown Owatonna. discussed. March.
Met with new owners
purchased existing Plan to invest upwards of Improvements will allow for Not asking for help with it, plan
business in Owatonna 3/1/2024$500,000 into the building growth of the business. to complete in 2024.
Divorce Attorney open Planning to open small office in Things are on-track and plan to
New attorney 2/19/2024Owatonna location downtown Owatonna open in April/May
Psychologist opening Planning to open small office in
New Psychologist 2/19/2024Owatonna location downtown Owatonna On Track
Working towards opening a Considering a cooperative
Restaurant for Downtown 4/26/2024restaurant business agreement with existing location Working with Sean at OABDC
Wants to open small batch
Distillery 4/26/2024distillery Timing not known right now.

[PAGE 16]
Interested in commercial
kitchen space to expand
current business being run Sharing new space idea with the He is looking into the space to
Commercial Kitchen 5/7/2024out of their house. owner. see if it is a suitable fit.
Discussed several ideas and will
Considering options for contiune discussion. They want
Expand Retail Space 5/7/2024doubling his space. to do something soon. Probable

[PAGE 17]
EDA Report for April 2024
Updates:
- Non-Traditional Lending Workshop – 5/1/24
o In partnership with SMIF and Amplio
o 26 participants
- Knowledge Exchange Program SBDC Statewide Conference – 5/15 – 5/17
- MN Nonprofit Executive Summit – 5/22 – 5/24
- New additional SBDC consultant – Danielle Wavrin
- Design Thinking and Design Sprint Workshop – 4/4
Upcoming:
- RFP for Software Studio
- Monthly entrepreneurial event
- Design sprint workshops
- Marketing Workshop - May 20th - in partnership with Chamber, Tourism, and SBDC
- English- and Spanish-language Small Business Academy cohorts – this fall
OABDC - April 2024
Consulting
Hours
Clients Sessions Hours New Operating 2024 YTD 2023 YTD
14 15 17.5 4 6 73.25 36.75
Occupancy
Manufacturing Offices
Total Leasable Space 34,325 Total Leasable Offices 11
Total Leased Space 19,375 Total Number of Leased Offices 10
Present Occupancy 56% Present Occupancy % 91%
Budget Occupancy 70% Budget Occupancy % 70%
YTD Performance to Budget $(2,796) YTD Performance to Budget $ 2,504
YTD Performance to Budget 89% YTD Performance to Budget 130%
Number of Tenants 7 Number of Tenants 10
Future Makerspace 1,600

[PAGE 18]
EDA Forgivable Loan Program – April 2024
Updates:
- 605 N. Cedar – MO Fitness/Olson
o Receipts submitted for reimbursement
- 301 N. Cedar – PHFS/Prohaski (2021)
o Loan documents being drafted
- 130 E. Vine – Owatonna Fitness/West
o Receipts submitted for reimbursement
- 306 N. Cedar – OREF/Stadheim
o Waiting for timeline update to draft loan documents
New Business:
- Forgivable Loan Program:
o 141 W. Bridge St. – Heinz Insurance / Otterson
§ $10,000 – Exterior – tuckpointing
o 120 S. Oak Ave. – Chamber / Meier
§ $10,000 – Exterior – signage
o 315 N. Cedar Ave – Dress Shop / Pankowski
§ $10,000 – Exterior – windows, signage, awning
- Including these three loans, $80,000 approved for 2024.

[PAGE 19]
May 15, 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 this 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 not moving forward with the project. Staff is working with
the owner to be the property transferred back to the City.
 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.
Additional tenant space is being built our in the upper level of the building.
 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.

[PAGE 20]
 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. Building plans have been submitted and
construction is planned for this summer.
 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 this summer.