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Economic Development Authority Packet - February 17, 2026 Economic Development Authority Regular Meeting & Work Session Agenda Tuesday, February 17, 2026 5:30 PM Elk River City Hall ▪ Regular meeting in Council Chambers ▪ Work Session meeting in Upper Town Conference Room immediately following regular meeting 1. CALL MEETING TO ORDER 2. PLEDGE OF ALLEGIANCE 3. CONSIDER AGENDA 4. CONSENT AGENDA Considered to be routine and noncontroversial and will be approved by one motion. There will be no separate discussion of these items unless there is a request to remove the item from the consent agenda to the regular agenda. 4.1 Check Register 4.2 Balance Sheet 4.3 Revenue/Expenditure Reports 5. OPEN FORUM An opportunity to provide comments and feedback regarding items not on the agenda. Information provided in Open Forum will not be discussed at this meeting; rather, the information will be referred to staff and/or scheduled for discussion at a future meeting. 6. PUBLIC HEARINGS An opportunity for the public to express their opinions and raise questions pertaining to the agenda item. All comments become part of the official public record. For this reason, all comments must be made at the podium so they can be heard and recorded. Comments may also be provided in writing. There will not be deliberations, discussions, or answers to questions until the hearing is closed. It is important to be courteous and allow each presenter to comment before adding additional testimony. 7. GENERAL BUSINESS Items in which the information is presented by city staff or consultants, then deliberation and action occur. General Business items are not opportunities to receive or provide public input. However, the presiding officer may, at its sole discretion, solicit public feedback. 7.1 Resolution 26-02: Project Update and Commitment of EDA Funds for IBDPI Grant Application for CDI 8. OPEN DISCUSSION This section is reserved for the board and staff to discuss relevant topics, updates, and other non-action items of the board. 9. MOTION TO ADJOURN REGULAR MEETING 10. WORK SESSION Work Sessions are less formal meetings to encourage dialog. Official action or votes are not typically taken. At the conclusion of a discussion, a simple consensus provides staff direction for execution of the item. This portion of the agenda is audio recorded but not video recorded or broadcast. Work Sessions are open to the public; however, visitors who wish Page 1 of 13 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity to provide input must be invited by the presiding officer, assume a seat at the discussion table and provide their full name and address for the official record. 10.1 Retail Recruitment Strategy and Consultant 11. MOTION TO ADJOURN Page 2 of 13 Page 3 of 13 Page 4 of 13 Page 5 of 13 CITY OF ELK RIVER Balance Sheet January 31, 2026 Fund 920 - EDA Assets 920-1010 Cash - EDA 2,645,206.99 Total Assets 2,645,206.99 Liabilities 920-2020 A/P - EDA (142.00) Total Liabilities (142.00) Fund Equity 920-2400 Fund Balance 2,643,157.97 Revenues over Expenditures - YTD 2,191.02 Total Fund Equity 2,645,348.99 Total Liabilities & Equity 2,645,206.99 Page 6 of 13 CITY OF ELK RIVER Revenues with Comparison to Budget For the Month Ending January 31, 2026 Fund 920 - EDA Period Actual YTD Actual Budget Unexpended PCNT 920-3-0000-3111 Property Taxes 6,989.27 6,989.27 429,850.00 422,860.73 2% 920-3-0000-3621 Interest Income 6,219.75 6,219.75 75,000.00 68,780.25 8% 920-3-0000-3949 Transfer-HRA - - 4,500.00 4,500.00 0% Total Fund Revenue 13,209.02 13,209.02 509,350.00 496,140.98 3% Page 7 of 13 CITY OF ELK RIVER Expenditures with Comparison to Budget For the Month Ending January 31, 2026 Fund 920 - EDA Period Actual YTD Actual Budget Unexpended PCNT 920-4-6210-4101 Regular Pay - - 138,000.00 138,000.00 0% 920-4-6210-4103 Part-time Pay - - 12,600.00 12,600.00 0% 920-4-6210-4104 PERA - - 10,550.00 10,550.00 0% 920-4-6210-4105 FICA - - 9,250.00 9,250.00 0% 920-4-6210-4107 Medicare - - 2,200.00 2,200.00 0% 920-4-6210-4108 Insurance - - 31,100.00 31,100.00 0% 920-4-6210-4109 Workers Comp - - 650.00 650.00 0% 920-4-6210-4201 Office Supplies - - 2,000.00 2,000.00 0% 920-4-6210-4212 Fuels & Lubes - - 50.00 50.00 0% 920-4-6210-4304 Legal Fees - - 10,000.00 10,000.00 0% 920-4-6210-4319 Professional Services - - 25,000.00 25,000.00 0% 920-4-6210-4321 Telephone - - 700.00 700.00 0% 920-4-6210-4322 Postage - - 100.00 100.00 0% 920-4-6210-4331 Travel, Conferences & Schools - - 12,500.00 12,500.00 0% 920-4-6210-4349 Advertising/Marketing 6,228.00 6,228.00 115,500.00 109,272.00 5% 920-4-6210-4359 Publishing - - 1,000.00 1,000.00 0% 920-4-6210-4361 Insurance - - 300.00 300.00 0% 920-4-6210-4404 Software Services - - 17,500.00 17,500.00 0% 920-4-6210-4433 Dues & Subscriptions 1,790.00 1,790.00 6,200.00 4,410.00 29% 920-4-6210-4440 Miscellaneous 3,000.00 3,000.00 18,500.00 15,500.00 16% 920-4-6210-4721 Transfer-General Fund - - 49,900.00 49,900.00 0% Total Fund Expenditures 11,018.00 11,018.00 463,600.00 452,582.00 2% Net Revenue Over Expenditures 2,191.02 2,191.02 45,750.00 43,558.98 95% Page 8 of 13 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To Economic Development Authority Item Number 7.1 Meeting Date February 17, 2026 Prepared By Brent O'Neil, Economic Development Director Item Description Resolution 26-02: Project Update and Commitment of EDA Funds for IBDPI Grant Application for CDI Reviewed by Brent O'Neil Cal Portner Action Requested Adopt, by motion, the attached resolution designating EDA funds as the source of matching funds for an infrastructure grant application for the CDI project. Background/Discussion Crystal Distribution, Inc. (CDI) continues to pursue the expansion of its Elk River site. We will provide an overall update on the project status and timelines. Additionally, we are finalizing an application to the state for grant funds under the Innovative Business Development Public Infrastructure program, which would help offset the cost of relocating public storm pipe through the site. A preliminary cost for the relocation is $242,000, and it is estimated that $92,000 would be available through the state program. The attached resolution commits the local match, $150,000, to the relocation project. As previously discussed with the board, the land sale would be set at a negotiated basis of $1.70 per square foot, or $518,000. The sale would include a provision that would provide an offset in the land price to account for CDI's cost of relocating the public utilities if other incentives, including Tax Increment Financing (TIF), were insufficient to cover all acquisition costs. This grant will lessen any offset needed in land price and may result in eliminating any offset requirement. The attachment shows the present estimate of costs and incentives related to the project. Additionally, a City Council resolution of support is required for the grant, including a commitment of local funds. A similar resolution will be considered by the Council. Financial Impact $150,000 in match would be pledged from EDA funds. It is likely, however, TIF would be sufficient to cover this local match. If necessary, the land sale proceeds of $518,000 would be more than sufficient to cover this match. Mission/Policy/Goal Support industrial development. Attachments Page 9 of 13 1. EDA IBDPI Resolution 2. Costs and Funding - Incentives Page 10 of 13 City of Elk River Economic Development Authority Resolution 26-____ A Resolution of the Economic Development Authority of the City of Elk River Commit Matching Funds for Grant Application. WHEREAS, the Minnesota Innovative Business Development Public Infrastructure grant program provides funds up to 50% to fund economic development infrastructure needs and may be able to assist a public stormwater pipe relocation to support the building expansion of Crystal Distribution, Inc. (CDI). WHEREAS, the City of Elk River would be the grant applicant and would seek $92,000 in grant funds to be matched by $150,000 in local funds to fund the stormwater pipe construction estimated at $242,000. WHEREAS, it is expected the local funds would be sourced from Tax Increment Financing, land sale proceeds related to the CDI project, or a combination of both. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Elk River, Minnesota, that it pledges $150,000 of EDA funds as local match for this grant application and requests the City Council authorize the submission of the application. Passed and adopted this 17th day of February 2026. Matthew Westgaard, President ATTEST: Recording Secretary Page 11 of 13 2/13/2026 Proposed Incentive to CDI - Net Incentive for Acquisition Costs DRAFT - Estimates Only Best Estimate Acquisition Costs Land Acquisition 518,000$ Water Service Relocate 25,000$ Storm Water Relocate 220,000$ 763,000$ Proposed Incentives TIF 450,000$ State JCF 175,000$ State IBDPI 92,000$ 717,000$ Delta Land Price - Add'l Offset 46,000$ (mid-range) Page 12 of 13 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To Economic Development Authority Item Number 10.1 Meeting Date February 17, 2026 Prepared By Brent O'Neil, Economic Development Director Item Description Retail Recruitment Strategy and Consultant Reviewed by Cal Portner Action Requested This item is presented for information and discussion purposes. Background/Discussion During the 2026 budget, the Board discussed engaging a consultant to support retail recruitment. The Board decided not to pursue this as a full-scale initiative, but did provide $30,000 in the current budget for similar activities. We have received a proposal from Retail Strategies provide in-depth data research, psychographic analysis, leakage analysis, and consumer expenditure analysis, as well as strategy and marketing expertise. Further insight into this area can help direct strategy and resources. Board direction is requested, and a contract can be drafted for a future meeting if supported. Financial Impact N/A Mission/Policy/Goal Support commercial development. Attachments None Page 13 of 13