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Economic Development Authority Packet - September 21, 2026 Economic Development Authority Regular Meeting & Work Session Agenda Monday, September 21, 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 DRAFT Minutes - August 17, 2026 4.2 Check Register 4.3 Balance Sheet 4.4 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 26-11 TIF 30 Interfund Loan 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 Page 1 of 16 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity is audio recorded but not video recorded or broadcast. Work Sessions are open to the public; however, visitors who wish 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 Distinctive Iron Loan Extension Discussion 11. MOTION TO ADJOURN Page 2 of 16 Meeting of the Economic Development Authority Held at the Elk River City Hall Monday, August 17, 2026 Members Present: Vice President Jennifer Wagner, Commissioners J. Brian Calva, Jeff Hartwig, Mike Beyer, and Charlie Blesener Members Absent: President Matt Westgaard, Commissioner Cory Grupa Staff Present: Economic Development Director Brent O'Neil, Economic Development Specialist Josh Mollan, and City Clerk Justin Dunford 1. CALL MEETING TO ORDER Pursuant to due call and notice thereof, the meeting was called to order at 5:31 p.m. 2. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 3. CONSIDER AGENDA Mr. O'Neil recommended the agenda be approved with modifications, by moving Item 7.2 to immediately after Item 7.4. Moved by Commissioner Mike Beyer and seconded by Commissioner J. Brian Calva to approve the agenda with the medications recommended by Mr. O'Neil. Motion carried 5- 0. 4. CONSENT AGENDA Moved by Commissioner Charlie Blesener and seconded by Commissioner Mike Beyer to approve the following consent items as outlined in their respective staff reports. Motion carried 5-0. 4.1 DRAFT Minutes - June 15, 2026 4.2 DRAFT Minutes - July 20, 2026 4.3 Check Register Page 3 of 16 Economic Development Authority Minutes August 17, 2026 --------- Page 2 of 4 4.4 Balance Sheet 4.5 Revenue/Expenditure Reports 5. OPEN FORUM No one appeared for open forum. 6. PUBLIC HEARINGS There were no public hearings. 7. GENERAL BUSINESS 7.1 Presentation - Garden Gem Awards Economic Development Specialist Josh Mollan provided the staff report. The Garden Gem Awards program received 22 nominations across 6 categories. The Public Art and Beautification committee judged properties and recommended winners. Winners recognized during the EDA meeting were: Freeport Business Center, Dawn and Rich Schultz Cretex Companies, Dave Anderson The winners were recognized with a personalized garden stone and will have a winner's sign to place on the respective properties. Vice President Wagner confirmed that 2026 had the most nominations for the Garden Gems Awards to date. 7.3 Resolution 26-08 Adopting 2027 Budget Item 7.2 has been moved after Item 7.4. Moved by Commissioner Mike Beyer and seconded by Commissioner J. Brian Calva to approve, by motion, the attached resolution adopting the budget for 2027 and recommending $453,500 for inclusion in the 2027 levy. Motion carried 5-0. Staff recommended a 2027 budget of $533,000 and a levy of $453,500, which is on par with the work session in July. 7.4 Resolution 26-09: Adopting the 2027 levy for repayment of 2013 Refunding Bonds (YMCA) Moved by Commissioner Charlie Blesener and seconded by Commissioner Jeff Hartwig to approve, by motion, Resolution 26-09 establishing the 2027 referendum tax levy of Page 4 of 16 Economic Development Authority Minutes August 17, 2026 --------- Page 3 of 4 $519,680 for debt service on the YMCA facility. Motion carried 5-0. Mr. Mollan presented the staff report. The board reiterated that this bond was voter approved and will mature in 2033. 7.2 Resolution 26-07 Approving Revised Purchase Agreement with O'Brien Holdings - 17610 Tyler St. NW Moved by Commissioner Charlie Blesener and seconded by Commissioner Mike Beyer to approve, by motion, Resolution 26-07 approving a revised purchase agreement with O'Brien Holdings. Motion carried 5-0. Mr. O'Neil introduced CFO Brad Martin of CDI. The agreement timeline had changed due to sanitary sewer lines and the agreement before the EDA included modified timing obligations and deadlines. CDI is looking to have work start on the site in early September. They will start with grading, underground utilities, then foundations. Staff pursued grant funding for stormwater work or to have the EDA share part of the costs. CDI will ultimately assume full responsibility for the underground utilities work. This releases the EDA from responsibility for constructing the pipeline. 7.5 Agreement for a Mutual Driveway Easement at 17610 Tyler Street NW Moved by Commissioner J. Brian Calva and seconded by Commissioner Mike Beyer to approve, by motion, authorizing a mutual driveway agreement with O'Brien Holdings. Motion carried 5-0. Mr. O'Neil presented the staff report. Construction of the shared portion of the road would be a 50/50 cost share between CDI and the City of Elk River for work on the EDA portion of the property, with the EDA to reimburse the company. Vice President Wagner expressed concerns over visibility and safety at this intersection with Twin Lakes and asked that signage be considered to help address safety. 7.6 Resolution 26-10 Accepting a Deed from the City of Elk River - 17610 Tyler St. NW Moved by Commissioner Mike Beyer and seconded by Commissioner Jeff Hartwig to approve, by motion, Resolution 26-10 accepting a quit claim deed from the City of Elk River for Lot 1, Block 1 Northstar Business Park. Motion carried 5-0. 7.7 Terminating a Mutual Access Easement Agreement at 17610 Tyler Street NW Moved by Commissioner Charlie Blesener and seconded by Commissioner Mike Beyer to approve, by motion, an agreement terminating a mutual access agreement at 17610 Tyler Page 5 of 16 Economic Development Authority Minutes August 17, 2026 --------- Page 4 of 4 Street NW. Motion carried 5-0. 7.8 Granting a Drainage and Utility Easement Moved by Commissioner Mike Beyer and seconded by Commissioner J. Brian Calva to approve, by motion, the grant of permanent utility easement to the City of Elk River. Motion carried 5-0. Mr. O'Neil presented the staff report. It is typical to add a drainage and utility easement along property lines. Since the property line changed on this project and was done without a plat, this procedure achieves the goal of adding the easement. 8. OPEN DISCUSSION An update was provided on the property behind Elk Park Center, the former Dickinson property. Staff are speaking with property owners to try to figure out the best thing for the future of the property. There is openness for the EDA taking ownership of the property. There have been a few calls with a large manufacturing company and staff are researching if property can be identified and acquired so that this company could potentially move into the City of Elk River. Looking to accelerate discussion on how that could be planned for. An update was provided on the Beautification and Public Art Committee Meeting. Parks & Recreation Manager Jeff Shelby presented a potential wind-phone. It is an opportunity for residents to speak to those that they have lost during their life. The committee is looking to provide a nexus that combines the work of the Parks & Recreation Commission/Department and the Beautification and Public Art Committee. There was unanimous support from the committee. 9. MOTION TO ADJOURN Moved by Commissioner J. Brian Calva and seconded by Commissioner Mike Beyer to adjourn the meeting. Motion carried 5-0. The meeting adjourned at 6:06 p.m. Minutes prepared by Justin Dunford. __________________________ Matt Westgaard, EDA President ________________________ Justin Dunford, City Clerk Page 6 of 16 Page 7 of 16 Page 8 of 16 CITY OF ELK RIVER Balance Sheet August 31, 2026 Fund 920 - EDA Assets 920-1010 Cash - EDA 2,725,924.01 Total Assets 2,725,924.01 Fund Equity 920-2400 Fund Balance 2,641,795.06 Revenues over Expenditures - YTD 84,128.95 Total Fund Equity 2,725,924.01 Total Liabilities & Equity 2,725,924.01 Page 9 of 16 CITY OF ELK RIVER Revenues with Comparison to Budget For the Months Ending August 31, 2026 Fund 920 - EDA Period Actual YTD Actual Budget Unexpended PCNT 920-3-0000-3111 Property Taxes - 220,518.19 429,850.00 209,331.81 51% 920-3-0000-3621 Interest Income 9,493.69 51,957.19 75,000.00 23,042.81 69% 920-3-0000-3629 Miscellaneous Revenue - 63.78 - (63.78) 0% 920-3-0000-3949 Transfer-HRA 4,500.00 4,500.00 4,500.00 - 100% Total Fund Revenue 13,993.69 277,039.16 509,350.00 232,310.84 54% Page 10 of 16 CITY OF ELK RIVER Expenditures with Comparison to Budget For the Months Ending August 31, 2026 Fund 920 - EDA Period Actual YTD Actual Budget Unexpended PCNT 920-4-6210-4101 Regular Pay 17,164.11 78,557.27 138,000.00 59,442.73 57% 920-4-6210-4103 Part-time Pay 1,050.00 7,350.00 12,600.00 5,250.00 58% 920-4-6210-4104 PERA 1,302.29 6,007.89 10,550.00 4,542.11 57% 920-4-6210-4105 FICA 1,069.93 4,946.75 9,250.00 4,303.25 53% 920-4-6210-4107 Medicare 255.68 1,195.20 2,200.00 1,004.80 54% 920-4-6210-4108 Insurance 1,512.00 10,584.00 31,100.00 20,516.00 34% 920-4-6210-4109 Workers Comp - 426.00 650.00 224.00 66% 920-4-6210-4112 PFML 68.33 359.63 800.00 440.37 45% 920-4-6210-4201 Office Supplies 34.73 301.16 2,000.00 1,698.84 15% 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 - 12.72 100.00 87.28 13% 920-4-6210-4331 Travel, Conferences & Schools - 739.75 12,500.00 11,760.25 6% 920-4-6210-4349 Advertising/Marketing - 12,742.52 115,500.00 102,757.48 11% 920-4-6210-4359 Publishing - 269.00 1,000.00 731.00 27% 920-4-6210-4361 Insurance - 81.00 300.00 219.00 27% 920-4-6210-4404 Software Services - 11,052.32 17,500.00 6,447.68 63% 920-4-6210-4433 Dues & Subscriptions - 5,365.00 6,200.00 835.00 87% 920-4-6210-4440 Miscellaneous - 3,020.00 18,500.00 15,480.00 16% 920-4-62104510 Land - - 50,000.00 50,000.00 0% 920-4-6210-4721 Transfer-General Fund - 49,900.00 49,900.00 - 100% Total Fund Expenditures 22,457.07 192,910.21 514,400.00 321,489.79 38% Net Revenue Over Expenditures (8,463.38) 84,128.95 (5,050.00) (89,178.95) 1766% Page 11 of 16 The Elk River Vision A resilient, welcoming, and thriving community that leads through innovation, meaningful engagement, exceptional service, and responsible planning for future generations. Request for Action To Economic Development Authority Item Number 7.1 Meeting Date September 21, 2026 Prepared By Brent O'Neil, Economic Development Director Item Description Resolution 26-11 TIF 30 Interfund Loan Reviewed by Cal Portner Action Requested Approve, by motion, Resolution 26-11 establishing an interfund loan related to Tax Increment District (TIF) 30. Background/Discussion TIF 30 was created to support the Crystal Distribution, Inc. expansion project on Twin Lakes Road. Prior to transferring TIF funds to the developer for costs in the TIF agreement, the city will retain 5% of all TIF receipts in reserve to cover administrative costs. The EDA has incurred costs related to the implementation of TIF 30 and may incur additional costs. These costs may be billed to the developer or be reimbursed to the EDA through the TIF 30 administrative reserve. To ensure the EDA has the option to be reimbursed through TIF 30, an interfund loan is necessary. The attached resolution creates an interfund loan allowing up to $25,000 to cover EDA expenses, and by statute, also allows a 7% interest rate to be applied to outstanding balances, as any reimbursement would occur over multiple years. Financial Impact The EDA and city have the option to be reimbursed for their TIF 30 expenses over time at an interest rate of 7% and maximum reimbursement amount of $25,000. Expenses are expected to be at or below $25,000. Mission/Policy/Goal Support industrial growth and business expansion. Attachments 1. RES 26-XX Interfund Loan CDI Page 12 of 16 City of Elk River Economic Development Authority Resolution 26-__ A Resolution of the Economic Development Authority in and for the City of Elk River authorizing internal loan for advance of certain costs in connection with a Tax Increment Financing District WHEREAS, the City of Elk River, Minnesota (the “City”) and the Economic Development Authority for the City of Elk River (the “Authority”) previously established Tax Increment Financing District No. 30 (an economic development district) (the “TIF District”), pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”); and WHEREAS, the City and the Authority may incur certain costs related to the TIF District which costs may be financed on a temporary basis from available City or Authority funds; and WHEREAS, pursuant to Section 469.178, subdivision 7 of the TIF Act, the City and the Authority are authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act; and WHEREAS, the City and the Authority have determined to pay for certain costs of the TIF District including administrative costs which costs may be financed on a temporary basis from the Authority’s Fund Balance, the City’s Development Fund, or any other City or Authority funds available for such purposes (the “Cost Advances”); and WHEREAS, the Authority hereby designates the Cost Advances as an interfund loan in accordance with the terms of this resolution and the TIF Act. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority for the City of Elk River, Minnesota as follows: 1. The Authority and the City will reimburse themselves for the Cost Advances including, without limitation, administrative costs all in an aggregate amount not to exceed the greater of $25,000 or the adopted and, if applicable, Tax Increment Financing Plan budget for the TIF District (the “Interfund Loan”) together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 and Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 7.00% and will not fluctuate. 2. Principal and interest (“Payments”) on the Interfund Loan shall be paid semiannually on each February 1 and August 1 (each a “Payment Date”), commencing on the first Payment Date on which the City or the Authority has received Available Tax Increment (defined below), or on any other dates Page 13 of 16 determined by the City Finance Director, through the date of last receipt of tax increment from the TIF District (the “Maturity Date”). 3. Payments on the Interfund Loan will be made solely from the tax increment from the TIF District received by the Authority or the City from Sherburne County in the 6-month period before any Payment Date, net of the amount paid under any agreement with a private developer or otherwise pledged to the payment of any obligation (the “Available Tax Increment”). Payments shall be applied first to accrued interest, and then to unpaid principal, unless otherwise specified by the City Finance Director. Interest accruing from the Loan Date will be compounded semiannually on February 1 and August 1 of each year and added to principal, unless otherwise specified by the City Finance Director. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes, or contracts secured in whole or in part with available tax increment and are on a parity with any other outstanding or future interfund loans secured in whole or in part with available tax increment. 4. The principal sum and all accrued interest payable under this resolution is pre-payable in whole or in part at any time by the Authority without premium or penalty. 5. This resolution is evidence of an internal borrowing by the Authority or the City in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. The Interfund Loan shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority or the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto except out of Available Tax Increment and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. Neither the Authority nor the City shall have any obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the termination or expiration of the TIF District. 6. The Authority or the City, as applicable, may at any time decide to forgive the outstanding principal amount and accrued interest on the Interfund Loan, in whole or in part, on any date from time to time, to the extent permissible under law. 7. The Authority may from time to time amend the terms of this Resolution to the extent permitted by law, including without limitation amendment to the payment schedule and the interest rate; provided that the interest rate may not be increased above the maximum specified in Section 469.178 subd. 7 of the TIF Act. Approved by the Board of Commissioners of the Economic Development Authority of the City of Elk River this 21 day of September, 2026. Matt Westgaard, President ATTEST: Brent O’Neil, Executive Director Page 14 of 16 Page 15 of 16 The Elk River Vision A resilient, welcoming, and thriving community that leads through innovation, meaningful engagement, exceptional service, and responsible planning for future generations. Request for Action To Economic Development Authority Item Number 10.1 Meeting Date September 21, 2026 Prepared By Brent O'Neil, Economic Development Director Item Description Distinctive Iron Loan Extension Discussion Reviewed by Cal Portner Action Requested Discuss and provide feedback. Background/Discussion Distinctive Iron's existing loans through the EDA are due in October. The original balance was $189,338.20, with an existing balloon balance of $135,832.40. The loans were issued in 2019 and have received one 2-year extension. Owner Cindy Hemmer has contacted us about a further extension. Historically, the board has supported one extension on loans. Policy is less clear on second extensions. We are looking for consensus of board direction on whether to consider an additional extension and any modification of terms. Financial Impact N/A Mission/Policy/Goal Responsible for every dollar - good stewards. Support growth and development of the community. Attachments None Page 16 of 16