The Crookston Housing & Economic Development Authority (CHEDA) met on Tuesday for a regular meeting at noon at the Valley Technology Park. After the Call to Order, the meeting began with the board approving the meeting minutes from their last meetings on May 17, May 31, June 14, and June 27. The board also heard from Shirley Iverson from Downtown Crookston Development in the Public Forum, who said that she had worked with Robert Barnes to add them to the B3 process and include them in the CHEDA budget cycles. She said that the Development wishes to work with the new Executive Director to help fund some of the projects from during the COVID pandemic, such as city signage in different stores, and painting buildings.
CONSENT AGENDA
The Consent Agenda included approving the EDA Financials and the Crookston Jobs Loan Status and Financials. It also included the approval of the B3 Grants and Financials, the Financials for Prairie Skyline, and the Financials for Epitome Energy. Next, it resolved a Revolving Loan Fund for Crookston Jobs and Loan Status and Financials. It also resolved Financials for Oak Court Public Housing, Housing Choice Voucher, Workforce Housing, and Rehab Housing. It then went into Payable Bills for a total of $37,616,80. The final item on the Consent Agenda was to approve the Financials, Building Occupancy, and Expended Business Incubation of Valley Technology Park.
HOUSING REPORT: TAHRAN
The board then heard from Theresa Tahran on a Housing Report. he reported that some members are having issues with the website for the “Lead the Way Training.” The board chose to make a deadline for everyone to complete them by September 30 but recommended that they finish it by the end of August. Tahran then went into the Public Housing Report (POHP), saying that she had met with Oak Court Apartments and learned that they are on a hot list, meaning they are at 90% or below occupancy for the building, and they are currently at 89%. She reported that they would meet with them later in the month to learn what units have been vacant the longest. She reported that some people were denied access to it because of their background and criminal, or people don’t respond to their recommendations. She said that they would put out another ad for vacancies for the building in the near future. Board member Wayne Melbye reported that he had heard that people felt unsafe being in Oak Court Apartments and that the building has not had installed the washing machines, and the bathrooms were not open, which caused people to want to leave or turn away. Tahran reported that they are waiting for Proulx Refrigeration to have them installed and are working with the local law enforcement to deal with the more dangerous issues they have heard about with the tenants and plan to add cameras around different areas in the building. She then began a report on the Publicly Opened Housing Program (POHP), saying they are working with the architect, who gave a recommendation to the Minnesota Housing Partnership on installing Smoke and Carbon Monoxide detectors.
Tahran then reported an update on the Voucher Program Report. She reported that they’re pulling about 10 to 15 people off the waitlist every week and will continue to do that until the waitlist is empty. Finally, Tahran gave an update on the Housing project at 1603 Hoven Lane, saying that the deal has closed and she will have an update on that at the end of the week and will bring in a report for the meeting in August.
OLD BUSINESS
The board then heard from Interim Director Charles “Corky” Reynolds, who said that there was no update on the Colborn Property Infrastructure, but they have received their grant for the Ag Innovation Campus from the state. Interim Director Reynolds also gave an update on the Prairie Skyline, saying that they also had no particular update, but he had received a request from the Fire Department to board up some of the windows to block vacant parts of the building.
Chickadee Coffee and Snow Loan Status
The board then heard an update on the Chickadee Coffee and Snow Loan Status, which Reynolds reported is still in default, and they are pursuing a litigation to recapture funds. They will commence a lawsuit in the near future for the full amount of the loan they gave, which was over $100,000. “Corky” Reynolds said that he expected it to be a contested matter and won’t be solved through a short court order. To prepare for the court order, Reynolds said they brought on Tanner Holten of Harbott, Knutson, Larson, & Holten PLLP to represent the city in this case. “We’ve retained the services of Tanner Holten of a law firm here in Crookston to represent us in that matter, and he is analyzing the potential remedies we have,” Reynolds explained. “The first is including litigation, the second including negotiation, and the last is attempting to recapture some revenue sources. We’re in those initial stages, and with the amount of money involved, the litigation cost could be significant because this is not something you take to small claims court. It’s unlikely to be resolved, but we hope it can be, but all of those options are on the table to be pursued by CHEDA.”
APG Development- Elliot Steinbrink
The board then heard from Reynolds on the statutes of the APG Development legal entity, but Reynolds has heard no response yet from representative Elliot Steinbrink but said he would continue to try to reach him on further updates to the development.
MAIN AGENDA
The board then received a presentation from Small Business Development Center (SBDC), with UMC’s Chancellor Mary Holz-Clause who invited SBDC Consultant Christine Anderson and Associate Director of the Veden Center Mitch Berg, who explained that the service covers nine regional centers and offers free services to new businesses and helps them start with financials and recruiting, and the Veden Center works to help develop small businesses in Minnesota Indian Country, DEED, and other small businesses to identify opportunities and increase profits. In Crookston, they have created 86 new jobs, with over $5,550,000 raised in validated equity, and using those funds to assist 16 businesses in Crookston. Anderson said they are currently developing new trainings that will begin in 2023, with their latest ones being offered this fall. Berg presented that the Center has received 8.7% of its $120,000 revenue from CHEDA and Crookston and have used those funds to provide services at no cost to their clients, such as providing education and assistance to the Crookston Chamber of Commerce, engaging with UMC students and faculty on financial analysis, and strategic planning, other small business, and entrepreneurial training and workshops. Attorney Reynolds asked if the Center needed them as they were getting funding from the city and other cities as well, which Anderson responded that they would still work in the city without CHEDA funding, but they would not be able to complete their services as well as they currently do.
RDBG Revolving Loans
The board then discussed a series of RBDG Revolving Loans for Adams Heating & Cooling and Jeff Evers. Reynolds reported that the Adams Loan did not meet the criteria, and he is waiting to receive more information for the loan to see if it again fits their qualifications. For Jeff Evers, he submitted a $75,000 RBDG Revolving Loan for the Fournet Building, and Reynolds reported that he met the qualifications for the loan and recommended that the board grant the loan and disburse the money by Friday, July 15, with the first payment due by Monday, August 1. Evers also submitted a $25,000 CHEDA Revolving Loan that also met the qualifications and will be approved for disbursement on July 15, with its first payment being on Monday, August 1 as well. The board approved both loans unanimously.
CHEDA Attorney Discussion
The board then began the discussion of appointing a new Attorney for CHEDA. Current Attorney Charles “Corky” Reynolds reported that he had been granted the position of their Attorney back in the winter, but now he is too overwhelmed with his role as Interim City Administrator and City Attorney to continue the role properly. Reynolds recommended they appoint Tanner Holten from Harbott, Knutson, Larson, & Holten PLLP to assume the position. “He came from the University of North Dakota Law School, and he’s associated a law firm here in Crookston, of which I was a former partner. I’ve experienced with him in litigation and other matters. He’s very diligent, thorough, trustworthy, and will be a good attorney for CHEDA,” Reynolds explained. “The reason I’m stepping down is that my duties as Interim City Administrator and City Attorney are more than I should justify to represent CHEDA.” Reynolds explained that he has a great working relationship with Holten and will work closely with him on future projects with CHEDA. The board approved the change unanimously.
Community Development Funds
The board then began a resolution to move $4,000 of Community Development Funds to supplement the B3 Grants that the board gives out to various loans and requests. Unfortunately, this depleted their remaining Community Development Funds for the year, and they will not be able to grant others using those funds until 2023. The board approved the motion unanimously.
Interim CHEDA Executive Director Discussion
The board then began a discussion to elect an Interim CHEDA Executive Director. Reynolds reported that he and Theresa Tahran have collaborated to complete the work of the Executive Director, with Reynolds assuming the economic development portion of the role and Tahran assuming the housing component of the position. They then asked the City’s Financial Director, Ryan Lindtwed, to compensate Corky and Tahran for their extra work in place of former CHEDA Executive Director Robert Barnes. Reynolds reported that there are four applicants applying for the position and found that one seemed to be a good fit for the job. “We have interviewed two candidates, and we have made an offer to one of them, who is contemplating that offer,” Reynolds explained. Reynolds explained that the applicant agreed with 90% of the terms they offered but wishes to discuss things with Corky later before deciding, but Reynolds believes that it is very likely they will take the position.
B&E Meats and Total Lawncare Land Parcel
The board then began a discussion of Parcel 82.03750.00, a section of land between B&E Meats and Total Lawncare. Reynolds reported that since their last meeting, he had met with each party individually and collectively, and they met back on July 5. Neither party agreed to a resolution, so there is no movement to purchase the land. President Dylane Klatt recommended that they make boundaries around the property in order to prevent one party from using the property without upsetting the other while not putting them in the middle of the issue between the two parties. Reynolds reported that he is working with the City’s Public Works Director, Brandon Carlson, on creating some sort of boundary around the property and having it maintained by the city. The board agreed to send a letter to both parties to remove any of their property on the land parcel within 30 days.
Kopecky Driveway
The final item of the Main Agenda was a discussion on the Kopecky Driveway. A student-built house that has had an issue with the driveway for about two to three years. Reynolds said that he had spoken with Jeff Fagerstrom, who recommended that they replace it and put it down at four inches. Reynolds said he planned to meet with Fagerstrom at a later date to negotiate the price terms between him and CHEDA for completing the driveway.
The next CHEDA meeting will take place on Monday, July 25, at 6:45 p.m. in the Crookston City Hall Council Chambers.
