consider renewing the realtor contract for the spec house ......jan 09, 2018 · von essen...

AGENDA

ANNUAL MEETING

NEW ULM ECONOMIC DEVELOPMENT AUTHORITYNew Ulm, Minnesota

City Hall Council Chambers

Tuesday, January 9, 2018 — 8: 00 a. m.

1. ROLL CALL.

2. ELECTION OF OFFICERS.

3. EDA APPOINTMENT TO NUEDC.

4. APPROVAL OF MINUTES.

5. NEW ULM ECONOMIC DEVELOPMENT CORPORATION REPORT.

6. EDA DIRECTOR' S ADMINISTRATIVE REPORT.

7. PUBLIC HOUSING PROGRAM.

a. Receive the Public Housing Assessment System ( PHAS) score for the

fiscal year ending June 30, 2017.

b. Receive schedule for approval of the FY 2018 Annual Plan and Schedule

Public Hearing on adoption of the plan.

C. Consider resolution to declare surplus property and authorize disposition.

d. Consider motion authorizing payment of Public Housing Program claims.

8. ECONOMIC DEVELOPMENT AUTHORITY.

a. Consider renewing the realtor contract for the spec house located at633 Pfaender Drive.

b. Receive letter from Minnesota Housing Partnership regarding HousingInstitute.

C. Receive hotel feasibility analysis.

9. ADJOURNMENT.

City ofNew UlmRequest for Economic Development Authority Action

Meeting Date: January 9, 2018 Agenda Item Number: 2.

Agenda Section: Election of Officers Originating Department: EDA Administration

Resolution: N/A Prepared By: Housing Coordinator

Number of Attachments: N/A Presented By: Housing Coordinator

Item: Consider Annual Election of Officers.

EDA Staff Proposed Action:

Motion by , seconded by , electing CommissionerCommissioner as Vice -President and Commissioner

period January 9, 2018 through December 31, 2018.

as President,

as Secretary for the EDA, for the time

Overview:

Section 3. 27 Subdivision 4 of the City Code outlines the organization, officers, employees and administration for theEDA. The EDA shall annually elect a President, Vice -President and Secretary. A commissioner may not serve asPresident and Vice -President at the same time. The other offices may be held by the same commissioner. The office ofSecretary need not be held by a commissioner. The Treasurer for the EDA shall be the Finance Director. The AssistantTreasurer for the EDA shall be the Assistant Finance Director.

Most recently, Commissioner Schmitz served as President, Commissioner Fix served as Vice -President andCommissioner Schwartz served as Secretary.

Primary Issues/Alternatives to Consider: N/A

Budgetary/Fiscal Issues: N/A

Attachments:

N/A



Agenda Section: EDA Appointment to

NUEDResolution: Originating Department: EDA Administration

N/A Prepared By: Housing Coordinator


Item: Consider motion appointing an EDA Commissioner to the NUEDC Board of Directors.


Motion by , seconded by , to consider motion appointing EDA Commissioner to

the New Ulm Economic Development Corporation (NUEDC) Board ofDirectors.

Overview:

At the December 12, 2017 EDA Meeting, the Authority authorized staff to enter into a contract with the New UlmEconomic Development Corporation (NUEDC) for a period of one year on the condition that an EDA Commissioner havea seat on their Board of Directors.

Primary Issues/Alternatives to Consider: The Authority will need to appoint a Commissioner to serve on the NUEDC Board, which typically meets at theKaiserhoff on the second Thursday of each month at noon.


Attachments:

N/A



Agenda Section: Approval of Minutes Originating Department: EDA Administration


Number of Attachments: 1 Presented By: Housing Coordinator

Item: Approval of Minutes from the Regular EDA Meeting held on December 12, 2017.


Motion by , second by , approving the minutes from the Regular EDA Meeting held onDecember 12, 2017.

Overview:

N/A



Attachments:

Draft meeting minutes — December 12, 2017

December 12, 2017

The REGULAR MEETING of the New Ulm Economic Development Authority was called to

order at 8: 00 a.m. December 12, 2017 in the City Council Chambers at City Hall.

Roll was called and the following members were present: Commissioners Fix, Janni,

Schwartz and President Schmitz.

Also present were Executive Director Gramentz, Housing Coordinator Bregel and TreasurerJorgensen.

Commissioner Fix made a motion to approve the minutes of the November 14, 2017 Regular

Meeting. Commissioner Janni seconded the motion and all voted aye.

The Economic Development Coordinator reported on various economic development

activities in the community.

The Housing Coordinator reviewed for the Commissioners highlights of the administrativeactivities during the month ofNovember 2017, as follows:

Housing Choice Voucher Program — She reported that the Housing Assistance Paymentspayments to landlords exceeded disbursements from HUD by $3, 402 for the month. HUD

Administrative Fee disbursements exceeded expenses by $ 859 for the month. Total

vouchers are at 86 as ofNovember 1, 2017. The current waiting list is at 81. Public Housing Program — Net assets in the program are $ 634,507. 12 as of November 30,

2017. Broadway Haus is fully leased with 38 on the waiting list. The Family Units are fullyleased with 23 on the waiting list. A street assessment in the amount of $4,356 was paid in full.

EDA — Investment pool assets of $573, 741 as of November 30, 2017. The revenue increasewas due to the sale of the spec house at 629 Pfaender Drive. A purchase agreement has beenreceived for Lot 6, Block 4 in the Milford Heights First Addition.

Property Rehabilitation Loan Program — Available funds of $284,215 as of November 30,

2017.

Rental Properties — Cash investment assets of $77,280 as ofNovember 30, 2017.

Garden Terrace Apartments — Garden Terrace has three vacancies. There were two

turnovers during the past month and there are two move -out notices pending for January. The waiting list is at 69.

Commissioner Fix made a motion to accept the Administrative Activities Report. Commissioner Janni seconded the motion and all voted aye.

The EDA considered for approval revised Utility Allowance Schedules for the PublicHousing Program. The Housing Coordinator reviewed with the EDA a memorandum on utilityallowances. She explained that schedules were prepared for the Family Units and Broadway HausApartments. The occupants of the Family Units are responsible for the payment of all utilities while

ECONOMIC DEVELOPMENT Aurmmy MEETING 115 DECEMBER 12, 2017

Broadway Haus residents only pay for their electricity. The utility schedule amount is subtractedfrom the tenant' s rent in order to provide them with funding to pay for their utilities.

The schedules were based on consumption data from 2017, as well as current utility rates. The allowances must be updated on an annual basis. She reported that consumption amounts had

generally stayed the same at Broadway Haus and the two bedroom Family Units and had increasedslightly in the three and four bedroom Family Units. Staff would recommend approval of thefollowing allowance schedules:

Commissioner Janni offered the motion approving the revised Public Housing UtilityAllowance Schedules. The motion was seconded by Commissioner Schwartz and all voted aye.

Commissioner Fix offered a motion to authorize payment of the following claims for thePublic Housing Program:

CLAIMANT

Current Tenant

Former Tenant

City of New UlmPublic Utilities Commission

C. Naber & Associates

PUBLIC HOUSING CLAIMS

December 12, 2017

AMOUNT PURPOSE

150. 00 Refund Pet Deposit/ Broadway Haus # 408137. 19 Refund Sec Dep/ Int/ Broadway Haus # 303

12, 196. 99 November 2017 Expenses

2, 240. 40 Utilities/ BH ( 10/ 2/ 17 to 11/ 1/ 17)

8. 89 Utilities/ BH # 105 ( 10/ 24/ 17 to 11/ 9/ 17)

13. 53 Utilities/ BH # 203 ( 10/ 20/ 17 - 11/ 15/ 17)

15. 54 Utilities/ BH # 310 ( 10/ 2/ 17 - 11/ 7/ 17)

7. 04 Utilities/ BH # 404 ( 10/ 31/ 17 - 11/ 9/ 17)

120. 00 November 2017 Accounting ServiceEcowater Systems $ 108. 00 11/ 14/ 17 Softener Salt/ Broadway Haus

60. 75 11/ 15/ 17 Softener Salt/ Family UnitsRiver View Sanitation $ 111. 95 December 2017 Garbage Service/ BH

1st Choice Security $ 385. 00 Annual Fire Alarm Test/ Broadway HausAH Hermel $ 39. 65 Supplies

Alwin Klassen Appliance Repair $ 309. 57 Service Call/ Broadway Haus # 308 & # 409

ECONOMIC DEVELOPMENT AUTHORITY MEETING 116 DECEMBER 12, 2017

BroadwayCurrent Proposed

1 Bedroom 30. 00 30.00

2 Bedroom 35. 00 35. 00

Family UnitsCurrent Proposed

2 Bedroom 128.00 128. 00

3 Bedroom 165. 00 169.00

4 Bedroom 193. 00 210.00

Commissioner Janni offered the motion approving the revised Public Housing UtilityAllowance Schedules. The motion was seconded by Commissioner Schwartz and all voted aye.

Commissioner Fix offered a motion to authorize payment of the following claims for thePublic Housing Program:

CLAIMANT

Current Tenant

Former Tenant

City of New UlmPublic Utilities Commission

C. Naber & Associates


December 12, 2017

AMOUNT PURPOSE

150. 00 Refund Pet Deposit/ Broadway Haus # 408137. 19 Refund Sec Dep/ Int/ Broadway Haus # 303

12, 196. 99 November 2017 Expenses

2, 240. 40 Utilities/ BH ( 10/ 2/ 17 to 11/ 1/ 17)

8. 89 Utilities/ BH # 105 ( 10/ 24/ 17 to 11/ 9/ 17)

13. 53 Utilities/ BH # 203 ( 10/ 20/ 17 - 11/ 15/ 17)

15. 54 Utilities/ BH # 310 ( 10/ 2/ 17 - 11/ 7/ 17)

7. 04 Utilities/ BH # 404 ( 10/ 31/ 17 - 11/ 9/ 17)

120. 00 November 2017 Accounting ServiceEcowater Systems $ 108. 00 11/ 14/ 17 Softener Salt/ Broadway Haus

60. 75 11/ 15/ 17 Softener Salt/ Family UnitsRiver View Sanitation $ 111. 95 December 2017 Garbage Service/ BH

1st Choice Security $ 385. 00 Annual Fire Alarm Test/ Broadway HausAH Hermel $ 39. 65 Supplies

Alwin Klassen Appliance Repair $ 309. 57 Service Call/ Broadway Haus # 308 & # 409


Captain Clean Services, Inc

Design Home Center

Full Service Electric

Gag Sheet Metal, IncHousing Data Systems

Menards

Minnesota Elevator, Inc

Nan McKay & Associates, Inc

New Ulm Furniture Co

New Ulm Tire, Inc

Public Utilities Commission

Retzlaffs Ace Hardware

River Creek NurseryVon Essen Locksmith

64.00 Shampoo Carpet/Broadway Haus 1 st Floor Hall

3, 820.02 Flooring/Broadway Haus #20372. 15 Service Call/615 N German St

298.80 Service Call/Broadway Haus #203 & # 303

21. 60 Supplies

254.65 500 Public Housing Checks62.75 500 Public Housing Statements

216.00 Supplies ( 6)

373. 50 Service Call/Broadway Haus Elevator224.00 Annual Subscription Fee - ACOP Updates

12,351. 68 Flooring/Broadway Haus # 105, # 303 & # 404

39. 86 Repair/Broadway Haus Two Wheel Cart5. 00 December URPBroadway Haus #405

83. 00 December URP/615 N German St

39.75 Supplies ( 5)

531. 00 Landscaping/Broadway Haus125,18 Service Call

34,487.44

Commissioner Janni seconded the motion and all voted aye.

Commissioner Janni offered the following Resolution and moved its adoption:

RESOLUTION 17-16

TRANSFER OF TITLE TO PROPERTY WITHIN THE AREA PLATTED ASMILFORD HEIGHTS SECOND ADDITION

WHEREAS, the Economic Development Authority of the City of New Ulm ( the " EDA") previously owned the property legally described as Lot 1, Block 2, Fifth North Street First

Addition, City of New Ulm, Brown County, Minnesota, less and excepting therefrom MilfordHeights First Addition (the " Property"); and

WHEREAS, the EDA sold this property to S & P Development, LLC effective August 15,

2017; and

WHEREAS, said sale was made in conformance with the requirements of Minnesota StateStatute 469. 105, Subd. 2; and

WHEREAS, S & P Development, LLC has platted a portion of the Property as MilfordHeights Second Addition and said plat was filed with the Office of the Register of Titles, BrownCounty, Minnesota on October 11, 2017; and


WHEREAS, Minnesota Statute 469. 105, Subd. 5 includes the following statement: " A

purchaser must not transfer title to the property within one year of purchase without the consent of

the authority."; and

WHEREAS, the EDA has determined that it would be appropriate to expedite the sale of

platted and developed lots by S & P Development, LLC, the " Purchaser" governed by theprovisions of Minnesota Statute 469. 105, Subd. 5 within the area platted as Milford Heights Second

Addition.

Now, THEREFORE BE IT RESOLVED that the Economic Development Authority of the Cityof New Ulm, Minnesota does hereby authorize its Executive Director to act on its behalf andapprove the transfer of title to property within the area platted as Milford Heights Second Additionfrom the date of this resolution to August 14, 2018; and

as:

BE IT FURTHER RESOLVED that this authorization applies to the property legally described

Lot 1, 2, 1, 4, 5, 6, 7 and 8, Block 1; Lot 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 and 13, Block 2;

Lot 1, 2, 3, and 4, Block 3;

Lot 1, 2, 3, 4, 5, 6, 7 and 8, Block 4;

all located in Milford Heights Second Addition,

MinnesotaCity of New Ulm, Brown County,

BE IT FURTHER RESOLVED that the recording of a certified copy of this Resolution in theOffice of the County Recorder in and for Brown County, Minnesota, shall serve as evidence ofcompliance of the authority given to the Executive Director, and the signature of the ExecutiveDirector 4f the Economic Development Authority of the City of New Ulm, Minnesota, on anydocuments of conveyance shall constitute evidence of the consent of the authority to the sale orconveyance.

Commissioner Fix seconded the foregoing resolution, and the roll having been called thefollowing vote was recorded:

Voting Yes: Commissioner Fix, Janni, Schwartz and President Schmitz.

Voting No: None.

Not Voting: Commissioners Braam and Schultz (absent).

The President thereupon declared said resolution duly carried and adopted this 12"' day ofDecember, 2017.

Charles Schmitz, President

Michael Schwartz, Secretary


The Authority considered a motion to make a final payment on the Special Assessment forthe 2016 Utility, Street & Alley Improvements for 624 Pfaender Drive upon closing. CommissionerFix offered the motion. The motion was seconded by Commissioner Schwartz and all voted aye.

Commissioner Fix offered the following Resolution and moved its adoption:

RESOLUTION 17- 17

WHEREAS, the EDA Fund 260 has made nine ( 9) loan advances to the Milford Heights TIF

Fund 365 for a total amount of $526,000;

Now, THEREFORE BE IT RESOLVED by the Economic Development Authority of the Cityof New Ulm the forgiveness of the loan balance of $526,000 plus any accrued interest due to theEDA Fund 260 from the TIF Fund 365.

Commissioner Janni seconded the foregoing resolution, and the roll having been called thefollowing vote was recorded:

Voting Yes: Commissioner Fix, Janni, Schwartz and President Schmitz.

Voting No: None.


The President thereupon declared said resolution duly carried and adopted this 12'h

day ofDecember, 2017.

Charles Schmitz, President


The Executive Director gave an overview of the two funding requests before the Authority, one a request from the City of New Ulm to consider funding the Economic DevelopmentDirector/Assistant City Manager ( EDD/ACM) position, and another a request from the New UlmEconomic Development Corporation ( NUEDC) to consider entering into a contract with theirorganization for the purpose of economic development.

President Schmitz stated that he felt it was time to bring Economic Development " in house" because the city has been taking on more of the financial responsibility by purchasing land for thenew industrial park.

Dustin Cross, NUEDC board member, stated that they would like to be funded for at leastone year in order to give their organization more time to plan for their future.


Further discussion took place with several Commissioners expressing concern about thetransition of duties from the NUEDC to the EDD/ACM. Commissioner Fix stated that economic

development is vitally important and that it will take time to get the new EDD/ACM hired andfollowing the hire, there would be a learning curve.

After additional discussion, Commissioner Fix offered a motion to enter into a contract withthe NUEDC in the amount of $50,000 for a period of one year for the purpose of economic

development with the condition that an EDA Commissioner has a seat on the NUEDC board. The

motion was duly seconded by Commissioner Janni and upon roll call, the following voted:

Voting Aye: Commissioners Fix, Janni and Schwartz.

Voting Nay: President Schmitz.


The motion passed.

The Authority considered a motion approving a $ 50,000 Commercial PropertyRehabilitation FN Properties, LLC. Community Development Director Schnobrich gave anoverview of the loan application and renovation project involved.

After further discussion, Commissioner Fix offered a motion to approve the loan request inthe amount of $50,000. Commissioner Janni seconded and all voted aye.

The meeting thereupon adjourned at 9: 33 A.M.





Agenda Section: NUEDC Report Originating Department: EDA Administration


Number of Attachments: 1 Presented By: NUEDC Coordinator

Item•' From the New Ulm Economic Development Corporation Coordinator regarding activities

during the month of December, 2017.


Motion by , second by , accepting the New Ulm Economic Development CorporationCoordinator' s report regarding activities during the month of December, 2017.

Overview:

N/A



Attachments:

NUEDC Report

New Ulm Economic Development Corporation

Coordinator' s Activity Report12/ 1/ 17 —12/ 31/ 17

DETAIL ITEMS:

Communications with Seth Visser, Director of Operations at Windings regardingpotential incentives related to their new facility. Mr. Visser wanted detail on how tax abatementand Tax Increment Financing work and what will be required from Windings. Including followUPS.

Call with Travis Theuer, who is representing a prospective new retailer looking at NewUlm as a potential location. Mr. Theuer wanted to know what incentives were available to newretailers. He was given information on the signage grant.

Call with Randy Scharple of Frandsen Bank. Mr. Scharple has a client looking atopening a mental health clinic in New Ulm. Mr. Scharple indicated his client was short on a

down payment and wanted to know if there was any financial help. In working with the CityManager and the Community Development Director, it was decided that the EDA' s revolvingloan fund could be a source of up to $50,000 as a low cost loan.

Meet with Brent Donner of DLC Manufacturing and Fabrication regarding the purchaseof a lot in the Airport Industrial Park. Mr. Donner indicated he would like to move quick, butwas unwilling to pay the amount of cash NUEDC has put into the lot. Mr. Donner was told to

make an offer, which he did. That offer of $100,000 was addressed at the December 14d,

NUEDC Board meeting. The Board authorized the Coordinator to counter offer at $150,000with some room to negotiate. The amount of $125, 000 was agreed upon and the attorneys are

working on a purchase agreement.

Participate in the Career Expo planning group. The 2018 Career Expo will be held onApril 4, 2018.

Attend the December 12th EDA meeting. Call with Brad Finstad, President of Frontier Labs, regarding available warehouse space.

Mr. Finstad was given information of the former gun shop on Highway 14 west. Meet with Heather Bainbridge Cox, CEO of Windings regarding the lots Windings is

interested in and that NUEDC is willing to negotiate the price of the lots. Participate in the Business and Industry Group. This group is working at its scope of

work and what it hopes to accomplish.

Represent New Ulm at the SBA 504 Corporation quarterly meeting. The group reviewedloans in progress and its book of existing loans. As of December 12, 2017, there are 117 loansapproved and funded with a portfolio amount of $46. 8 million.

Communicate with Jim St. Peter of Firmenich asking if they are interested in using taxabatement as part of their expansion.

CALLSNISITS WITH LOCAL BUSINESSES: Seth Visser of Windings, Brent Donner ofDLC Manufacturing and Fabrication, Brad

Finstad ofFrontier Labs, Heather Bainbridge Cox of Windings, Brent Donner of DLCManufacturing and Fabrication, Jim St. Peter of Firmenich

COMMUNICATIONS WITH POTENTIAL NEW BUSINESSES: Travis Theurer, represents a potential retailer, Client of a banker looking to open a

chemical dependency and mental health clinic

MEETINGS/CONFERENCES:

South Central Business Development Network, Workforce Development Council, Business and Industry Group, NUEDC Board, Hot Topics, SBA 504 Corporation


Meeting Date: January 9, 2018 Agenda Item Number 6.

Agenda Section: gEDA Director' sAdministrative Report Originating Department: EDA Administration



Item: From EDA staff regarding Administrative Activities during the month of December 2017.


Motion by , second byActivities for the month ofDecember 2017.

Overview:

Monthly Staff Reports Highlights:

accepting the Economic Development Authority Administrative

Section 8 ( pp. 1- 5)

pp. 1- 2 Note 88 Vouchers for the month of December. Housing Assistance Payments ( HAP) disbursements fromHUD exceeded payments to landlords by.$602 for the month. Monthly HUD Administrative Fee ( AF) programdisbursements exceeded expenses by $ 1, 349 for the month. pp. 3- 4 Note HAP and AF unaudited balances as ofDecember 31, 2017.

55 Note 85 Vouchers as of January 1" and Waiting List of 75.

Public Housing (pp.6- 9) pp. 6- 7 Note monthly and year-to-date program activity. As of December 31St, program expenditures haveexceeded revenues by $5, 373. Note cash assets summary. 88 Broadway Haus is fully leased with 40 on the Waiting List. 99 Family Units are fully leased with 28 on the Waiting List.

EDA (p. 10) Note revenues and expenditures status, and cash assets of $625, 891.

The large jump in revenue for June is due to the second half EDA share of property tax settlement fromBrown County and proceeds from a lot sale. A builder interested in building affordable homes requested information on available residential lots. Informationon the Milford Heights lots was provided.

Property Rehabilitation Loan Program (pp. l 1- 12) Note available funds of $238, 805. 84 as of December 31St.

An application was received and approved for a loan in the amount of $50,000.

Rental Properties ( p. 13) Note revenues and expenditures status and cash assets of $77, 805.

Garden Terrace Apartments (pp. 14- 15) Total Cash $ 932,835Total Current Liabilities $ 95, 667

Monthly Income $ 75, 233

Monthly Expenditures $ 26,439Net Income ( Before Depreciation) $ 48,794

Garden Terrace has 85 units leased with 70 on the Waiting List. Garden Terrace currently has three vacancies. There were two turnovers during the past month and no move -outnotices have been received for February. The large decrease in the fund balance was due to a board approved transfer to the EDA fund.



Attachments:

EDA Director' s Administrative Report

SECTION 8 HOUSING CHOICE VOUCHER PROGRAM

December 2017 and Preceding 12 Months

Month

Number of Vouchers

Leased -Up

Housing AssistanceHUD

Disbursements

Payments

EDA

Payments

Administrative Fee

HUD EDA

Disbursements Expenses

December 2017 88 28,144 27,542 4, 101 2,752

November 2017 86 23,223 26,625 4, 100 3,241

October 2017 86 13,881 25,449 4,389 5,633

September 2017 87 30,992 26, 539 4,389 4,299

August 2017 91 30,992 27,438 4,389 3,443

July 2017 94 30,448 27,592 4,387 4,067

June 2017 97 29,928 28,900 4,509 2, 989

May 2017 99 29,928 29,520 4,508 3, 557

April 2017 99 29,928 29,445 4,434 3, 267

March 2017 101 29,928 30,384 4,434 4,594

February 2017 99 29,877 29,382 4,939 3, 332

January 2017 99 29,877 29,473 4,749 2, 984

December 2016 1 98 28,651 1 28, 191 1 4,749 1 3, 576

Page 1

SECTION 8 HOUSING CHOICE VOUCHER PROGRAM

eccmbet20 6

auuaryZ, leb acy Z

tl

Matc i

701

PQt\ 2 May 2} } uue Z, } uly 2}

Pusust2

tembetZ

Oct,

2} 1Vecubec %} 1mbec

7"

F se4 TloOege

0Admin.

Disbursements

Admin. Expenses

ece

bet ZitIIA-

0120xl4 eb

a

lox,

MatIvioI

wX 20t, May 2t }

une

vxl }

u y 2, Pug st'10

pteu

bell ZJ) loet ?I) NIube,

2' Oepe bet Zj)I

HAP Disbursements

HAP Expenses

9ecembefZO,

110-

111120goowll

20, EMatc'

JW

NO,

I

May10110"11,} uoe Z, l } uly 2b}

l

N -el tisPte

bec 201

pctobetZ

oV

eubei10" l

9ccembe` 20,

Page 2

105

100

95

90

85

80

75

6,000

5,000

4,000

3,000

2,000

1, 000

0

35, 000

ddLLd

ySE

vQ

N

30,000 dE

25, 000 m20, 000

15, 000 yNQ

10, 000

y5,000

0' s0

New Ulm Economic Development AuthoritySection 8 Housing Choice Voucher Program

Housing Assistance Payments

Fiscal Year 2017 - 2018

Revenues

Over/(Under)

Month HAP Revenue HAP Expenditures Vouchers Expenditures

Forward 06/30/ 17 REAC Filing/Audit 5, 54107/ 17 30,448 27,592 94 2, 85608/ 17 30,992 27,438 91 3, 554

09/ 17 30,992 26,539 87 4,453

10/ 17 13, 881 25,449 86 11, 568) 11/ 17 23,223 26,625 86 3,402) 12/ 17 28, 144 27,542 88 602

FY CURRENT BALANCE (Unaudited) $ 2, 036

HUD Held Reserves $ 3,849

Total Reserves $ 5,885

Page 3

New Ulm Economic Development AuthoritySection 8 Housing Choice Voucher Program

Administrative Fees

Fiscal Year 2017 - 2018

Revenues

Over/(Under) Month AF Revenue AF Expenditures Vouchers Expenditures

Forward 06/30/ 17 REAC Filing/Audit 23, 90407/ 17 4,387 4,067 94 32008/ 17 4,389 3,443 91 946

09/ 17 4,389 4,299 87 9010/ 17 4,389 5,633 86 1, 244) 11/ 17 4, 100 3,241 86 85912/ 17 4, 101 2,752 88 602

FY CURRENT BALANCE (Unaudited) 25,157

Page 4

STATUS OF THE SECTION 8 HOUSING CHOICE VOUCHER PROGRAM ( HCV)

As of January 1, 2018

Total HCV' s that are available for 1 year ( 124 x 12) 1488

Total HCV' s available from 01/ 01/ 18 - 01/ 31/ 18 ( 124 x 1 mo) 124

Total HCV' s used from 01/ 01/ 18 - 01/ 31/ 18 68. 5% 85

ti

eQ

po

Page 5

140

120

100

80

60

40

20

0

Total Available

Total on Program

Issued Not Used

Waiting List

Total HCV

Available

CountyHCV

Port Out

HCV

Total HCV

on Program

New On

Program

Off

Program

ShopMode

HCV Issued

Not Used

WaitingList

January 2018 124 81 4 85 0 3 0 1 75

December 2017 124 83 5 88 2 1 0 0 2 81

November 2017 124 82 4 86 3 3 1 4 82

October 2017 124 82 4 86 4 5 1 1 77

September 2017 124 83 4 87 1 5 0 3 75

August 2017 124 87 4 91 1 4 1 2 70

July 2017 124 90 4 94 0 2 1 0 67

June 2017 124 93 4 97 0 2 0 0 62

May 2017 124 95 4 99 1 1 0 0 82

Aril 2017 124 95 4 99 0 1 1 0 87

March 2017 124 97 4 101 2 0 0 2 75

February 2017 124 95 4 99 1 1 0 51 76

IJanuary 2017 1 124 95 1 4 1 99 1 1 2 1 1 1 3 1 70:::]

Total HCV' s that are available for 1 year ( 124 x 12) 1488

Total HCV' s available from 01/ 01/ 18 - 01/ 31/ 18 ( 124 x 1 mo) 124

Total HCV' s used from 01/ 01/ 18 - 01/ 31/ 18 68. 5% 85

ti

eQ

po

Page 5

140

120

100

80

60

40

20

0

Total Available

Total on Program

Issued Not Used

Waiting List

PUBLIC HOUSING PROGRAM

December 2017 and Preceding 12 Months

MONTH

MONTHLY

PROGRAM ACTIVITY

YEAR-TO-DATE

PROGRAM ACTIVITYRevenues Expenditures Revenues Expenditures

December 2017 17, 155 34,487 189, 122 194,495

November 2017 81, 567 79, 566 171, 967 160,008

October 2017 19, 800 19, 514 90,400 80,442

September 2017 19,734 16,590 70,600 60,928

August 2017 34,496 30,917 50,866 44,338

July 20171 16,370 13, 421 16,370 13, 421

June 2017 51, 435 51, 414 254,771 269,225

May 2017 17, 598 17, 139 203, 336 217,811

April 2017 17,779 45, 507 185, 738 200,672

March 2017 18, 199 17,455 167,959 155, 165

February 2017 19, 333 17,086 149, 760 137,710

January 2017 17,916 11, 645 130,427 120,624

December 2016 20,315 23, 721 112, 511 108,979

Public Housing Projram Cash Assets Summaa (as of December 31 2017Checking Account: $ 616,893. 54 ( current interest rate .51%)

Page 6

Revenues

Expenses

Revenues

Expenses

PUBLIC HOUSING PROGRAM

o o o o o o o o o` o oNo oN

ti ti ti ti ti ti ti ti ti ti ti ti tiro , o-fi1 t

P4; ' 51 FJ

Js

90, 000

80,000

70,000

60, 000 a50,000

40, 000 a30, 000 y20, 000 2

10, 000

0

300,000

250,000a

200, 000a

E

150, 000 2

0

a

100, 000

v0

50, 000 o-

md

0 }

Page 7

PUBLIC HOUSING - BROADWAY HAUS

January 1, 2018

40 Total Units: 38 one -bedroom, 2 two- bedroom

New Ulm Economic Development Authority - Public Housing Authority

Date

Total

Leased

Expected

Lease Date

No. on

Waiting ListJanuary 2018 40 40

December 2017 40 38

November 2017 40 43

October 2017 39 48

September 2017 38 October 1, 2017 47

August 2017 39 October 1, 2017 41

July 2017 39 38

June 2017 39 July 1, 2017 33

May 2017 40 51

Aril 2017 40 72

March 2017 39 Aril 1, 2017 64

February 2017 39 Aril 1, 2017 64

January2017 40 59

A NA NA NA NA N1 NA NA NA ^ A NA ^ 1N%

Jac1 Jaie

r

P\ aA

met met weea

bac Fe

PJ0Qe O°'

80

70

60

50Units Leased

40

30 + Waiting List

20

10

0

Page 8

PUBLIC HOUSING - FAMILY UNITS

January 1, 2018

10 Total Units: 2 two- bedroom, 6 three-bedroom and 2 four-bedroom

New Ulm Economic Development Authority - Public Housing Authority

Date

Total

Leased

Expected No. on

Lease Date Waiting ListJanuary 2018 10 28

December 2017 10 23

November 2017 10 29

October 2017 10 26

September 2017 10 22

August 2017 10 18

July 2017 10 17

June 2017 10 15

May 2017 10 37

Aril 2017 10 64

March 2017 10 61

February 2017 10 60

January 2017 10 59

ANA NA NA NA N1 NA NA N1 NA NA NA Nt

0 0 0 0 0 0 0 0 0 0 0 0 0ti ti ti ti ti ti ti ti ti ti ti ti ti

SJ

J

JS

o

oo

G

ooee

pe

e

oe c

70

60

50

40 Units Leased

30 - Waiting List

20

10

0

Page 9

0

0

800%

700%

600%

500%

400%

300%

200%

100%

0%

EDA FUND (ADMINISTRATION) - 2017

EDA FUND ( CASH ASSETS)

Revenues

Expenditures

700,000

600,000

500, 000

400, 000

300,000

200, 000S

1 $

0

00, 0000

Page 10

oN

o o o o o oN\

o 4

Page 10

EDA Sheet

NEW ULM ECONOMIC DEVELOPMENT AUTHORITY (EDA)

COMMERCIAL PROPERTY REHABILITATION LOAN PROGRAM

January 9, 2018

Original Current

Loan Programs/Programs Description Program Period # Loans Balance # Loans Balance

Residential Property Rehabilitation Loans July 1984 - April 1985 19 179,343.41 0 $ 0.00

Loans made by the New Ulm HRA utilizingCommunity Development Block Grants

Commercial/ Residential Property Rehabilitation Loans Sept 1986 - Sept 1991 13

Loans made by the New Ulm HRA utilizingrepayments from original Residential PropertyRehabilitation Loans and private lender funds.

Commercial Property Rehabilitation Loans Oct 1991 - Present 79

Loans made by the New Ulm HRA and EDA utilizingrepayments from previous property rehabilitationloan programs and private lender funds.

79, 958.76 0 0.00

1, 468,400.50 20 308,066.61

Total 111 $ 1, 727,702. 67 20 $ 308,066.61

Reconciled Balance as of 12/ 31/ 17

Other Information

A. Current Program Status

Number of Loans 79

Principal value of EDA loan funds $ 1, 468,400.50

Principal value of private lender loan funds $ 1, 468,400.50

TOTAL principal value of loans $ 2,936,801. 00

B. Available EDA Funds available for the loan

program as of December 31, 2017 $ 238,805.84

C. Miscellaneous

Page 11

3iCt Account Account

255-128010 255-46323-36225

lssou MM SIa93 Star Group LLC 4/3/ 2008 25,000.00 120 230.36 2.0% 3, 608.54 2, 716.70 891. 84 12 2, 764.32 47.62 ACH95 George & Karen Cottom 7/7/ 2008 29, 626.46 120 272.72 2.0% 4, 771. 08 3,206.08 1, 565.00 12 3, 272.64 66.56 ACH96 KBV Properties, LLC 7/ 15/2008 22,400.00 120 206. 11 2.0% 3, 849.55 2,418.05 1, 431. 50 12 2,473.32 55.27 ACH97 Barbara A. Saffert 8/ 15/2008 25, 000.00 120 230.36 2. 0% 4, 482.41 2,698.90 1, 783.51 12 2, 764.32 65.42 ACH98 Don Wendel ( Horace Mann) 4/ 29/2009 18,983.77 120 177.80 2.0% 4, 445.56 2,063.04 2,382.52 12 2, 133.60 70. 56 ACH99 David Berg DBA Ulmer Cafe 7/9/ 2009 12,867.12 120 124.40 2. 0% 3, 002.511,445.62 1, 556.89 12 1, 492.80 47. 18 ACH

100 Stake Properties, LLC 8/ 14/2009 25,000. 00 120 231. 31 2.0% 7, 040.21 2,658. 01 4, 382.20 12 2,775.72 117. 71 ACH101 Nierengarten & Hippert 8/ 26/2009 23,000.00 120 212.05 2.0% 6, 531. 12 2,435.43 4, 095.69 12 2,544.60 109. 17 ACH102 Tate & Karen Stillwell 10/ 14/2009 5, 000.00 120 46. 10 2.0% 1, 510.59 527.63 982.96 12 553.20 25.57 ACH103 Sisters Bridal & Tux, LLP 10/22/2009 30,302.92 120 281. 15 2.0% 8, 977.35 3,222.60 5, 754.75 12 3,373.80 151. 20 ACH107 Strategic Wealth Properties, LLC 1/ 30/2013 25,000.00 120 230.37 2.0% 16, 187.71 2, 460.77 13,726.94 12 2, 764.44 303.67 ACH

110 Broadway Plaza South, LLC 5/ 21/ 2013 25,000.00 120 230.37 2.0% 16, 828. 71 2, 447.75 14,380.96 12 2, 764.44 316.69 ACH112 LIKA, LLC 4/ 1/ 2016 25,000.00 120 230.36 2.0% 23, 493.68 2, 311. 97 21, 181. 71 12 2, 764.32 452.35 ACH113 Vaharoslee, Inc. 4/ 1/ 2016 25,000.00 120 230.36 2.0% 23, 493.68 2, 311. 97 21, 181. 71 12 2, 764.32 452.35 ACH114 Skovbroten, Derek 6/ 28/ 2016 10,000.00 84 128. 00 2. 0°% 9, 448.08 1, 358.04 8, 090.04 12 1, 536.00 177.96 ACH115 Be Well Center, LLC ( Joan Lindholm) 8/ 29/ 2016 50,000.00 120 460.71 2. 0% 48,868.10 4,585.56 44, 282.54 12 5,528.52 942. 96 ACH117 REGroup, Inc 4/ 21/ 2017 50,000.00 120 460.73 2. 0°% 50,000.00 2, 594.21 47,405.79 7 3,225. 11 630.90 ACH118 Bailey Creek Boutique LLC (Tim & Sandy F 4/ 14/ 2017 15,857.00 120 146.50 2. 0% 15,857.00 671. 37 15, 185.63 6 879.00 207.63 ACH119 Home Grown Properties, LLC 5/ 15/ 2017 50,000.00 120 460.77 2. 0% 50,000.00 2, 195.57 47, 804.43 6 2, 764.62 569.05 ACH120 FN Properties, LLC 12/27/2017 50,000.00 120 50,000.00 50,000.00 0

1, 848,800.32 17, 140.95 197,591. 68 165,857.00 55, 382. 07 308,066.61 4,889.8564, 840.20

separate excel loan calc wksht Amt from General Ledger 303, 176.76 Interest recorded at time of receiptAdd back int 4,889.85

308, 066.61

12/31/ 17 balance from wksh 308,066.61

Difference

120%

100%

d80%

m' 60% 0a

40%

20%

0%

RENTAL PROPERTIES FUND - 2017

Revenues

Expenditures

79, 000

78, 000

77, 000

76, 000

75, 000

74, 000

73, 000

72, 000

71, 000

70, 000

Page 13

oooÂ oÂ

oNAti

oÂ

tio^

Ao^

Ao^

Ao^

Ao^

Ao^

A

oNAo^

A

ti L L6

LG a

Leti ti

esti estie, e

e e ea

Ja

e ° eO e`

Ja

Oe°

e

Q^

ee°

5a O

Revenues

Expenditures

79, 000

78, 000

77, 000

76, 000

75, 000

74, 000

73, 000

72, 000

71, 000

70, 000

Page 13

GARDEN TERRACE

o Cash

Current

Liabilities

1 N1 NA N1 N1 1 A ^ 1 N1 ^ A 1 ^ 1o llo

10 o o o yo o yo o o o o

A

PJOp e

100ei C

a

Ja6Oe c° Q

olncome

Expenses

E3Net Income

Net Income Before Depreciation: $ 48, 794

1, 600, 000

1, 400, 000

1, 200, 000

1, 000, 000s

800, 000 CO

600, 000m

400, 000m

200, 000

0

90, 000

80, 000

70, 000

60, 000 050, 000

40, 000 0

30, 000

20, 000 20

10, 000

0

Page 14

o^o

oNA oNA oNA oNA oNA oNA oNA oNA oNA oNA oNA oNAPJOp e

100ei C

Oe c° Q

Net Income Before Depreciation: $ 48, 794

1, 600, 000

1, 400, 000

1, 200, 000

1, 000, 000s

800, 000 CO

600, 000m

400, 000m

200, 000

0

90, 000

80, 000

70, 000

60, 000 050, 000

40, 000 0

30, 000

20, 000 20

10, 000

0

Page 14

GARDEN TERRACE APARTMENTS

January 1, 2018

88 Total Units

New Ulm Economic Development Authority

Date

Total

Leased

No. on

Waiting ListJanuary 2018 85 70

December 2017 85 69

November 2017 86 69

October 2017 86 68

September 2017 87 76

Au ust 2017 87 75

July 2017 87 74

June 2017 87 73

May 2017 86 74

Aril 2017 87 68

March 2017 88 67

February 2017 87 63

January 2017 86 61

NA A ^ 1 N1 NA ^ A NA ^ 1 ^ 1 ^ A ^ A N1 N' o " p p o do

10090807060 — s Units Leased

I50

40 Waiting List3020100

Page 15


Meeting Date: January 9, 2018 Agenda Item Number: 7. a.

Agenda Section: Public Housing Program Originating Department: Housing Administration

Resolution: No Prepared By: Housing Coordinator


Item• Receive the Public Housing Assessment System (PHAS) score for the fiscal year endingJune 30, 2017.


Motion by , seconded by , receiving the Public Housing Assessment System (PHAS) score forthe fiscal year ending June 30, 2017.

Overview:

The Department of Housing and Urban Development (HUD) periodically requires the Authority to complete anassessment of our Public Housing Program. This assessment is called Public Housing Assessment System or PHAS.

The Assessment System evaluates four indicators; Physical, Financial, Management and Capital Fund. Through thisassessment process, HUD identifies those projects or agencies experiencing difficulties and then is able to focus theirresources on those projects. The Authority received a PHAS score for the fiscal year ending June 30, 2017 of 96%. This

put the overall performance rating as High Performer. -



Attachments:

HUD Public Housing Assessment System (PHAS) Score Report

U.S. Department of Housing and UrbaniOFFICE OF PUBLIC AND INDIAN HOUSING

REAL ESTATE ASSESSMENT CENTER

Public Housing Assessment System (PHAS) Score Report for Interim Rule

Report Date: 12/ 28/2017

Physical 36 40

Financial 25 25

Management 25 25

Capital Fund 10 10

Late Penalty Points 0

PHAS Total Score 96 100

Designation Status: High Performer

Published 12/28/2017 Initial published 12/ 28/2017

Notes:

1. The scores in this Report are the official PHAS scores of record for your PHA. PHAS scores in other systems are not to be

relied upon and are not being used by the Department.

2. Due to rounding, the sum of the PHAS indicator scores may not equal the overall PHAS score. 3. " 0" FASS Score indicates a late presumptive failure. See 902.60 and 902.92 of the Interim PHAS rule.


Meeting Date: January 9, 2018 Agenda Item Number: 7. b.

Agenda Section: Public Housing Program Originating Department: EDA Administration


Number ofAttachments: 2 Presented By: Housing Coordinator

Item• Receive schedule for approval of the FY 2018 Annual Plan and Schedule Public Hearing onadoption of the plan.


Motion by , second by , approving schedule for approval of the FY 2018 Annual Plan andscheduling a Public Hearing on adoption of the plan for 8: 00 A.M., Tuesday, April 10, 2018.

Overview:

The Annual Plan is a comprehensive guide to public housing agency (PHA) policies, programs, operations, and strategiesfor meeting local housing needs and goals. There are two parts to the PHA Plan: the 5 -Year Plan, which each PHAreviews and updates once every 5t' PHA fiscal year, and the Annual Plan, which is prepared by the PHA every year. PHAs complete a PHA Plan Template, which includes specific plan elements, but also, information on where certain plan

elements that are not required to be reviewed by HUD can be obtained locally. PHAs use the same PHA Plan Templatefor the 5 -Year and Annual Plan. The entire PHA Plan ( including all elements, not just those submitted to HUD) must bemade available locally, typically at the main office of the PHA.

The FY 2018 Annual Plan is the fourth year of the current 5 -Year Plan cycle.

Staff has already begun the review ofprogram documentation and policies that are required on an annual basis. Over thenext two months, prior to the April I Wh Public Hearing on the plan, staff will continue its due diligence in reviewing andupdating program documentation and policies, conducting a Public Hearing with both Public Housing and Section 8Resident Advisory Boards" and formulating a proposed capital improvement program for utilization of Capital Fund

Program funding from HUD. A draft of the Annual Plan will be presented to the EDA at the March meeting.



Attachments:

1. Schedule For Approval of FY 2018 Annual Plan memorandum.

2. " Notice ofPublic Hearing" on adoption of the FY 2018 Annual Plan.

SCHEDULE FOR 2018 ANNUAL PLAN

1. 45 days prior to Public Hearing, by February 23, 2018, Public Noticepublished that draft Annual Plan is available for review at Public HousingOffice, City Hall, during regular business hours.

2. EDA staff to conduct Annual Plan public meetings with program advisoryboards from Broadway Haus, Public Housing Family Units and Section 8Program participants: March 7, 2018.

3. Draft of Annual Plan to EDA for review: March 13, 2018.

4. EDA Public Hearing date for Annual Plan: April 10, 2018.

5. Commencement of next fiscal year: July 1, 2018.

NOTICE OF PUBLIC HEARING

NOTICE IS HEREBY GIVEN that the Economic Development Authority ( EDA) of the

City of New Ulm, Minnesota, will hold a Public Hearing at 8: 00 A.M. on Tuesday,

April 10, 2018 in the City Council Chambers, City Hall, regarding the adoption of the

FY 2018 Annual Plan for the fiscal year beginning July 1, 2018. This Plan addresses

EDA administration of the Public Housing and Section 8 Housing Choice Voucher

Programs only. The purpose of the Plan is to provide a framework for local

accountability and an identifiable resource for public housing residents, participants in

the tenant -based assistance program and other members of the public to locate EDA

policies, rules and requirements concerning its' operations, programs and services. The

Annual Plan and attachments are on file and available for public inspection at the

Housing Office, 1St

Floor, City Hall, 100 North Broadway, New Ulm, Minnesota 56073.

All persons in attendance at the Public Hearing will be given an opportunity to speak on

this matter. Written testimony may also be submitted to the Housing Office located in

City Hall prior to the Public Hearing.

BY ORDER OF THE ECONOMICDEVELOPMENT AUTHORITY OF THECITY OF NEW ULM, MINNESOTA

Brian Gramentz, Executive Director

Dated: January 9, 2018

www.newulmmn.gov


Meeting Date: January 9, 2018 Agenda Item Number: 7. c.

Agenda Section: Public Housing Originating Department: Housing Administration



Item: Consider resolution to declare surplus property and authorize disposition.


Motion by , seconded by , adopting a resolution and waiving the reading, to declare EDA officefurniture as surplus property and authorize disposition pursuant to City Code 2. 75 — Subd.3.

Overview:

Staff requests authorization to dispose of the following items:

Item Purchase Date Current Value

Two lateral file cabinets 1988 $ 100.00

Primary Issues/Alternatives to Consider: We are transitioning to electronic tenant files in an effort to go paperless. We no longer need the file cabinets to storepaper tenant files. The file cabinets were offered to other city departments, but were not needed elsewhere.


Attachments:

N/A

City of New UlmRequest for Economic Development Authority Action

Meeting Date: January 9, 2018 Agenda Item Number: 7. d.

Agenda Section: Public Housing Program Originating Department: Housing Administration



Item: Consider motion authorizing payment of Public Housing Program claims.


Motion by , second by , authorizing payment of Public Housing Program claims for January 9, 2018and order filed.

Overview:

Bills submitted to the Authority for payment total $28, 246. 18



Attachments:

Public Housing Program Claims — January 9, 2018


January 9, 2018

CLAIMANT AMOUNT PURPOSE

Former Tenant 76.57 Refund Sec Dep/Int/Broadway Haus #409City ofNew Ulm 6, 090.27 December 2017 Expenses

Public Utilities Commission 2,902.45 Utilities/BH ( 11/ 1/ 17 to 12/ 1/ 17)

15. 63 Utilities/BH #303 ( 11/ 13/ 17 to 12/ 11/ 17)

C. Naber & Associates 120.00 December 2017 Accounting ServiceEcowater Systems 81. 00 12/ 12/ 17 Softener Salt/Broadway Haus

60.75 12/ 13/ 17 Softener Salt/Family UnitsRiver View Sanitation 111. 95 January 2018 Garbage Service/BH

8. 78 Extra Garbage Pick Up10. 15 Extra Garbage Pick Up

Auto Value 15. 99 Supplies

City ofNew Ulm - Fire Dept 1, 200.00 Annual Rental Registration/Broadway Haus300.00 Annual Rental Registration/Family Units

Gag Sheet Metal, Inc 13, 600.00 CFP 2017

979.44 Service Call/Broadway Haus Generator220.00 Service Call/ 1318 S German St

18. 13 Supplies

Hilltop Vacuums Plus 229.92 Repair Vacuum Cleaner/Broadway HausInterstate Powersystems 1, 694.00 Preventative Maintenance/BH Generator

Menards 81. 05 Supplies ( 4)

Nilson Heating & Air Conditioning 125. 10 Service Call/ 615 N German St

Public Utilities Commission 5. 00 December URPBroadway Haus #405

South Central Painting 300.00 Painting/ Broadway Haus #30328,246. 18


Meeting Date: January 9, 2018 Agenda Item Number: 8. a.

Agenda Section: Economic Development

Authority Originating Department: EDA Administration



Item: Consider renewing the realtor contract for the spec house located at 633 Pfaender Drive.


Motion by , seconded by , authorizing staff to renew the contract with Century 21 Realty for thespec house located at 633 Pfaender Drive in the Milford Heights Subdivision at a rate of 3% commission through June 30,

2018.

Overview:

Century 21 Realty has had the contract for the spec houses and bare lots since September 2012. We have one spec houseat 633 Pfaender Drive currently listed with Century 21.. Staff is recommending renewing the contract on the spec housefor another six months.

Primary Issues/Alternatives to Consider: Listing the spec houses with a local realtor broadens the marketing spectrum to reach a larger audience. Most buyersconsult with realtors when purchasing a house. The contract would be effective through June 30, 2018.

The EDA may also want to consider another price reduction. This spec house has been on the market since August 2016. A $5, 000 price reduction was approved in March 2017. The EDA approved a quote to stage the house in October 2016

and renew the contract with Century 21 for 90 days. Since that time, the house has been staged, an open house has beenheld and new interior and exterior photos have been taken for the Century 21 website. The realtor contract is due toexpire at this time unless it is renewed.

The spec house at 629 Pfaender Drive sold in October 2017 for $150,000. The current price on this house is $ 159,900.

The houses are virtually the same in size and amenities.

Budgetary/Fiscal Issues: The cost of the realtor commission is included when determining the sale price on spec houses.

Attachments:

N/A


Meeting Date: January 9, 2018 Agenda Item Number: 8. b.


Authority Originating Department: EDA Administration

Resolution: N/A Prepared By: Heather Bregel

Number of Attachments: 1 Presented By: Heather Bregel

Item: Receive letter from Minnesota Housing Partnership regarding Housing Institute.


Motion by , seconded by , receiving letter from Minnesota Housing Partnership regardingHousing Institute.

Overview:

Because the EDA is receiving technical assistance from the Minnesota Housing Partnership (MHP) Strengthening RuralCommunities program, we have been notified that we have been invited to participate in their upcoming Housing Institute.

Staff will begin working with MHP in the near future to work on the team application and bring in additional stakeholdersas team members.

Primary Issues/Alternatives to Consider: The Housing Institute will begin with a workshop February 13 and 14, 2018.


Attachments:

MHP letter dated December 18, 2017

Minnesota fHousing Partnership

December 18, 2017

Brian Gramentz

New Ulm Economic Development Authority100 North BroadwayNew Ulm, MN 56073

Dear Brian,

Congratulations! Minnesota Housing Partnership will kick-off a new 18 month long Housing Institute and

New Ulm Economic Development Authority is invited to participate. In many rural communities, there' sa significant gap between the supply of affordable housing and the number of people who need it. The

Housing Institute, created by the Minnesota Housing Partnership, closes that gap through customized

curriculum, guided collaboration and capacity building for diverse community stakeholders.

Established in 2010, the Housing Institute brings together regional housing leaders and stakeholders toshare their experiences, learn best practices, and develop creative solutions to bring quality affordablehousing to their communities. While there is no registration fee to participate, it is expected that team

members will commit their time to attend the five workshops and monthly team meetings in order toadvance a regional housing project. (Lodging, and food costs will be provided.)

Over the past six years, the Institute has shown that engaging different stakeholders in truly effectiveand meaningful partnerships is the key ingredient to completing short-term projects and sustaininglong-term relationships that lead to vibrant rural communities and regions. For more information pleasesee the enclosed brochure.

This round of the Housing Institute will begin with a workshop February 13 and 14, 2018. Yourorganization has been paired with at least one other regional organization and has been assigned to

Team # 2. Your MHP Liaison, Sarah Bellefuil, will be contacting you in the near future to assist you withintroductions to other regional team members, bring in additional stakeholders as team members, andin submitting the team application. (The t$ '

4,

rriculum and

engage speakers that are relevant to the re ° .';; R

We are looking forward to working with your your t' " to f

you have any immediate questions please c t your`. Lia

know that Sarah will be contacting you in th

Sin

Bab

C munity De I meat Managerx

Cc. Sarah Bellefuil

isingin your region. If

h,

atJ*

ns

25- 5558. Otherwise,

asst


Meeting Date: January 9, 2018 Agenda Item Number: 8. c.


AuthorityOriginating Department: EDA Administration

Resolution: N/A Prepared By: Executive Director

Number of Attachments: 1 Presented By: Executive Director

Item: Receive hotel feasibility analysis.


Motion by , seconded by , to receive the hotel feasibility analysis from Hospitality ConsultingGroup.

Overview:

At the October 10, 2017 meeting, the EDA authorized staff to send out Request for Proposals and utilize up to $12, 000 toconduct a hotel feasibility analysis. Staff entered into a contract with Hospitality Consulting Group in the amount of

8, 000 on November 7, 2017. Staff held a preliminary meeting with a representative from this furn in December.

Primary Issues/Alternatives to Consider: Upon further analysis, Hospitality Consulting Group has concluded that a new hotel is not recommended at this time.

Budgetary/Fiscal Issues: The contract amount was $ 8, 000 and a $4,000 retainer payment was made at the time the contract was signed.

Hospitality Consulting Group has waived the remaining $4, 000 balance due because the study was halted.

Attachments:

Hospitality Consulting Group Letter Dated December 29, 2017

HospitalityCONSULTING GROUP .-

December 29, 2017

Mr. Brian Gramentz

City Manager100 North Broadway StreetNew Ulm, MN 56073

Dear Brian:

Y.i;• a {,"`"', 5`.•°..'

JAN 2 2018

Nr r g a . meq

I have completed my analysis of the New Ulm lodging market and have concluded thata new hotel would carry a high degree of risk at this time. Based on my findings, Ibelieve that the market cannot support a new hotel at this time.

Interviews with local employers, the Convention and Visitors Bureau, and

representatives of the Best Western Plus Hotel, indicated that the present hotel supplyis generally adequate tomeet the community's lodging needs on weekdays, butreaches capacity on some weekends. Local festivals and athletic tournaments fill theBest Western Plus and the other two franchised hotels on an estimated 12 to 20

weekend nights, sending overflow demand to hotels in Mankato. In general, however, these hotels achieve weekday occupancies in the 50 percent range. In 2017, 1 estimatethat the competitive hotel market will achieve an annual occupancy of only about 60percent

The New Ulm lodging market has been fairly stable in recent years. However, theamount of commercial lodging business generated by both 3M and Kraft Foods hasbeen trending downwards, a pattern typical of commercial travel in general astechnology has reduced the necessity for many on-site visits.

The expansion at Kraft Foods accounted for a large amount of temporary hotelbusiness in 2016 and 2017. While the contracted rates for this business were below

normal rates charged by the hotels, it did boost occupancy. I estimate that the marketwill return to an annual occupancy level in the low 50 percent range when this projectis completed.

Of the three franchised hotels in New Ulm, only the Best Western Plus would becompetitive with a new upper midscale hotel. The other two hotels, the Microtel and

the EconoLodge, are both economy motels with limited amenities and a rate structuresthat are $25 to $40 below the Best Western. The Best Western Plus is a large117guest rooms) full service hotel whose amenities include a restaurant, bar, indoor

5315 Eureka RoadExcelsior, MN 55331

Phone (C 12) 867- 1649 ssherf(a),hcgroup2:com

Mr. Brian Gramentz

Page 2

pool, exercise room, elevator, and a conference center. Although the property is 35years old, the upper midscale hotel seems to be well maintained and its decor was

recently updated. Its TripAdvisor response is highly favorable with 88 percent of theresponses in the very good to excellent category.

This hotel appears to be satisfactory for most of the visitors to New Ulm, although itwas reported that some do stay in more upscale hotels located in Mankato. Mankatohas two upscale hotels (Hilton Garden Inn and Courtyard by Marriott) as well as threeupper midscale hotels (Fairfield Inn & Suites by Marriott, Holiday Inn Express & Suites,

and a Country Inn & Suites). There is also a wide variety or restaurants in thatcommunity. While a new upper midscale hotel in New Ulm may be able to retain someof the business going to Mankato, it is unlikely that it could capture the business thatgoes to the upscale hotels there.

In conclusion, a new hotel would provide additional lodging capacity on the weekendswhen everts fill the hotels and it would retain a portion of the lodging demand thatpresently seeks higher quality hotel accommodations in Mankato. These two sourceswould comprise only a small portion of the new hotel's business. The rest of itsoccupancy would come from business that is already staying in the existing New Ulmhotels. This would dilute a somewhat already weak market and create a highlycompetitive situation. It is unlikely that the resulting occupancy and average rate that anew hotel could achieve would be sufficient to support the higher cost of new hotelconstruction.

The New Ulm market definitely needs an upper midscale hotel. As long as the BestWestern Plus is able to maintain its quality and service at this level, it should meetmost of the city's lodging needs. In the event that its quality deteriorates and/ or itsfranchise is downgraded, a new hotel should again be considered.

I appreciate the information and cooperation that I received from you, Mr. Schnobrich,

and others in the community while performing this study. Please feel free to call me ifyou have any questions or would like to further discuss these findings and conclusion.

Sincerely,

HOSPITALITY CONSULTIING GROUP

Stephen W. Sherf

President

5315 Eureka Road

Excelsior, MN 55331

Phone (612) 867- 1649 ssherr@hi group2. com

HospitalityCONSULTING GROUP

Invoice 1710

December 29, 2017

Mr. Brian Gramentz

City Manager100 North Broadway StreetNew Ulm, MN 56073

Fees for hotel feasibility study (halted) for New Ulm, MN $ 4,000

Less retainer ( 4,000)

Amount due $- 0-

Thank you for your business.

Please remit to: Hospitality Consulting Group, Inc. 5315 Eureka Road

Excelsior, MN 55331

ID# 41- 1927522

5315 tura RoadExcelsior, MN 55331

Phone (612) 867- 1649 hcgroup2Lgmail.com

consider renewing the realtor contract for the spec house ......jan 09, 2018 · von essen...

Documents