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
City ofNew UlmRequest for Economic Development Authority Action
Meeting Date: January 9, 2018 Agenda Item Number: 3.
Agenda Section: EDA Appointment to
NUEDResolution: Originating Department: EDA Administration
N/A Prepared By: Housing Coordinator
Number of Attachments: N/A Presented By: Housing Coordinator
Item: Consider motion appointing an EDA Commissioner to the NUEDC Board of Directors.
EDA Staff Proposed Action:
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.
Budgetary/Fiscal Issues: N/A
Attachments:
N/A
City ofNew UlmRequest for Economic Development Authority Action
Meeting Date: January 9, 2018 Agenda Item Number: 4.
Agenda Section: Approval of Minutes Originating Department: EDA Administration
Resolution: N/A Prepared By: Housing Coordinator
Number of Attachments: 1 Presented By: Housing Coordinator
Item: Approval of Minutes from the Regular EDA Meeting held on December 12, 2017.
EDA Staff Proposed Action:
Motion by , second by , approving the minutes from the Regular EDA Meeting held onDecember 12, 2017.
Overview:
N/A
Primary Issues/Alternatives to Consider: N/A
Budgetary/Fiscal Issues: 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
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
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
ECONOMIC DEVELOPMENT AUTHORITY MEETING 117 DECEMBER 12, 2017
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
ECONOMIC DEVELOPMENT AUTHORITY MEETING 118 DECEMBER 12, 2017
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.
Not Voting: Commissioners Braam and Schultz (absent).
The President thereupon declared said resolution duly carried and adopted this 12'h
day ofDecember, 2017.
Charles Schmitz, President
Michael Schwartz, Secretary
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.
ECONOMIC DEVELOPMENT AUTHORITY MEETING 119 DECEMBER 12, 2017
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.
Not Voting: Commissioners Braam and Schultz (absent).
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.
Michael Schwartz, Secretary
ECONOMIC DEVELOPMENT AUTHORITY MEETING 120 DECEMBER 12, 2017
City ofNew UlmRequest for Economic Development Authority Action
Meeting Date: January 9, 2018 Agenda Item Number: 5.
Agenda Section: NUEDC Report Originating Department: EDA Administration
Resolution: N/A Prepared By: Housing Coordinator
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.
EDA Staff Proposed Action:
Motion by , second by , accepting the New Ulm Economic Development CorporationCoordinator' s report regarding activities during the month of December, 2017.
Overview:
N/A
Primary Issues/Alternatives to Consider: N/A
Budgetary/Fiscal Issues: 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
City ofNew UlmRequest for Economic Development Authority Action
Meeting Date: January 9, 2018 Agenda Item Number 6.
Agenda Section: gEDA Director' sAdministrative Report Originating Department: EDA Administration
Resolution: N/A Prepared By: Housing Coordinator
Number of Attachments: 1 Presented By: Housing Coordinator
Item: From EDA staff regarding Administrative Activities during the month of December 2017.
EDA Staff Proposed Action:
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.
Primary Issues/Alternatives to Consider: N/A
Budgetary/Fiscal Issues: N/A
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
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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
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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
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Page 5
140
120
100
80
60
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20
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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
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E
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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%
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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
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70
60
50
40 Units Leased
30 - Waiting List
20
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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
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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
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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
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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
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Page 14
o^o
oNA oNA oNA oNA oNA oNA oNA oNA oNA oNA oNA oNAPJOp e
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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
City ofNew UlmRequest for Economic Development Authority Action
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
Number of Attachments: 1 Presented By: Housing Coordinator
Item• Receive the Public Housing Assessment System (PHAS) score for the fiscal year endingJune 30, 2017.
EDA Staff Proposed Action:
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. -
Primary Issues/Alternatives to Consider: N/A
Budgetary/Fiscal Issues: N/A
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.
City ofNew UlmRequest for Economic Development Authority Action
Meeting Date: January 9, 2018 Agenda Item Number: 7. b.
Agenda Section: Public Housing Program Originating Department: EDA Administration
Resolution: N/A Prepared By: Housing Coordinator
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.
EDA Staff Proposed Action:
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.
Primary Issues/Alternatives to Consider: N/A
Budgetary/Fiscal Issues: N/A
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
City ofNew UlmRequest for Economic Development Authority Action
Meeting Date: January 9, 2018 Agenda Item Number: 7. c.
Agenda Section: Public Housing Originating Department: Housing Administration
Resolution: N/A Prepared By: Housing Coordinator
Number of Attachments: N/A Presented By: Housing Coordinator
Item: Consider resolution to declare surplus property and authorize disposition.
EDA Staff Proposed Action:
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.
Budgetary/Fiscal Issues: N/A
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
Resolution: N/A Prepared By: Housing Coordinator
Number of Attachments: 1 Presented By: Housing Coordinator
Item: Consider motion authorizing payment of Public Housing Program claims.
EDA Staff Proposed Action:
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
Primary Issues/Alternatives to Consider: N/A
Budgetary/Fiscal Issues: N/A
Attachments:
Public Housing Program Claims — January 9, 2018
PUBLIC HOUSING CLAIMS
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
City ofNew UlmRequest for Economic Development Authority Action
Meeting Date: January 9, 2018 Agenda Item Number: 8. a.
Agenda Section: Economic Development
Authority Originating Department: EDA Administration
Resolution: N/A Prepared By: Housing Coordinator
Number of Attachments: N/A Presented By: Housing Coordinator
Item: Consider renewing the realtor contract for the spec house located at 633 Pfaender Drive.
EDA Staff Proposed Action:
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
City ofNew UlmRequest for Economic Development Authority Action
Meeting Date: January 9, 2018 Agenda Item Number: 8. b.
Agenda Section: Economic Development
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.
EDA Staff Proposed Action:
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.
Budgetary/Fiscal Issues: N/A
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
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Sin
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City ofNew UlmRequest for Economic Development Authority Action
Meeting Date: January 9, 2018 Agenda Item Number: 8. c.
Agenda Section: Economic Development
AuthorityOriginating Department: EDA Administration
Resolution: N/A Prepared By: Executive Director
Number of Attachments: 1 Presented By: Executive Director
Item: Receive hotel feasibility analysis.
EDA Staff Proposed Action:
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