2024.11.12 EDA Meeting MinutesECONOMIC DEVELOPMENT AUTHORITY MEETING
TUESDAYI NOVEMBER 12, 2024
5:30 PM
OTSEGO PRAIRIE CENTER
Call to Order:
President Stockamp called the EDA meeting to order at 5:30 PM.
1. Roll Call:
President Jessica Stockamp and Commissioners: Brittany Moores, Jeff Dahl, and Ryan Dunlap.
Executive Director Adam Flaherty, Assistant City Administrator/Human Resources Sabrina Hille;
Emergency Services Director Daryl Rausch, City Planner Daniel Licht, and Secretary Audra Etzel.
Absent: Commissioner Tina Goede
2. Consider approval of Minutes:
2.1 July 22, 2024, EDA Minutes.
Commissioner Moores motioned to approve the July 22, 2024, EDA minutes, seconded by
Commissioner Dahl. All in favor. Motion carried 4-0.
3. Bills and Communications.
Executive Director Flaherty noted there are no bills to approve.
4. New Business:
4 1 Finance Plan for Lease Revenue Bond Series 2024A.
A. Presentation by Northland Securities,
B. Consider Approval of Municipal Advisory Services Agreement.
C. Consider Resolution 2024-04 Providing for the Competitive Negotiated Sale.
D. Consider Scheduling a Meeting on December 9. 2024.
Executive Director Flaherty and Jessica Green of Northland Securities reviewed the staff report
and presentation.
President Stoclamp asked about the rating call. Ms. Green said the call takes about an hour,
and the analysis take about a week to get back with details.
Commissioner Moores asked about the interest rate of 4.26%. Ms. Green said it is hard to
predict if the interest rate will hold, it will depend on the market. Ms. Green said once the
bonds are sold, the interest rate would be locked in.
Commissioner Dunlap asked about debt and levy limits. Ms. Green said the report referenced
debt limits, not levy limits.
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MINUTES OF THE CITY OF OTSEGO ECONOMIC DEVELOPMENT AUTHORITY MEETING NOVEMBER 12, 2024
Executive Director Flaherty discussed that the Finance Plan includes a cash contribution and
reviewed the Capital Improvement Plan funds and projected projects. Flaherty said there is
about $2 million in funds that could be contributed to the project. CM Dunlap asked if the $2
million is for cold storage. Flaherty clarified that the cold storage project was one of the
budgeted projects and that the $2 million is separate from that budgeted item.
Executive Director Flaherty noted there are different options to structure the bond and
reviewed information showing the differences between options with longer repayment periods
and options without a cash contribution.
Commissioner Dunlap asked why the payment amount does not remain the same each year.
As. Green said the coupon amount changes throughout the repayment term and is not a static
amount.
President Stoclamp asked about the timing of payments. Ms. Green said the payments are
usually in August and February to allow for levied funds to be received from the County, and
the City to make the payment in a timely manner.
Commissioner Dunlap asked about not making any principal payments the first two years,
appearing to add on cost to the back end. Ms. Green said the payments can be scheduled
however directed by the EDA. Flaherty said the levy years overlap and 2025 has already been
preliminary certified. Commissioner Dunlap asked about paying down $2 million and not
paying interest. Ms. Green said the City would be saving on interest cost with the $2 million
buy down of a cash contribution. Ms. Green said principal will not be paid in 2025 due to the
timing of the project, and the 2026 payment cannot be levied at this time of year.
Commissioner Dunlap asked how the EDA gets the $2 million. Ms. Green said the $2 million
would be provided to the trustee and used to pay the construction costs.
Executive Director Flaherty is looking for direction on a cash contribution and financing terms.
President Stockamp asked about the Capital Improvement Plan funds. Flaherty said the fund is
used for one-time projects. Commissioner Dunlap said the Capital Improvement Plan is funds
that were overtaxed to the taxpayers. Flaherty reviewed that other capital projects for utility
purposes have been financed with a 20-year repayment term. The majority of the EDA was in
favor of a cash contribution and a 20-year payment structure. President Stockamp asked about
the 20-year payment structure. Ms. Green said she has had lengthy conversations with Flaherty
on the pay back. Commissioner Dunlap asked about the difference between interest costs for
other bonding methods such as a G.O. Capital Improvement Plan bond. Ms. Green said there is
an assumed difference in interest rates but the actual results would depend on how the
financing market factors that into their bids.
Commissioner Dahl motioned to approve the Municipal Advisory Service Agreement between
the Otsego Economic Development Authority and Northland Securities, Inc., seconded by
Commissioner Moores. Voting in favor; Stockamp, Dahl, and Moores. Voting against; Dunlap.
Motion carried 34.
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MINUTES OF THE CITY OF OTSEGO ECONOMIC DEVELOPMENT AUTHORITY MEETING NOVEMBER 12, 2024
Commissioner Dahl motioned to adopt Resolution 2024-04 Providing for the Competitive
Negotiated Sale of Lease Revenue Bonds, Series 2024A, seconded by Commissioner Moores.
Commissioner Dunlap feels the EDA is only being used to avoid a citizen's petition and provided
several examples of other cities that have put their questions to the ballot. Commissioner
Dunlap thinks this is a loophole and feels the City should be ashamed. Commissioner Dahl said
there has been a lot of misinformation on the estimated increase, he said he is in favor of the
EDA funding to Keep the project on schedule.
Voting in favor; Stockamp, Dahl, and Moores. Voting against; Dunlap. Motion carried 3-1.
Commissioner Dahl motioned to schedule a meeting of the Otsego Economic Development
Authority on December 9, 2024, at 5:30 PM to be held at the Prairie Center for discussi Aon and
consideration of award of the Lease Revenue Bonds, Series 2024A, seconded by
Commissioner Moores. Voting in favor; Stockamp, Dahl, and Moores. Voting against;
Dunlap. Motion carried 34.
5. Old Business:
None.
6. Reports:
Executive Director Flaherty discussed that an Annual EDA meeting will be scheduled early in
2025 once the newly elected members are sworn in.
7. Adjourn.
Commissioner Moores motioned to adjourn at 6:36 PM, seconded by Commissioner Dahl. All
in favor. Motion carried 4-0.
Notes prepared by Secretary, Audra Etzel.
ATTEST
Audra Etzel, Secretary
City of Otsego:
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