Item 2.1 2024.12.09 EDA MinutesPage 1 of 3
ECONOMIC DEVELOPMENT AUTHORITY MEETING
MONDAY, DECEMBER 9, 2024
5:30 PM
OTSEGO PRAIRIE CENTER
Call to Order:
President Stockamp called the EDA meeting to order at 5:32 PM.
1.Roll Call:
President Jessica Stockamp and Commissioners: Brittany Moores, Tina Goede, 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.
2.Consider approval of Minutes:
2.1 November 12, 2024, EDA Minutes.
Commissioner Goede motioned to approve the November 12, 2024, EDA minutes, seconded
by Commissioner Moores. All in favor. Motion carried 5-0.
3.Bills and Communications.
Executive Director Flaherty noted there are no bills to approve.
4.New Business:
4.1 Lease Revenue Bond, Series 2024A.
A. Presentation by Northland Securities.
B.Consider Resolution 2024-05 Providing for the Issuance and Sale, Lease Agreements,
& Trust Indenture.
Jessica Green of Northland Securities reviewed the staff report and presentation.
Commissioner Moores asked about the bid process. Ms. Green said it is an unknown who will
bid; the bid today had national attention with five bids.
Commissioner Dunlap asked about the premium and how the cash show s up. Ms. Green said
the funds are distributed at the closing, the bonds are reduced from when the finance plan was
reviewed in November and $16,900,000 is issued by the EDA.
Executive Director Flaherty reviewed the documents provided in the packet, noting Maren
Magill from Taft Law is available to answer question s.
Commissioner Dunlap asked about non-governmental usage of the building. Ms. Magill said no
more than 10% of the facility can be used by a non-governmental user during the term of the
bond without affecting the bond, avoiding private use.
Item 2.1
MINUTES OF THE CITY OF OTSEGO ECONOMIC DEVELOPMENT AUTHORITY MEETING DECEMBER 9, 2024
Page 2 of 3
Commissioner Dunlap asked about the cost going over budget. Flaherty said throughout the
construction process, the City Council would be privy to the change orders and would have the
ability to approve change orders and that if the project costs exceed the bond proceeds, that
funding sources would likely be internally funded through reserve funds or interfund loans.
Commissioner Dunlap asked about leasing and purchasing process. Ms. Magill explained the
lease arrangements between the EDA and the City.
Commissioner Dahl motioned to adopt Resolution 2024-05 Providing for the Issuance and
Sale of Lease Revenue Bonds, Series 2024A; and the Execution and Delivery of a Ground Lease
Agreement, a Lease Agreement, and an Indenture of Trust , seconded by Commissioner
Goede.
Commissioner Dunlap feels this project should have been voted upon by the citizens and there
was no citizen involvement or oversight; this option for financing prevents the citizens from
petitioning the EDA. He calculates this project is a 46% increase to property taxes and is proof
of why citizen input should be included. Commissioner Dahl asked for clarification on the
percentage stated by Commissioner Dunlap. Commissioner Dunlap said the calculation is his
estimate for the station, equipment, and staffing. Commissioner Dahl said the EDA Commission
members are elected citizens, therefore there is citizen input.
Voting in favor; Stockamp, Dahl, Goede, and Moores. Voting against; Dunlap. Motion carried
4-1.
4.2 Budget.
A. Presentation by Executive Director.
B. Consider Resolution 2024-06 Requesting a Budget from the City.
Executive Director Flaherty reviewed the staff report and presentation.
Commissioner Dunlap asked why the requested amount increased. Ms. Green said the interest
rate on the bonds increased, the coupons were higher than anticipated due to premium, this is
funded by capital interest, recognition of the first interest payments that are paid by the bonds.
Flaherty noted the finance plan estimated the coupon at 3.15% and the actual coupon was 5%
Commissioner Goede motioned to adopt Resolution 2024-06 Requesting a Budget from the
City, seconded by Commissioner Dahl. All in favor. Motion carried 5-0.
5. Old Business:
None.
6. Reports:
None.
MINUTES OF THE CITY OF OTSEGO ECONOMIC DEVELOPMENT AUTHORITY MEETING DECEMBER 9, 2024
Page 3 of 3
7. Adjourn.
Commissioner Goede motioned to adjourn at 6:03 PM, seconded by Commissioner Dahl. All
in favor. Motion carried 5-0.
Notes prepared by Secretary, Audra Etzel.
City of Otsego:
_________________________________
Jessica Stockamp, President
ATTEST: ___________________________
Audra Etzel, Secretary