Community Development Update

Nate, the Economic Development Director, provided an update on the local economy, citing a Federal Reserve report on the Minneapolis area. He detailed progress on various construction projects including Van Meter's expansion, the Park Grove Library, Roars Apartments, Hadley Ridge Apartments, Cedarhurst Mansion's ADA work, and the new water tower. He clarified the locations of the Roars and Hadley Ridge apartment projects for public understanding.

Professional Services Agreement for Dwell Studios (Custom Puzzles)

The EDA reviewed a proposed agreement to partner with Dwell Studios to sell 1600 remaining custom city puzzles online. The original project, initiated in December 2023, cost the EDA over $122,000 for 3000 puzzles, including $75,000 for custom artwork. Despite various marketing efforts, a significant inventory remains. The new plan sets an online price of $15 per puzzle, aiming to recover an additional $24,000, bringing the total estimated loss to over $61,000. The idea of donating puzzles to non-profits was discussed but deemed complex due to inventory value and policy implications. The Director confirmed Dwell Studios would act as a pass-through for sales.

Classification of Majestic Ballroom Building as Substandard

Nate presented a proposal to declare the Majestic Ballroom Building as structurally substandard. This is a crucial step to enable future Tax Increment Financing (TIF) for redevelopment, as the building has been vacant for over 20 years and is severely deteriorated, containing mold, asbestos, and structural integrity issues. He emphasized that this declaration must occur before demolition to qualify for TIF. The city plans to front demolition costs and recover them from the property owner through a deferred assessment agreement upon sale. The lack of quorum prevented a formal vote, prompting a need for legal advice regarding the City Council's ability to proceed at their next meeting.