The Crookston Housing & Economic Development Authority (CHEDA) met on Monday for a regular meeting at 5:30 p.m. at the Valley Technology Park. After the Call to Order, the meeting began with the board approving their meeting minutes from their last meetings on October 11, 27, and November 3, which it did unanimously.
CONSENT AGENDA
The Consent Agenda included approving the EDA Financials and the Crookston Jobs Loan Status and Financials. It also included the approval of the B3 Grants and Financials, the Financials for Prairie Skyline, and the Financials for Epitome Energy. Next, it resolved a Revolving Loan Fund for Crookston Jobs and Loan Status and Financials. It also resolved Financials for Oak Court Public Housing, Housing Choice Voucher, Workforce Housing, and Rehab Housing. The final item on the Consent Agenda was to approve the Financials, Building Occupancy, and Expended Business Incubation of Valley Technology Park. The board approved the agenda unanimously.
CHEDA PAYABLES
The board then made a motion to approve the board’s payables. CHEDA Director Dylane Klatt explained that they were paying $46,926.96 for their payrolls and bill from November 16-21 and $2,041.66 for their Electronic Funds Transfer (EFT) for a total of $48,968.62. The board approved the motion unanimously.
HOUSING REPORT: TAHRAN
The board then heard from Administrative Assistant Theresa Tahran with an update on Section 8. She noted they had 133 total vouchers issued, with ten being issued in November. They had also made a selection of about 20 people last Friday and will make another in the first week of December, which will pull the remaining people on the waitlist.
Public Housing Report
Tahran then gave an update on a Public Housing Report on the Oak Court Apartments. She reported that they had put out hot chocolate and snacks during last week’s snowstorm, which was well received by the tenants for bringing the community together during the storm. She reported they also held their annual Thanksgiving dinner catered by the Irishman’s Shanty last Thursday. She said they are also planning on doing more of having snacks in the community room to bring the tenants together. They also reported they were looking to rebid their roof project for the apartment, but this would add $6,500 with an hourly rate of $600 for additional services for their architect to come back and rebid the project. She requested the board to approve an amendment from the architect with an hourly rate not to exceed $6,500. The board approved the amendment unanimously.
Workforce Housing
Tahran then gave an update on the 1410 Eickhof Boulevard, saying she was going to send Jeff Fagerstrom from Northwest Minnesota Housing Co-op had received the building permit and had contacted Bertil’s for site preparation work at the site.
Lead the Way Training
Tahran then gave an update on the Lead the Way Training, where she said she had not heard any news of any more members completing the training. Don Cavalier reported that he had completed the training and Mayor Dale Stainbrook reported that he would aim to finish the training before being sworn in as mayor again.
OLD BUSINESS
The board then heard from Director Kari Kirschbaum with an update on the Colborn Property Infrastructure, who said they would start their bid on some roads near the AG Innovation Campus within the next couple of months.
Epitome Energy
Kirschbaum then went into a report about Epitome Energy, saying that she and City Administrator Reynolds were still waiting to hear any updates on its testing and EAW.
Prairie Skyline
The board began a discussion on the Prairie Skyline with Kirschbaum, saying that their payment was paid off and now completed for the board.
Chickadee Coffee/Snow Loan Status
The board then heard an update on the Chickadee Coffee and Snow Loan Status. Kirschbaum reported that the board’s attorney was still going through the process of preparing any legal action for the board.
APG-Elliot Steinbrink
The board then heard from Kirschbaum on the status of the APG Development legal entity, who reported that a new client was interested in buying the property for a project. However, the board wished to hear an update from Steinbrink before they would make any decision on the property.
MAIN AGENDA
The board then began a discussion on their budget for 2023. Kirschbaum went over some of their changes, saying they had received a total tenant rent of $375,264 for the year, and their total grant income came in at $1,174,537.96. She estimated that their total income for the next year would be $1,968,740.80 as they would be increasing their rent. She also noted that their utilities had risen about 40% from 2022 to about $139,800. “Probably the biggest thing that everybody’s dealing with is that we had to estimate that our utilities will be going up about 40% between this year and into next year,” CHEDA Director Kari Kirschbaum explained. “That’s pretty painful and a big hit for everybody. It’s a big chunk of taxpayer money going into utilities.” These made their total expenses $1,968,740.80, which evened out with the year’s Total Income. She also noted that Fire Department Chief Tim Froeber would join them to help with the Section 8 Housing reports and Workforce Housing inspections after he retires as the Fire Chief. “I’m excited to say that I’ve met with Fire Chief Tim Froeber, he’s retiring at the end of December, and I offered him a position with Housing. Next year, he’ll be an independent contractor, and he’ll be working with our inspections, our Section 8 houses, and a lot of our work over at Oak Court. All of the details aren’t fleshed out yet, but we’re really happy to have him,” Kari Kirschbaum explained. “Tim loves the city of Crookston, and he really wants to continue to serve in another compacity in his community, so we were happy to make something work, and it’s a relief to know that he’s staying with us. He’s just a wealth of information and understanding about the city.” The board approved the budget unanimously.
Resolution 1-11-2022 Flat Rent
The board finished the meeting with a resolution on their flat rent. CHEDA President Dylane Klatt explained that the Commissioners of CHEDA have reviewed the flats, rents, and rental charges to set the flat rent for single-bedroom apartments. “Every year, the rates are looked at for an increase,” CHEDA President Dylane Klatt explained. “HUD comes up with a number, and we go 80% of whatever that number is. That’s what it increases to.” Klatt explained that they would begin enforcing the new rent rate in April 2023 from $509 to $520 for single-bedroom apartments. The board approved the motion unanimously.
OTHER BUSINESS
Kirshbaum mentioned that the focus group she met with from the University of Minnesota Crookston would begin conducting a survey of the building and the organization to help make it more understandable to the public. The surveys would be completed in December, and then would try to meet with the board about some ideas for it in 2023.
The next CHEDA meeting will take place on Monday, November 28, at 6:35 p.m. in the Crookston City Hall Council Chambers.
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