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081825 EDA AgendaECONOMIC DEVELOPMENT AUTHORITY MEETING RICHFIELD MUNICIPAL CENTER, COUNCIL CHAMBERS AUGUST 18, 2025 7:15 PM (IMMEDIATELY FOLLOWING THE HRA MEETING) Call to Order Open Forum Please refer to the EDA agenda and minutes web page for additional ways to submit comments. Appr oval of t he M inut es Approval of the minutes of the Regular Economic Development Authority meeting of May 19, 2025. AGENDA APPROVAL 1. Approval of the Agenda 2.Consent Calendar contains several separate items which are acted upon by the EDA in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further EDA action on these items is necessary. However, any EDA Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for EDA discussion and action. All items listed on the Consent Calendar are recommended for approval. 3. Consideration of items, if any, removed from Consent Calendar RESOLUTIONS 4. Consider resolutions approving the 2026 Proposed Economic Development Authority Budget and Tax Levy and 2025 Revised Economic Development Authority Budget. Staff Report No. 7 EDA DISCUSSION ITEMS 5. EDA Discussion Items EXECUTIVE DIRECTOR REPORT 6. Executive Director's Report CLAIMS 7. Claims 8. Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9739. ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting May 19, 2025 President Vrieze Daniels called the meeting to order at 7:17 PM in the Council Chambers. EDA Present: Erin Vrieze Daniels, President; Sean Hayford Oleary; Gordon Hanson; John Young. EDA Absent: Mary Supple. Staff Present: Melissa Poehlman, Executive Director; Julie Urban, Assistant Community Development Director; Jan Youngquist, Economic Development Manager; and Michelle Friedrich, City Clerk. OPEN FORUM President Vrieze Daniels gave instructions on how to participate in the open forum. No residents participated in the public comment opportunity. APPROVAL OF THE MINUTES MOTION: made by Hanson, seconded by Young to approve the Minutes of the Regular Economic Development Authority meeting of March 17, 2025, and the Minutes of the Work Session Economic Development Authority meeting of April 21, 2025. Motion carried: 4-0 ITEM #1 APPROVAL OF THE AGENDA MOTION: made by Young, seconded by Hayford Oleary to approve the agenda. Motion carried: 4-0 ITEM #2 CONSENT CALENDAR Executive Director Poehlman presented the Consent Calendar. A.Consideration of loan documents and a subordination of an Apartment Remodeling Loan to be provided toward the preservation of three affordable rental communities. Staff Report No. 5 MOTION: made by Hayford Oleary, seconded by Hanson approve the Consent Calendar item 2A as presented. CALL TO ORDER EDA Meeting Minutes May 19, 2025 Motion carried 4-0 ITEM #3 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR None. ITEM #4 CONSIDER THE CREATION OF THE RICHFIELD ECONOMIC VIBRANCY, INVESTMENT, AND VISUAL ENHANCEMENTS PROGRAM FOR RICHFIELD BUSINESSES Economic Development Manager Youngquist presented Staff Report 6, briefly outlined the Richfield Economic Vibrancy Investment in Visual Enhancements (REVIVE) Program which will support exterior improvements to commercial properties, including those leased by businesses. MOTION: made by Young, seconded by Hayford Oleary to approve the REVIVE Program and authorize staff to work with legal counsel to finalize agreements and implement the Program. Commissioners expressed excitement for this Program. Motion carries: 4-0 ITEM #5 EDA DISCUSSION ITEMS No items discussed. ITEM #6 EXECUTIVE DIRECTOR’S REPORT Executive Director Poehlman noted no report at this time. ITEM #7 CLAIMS MOTION: made by Young, seconded by Hayford Oleary, that the following claims be approved: U.S. BANK April 21, 2025 EDA Check #23683-23696 $10,240.25 TOTAL $10,240.25 U.S. BANK May 19, 2025 EDA Check #23697-23714 $30,108.06 TOTAL $30,108.06 EDA Meeting Minutes May 19, 2025 Motion carried: 4-0 ITEM #8 ADJOURNMENT This meeting was adjourned by unanimous consent at 7:24 p.m. Date Approved: August 18, 2025 Erin Vrieze Daniels EDA President Michelle Friedrich Melissa Poehlman City Clerk Executive Director AGENDA SECTION:RESOLUTIONS AGENDA ITEM #4. STAFF REPORT NO. 7 ECONOMIC DEVELOPMENT AUTHORITY MEETING 8/18/2025 Melissa Poehlman, Executive DirectorREPORT PREPARED BY: EXECUTIVE DIRE CTOR RE VIEW: ITEM FOR COUNCIL CONSIDERATION: Consider resolutions approving the 2026 Proposed Economic Development Authority Budget and Tax Levy and 2025 Revised Economic Development Authority Budget. EXECUTIVE SUMMARY: The bylaws of the Richfield Economic Development Authority (EDA) require that an annual budget be submitted to the EDA Commissioners for approval. Accordingly, the 2026 Proposed Budget and Tax Levy and 2025 Revised Budget are presented for approval. In addition, Minnesota State Statutes require adoption of a preliminary tax levy from each taxing authority. The proposed tax levy must be certified to the Hennepin County Auditor by September 30, 2025 (or next business day, if September 30 falls on a weekend). Any amendments to the proposed budget, which would increase the property tax levy, must be made prior to September 30, 2025. No increases in the tax levy are permissible after that date, only reductions. Final certification of the EDA tax levy is part of the City’s budget process. The recommended tax levy as proposed represents a 3.5% increase from the previous year’s levy. RECOMMENDED ACTION: By motion: Adopt the attached resolutions approving the 2026 Proposed Economic Development Authority Budget and Tax Levy and 2025 Revised Economic Development Authority Budget. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT N/A B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS N/A C.POLICIES (resolutions, ordinances, regulations, statutes, exc): Minnesota Statutes require adoption of a preliminary levy from each taxing authority. The budget and accompanying proposed levy for 2026 are ready for consideration. Even though a public hearing for the EDA tax levy is not required by State Statute, this does not preclude the EDA from opening this item up for public discussion if the EDA desires to do so. D.CRITICAL TIMING ISSUES: Melissa Poehlman, Executive Director 8/8/2025 As required by State Statutes, each taxing authority must certify its proposed tax levy for the payable year 2026 to the County Auditor on or before September 30, 2025. E.FINANCIAL IMPACT: The Proposed 2026 EDA levy represents a 3.5% increase from the previous year’s levy. The levy is approximately $268,490 less than the maximum EDA levy established by law of the .01813% of the City’s total estimated taxable market value. F.LEGAL CONSIDERATION: N/A ALTERNATIVE RECOMMENDATION(S): The EDA could adopt a preliminary levy greater than the one proposed herein. However, the levy proposed provides the necessary funding to provide for programs that are recommended in the 2026 Proposed/2025 Revised budget. PRINCIPAL PARTIES EXPECTED AT MEETING: N/A ATTACHMENTS: Description Type 2026 Budget & Tax Levy Resolution Resolution Letter 2025 Revised Budget Resolution Resolution Letter Proposed 2026 Budget Exhibit EDA RESOLUTION NO. RESOLUTION APPROVING PROPOSED 2026 ECONOMIC DEVELOPMENT AUTHORITY BUDGET AND CERTIFYING THE 2026 TAX LEVY BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Richfield, Minnesota as follows: Section 1. The budget for the Economic Development Authority General Fund of Richfield for the year 2026 in the amount of $697,530 is hereby ratified. Section 2. The estimated gross revenue of the Economic Development Authority General Fund of Richfield from all sources, including general ad valorem tax levies as hereinafter set forth for the year 2026, and as the same are more fully detailed in the Executive Director’s official copy of the budget for the year 2026, in the amount of $682,260 is hereby approved. Section 3. There is hereby levied upon all taxable property in the City of Richfield an ad valorem tax in 2025, payable in 2026 for the following purposes: Economic Development Authority $645,160 Section 4. A certified copy of this resolution shall be transmitted to the County Auditor. Adopted by the Economic Development Authority in and for the City of Richfield, Minnesota this 18th day of August 2025. Erin Vrieze Daniels, President ATTEST: Melissa Poehlman, Executive Director EDA RESOLUTION NO. RESOLUTION AUTHORIZING REVISION OF THE 2025 BUDGET OF THE ECONOMIC DEVELOPMENT AUTHORITY OF RICHFIELD WHEREAS, Resolution No. 52 appropriated funds for personal services and other expenses for the Economic Development Authority for the year 2025, and WHEREAS, The Executive Director has requested a revision of the 2025 budget as detailed in the 2026 budget document. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of Richfield, Minnesota as follows: Section 1. That the 2025 appropriation for the Economic Development Authority General Fund is revised as follows: $255,420 increase Section 2. Estimated 2025 gross revenue of the Economic Development Authority General Fund from all sources, as the same is more fully detailed in the Executive Director’s official copy of the 2026 budget document, are hereby revised as follows: $236,021 increase Section 3. That the Executive Director bring into effect the provisions of this resolution. Adopted by the Economic Development Authority in and for the City of Richfield, Minnesota this 18th day of August 2025. Erin Vrieze Daniels, President ATTEST: Melissa Poehlman, Executive Director RICHFIELD ECONOMIC DEVELOPMENT AUTHORITY 6700 Portland Avenue Richfield, MN 2026 BUDGET TABLE OF CONTENTS Page No. EDA Officials 3 Executive Director's Budget Message 4 General Fund: Budget Summary - General Fund 9 General Fund - Summary by Division 10 General Fund Revenue 11 EDA Administration 12 Kids At Home 13 Transformation Loans 14 Budget Resolutions: Resolution Approving Proposed 2026 Economic Development Authority Budget and Certifying the 2026 Tax Levy.16 Resolution Authorizing Revision of the 2025 Budget of the Economic Development Authority of Richfield.17 1 THIS PAGE WAS LEFT BLANK INTENTIONALLY 2 EDA COMMISSIONERS ERIN VRIEZE DANIELS- PRESIDENT COMMISSIONER - GORDON HANSON COMMISSIONER - SEAN HAYFORD OLEARY COMMISSIONER - MARY SUPPLE COMMISSIONER - JOHN YOUNG ADMINISTRATIVE STAFF MARY BOGIE - FINANCE DIRECTOR / ASSISTANT TREASURER MELISSA POEHLMAN - EXECUTIVE DIRECTOR/COMMUNITY DEVELOPMENT DIRECTOR 3 Community Development Department Economic Development Authority 6700 PORTLAND AVENUE, RICHFIELD, MINNESOTA 55423-2599 Phone: 612.861.9760 FAX: 612.861.8974 www.richfieldmn.gov AN EQUAL OPPORTUNITY EMPLOYER MAYOR MARY SUPPLE CITY COUNCIL SHARON CHRISTENSEN SEAN HAYFORD OLEARY SIMON TRAUTMANN BEN WHALEN CITY MANAGER KATIE RODRIGUEZ August 5, 2025 Economic Development Authority Commissioners City of Richfield Dear Commissioners: In accordance with the bylaws of the Richfield Economic Development Authority (EDA), the EDA budget for January 1, 2026, to December 31, 2026, is submitted. A meeting on the proposed EDA budget will be held on August 18, 2025 at 7:00 p.m. Pursuant to State law, the EDA must certify the 2026 budget and the revenue required to be raised by an ad valorem property tax levy to the Hennepin County Auditor. The deadline for certification is December 30, 2025. A proposed 2026 tax levy must be submitted to the County Auditor on or before September 30, 2025. Any amendments to the proposed budget, which would increase the property tax levy, must be made prior to September 30, 2025. No increases in the tax levy are permissible after that date, only reductions. Final certification of the EDA tax levy is part of the City’s budget process. The proposed 2026 budget consists of the following funds/programs: • $100,000 in funding for the Apartment Remodeling Program which provides forgivable loans for the rehabilitation of existing affordable rental housing. • $117,000 for business assistance programming. In addition to continued funding for the Energy Efficient Business Rebate, Displaced Business, and Sewer Availability Charge (SAC) Assistance programs, this budget includes $65,000 in funding for the new REVIVE Program for small businesses. • $154,300 is budgeted for the Kids@Home Program to provide shallow rent subsidies and supportive services to families with children in a Richfield school. An increase of $15,350 for 2026 will accommodate several new families living in larger apartments that require larger subsidies. In 2025 and 2026, the program will again include 12 “Parent Share” group meetings as well as approximately 8-12 individual family meetings. Approximately 20 families will be served by the program. 4 Economic Development Authority Commissioners August 5, 2025 Page 2 •$141,000 in funding for the Transformation Loan Program. This program provides a 15% forgivable loan for large-scale remodeling projects. This funding is estimated to assist six to eight Richfield families in making major improvements to their homes in 2025 and 2026. •The EDA will also continue to fund its partnership with Hennepin County for the Elevate Hennepin initiative, which provides professional business advising and resources to Richfield businesses. •The EDA levy also funds the staff, consultant, and partner costs related to administration of this programming. In 2026, approximately $180,000 has been budgeted for these administrative costs. Revised costs for 2025 are estimated at $176,000. •Revenues for revised 2025 include anticipated Apartment Remodeling Loan repayments and a $45,000 grant from Hennepin County for a branding and wayfinding project in downtown Richfield. The revised 2025 budget has increased by 27.1% ($255,420) to allow for increased spending for the Apartment Remodeling Loan Program for NOAH preservation. This increase will be funded by loan repayments. Pass-through grant funding accounts for the remainder of the increase. The 2026 budget will increase by 5.2% over the 2025 Adopted to account for increased focus on Economic Development Programs, staffing needs, and the increase for the Kids@Home Program. Temporary spending authority for tax increment funds will likely be available for some programs that normally would have come from the EDA directly. The proposed 2026 levy increase is 3.5%. The resolution to certify the 2026 budget and tax levy has been prepared based on the proposed budget. This resolution and a resolution revising the 2025 budget are in the last section of this budget document. Respectfully submitted, Melissa Poehlman, AICP Executive Director 5 THIS PAGE WAS LEFT BLANK INTENTIONALLY 6 GENERAL FUND 7 THIS PAGE WAS LEFT BLANK INTENTIONALLY 8 BUDGET SUMMARY - GENERAL FUND 2024 2025 2026 AVAILABLE FOR APPROPRIATION Actual Budget Revised Budget FUND BALANCE - JANUARY 1 1,183,640$ 1,214,655$ 1,286,785$ 1,264,339$ Revenues: Taxes: Current 599,364 623,343 623,343 645,160 Total Taxes 599,364 623,343 623,343 645,160 Intergovernmental Revenues: Current - - 45,000 - Total Taxes - - 45,000 - Miscellaneous Revenues: Interest 57,775 35,000 35,000 35,000 Other Miscellaneous Revenues 2,515 2,100 193,121 2,100 Total Miscellaneous Revenues 60,290 37,100 228,121 37,100 Total Revenues 659,654 660,443 896,464 682,260 Expenditures: Personal Services 141,951 149,660 150,110 158,920 Other Services and Charges 414,558 513,830 768,800 538,610 Total Expenditures 556,509 663,490 918,910 697,530 Excess (Deficiency) of Revenues Over Expenditures 103,145 (3,047) (22,446) (15,270) FUND BALANCE - DECEMBER 31 1,286,785$ 1,211,608$ 1,264,339$ 1,249,069$ 9 DEPARTMENT SUMMARY BY BUSINESS UNIT BUSINESS UNIT BUDGET 2026 REVISED 2025 BUDGET 2025 ACTUAL 2024 EDA GENERAL FUNDFUND: Community DevelopmentDEPARTMENT: Increase/ (Decrease) 2025 Budget/ 2026 Budget 284,225 383,540 638,960 402,230EDA General Fund $$$$4.87%99600 146,426 138,950 138,950 154,300Kids @ Home 11.05%99601 125,858 141,000 141,000 141,000Transformation Loans 0.00%99602 663,490 918,910 697,530556,509Community Development TOTAL $$$$5.13% REVENUES 659,654 660,443 896,464 682,260EDA General Fund $$$$3.30%99600 YEAR AMOUNT 2024 $556,509 2025 $663,490 2025R $918,910 2026 $697,530 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 2024 2025 2025R 2026 E X P E N D I T U R E S YEAR EDA GENERAL FUND EXPENDITURES 10 EDA GENERAL FUNDFUND: DETAIL REVENUES BY BUSINESS UNIT CLASSIFICATIONS Community DevelopmentDEPARTMENT: BUDGET 2026 REVISED 2025 BUDGET 2025 ACTUAL 2024 EDA General Fund - 99600BUSINESS UNIT: Taxes 4005 524,701 623,343 623,343 645,160Current$$$$ 4010 (2,085)- - - Delinquent 4025 76,748 - - - Fiscal Disparities 623,343 623,343 645,160599,364TaxesTotal$$$$ Intergovernmental Revenues 4244 - - 45,000 - Grants Other $$$$ - 45,000 - - Intergovernmental Revenues Total $$$$ Miscellaneous Revenues 4607 56,856 35,000 35,000 35,000Investment Earnings $$$$ 4609 919 - - - Change in Fair Value 4644 2,515 2,100 2,100 2,100Other Miscellaneous Revenues 4648 - - 191,021 - Loan Repayments 37,100 228,121 37,10060,290Miscellaneous Revenues Total $$$$ EDA General Fund TOTAL 660,443 896,464 682,260659,654$$$$ 11 DETAIL EXPENDITURES BY BUSINESS UNIT CLASSIFICATIONS BUDGET 2026 REVISED 2025 BUDGET 2025 ACTUAL 2024 EDA GENERAL FUNDFUND: Community DevelopmentDEPARTMENT: EDA General Fund - 99600BUSINESS UNIT: Personal Services 6051 141,951 149,660 150,110 158,920Interdepartmental Labor $$$$ 149,660 150,110 158,920141,951Personal Services Total $$$$ Other Services & Charges 6103 9,366 22,500 22,500 22,500Professional Services -General $$$$ 6301 - 930 900 500Advertising & Publication 6303 960 1,400 1,400 1,440Professional Development 6305 320 1,050 1,050 1,070Subscriptions & Memberships 6402 43 100 100 100Copy Charges 6403 1 450 450 250Postage 6414 - 250 250 250Other Supplies 6511 131,584 207,200 462,200 217,200Rehab Loan Program 233,880 488,850 243,310142,274Other Services & Charges Total $$$$ 383,540 638,960 402,230284,225EDA General Fund TOTAL $$$$ 12 DETAIL EXPENDITURES BY BUSINESS UNIT CLASSIFICATIONS BUDGET 2026 REVISED 2025 BUDGET 2025 ACTUAL 2024 EDA GENERAL FUNDFUND: Community DevelopmentDEPARTMENT: Kids @ Home - 99601BUSINESS UNIT: Other Services & Charges 6103 11,500 11,850 11,850 12,200Professional Services -General $$$$ 6403 34 100 100 100Postage 6414 1,392 2,000 2,000 2,000Other Supplies 6504 133,500 125,000 125,000 140,000Kids@Home Payments 138,950 138,950 154,300146,426Other Services & Charges Total $$$$ 138,950 138,950 154,300146,426Kids @ Home TOTAL $$$$ 13 DETAIL EXPENDITURES BY BUSINESS UNIT CLASSIFICATIONS BUDGET 2026 REVISED 2025 BUDGET 2025 ACTUAL 2024 EDA GENERAL FUNDFUND: Community DevelopmentDEPARTMENT: Transformation Loans - 99602BUSINESS UNIT: Other Services & Charges 6103 1,208 1,000 1,000 1,000Professional Services -General $$$$ 6511 124,650 140,000 140,000 140,000Rehab Loan Program 141,000 141,000 141,000125,858Other Services & Charges Total $$$$ 141,000 141,000 141,000125,858Transformation Loans TOTAL $$$$ 14 RESOLUTIONS 15 EDA RESOLUTION NO. RESOLUTION APPROVING PROPOSED 2026 ECONOMIC DEVELOPMENT AUTHORITY BUDGET AND CERTIFYING THE 2026 TAX LEVY BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Richfield, Minnesota as follows: Section 1. The budget for the Economic Development Authority General Fund of Richfield for the year 2026 in the amount of $697,530 is hereby ratified. Section 2. The estimated gross revenue of the Economic Development Authority General Fund of Richfield from all sources, including general ad valorem tax levies as hereinafter set forth for the year 2026, and as the same are more fully detailed in the Executive Director’s official copy of the budget for the year 2026, in the amount of $682,260 is hereby approved. Section 3. There is hereby levied upon all taxable property in the City of Richfield an ad valorem tax in 2025, payable in 2026 for the following purposes: Economic Development Authority $645,160 Section 4. A certified copy of this resolution shall be transmitted to the County Auditor. Adopted by the Economic Development Authority in and for the City of Richfield, Minnesota this 18th day of August 2025. Erin Vrieze Daniels, President ATTEST: Melissa Poehlman, Executive Director 16 EDA RESOLUTION NO. RESOLUTION AUTHORIZING REVISION OF THE 2025 BUDGET OF THE ECONOMIC DEVELOPMENT AUTHORITY OF RICHFIELD WHEREAS, Resolution No. __ appropriated funds for personal services and other expenses for the Economic Development Authority for the year 2025, and WHEREAS, The Executive Director has requested a revision of the 2025 budget as detailed in the 2026 budget document. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of Richfield, Minnesota as follows: Section 1. That the 2025 appropriation for the Economic Development Authority General Fund is revised as follows: $255,420 increase Section 2. Estimated 2025 gross revenue of the Economic Development Authority General Fund from all sources, as the same is more fully detailed in the Executive Director’s official copy of the 2026 budget document, are hereby revised as follows: $236,021 increase Section 3. That the Executive Director bring into effect the provisions of this resolution. Adopted by the Economic Development Authority in and for the City of Richfield, Minnesota this 18th day of August 2025. Erin Vrieze Daniels, President ATTEST: Melissa Poehlman, Executive Director 17 THIS PAGE WAS LEFT BLANK INTENTIONALLY 18