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Community development director outlines loans, grants and partners; Mill hotel opening in July
Summary
Community Development Director Clara Black briefed council on revolving loan funds (about $22.5 million available across programs), active grants (including mill hotel to open in July and dairy property trail design), boards and commissions work, and priorities such as zoning/code updates and a possible growth plan.
Clara Black, community development director, gave a broad update on the department’s work, describing programs, partners, active grants and policy priorities.
Why it matters: Community development plays a convening role for development projects, zoning and grant administration; staff highlighted several active grants and loan programs that support business and housing growth in Fergus Falls.
Key points: - Partners and tools: Black listed key partners including Otter Tail County CDA, the HRA, the Small Business Development Center (SBDC), West Central Initiative, Minnesota DEED, the U of M Extension Office (for IMPLAN economic modeling) and the State Historic Preservation Office (SHPO). The department uses TIF, abatements, Port Authority tools and several revolving loan funds to support development. - Revolving loan funds: Business Development for Fergus Falls (BDFF) oversees multiple loan pools: a Minnesota Investment Fund (MIF) focused on manufacturing/green tech, an Intermediary Relending Program (IRP) now fully revolved, and Community Development Block Grant (CDBG)–derived economic development and facade loans. Black said the loan programs have provided 627 total loans since the 1980s and the current lending balance available is just over $22,000,522 (figure presented by staff). - Active grants and projects: The Mill boutique hotel project is due to open in July and will close out a Minnesota DEED grant; the dairy property trail design was on the meeting agenda and is funded; 801 West Stanton (Community Energy Transition Program funding) remains active; a grit chamber grant around Lake Alice is in progress. Black said staff regularly pursue federal earmarks and other competitive sources. - Boards and commissions: Public Arts (sculpture walk), Heritage Preservation (regional treatment center initiatives and a possible downtown historic district), Human Rights (awareness/education) and BDFF (loans) are active. A bike-and-ped group is restarting. - Priorities and systems: Black described the city’s new website and efforts to move away from an AS/400 internal system to allow online permitting, payments and easier public-facing services. She recommended work on a growth or comprehensive plan and an ordinance overhaul to modernize long-standing code provisions.
Council comments and follow-up: Council members praised Black’s work and asked questions about loan fund targets, program readiness for economic development opportunities, and planning commission workload. Black said loan program rules and eligibility vary by fund; the IRP covers Otter Tail County broadly and loan caps and requirements are detailed on the city website. Black said she would email council the loan carryforward figures requested earlier.
Ending: Black said she wants to build council relationships and continue aligning projects with funding opportunities; several active grants will move to design or closeout work this summer.
