Otsego EDA weighs use of state housing aid, reviews loan policy and TIFs; elects officers, approves newspaper and depository

At its Feb. 10, 2025 meeting, the City of Otsego Economic Development Authority heard staff briefings on the agency's available balances and options for spending new statewide affordable housing aid, reviewed its economic development revolving loan policy and updates on three active tax increment financing (TIF) districts, and conducted routine elections and housekeeping votes.

City staff reported the EDA fund had an unaudited cash balance of about $389,000 and that approximately $105,000 from 2023 and 2024 is restricted by the state's affordable housing aid program, with an expected additional allocation in 2025 of just under $24,000, leaving roughly $130,000 that would carry restrictions tied to the state guidance. Staff also said the unassigned (locally controlled) portion of the EDA revolving fund totaled $283,932. "I will report that as of today, staff does not have a recommendation for the board on how to proceed," a city staff member, Dan, told the authority, citing legislative restrictions and the limited experience of many cities applying the program.

The staff briefing described the statutory timing tied to the aid: funds must be obligated by the end of the third year after receipt and spent by the end of the fourth year. "So the first aid was received in 2023, so you'd have to spend that money by the end of 2027," Dan said, referencing the timeline…