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EDC members question 99‑year, 90% commitment to city projects; wastewater bond highlighted
Summary
Board members discussed the MEDC–city performance agreement that commits 90% of EDC funds (for 99 years) to city projects, noting $1.1 million currently committed to bonded debt for a wastewater treatment plant and debating whether the EDC should seek a larger planning role or renegotiate the arrangement.
Board members spent a substantial portion of the meeting discussing a long‑term economic development agreement that commits 90% of EDC funds to the city for up to 99 years.
The conversation focused on how much of the EDC’s operating capacity is limited by that agreement. Staff explained that about $1,100,000 of the committed amount is currently pledged toward the annual debt service on a wastewater treatment plant bond; board members said the bonding and the project’s expanded cost (originally estimated at $25 million and reported later at more than $40 million) have consumed much of the available EDC funding. One board member said the 90%/99‑year deal was a mistake by a prior board; another urged the current board to seek more involvement with city staff so the EDC can influence the use of those funds.
Staff and consultants outlined possible options: ask city council to cap the commitment or return commercial parcels to the EDC for marketing and lease, consider special districts to finance infrastructure, or pursue grant and financing options to reduce the EDC’s direct debt burden. Staff noted some components of the wastewater funding come from impact fees, MEDC payments and utility rates, and that some federal and regional grants (for example, CDBG) remain available for specific projects.
No formal vote or change to the MEDC–city agreement occurred at the meeting; board members asked staff to produce more detailed numbers on what is already committed and whether there is room to create a director position or other staffing to pursue grants and manage development.
