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New Prague EDA reviews five‑year economic development plan; members debate tax‑base wording and future use of funds
Summary
The New Prague Economic Development Authority reviewed a draft five‑year strategic plan that outlines goals, action items and success metrics. Members debated whether the city's tax base should be described as "well diversified," discussed shifting from land acquisition to public–private partnerships, and heard from a local manufacturer urging quicker, turnkey options for expanding firms.
The New Prague Economic Development Authority (EDA) discussed a draft five‑year economic development strategic plan on items including diversification of the tax base, potential uses of the EDA's fund balance and next steps to convert strategy into tactical projects.
Keith, the plan presenter, told the EDA the document "is the culmination of all the work that we've done with you," describing action items, timelines and success metrics and recommending the plan be reviewed annually or quarterly as projects develop. He added the plan is a framework for the EDA to use over a five‑year horizon as the city moves beyond selling the last industrial park lots.
An early point of contention was language on whether New Prague's tax base is "well diversified." Bruce questioned the phrasing and said he had "never felt that we've been well diversified," arguing that calling the base "well diversified" could undercut the EDA's rationale for incentives. Keith pointed members to table 3 in the packet (page 10), saying the city's net tax capacity showed roughly 72% residential and about 20% commercial/industrial and that, relative to similarly sized Minnesota cities, that commercial/industrial share is stronger than many peers.
Members discussed the EDA's future role — whether to continue buying and developing land or to shift toward supporting projects through loans, façade programs, marketing and public–private partnerships. Several members said the plan should make clear whether the EDA intends to act as an active developer (buying and holding land) or primarily as a partner that provides programs and incentives. Keith described a shift away from front‑end land acquisition toward supporting private projects, with the EDA offering programs and partnership assistance when opportunities arise rather than routinely purchasing parcels to hold for years.
The group also pressed for more financial clarity. Members asked for a postmortem on the industrial park investment that would summarize project costs, estimated tax revenue and jobs created so the EDA can better justify annual levy requests and use of fund balance. One member noted the EDA currently has a substantial fund balance and questioned whether an annual levy of $75,000 remains necessary without a clear spending plan.
Local business perspectives came during a public comment from Nate French, owner of CDF Racing. French said his company needs space that fits its construction timeline and that the city's industrial park is valuable because it provides sites that are immediately available. "The industrial park is great because it's there," French said, urging the EDA to prioritize options that reduce lead time for growing firms.
Keith closed by asking members to send any additional edits to staff. He said the EDA still needs to determine the formal adoption pathway and meeting at which the plan would be adopted and that staff will update wording and action‑item timelines in response to the discussion.
The authority did not take a final vote on the strategic plan at this meeting; members agreed to refine the document, correct typographical errors, and return with more tactical cost estimates and a recommended adoption schedule.
