EDA adopts tax‑abatement policy and approves housing trust awards, RAD conversions and intergovernmental agreements

The Mankato Economic Development Authority on the record adopted a revised tax‑abatement policy and approved a series of housing actions intended to support shelter operations, RAD conversions and regional housing administration.

Tax‑abatement policy: Staff told the board the draft policy was revised following prior discussion to add affordable housing as an eligible consideration and to establish an application fee of $4,400, consistent with TIF application review costs. Staff said legal counsel advised avoiding naming a single prohibited use and instead framing why certain high‑use activities (for example, proposals that would consume unusually high amounts of water or energy) may be inappropriate. The board adopted the policy.

Connection Shelter grant: The EDA authorized the executive director to enter into a Housing Trust Fund recipient agreement with Connection Shelter for a previously approved allocation of $135,283 to support a low‑barrier, housing‑focused summer shelter expansion. Staff said the program will operate a 48‑bed overnight shelter roughly from about 5 p.m. to 8 a.m., emphasize low‑barrier access and housing‑focused case management, and is intended as one‑time assistance while the shelter pursues longer‑term sustainability and additional grant funding. Blue Earth County approved matching support on April 21.

Intergovernmental and management agreements: The board authorized an intergovernmental agreement with the Blue Earth County EDA to formalize regional administration of the Local Affordable Housing Trust Fund, the Housing Choice Voucher Program (funded by the U.S. Department of Housing and Urban Development) and the 'Bring It Home' rental assistance program funded by Minnesota Housing. Under the arrangement, the Mankato EDA will administer Housing Choice Vouchers and coordinate regional program delivery across a multi‑county service area. Separately, the EDA approved a property‑management agreement under which Blue Earth County would own converted RAD properties and the Mankato EDA would perform day‑to‑day management for a five‑year term; staff said the Mankato EDA would receive a management fee equal to 6% of gross operating revenues.

RAD/Section 18 conversion and repayable loan: Staff reported HUD approved conversion of remaining public‑housing units to project‑based rental assistance and recommended authorizing transfer of remaining units to the City of Mankato and execution of Section 8 project‑based HAP contracts. The board approved the authorization. Staff also presented a Housing Trust Fund repayable loan proposal of up to $600,000 at 0% interest over five years to address an estimated conversion funding gap of about $515,000; staff said the Housing Trust Fund balance prior to the loan was $1,900,000, with prior allocations of $835,000 and $135,283 reducing available balances and leaving an estimated post‑loan balance of roughly $332,000. The board approved the loan authorization.

Coordinated entry MOU: The EDA authorized renewal of a memorandum of understanding to support a regional Coordinated Entry System Navigator position; funding was identified from the River Valleys Continuum of Care and the MOU will leverage state, federal and in‑kind resources and coordinate with local partners including Connection Shelter, Partners for Housing, the Salvation Army and the Crisis Resource Center.

All motions related to these housing and administrative items were approved by the EDA during the meeting.