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EDA to pursue service-agreement option rather than direct donation to Lindstrom Business Group
Summary
EDA staff explained city finance rules prevent an unrestricted donation and recommended contracting the business group for specific services tied to deliverables; commissioners generally supported the approach and asked staff to return in June with a draft agreement and budget options.
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City staff told the EDA that while the city cannot make an unrestricted donation to a private organization, it can contract for services and require reporting on how funds are used.
A staff member summarized the constraint plainly: “We just can't from a government agency, just can't donate money to them.” Staff cited prior arrangements with the Chamber of Commerce as a template that included an annual work plan, a short report at year-end, and measurable touch points with local businesses.
Commissioners asked whether the EDA should fund a single line item (the concert) or enter a broader service agreement covering multiple items and deliverables. Staff and the business group said the recommended path would be to identify specific services for year one (marketing, event staffing, ambassador duties), document expected deliverables and outcomes, and require annual reporting; the EDA signaled general appetite for moving forward.
Director-level staff committed to drafting a service-agreement proposal, including suggested dollar amounts and specific deliverables, and to present that proposal to the EDA for a June decision.
