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The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community <br />engagement that encourages and inspires prosperity <br /> <br />Request for Action <br /> <br />To <br />Economic Development Authority <br />Item Number <br />7.1 <br /> <br />Meeting Date <br />February 17, 2026 <br />Prepared By <br />Brent O'Neil, Economic Development Director <br /> <br />Item Description <br />Resolution 26-02: Project Update and Commitment <br />of EDA Funds for IBDPI Grant Application for CDI <br />Reviewed by <br />Brent O'Neil <br />Cal Portner <br /> <br />Action Requested <br />Adopt, by motion, the attached resolution designating EDA funds as the source of matching funds for an <br />infrastructure grant application for the CDI project. <br /> <br /> <br />Background/Discussion <br />Crystal Distribution, Inc. (CDI) continues to pursue the expansion of its Elk River site. We will provide an <br />overall update on the project status and timelines. Additionally, we are finalizing an application to the state for <br />grant funds under the Innovative Business Development Public Infrastructure program, which would help <br />offset the cost of relocating public storm pipe through the site. A preliminary cost for the relocation is <br />$242,000, and it is estimated that $92,000 would be available through the state program. The attached <br />resolution commits the local match, $150,000, to the relocation project. <br /> <br />As previously discussed with the board, the land sale would be set at a negotiated basis of $1.70 per square <br />foot, or $518,000. The sale would include a provision that would provide an offset in the land price to <br />account for CDI's cost of relocating the public utilities if other incentives, including Tax Increment Financing <br />(TIF), were insufficient to cover all acquisition costs. This grant will lessen any offset needed in land price and <br />may result in eliminating any offset requirement. The attachment shows the present estimate of costs and <br />incentives related to the project. <br /> <br />Additionally, a City Council resolution of support is required for the grant, including a commitment of local <br />funds. A similar resolution will be considered by the Council. <br /> <br />Financial Impact <br />$150,000 in match would be pledged from EDA funds. It is likely, however, TIF would be sufficient to cover <br />this local match. If necessary, the land sale proceeds of $518,000 would be more than sufficient to cover this <br />match. <br /> <br />Mission/Policy/Goal <br />Support industrial development. <br /> <br />Attachments <br />Page 9 of 13