February 17, 2026, City Council Packet with Presentations

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The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 4.5 Meeting Date February 17, 2026 Prepared By Joshua Mollan, Economic Development Specialist Item Description Resolution 26-12 Commitment of Local Match to Northstar Business Park Infrastructure Project Reviewed by Brent O'Neil Cal Portner Jolene Richter Action Requested Adopt, by motion, Resolution 26-12 committing local match to support an application for the Innovative Business Development Public Infrastructure program. Background/Discussion As CDI considers expanding its facility on Twin Lakes Road, the city intends to apply for state funds under the Innovative Business Development Public Infrastructure grant program (IBDPI). The company is proposing a 45,000sf addition to its present operations, which would add at least 20 jobs in the next two years. The project is targeting a spring 2026 construction. IBDPI incentivizes innovative businesses by providing grant funds to assist eligible applicants with the development of costly public infrastructure to expand economic development through the growth of innovative businesses. This program requires a minimum 50% local match. Based on the identified IDBPI grant funds available, it is recommended that the city apply for $92,000, which is anticipated to be less than 50% of the total infrastructure project cost and meets the local match requirement. The infrastructure project is a relocation of a city-owned public stormwater pipe that currently runs near and parallel to the CDI/EDA property line. For CDI to expand north, following an EDA land sale, the stormwater pipe must be relocated. Engineers will survey the site and determine the specific relocation design. The estimated conceptual cost for the infrastructure project is $242,000. The IBDPI application requires a local government resolution of support that includes a commitment of 50% or more matching funds. The funds to cover the local portion of the infrastructure project are expected to be funded through the EDA proceeds of the land sale. The EDA is anticipated to adopt its own resolution allowing the City Council to commit those funds on behalf of the EDA prior to the February 17th City Council Meeting. This incentive is part of a combined economic development package of the city and state, including tax increment financing, of which the company has an active application with the city. Financial Impact Matching funds would be sourced through the EDA, and not general funds of the city. Page 52 of 395