Ms. Hatanpa moved and Ms. Melby-Kelley seconded a motion to approve the Economic Development Authority minutes of the Regular Meeting of March 10, 2025, as written. The motion carried unanimously.

Mr. Tatge reported on major renovations in 2011 and 2012 at Orness Plaza that included energy-efficient heating, ventilation, and air conditioning components being installed for energy conservation. He noted that geothermal wells throughout the grounds, redesigned controls for the existing rooftop HVAC units, and individual heat pumps within each unit were included. Orness contains 114 individual heat pump units throughout the building, including all 101 residential units and common spaces utilized by the residents as well as staff areas that equate to 13 units.
 
Mr. Tatge indicated that Phase 1 of the project replaced 69 of the 114 units that were exclusively residential units, and Phase 2 of the project replaced the remaining 32 residential units and five units that serve common areas in the building. He commented that the nature of how the heat pump works reduces the lifespan of the equipment to less than that of a normal household furnace; thus, on average, a heat pump in this configuration can last between 10–15 years, with an average household furnace lasting between 15–20 years. 
 
Mr. Tatge stated that improvements in this final phase include the replacement of eight remaining heat pump units that reside in the ceilings of offices and common areas that were installed in conjunction with the remodel in 2011. He noted that Phase 3 of the project is proposed to be funded by the 2025 EDA Housing Capital Budget with the approved budget for the project being $120,000. He summarized the estimated costs ($118,800) and funding sources for the project. He added that the recommended improvements are being proposed for the summer or fall of 2025, depending upon lead times for the new equipment.

Mr. Dieken moved and Mr. Mettler seconded the motion approving the Resolution accepting feasibility report and ordering project for Capital Improvement Project 11139; Orness Plaza Heat Pumps Phase 3. The motion carried unanimously. 

Ms. Bokelmann stated that the Mankato Public Housing units are required under the Housing Choice Voucher Project-Based rental assistance to complete Lead-Based Paint Risk Assessments as part of the conversion process. She noted that two consultants submitted quotations for the project. 

Ms. Bokelmann explained that the purpose of the Lead Risk Assessment is to determine the presence or absence of lead-based paint hazards on the interior and exterior of buildings when renovation, demolition or conversions are planned. She commented that the lead risk assessment is to be conducted per HUD's Guidelines for evaluation and control of lead-based paint in housing, chapter 5, Risk Assessment and Reevaluation, 2012 edition.

Ms. Bokelmann indicated that Minnesota Lead Testers out of Wyoming MN submitted the apparent low quotation in the amount of $54,280, with all documentation conforming to the bid requirements set forth by the authority and federal regulations.

Ms. Melby-Kelley moved and Ms. Bokelmann seconded a motion approving the Resolution considering bids on Lead-Based Paint Risk Assessments for Public Housing Properties. The motion carried unanimously.