On the agenda: Forest Lake meeting — data center (Jun 1)

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NOTICE OF AGENDA
ECONOMIC DEVELOPMENT AUTHORITY (EDA) MEETING
City of Forest Lake - Link to Meeting Livestream
Forest Lake City Center – Council Chambers
Forest Lake, Minnesota
June 1, 2026 – 6:00 PM (new time)
1. Call to Order
2. Roll Call
3. Pledge of Allegiance
4. Approve the Agenda (Action)
5. Open Forum - Citizen Petitions, Requests and Concerns: Please sign in at the front table.
The Open Forum is available for residents to express personal opinions for any item of business.
Please limit your comments to three (3) minutes.
6. Consent Agenda Considerations (Action Items)*
a. Approve Minutes from Regular Meeting of May 4, 2026
*EDA may remove any item from the consent agenda for specific consideration.
7. Regular Agenda (Action Items)
a. 67, 79, & 91 Lake Street South Commercial Improvement Incentive Program Application
b. 2027 Budget Proposal
c. Forest Lake Area Chamber Annual Golf Event
8. Discussion
a. Opportunity Zones
b. EDA Seal
9. Updates
a. City

i. Airport Business Park Parcels Survey and Wetland Delineation Update (Verbal)
ii. 2025 Community & Economic Development Report
b. Washington County
c. Forest Lake Area Chamber of Commerce
*A quorum of the City Council is possible at all Board and Commission Meetings

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d. Other

10. Closed Session
a. Closed session pursuant to Minnesota Statutes § 13D.05, Subd. 3(c)(3), to develop or
consider offers or counter offers for the purchase or sale of property identified as
08.032.21.13.0169, 08.032.21.13.0170, and 08.032.21.13.0171 Washington County,
Minnesota.
11. Adjourn

EDA MISSION STATEMENT
Assist and support the economic climate of the City of Forest Lake through programming and
communication to achieve the greatest outcome for its citizens and businesses by:
•
•
•
•
•

Marketing the City and its assets
Supporting existing businesses
Supporting new businesses
Creating partnerships
Providing a vision for the future of commercial areas

*A quorum of the City Council is possible at all Board and Commission Meetings

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ECONOMIC DEVELOPMENT AUTHORITY 1408 Lake Street South

Forest Lake, MN 55025

Regular Meeting

www.ci.forest-lake.mn.us

~ Minutes ~
Monday, May 4, 2026

6:00 PM

City Center - Council Chamber

City of Forest Lake - Livestream and Recorded Meetings

1. Call to Order
2. Roll Call
Attendee Name
Leif Erickson
Eric Langness
Jill Grindahl
Blake Roberts
Jennifer Lorge
Chris Hoyt
Johnathan Wright

Title
EDA President
EDA Commissioner
EDA Commissioner
EDA Commissioner
EDA Commissioner
EDA Commissioner
EDA Commissioner

Status
Present
Present
Present
Present
Present
Absent
Present

Arrived

3. Pledge of Allegiance
4. Approve the Agenda
Motion: EDA Commissioner Lorge made a Motion to Approve the Agenda as submitted.
Motion seconded by EDA Commissioner Grindahl. Motion carried 6-0.

5. Open Forum – Citizen Petitions, Requests, and Concerns

The Open Forum is available for residents to express personal opinions on any item of business.
Please limit your comments to three (3) minutes.
Comments:
None.

6. Consent Agenda Considerations (Action Items)*

a) Approve Minutes from Regular Meeting of March 2, 2026

Motion: EDA Commissioner Wright made a Motion to Approve the EDA minutes from the Regular
Meeting of March 2, 2026, as submitted.
Motion seconded by EDA Commissioner Grindahl. Motion carried 6-0.

7. Regular Agenda (Action Items)
None.

Economic Development Authority

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DRAFT MINUTES

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ECONOMIC DEVELOPMENT AUTHORITY 1408 Lake Street South
Regular Meeting

Forest Lake, MN 55025

www.ci.forest-lake.mn.us

~ Minutes ~
Monday, May 4, 2026

6:00 PM

City Center - Council Chamber

8. Discussion

a) Draft Business Subsidy Policy
Community Development Director Wittman provided a summary of the former Business Subsidy
Policies that had been drafted or adapted by the City in previous years. She reviewed the updated
business subsidy policy with the goals to make it easier to understand and specific to the City’s
future development and land use needs and desires.
EDA President Erickson asked why they included the phrase about the variety of housing options.
Community Development Director Wittman answered that there was more demand for housing in
the downtown area.
Community Development Director Wittman reviewed the eligibility for the business subsidy policy.
EDA Commissioner Lorge asked how they defined the downtown and if someone outside of the
downtown wanted to expand. Community Development Director Wittman responded that it would
depend on whether they met another threshold and the purpose of their project.
EDA President Erickson asked if they could tie it back to the completed downtown study.

EDA Commissioner Langness questioned the eligibility of an existing business going through
significant growth. Community Development Director Wittman responded that it would depend on
whether they were generating a significant impact on wages. She stated that if they were expanding
their business by moving elsewhere, they would increase job availability.
EDA Commissioner Grindahl asked if they would build metrics or KPIs. Community Development
Director Wittman provided an example of the minimum capital requirements with the City of
Rosemont, which could apply to those expanding businesses.
EDA Commissioner Roberts suggested a percentage rather than a set dollar amount. Community
Development Director Wittman answered that she would investigate the existing community
development standards.
EDA Commissioner Grindahl questioned protection if the markets shift. Community Development
Director Wittman provided examples of the agreements associated with funding for the projects.
She said that they might want to pick and choose what the developments are as the market
changes.
EDA Commissioner Roberts asked how many marks they would need to hit. Community
Development Director Wittman responded that one policy was reasonable, but in the policy, they
state that the applicant must meet two requirements.
Economic Development Authority

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DRAFT MINUTES

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ECONOMIC DEVELOPMENT AUTHORITY 1408 Lake Street South
Regular Meeting

Forest Lake, MN 55025

www.ci.forest-lake.mn.us

~ Minutes ~
Monday, May 4, 2026

6:00 PM

City Center - Council Chamber

EDA Commissioner Langness suggested that the intent piece about economic diversity allowed for a
wider range of businesses.
Community Development Director Wittman said that they would implement language about the
downtown definition, expanding businesses, and meeting one eligibility standard. She summarized
the ineligibility standards.
EDA Commissioner Langness asked about the financial delinquency requirements and suggested
including language about financial delinquency with other cities, counties, or government
operations.
EDA President Erickson said that number three felt subjected, and he requested that they quantify
the number for default. He asked when there would be so many defaults that they would not be
eligible.
EDA Commissioner Langness asked about the applicant and whether it was a business or a human.
Community Development Director Wittman answered that they would have to include the business
equities involved. He suggested including a definition of the applicant.
EDA Commissioner Roberts suggested it could also include the landowner financing the structure
and the individual leasing the space. Community Development Director Wittman answered that
parties could change over time, so they could include language to define the applicant.
Community Development Director Wittman summarized the new job creation requirements and the
minimum wage requirements. She reviewed the living wage requirements from the State of
Minnesota. She suggested they should be looking at 200 percent on a subsidy based on wage to
encourage more head-of-household opportunities.
EDA Commissioner Langness asked about the median wage for the County. He said that if they were
not meeting the median wage of the community, they should not be subsidizing them to come in.
He said that they should have the requirements be two-fold, of 200 percent or the median,
whichever is higher. Community Development Director Wittman said that they could look at the
numbers of the County median, and that they should be trying to target higher wages.
EDA Commissioner Lorge noted that an employer often puts in additional investments to salary,
such as insurance costs.

Economic Development Authority

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DRAFT MINUTES

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ECONOMIC DEVELOPMENT AUTHORITY 1408 Lake Street South
Regular Meeting

Forest Lake, MN 55025

www.ci.forest-lake.mn.us

~ Minutes ~
Monday, May 4, 2026

6:00 PM

City Center - Council Chamber

Community Development Director Wittman reviewed the requirement bullet points and stated that
they did not need to meet every eligibility requirement listed. She reviewed the County wage
information.
EDA Commissioner Langness said that the number might include one or two people working in
households.
EDA Commissioner Grindahl thought that the $23 hour was a good base in her mind. EDA
Commissioner Langness said that the number was from the old policy, which required 80 percent of
the median income.
EDA Commissioner Roberts discussed the cost to the business owner, along with additional taxes
and insurance. He thought very few would hit this mark, so he was fine with a higher number.
Community Development Director Wittman clarified that this was their base business subsidy policy.
Some communities had additional requirements or benefits for the number of jobs created. She
discussed alternative opportunities to help businesses that were creating additional jobs, as there
was an economic benefit.
EDA Commissioner Lorge discussed concerns that the one higher-wage position was the owner.
Community Development Director Wittman responded that the policy required higher wages and
quality employment opportunities, so that specific example might not meet the criteria.
Community Development Director Wittman requested feedback on the salary requirement.
EDA Commissioner Langness stated that if the business only met the criteria for the salary, he
wanted the requirement to meet 400 percent of the State minimum and above the median to stay
ahead of inflation.
EDA Commissioner Wright suggested a 200 to 300 percent of the State minimum if there was an
increase in positions offered.
Community Development Director Wittman clarified that they could choose to deviate from it if
they want. She summarized the requested language presented by EDA Commissioner Langness.
EDA Commissioner Langness asked if the language was based on the 2023 draft. He asked about
page 36, Item D.3. Community Development Director Wittman responded that the policy that was
considered was on pages nine to fourteen in the packet. She would bring the policy back to the EDA
for final approval.
Economic Development Authority

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DRAFT MINUTES

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ECONOMIC DEVELOPMENT AUTHORITY 1408 Lake Street South

Forest Lake, MN 55025

Regular Meeting

www.ci.forest-lake.mn.us

~ Minutes ~
Monday, May 4, 2026

6:00 PM

City Center - Council Chamber

b) Draft 2025 Community and Economic Development Report
Community Development Director Wittman provided an overview of the Community and Economic
Development Report for 2025. She noted that the document helped them understand the growth
over the last year. She requested feedback about how to use the report.
EDA Commissioner Langness recommended not utilizing any State Flag in the report.
EDA Commissioner Grindahl suggested utilizing the report to show the progress in the City.
EDA President Erickson asked for additional information about engaging with outside help to
showcase the report. Community Development Director Wittman answered that there was potential
to make the report more polished before sharing it publicly.
EDA President Erickson asked about the return on investment if they utilized an outside marketing
firm. Community Development Director Wittman responded that she would share the report with
any development request to highlight community progress. She stated that they could use it to
distribute within the development community, but she did not know the return on investment
calculations currently.
Chamber President Nannette LaNasa suggested polishing up the report to utilize it better.
EDA Commissioner Langness stated that they could implement AI to create a nicer report.
EDA Commissioner Grindahl suggested considering ways to highlight different experiences in the
community, so others realize what happens.
EDA Commissioner Langness responded that he was open to broader marketing opportunities.
Community Development Director Wittman said that part of the role of the Economic Development
Authority was to market Forest Lake. She said she would bring additional information back at the
next meeting.
EDA Commissioner Langness suggested providing hyperlinks to other documents or landing pages,
such as the Forest Lake Area Chamber of Commerce.

9. Updates

a) City
Community Development Director Wittman said that they received a Commercial Approval.
Incentive Application for façade improvements. She would provide more information in the future.

Economic Development Authority

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DRAFT MINUTES

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ECONOMIC DEVELOPMENT AUTHORITY 1408 Lake Street South
Regular Meeting

Forest Lake, MN 55025

www.ci.forest-lake.mn.us

~ Minutes ~
Monday, May 4, 2026

6:00 PM

City Center - Council Chamber

b) Washington County
None.
c) Forest Lake Area Chamber of Commerce
Chamber President Nannette LaNasa reviewed the different Chamber of Commerce Events, such as
the Easter Egg Hunt. She noted they launched general marketing services for their members. They
referred to Commercial Approval Incentive Applicants to Forest Lake. She reviewed additional
collaboration within the City for different events. She invited individuals to the Lake Days Street
Dance. She noted that information about the Veteran’s Memorial would be under Community
Events on the Forest Lake Area Chamber of Commerce Website.
d) Other
None.

10. Closed session pursuant to Minnesota Statutes § 13D.05, Subd. 3(c)(3), to
develop or consider offers or counteroffers for the purchase or sale of
property identified as 29.032.21.32.0001, Washington County, Minnesota.
Motion: EDA Commissioner Langness made a Motion to Move into Closed Session Pursuant to
Minnesota Statutes §13D.05 Subdivision 3 (c)(3), to develop or consider offers or counteroffers for the
purchase or sale of property identified as 29.032.21.32.0001, Washington County, Minnesota.
Motion seconded by EDA Commissioner Grindahl. Motion carried 6-0.
The Regularly Scheduled EDA Meeting reconvened.

11.Adjourn
Motion: EDA Commissioner Lorge made a Motion to Adjourn the Regularly Scheduled EDA Meeting at
7:41 p.m.
Motion seconded by EDA Commissioner Langness. Motion carried 6-0.

Economic Development Authority

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DRAFT MINUTES

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STAFF REPORT
EDA MEETING DATE: June 1, 2026
STAFF ORIGINATOR: Abbi Wittman, Community Development Director
AGENDA ITEM:

Commercial Improvement Incentive Program (CIIP)

______________________________________________________________________________
INTRODUCTION:
The City has received a Commercial Improvement Incentive Program (CIIP) application from Tim
Owala of Ace Hardware for the exterior renovation of 67, 79 & 91 Lake Street South which Ace
Hardware intends to relocate to. The application notes the new owner intends to demo the old
bank drive thru, add a permanent greenhouse, paint and update the exterior façade and
conduct landscaping. While all of these activities are eligible for reimbursement through the
CIIP program, the applicant has not submitted plans to the City.
ANALYSIS:
While the application did not include plans, it is their intent to start work yet this spring. A
requirement of the CIIP program is to obtain EDA approval prior to starting work. One challenge
with the program is the timing of Site Plan and building permit approval in conjunction with the
EDA’s approval. As such, staff believes it is appropriate for the EDA to consider the application’s
approval based on the condition the applicant submits the required plans, conducts the work
according to planning, zoning and building approvals, and submits appropriate documentation
outlining the work has been completed prior to reimbursement. This is outlined in the enclosed
Resolution approving the enclosed draft Agreement for EDA consideration.
RECOMMENDATION:
Staff recommends the EDA discuss the CIIP application recommends the EDA motion to approve
Resolutions 06-01-26-01, approving Forgivable Loan Agreements as presented.
ATTACHMENTS:
Resolution 06-01-26-01

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CITY OF FOREST LAKE
WASHINGTON COUNTY, MINNESOTA
ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 06-01-26-01
RESOLUTION APPROVING THE FORGIVABLE LOAN FOR FAÇADE
REPAIRS AT 146 LAKE STREET NORTH

WHEREAS, the City of Forest lake (“City”) established the Forest Lake Economic
Development Authority (“EDA”) to promote future development, increase the tax base,
encourage local employment and enhance overall quality of life within the City; and
WHEREAS, multiple sections of Minn. Stat. Chapter 469 authorize the EDA to
provide loans to a business organization, for the public purposes of providing an impetus
for commercial development, increasing employment, and promoting, encouraging and
attracting economically sound industry and commerce; and
WHEREAS, the EDA has established a fund to provide forgivable, no-interest
loans (“Loan” or “Loans”) to assist eligible, local businesses making capital improvements
to their business location; and
WHEREAS, the purpose of these Loans is to ensure the preservation of
employment opportunities in the City and promoting economically sound industry and
commerce to promote long-term economic vitality in the community; and
WHEREAS, Grantee owns and intends to operate a business located in Forest Lake
at 91 Lake Street South and eligible property improvements are anticipated; and
WHEREAS, Grantee has submitted an application for a Loan in the amount of Ten
Thousand dollars ($ 10,000) and has been determined to be eligible for a Loan; and
WHEREAS, the Grantee’s application substantially meets the criteria for awarding
a Loan established by the EDA.
NOW, THEREFORE, BE IT RESOLVED BY THE EDA AS FOLLOWS:
1. That the forgivable loan in the amount of (up to) $10,000 for façade repairs is
hereby approved.
2. That staff is hereby authorized to undertake the following actions to complete the
transaction:
a. Execute the Forgivable Loan Agreement upon submission of a complete
application.
b. Verify proof of the paid eligible expenses.
c. Distribute the Loan funds.

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ADOPTED by the Forest Lake Economic Development Authority on June 1, 2026.

FOREST LAKE ECONOMIC
DEVELOPMENT AUTHORTY
_____________________________
Leif Erickson
Its: President

_____________________________
Abbi Wittman
Its: Secretary

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FORGIVABLE LOAN AGREEMENT

THIS AGREEMENT (“Agreement”) made this ____ day of July 2025, by and between the
Forest Lake Economic Development Authority, a Minnesota public body corporate and politic,
located at 1408 Lake Street South, Forest Lake, Minnesota 55025 (“EDA”) and
_________________, a Minnesota limited liability company, located at 91 Lake Street South
(“Grantee”).
RECITALS
WHEREAS, the City of Forest lake (“City”) established the EDA to promote future
development, increase the tax base, encourage local employment and enhance overall quality of
life within the City; and
WHEREAS, multiple sections of Minn. Stat. Chapter 469 authorize the EDA to provide
loans to a business organization, for the public purposes of providing an impetus for commercial
development, increasing employment, and promoting, encouraging and attracting economically
sound industry and commerce; and
WHEREAS, the EDA has established a fund to provide forgivable, no-interest loans
(“Loan” or “Loans”) to assist eligible, local businesses making capital improvements to their
business location; and
WHEREAS, the purpose of these Loans is to ensure the preservation of employment
opportunities in the City and promoting economically sound industry and commerce to promote
long-term economic vitality in the community; and
WHEREAS, in order to be eligible for these Loans, Grantees must meet certain criteria
established by the EDA; and
WHEREAS, Grantee owns and intends to operate a business located in Forest Lake at 91
Lake Street South; and
WHEREAS, Grantee submitted an application for a Loan in the amount of Ten Thousand,
dollars ($ 10,000) and has been determined to be eligible for a Loan; and
WHEREAS, the Grantee’s application meets the criteria for awarding a Loan established
by the EDA.
NOW THEREFORE, for good and valuable consideration, the receipt of which is
acknowledged, and in consideration of the covenants and agreements made herein, Grantee and
the EDA hereby agree as follows:
AGREEMENT

[14513-40086/3555314/2]

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1.

The Grantee is hereby awarded a Loan of in an amount of (up to) Ten Thousand dollars
($10,000) per the terms of the EDA’s Commercial Improvement Incentive Program.

2.

The Loan shall be used exclusively for the following eligible expenses: front façade repairs
and landscaping.

3.

The Loan shall be distributed by the EDA to the Grantee within two weeks after this
Agreement has been executed by both parties and the Grantee has provided the EDA with
the following:
a. Brief report of the project; and
b. Proof of paid eligible expenses.

4.

Once Grantee has complied with the terms and conditions of this Agreement, the Loan will
be forgiven in whole.

5.

The parties agree that this Agreement shall be construed pursuant to Minnesota law and
any disputes shall be venued in Washington County, Minnesota.

6.

Notices to the parties shall be sent as follows:
If to EDA:

Forest Lake EDA
Attn: Abbi Wittman
1408 Lake Street South
Forest Lake, MN 55025

If to Grantee:

______________________
Attn: Tim Owala
12011 Eidelweiss St NW
Coon Rapids, MN 55025

7.

This Agreement shall not be assigned without the prior written consent of the other party.

8.

This Agreement shall only be amended by written agreement approved by both parties.

9.

Grantee agrees to indemnify, defend, and hold harmless the City from and against any loss,
cost, or damage of any kind, including reasonable attorneys' fees, to the extent arising out
of its breach of this Agreement, and/or its negligence or willful misconduct.

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
by their authorized representatives as of the date first written above.

[14513-40086/3555314/2]

2

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FOREST LAKE ECONOMIC DEVELOPMENT AUTHORITY

Leif Erickson
Its: President

Abbi Wittman
Its: Secretary

STATE OF MINNESOTA
COUNTY OF WASHINGTON

)
)ss
)

The foregoing instrument was acknowledged before me this ________ day of
_______________________, 202__, by Leif Erickson and Abbi Wittman, the President and
Secretary, respectively, of the City of Forest Lake Economic Development Authority, a Minnesota
public body corporate and politic existing under the Constitution and laws of Minnesota, on behalf
of the EDA.

Notary Public

[14513-40086/3555314/2]

3

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NAME OF GRANTEE

Printed Name:
Its:

STATE OF
COUNTY OF

)
)ss
)

The foregoing instrument was acknowledged
______________________, 202__, by
of
on behalf of the

Notary Public

[14513-40086/3555314/2]

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before me this
, the

___
.

day

of

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EDA Meeting Date:

June 1, 2026

To:

President Leif Erickson and EDA Commissioners

From:

Abbi Wittman, Community Development Director

Re:

2026 Budget Update and 2027 Annual Budget Request

The City Council has requested the EDA’s budget for 2026. To finalize the budget proposal, staff has
prepared this memo for the EDA’s discussion and direction for staff. The intent of this memo is to focus
on operations, contracted services, planning and program funds; as of right now no new wages (above
negotiated contract increased) are proposed for 2027. For EDA discussion, enclosed is the current
workplan.
EDA Year To Date Expenses
The EDA’s 2026 budget is $259,069. A breakdown of the budget, with year-to-date expenses, is as
follows:
2026 EDA Budget and Year-To-Date Expenses
Category
2026 Budget 2026 YTD Expense
Wages
$146,569
$60,917.51
Operations
$7,500
$1,391
Contract Services
$10,000
0
Planning
$45,000
$16,335
Program Funds
$50,000
$10,000
Total
$259,069
$88,643.51

Percent of Total
42%
19%
0%
36%
20%
34%

Though through ½ of the year, the EDA has only spent (approximately 34% of its budget). This is
consistent with mid-year reporting for the past two years.
Funds not yet spent include committed funds for contracted (Chamber BR&E Agreement) and
professional (HW123 Concept Planning, developer engagement, and potential HWY 61 corridor study)
services. These funds are earmarked and will be needed in 2026.
EDA Fund
As a reminder, activities for the EDA are funded out of City Fund 212. This is a fund separate from the
City’s General Fund with revenues coming from an EDA-specific levy that, if not spent by the EDA, stay
within the EDA fund. In other words, if the EDA does not spend all of its dollars in 2026, those monies
will be used to grow the EDA’s fund balance. Conversely, if the EDA spends more than the levy amount,

1408 Lake Street South | Forest Lake MN 55025 | 651.464.3550 | Fax 651.464.6874 | www.ci.forest-lake.mn.us

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the overage is subtracted from the EDA’s fund balance. As of the date of this memo, the EDA’s fund
balance is $429,576.11 which is an increase from $256,628.05 this time last year.
2026 Budget
In 2026 the EDA had significant discussions regarding minor increases to the EDA’s budget to reflect
increased wages, contracted services and legal needs. Upon reviewing multiple budget scenarios, the
EDA ultimately forwarded to the City Council a 13.09% increase to the EDA’s budget. This was approved
by the City Council.
2027 Budget
Staff is recommending that, aside from customary salary adjustments, the EDA not increase its budget in
2027. Staff believes there is sufficient funding proposed in the 2027 budget to conduct necessary
planning and predevelopment activities. In the event the EDA would like to try to assist in lowing or
stabilizing the levy, staff would recommend the EDA consider lowering the EDA’s 2027 Planning budget
as, in the last several years, the EDA’s expense have not exceeded $25,000.
2026 Budget & 2027EDA Draft Proposed Budget
Category
2026 Budget
2027
Wages*
$146,569
Operations
$7,500
$7,500
Contract Services
$10,000
$10,000
Planning
$45,000
$45,000
Program Funds
$50,000
$50,000
Total
$259,069
$112,500*
*Wage information, provided by the Finance Department, is not available as of the writing of this
memo.
Requested Action
City staff is requesting the EDA discuss the proposed budget scenarios and take the following actions:
1. Move to approve a proposed budget (as amended, if so desired); and
2. Direct staff to prepare a Resolution for formal EDA approval at the next scheduled EDA meeting.
Attached
2026 Workplan Table

1408 Lake Street South | Forest Lake MN 55025 | 651.464.3550 | Fax 651.464.6874 | www.ci.forest-lake.mn.us

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STAFF REPORT
MEETING DATE:

June 1, 2026

TO:

President Leif Erickson and EDA Members

STAFF ORIGINATOR: Abbi Wittman, Community Development Director
AGENDA ITEM:

Forest Lake Area Chamber of Commerce Golf Event

______________________________________________________________________________
INTRODUCTION:
Annually the Forest Lake Area Chamber of Commerce hosts a golf fundraising event. At the tail
end of the EDA meeting last month, it was questioned if the EDA would like to have a team
participate in the fundraiser this year. Staff is bringing this matter to the EDA for their
discussion and action, if so desired.
ANALYSIS:
If the EDA was favorable to participating on Monday, July 27th, the EDA has sufficient budgeted
funds for the four-person team entry fee. The only thing the EDA would need is four people
willing to participate, representing the EDA.
RECOMMENDATION:
Staff recommends the EDA discuss this matter and take action according to the EDA’s discussion.
ATTACHMENTS:
N/A

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STAFF REPORT
MEETING DATE:

June 1, 2026

TO:

President Leif Erickson and EDA Members

STAFF ORIGINATOR: Abbi Wittman, Community Development Director
AGENDA ITEM:

Opportunity Zones

______________________________________________________________________________
INTRODUCTION:
According to the Minnesota Department of Employment and Economic Development (DEED):
•

•

•

Opportunity Zones are a community development program first established by Congress
in the Tax Cut and Jobs Act of 2017 to encourage long-term investments in low-income
and urban communities nationwide. The program was reauthorized in the One Big
Beautiful Bill Act of 2025.
Opportunity Zones are designated areas aimed at stimulating economic development by
offering tax incentives to investors who fund projects within these zones. Investors can
defer, reduce, and eliminate capital gains taxes by reinvesting in Qualified Opportunity
Funds that support real estate or business development in these areas.
Each Governor is authorized to designate 25% of the eligible census tracts as
Opportunity Zones in their state. In Minnesota, this means the Governor can designate
approximately 73 census tracts as Opportunity Zones out of approximately 289 eligible
low-income census tracts.

A Forest Lake Census tract, shown right, is eligible to
be considered for designation. It is the only City in
Washington County that has an eligible census track.
The application period for designation consideration
opens July 1st. Staff is requesting the EDA’s discussion
regarding whether the City of Forest Lake should work
with Washington County to apply for designation
consideration.
ANALYSIS:
As shown, a significant portion of the City is within the
potential Opportunity Zone. Particularly, the areas of
the HWY 61 corridor, downtown, Broadway Avenue, and 12th Street Southwest hold significant
opportunity for investment. Already the City has seen new construction and redevelopment in
these areas in the last few years. Having the Opportunity Zone designation, if selected, could

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help further spur development/redevelopment efforts. That said, it is most likely investment
would be in housing, service and retail. Given the geographical location, it is less likely
investment would be in industry supporting living wage jobs.
Applications will be prioritized and ranked based on the needs of the community, commitment
to support the zone through ongoing collaboration, development possibilities within the next
five years, and the positive impact the zone could have on the distressed area – among other
things. Weight is placed on the jurisdiction’s ability to engage with private industry, the
business community, and educational institutions, and financing agencies to create Opportunity
Funds for the Opportunity Zone. In the event the City is interested in moving forward with an
application, the City will need to work with these sectors over the next month to complete an
application. Staff would require assistance from EDA members to help facilitate community
connections and conversations during this time.
Staff believes designation could have significant impact on private investment opportunities in
the community. Aside from the timeline for application submission, early community
consultation efforts needed, and historical criticisms of the program, there is little reason the
City should not consider working with Washington County on the submittal of an application.
RECOMMENDATION:
Staff recommends the EDA discuss this matter and provide input for staff.
ATTACHMENTS:
N/A

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STAFF REPORT
MEETING DATE:

June 1, 2026

TO:

President Leif Erickson and EDA Members

STAFF ORIGINATOR: Abbi Wittman, Community Development Director
AGENDA ITEM:

EDA Seal

______________________________________________________________________________
INTRODUCTION:
Upon review of the EDA’s governing documents (Governing Resolution and Bylaws), it has been
determined the EDA does not have a seal though is required to have one per the bylaws. Staff is
bringing this matter to the EDA for discussion and direction. The intent of the discussion is to
see if the EDA would like a seal.
ANALYSIS:
A seal is used on official business documents, signifying approval of a document. While some
consider it antiquated, it can represent authority and legitimacy. A seal would be used for
contracts and agreements, signifying the EDA’s approval.
Staff discussed this matter with EDA member Jill Grindahl who indicated she would be willing to
help facilitate a dialogue with the EDA and create a seal. If the EDA is favorable, Jill will bring
some ideas back to the EDA in July.
RECOMMENDATION:
Staff recommends the EDA discuss this matter and provide direction to staff.
ATTACHMENTS:
N/A

COMMUNITY AND
ECONOMIC
DEVELOPMENT

Building a Stronger, Vibrant
Forest Lake

22

23

Table of Contents
About Forest Lake

Page 3

Demographics

Page 5

Recent Accomplishments

Page 6

Community and Economic Development

Page 7

Permitted Activities

Page 10

Current Planning & Zoning

Page 11

Code Enforcement

Page 12

Long-Range Planning

Page 13

Community Resources

Page 14

Forest Lake Area Chamber of Commerce

Page 15

City Map
Overview
Land Use
Changes

Department Functions
Organizational Chart/Job
Duties
Top Projects by
Valuations New
Residential Counts

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Forest Lake, MN
Originally a stop on the St. Paul and Duluth Railroad, area
growth and development over the last 150 years has resulted
in the City of Forest Lake encompassing 36 square miles, on
the I-35 corridor, just north of the east/west split.

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The City of Forest Lake is a thriving community of
approximately 21,000 residents and growing. Forest Lake
offers a high quality of rural, suburban and Lake living lifestyles.
Located in the northern Twin Cities metro area, Forest Lake is home to a combination of
strong retail centers, robust business park, a quaint and welcoming downtown, and a wide
array of services that support our growing population and expanding businesses – all
surrounded by an abundance of natural beauty.
Strategically located where I-35W and I-35E merge, easily accessible to
Minneapolis/St. Paul and a gateway to Northern Minnesota
Population and households projected for continued growth
80% of the community workforce are well trained and educated
Strong reputation for K-12 public and private education opportunities
Commercial and industrial properties are readily available
Home to an expanding airport with available commercial lease prospects
Abundant
surroundings
of lakes, parks,
trails, golf
courses, and
beaches.
Expansive
variety of
recreational and
wellness
opportunities.
Renowned
community
celebrations,
summer
concerts and
market events.

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A community in transition, Forest Lake is planning for significant growth
and development. The community’s agricultural lands will steadily change
to a variety of mixed uses.

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Demographics
Population
20,605
Expected growth: 21,535 by
2030 Growth rate of .89%

Housing and Income
Average Household Income:
$122,137 Projected to be $132,651
in 2030 8,805 Housing Units:
5,913 owner-occupied
2,483 rented
409 vacant
Average Home Value: $493,909

Business and Workforce
747 businesses
8,843 employed workers
10,894 labor force aged 16+
5,320 workers commute from outside county or state
5,410 residents both live and work in/around Forest Lake

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Community
Accomplishments
Beltz Park
The City completed
construction of a new
park at 11th Ave SE and
South Shore Drive. Beltz
Park opened to the public
in the Fall of 2025. This
newly designed park offers
a multitude of amenities
including tennis courts,
basketball court, sand
volleyball court, skating
rink and warming house.
Additional features
provide an expansive
playground, picnic shelters
and tables, bench seating, restrooms and open
space.

Veteran’s Memorial Project
Working closely with Forest Lake city staff, the Veterans Memorial Committee
increased efforts to revamp the veterans memorial site located at Lakeside Memorial
Park. The existing memorial, honoring both living and deceased military veterans, is
projected to be significantly enhanced to include a
newly featured raised bronze statue
centerpiece surrounded by
memorialized pavers. The addition
of a large US flag pole will highlight
the new memorial site. The
committee welcomed donations
from the public along with three
grants awarded for project costs.
With the addition of continued
ongoing paver orders, which are
dedicated at annual Memorial Day
and Veteran’s Day services, the
impressive memorial site will stand
as a legacy for past and future
generations.
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Community and Economic
Development Department
2025 was a pivotal time for the City’s Community (and Economic)
Development Department, restoring it to 2014 staffing levels and adding
and combining services.
In 2025 the the City’s Community (and Economic) Development department was
restructured by migrating the Building Inspections division from the Fire Department.
Combining Building permitting and inspections with planning and zoning creates a more
unified and efficient development review process. This reinvestment has improved
coordination among staff, streamlined application review, and enhanced service delivery.
Continued growth and process refinement remain a priority in the coming years.
Despite bringing its staffing levels to those of 2014, the Department continues to contract
some development review and inspection services. These services will remain in effect
while vacancies exist, and development demand intensifies. Additionally, while select
Building Inspections staff continue to respond to local emergencies as needed, service
refinement and coordination with the Fire Department is ongoing, ensuring appropriately
aligned service delivery.
Additionally, this year the City established its first dedicated Code Enforcement Officer
position. This role focuses exclusively on responding to and resolving property-related
complaints. This position is an integral member of the Department, helping maintain
community safety, appearance, and overall quality of life.

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Department Functions
Economic Development
Economic Development staff support developers, businesses, and real estate
professionals in identifying sites and buildings to grow business in Forest Lake.
Staff assist with redevelopment, expansion, financing, and funding
opportunities. In partnership with the Economic Development Authority, staff
help attract investment and strengthen the local economy.

Planning and Zoning
All land use projects begin with Planning and Zoning. Community Development
processes applications for residential, commercial, and industrial development, as
well as redevelopment and a range of land use requests. Each application is
reviewed for compliance with applicable City ordinances and State statutes. Final
decisions are made by the Forest Lake City Council, Planning Commission, or City
staff, in accordance with established regulatory authority.

Building Inspections
Following approval of development and land use applications, projects transition to
the Building Department. Building permits must be obtained, and all required
inspections completed, in accordance with the Minnesota State Building Code and
Forest Lake City Code. These requirements ensure compliance with safety, fire,
and structural standards. No construction may begin until all required approvals
have been secured.

Code Enforcement

Property owners are required to comply with the Forest Lake City Code. These
regulations are designed to protect residents and the public from hazardous
conditions and property nuisances, with standards varying based on permitted
property use.
When complaints are received, the City’s Code Enforcement Officer works directly
with property owners to achieve compliance and resolve issues in a timely and
effective manner. owner to ensure that violations are remedied and the property
gains compliance with appropriate City Ordinances.

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Department Organization
Chart
Community
Development Director
(Abbi Wittman)
Asst. CD Director
(Steven Gilmore)

Building Official
(Jason Wagner)

Michael Birchland
(Planner)

Building Inspector
(Nate Moats)

Consulting Planners
(Bolton and Menk)

Consulting Inspectors
(SAFEBuilt)

Administrative Assistant
(Dawn Bugge)

Building Inspector
(Vacant)

Code Enforcement
Officer
(Dan Pearson)

Fire/Permit Technician
(John Marshall)

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Permitted Activities
Top Non-Residental Projects (by Valuation)
The following projects represent the highest-value non-residential investments
completed in 2025, reflecting continued reinvestment in education, community facilities,
and local businesses.
• Forest Lake High School

6101 Scandia Trail N — $6,800,000

• Forest Lake Area Community School

943 9th Avenue SW — $4,607,571
• American Legion

355 Broadway Avenue W — $548,000
• U.S. Bank
320 Broadway Avenue W — $280,000
• Dunkin’ Donuts
1420 Lake Street S, Suite 100 — $225,000

Commercial Permit Construction Value by Year
2024

2023
$38,798,672

2025

$31,990,409 $21,915,997

Total three-year investment: $92.7 million

New Single/Multi Family Units
55 Single family homes

6 Townhouse buildings (30 units)

Residential Permit Construction Value by Year
2023

2024

2025

$23,231,648

$33,100,563

$41,840,719

Total three-year investment: $98.2 million
Average New Single-FamilyHome Valuation: $338,729

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Current Planning
and Zoning
Hidden Creek/Hidden Creek South
Hidden Creek continued its buildout with approval of the Second and Third Additions,
adding 37 and 48 single-family homes, while advancing the Hidden Creek South
Preliminary Plat proposing 171 additional homes. Together, these phases represent a
total of 256 new single-family dwellings, supporting continued residential growth
consistent with the Comprehensive Plan and expanding infrastructure, park dedication,
and neighborhood connectivity within the Headwaters development area.

Havenwood (Chestnut Creek Phase 2)
Havenwood (formerly Chestnut Creek Phase 2) advances the next phase of the
Chestnut Creek neighborhood, with the final plat proposing phased development of
116 planned single-family lots, with 63 developed in the initial phase. The project
delivers a range of housing options and continues the broader buildout of the area,
highlighted by a highly anticipated neighborhood park featuring play equipment and
gathering space; an important, community-driven amenity that enhances livability,
connectivity, and long-term neighborhood character.

Amberly Woods
Amberly Woods advances a new residential neighborhood with approval of a Final
Planned Unit Development and Final Plat for 56 single-family homes on approximately
39 acres, located east of Goodview Avenue N between 205th and 207th Streets N. A
defining feature of the project is the dedication of nearly 20 acres of land for park and
open space, creating a significant opportunity to support a future regional park amenity
and expand the community’s recreational system. The development thoughtfully
balances housing growth with environmental preservation while extending
infrastructure, trails, and neighborhood connectivity in this part of the city.

General Permitting
Between 2023 and 2026, the City maintained a steady pace of general permitting
activity, issuing approvals for a wide range of residential and zoning-related
improvements. This included over 300 residential remodels, nearly 100 decks, around
70 new sheds, along with more than 100 fence permits and about 20 driveway permits
supporting ongoing property improvements. Additional permits included roughly 45
certificates of compliance (including about 15 for keeping of chickens) and nearly 140
signs, reflecting both business activity and unique residential uses. Collectively, these
permits highlight continued investment by residents and businesses in maintaining,
enhancing, and personalizing properties throughout the community.
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Code Enforcement
The City’s Code Enforcement program plays a vital role in preserving community
standards, safety, and quality of life. The Code Enforcement Officer promptly responds to
property maintenance and safety concerns reported through the City’s online portal, as well
as via email, phone, and in-person visits to City Hall.
Each case begins with a thorough site inspection to verify the concern, followed by a
structured and transparent communication process. Property owners receive formal
notifications outlining required actions and clear timelines to achieve compliance with City
Ordinances. When necessary, citations are issued to reinforce these standards and ensure
accountability.
In situations involving urgent safety risks or ongoing noncompliance, the City takes
decisive action through abatement services to protect the public and surrounding
properties. While many property owners respond cooperatively and resolve issues in a
timely manner, the City remains committed to addressing more complex cases to
ensure that all properties meet established safety and maintenance expectations.
Through this proactive and responsive approach, Code Enforcement helps maintain
safe neighborhoods, protect property values, and supports a high quality of life for all
residents.
From June 2025 through December 2025, Code Enforcement opened a total of 149
cases to address property complaints. In 2025, a total of 137 cases were closed. The
following table designates the variety of complaint types received.

COMPLAINT CASE TYPE

June – Dec2025
Snow & Ice
# of New Cases
Opened

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65

Junk/Unsheltered
Storage

Vehicle
Related

Grass/Lawn
Related

Miscellaneous
Property Type

15

11

10

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Long-Range Planning
Looking ahead, the City continues discussions with its public and private
partners related to future development and continues to work with on the
following long-range planning activities.

Headwaters 123
The City-owned Headwaters 123 site is south of Headwaters Parkway, between Highway 61
and Fenway Avenue. After marketing it for a data center for many years, the City Council and
Economic Development Authority determined a data center is not a good fit. The City wants to
explore other uses that could better serve the neighborhood, including spaces to create jobs
and increase tax revenue. The Economic Development Authority will keep working on a plan
and hopes to find a development partner in 2026.

Airport Business Park
The Airport Business Park on Fenway Avenue, home to the Forest Lake Area School District
Hockey Arena, was built about 20 years ago. Since then, the City has focused on adding
more industrial or business park uses there. In 2025, the City started working with partners to
find new uses that better support the Fenway Athletic Complex. The City is now working with
a local developer on sports-focused spaces that could include food and drinks.

Elmcrest Avenue Planning
The Minnesota Technology Corridor is a regional economic development initiative along the I35 corridor focused on attracting high-quality commercial and industrial growth across multiple
cities, including Forest Lake. A key focus area within this effort is the Elmcrest Avenue/24th
Avenue/Hornsby Street corridor, which serves as a major undeveloped spine for future
development but currently lacks consistent planning standards across jurisdictions. For Forest
Lake, this effort is intended to help guide future development, improve infrastructure
coordination, and position the city for long-term economic competitiveness along the corridor.

HWY 61 Corridor
In preparation for future HWY 61 improvements, the Forest Lake EDA will revisit the 2012
Aesthetics and Water Quality Study and incorporate elements of the 2022 Downtown Plan to
create a blueprint for traffic, safety, and development. Planning work is expected to begin in late
2026.

2050 Comprehensive Plan

Every ten years, the City of Forest Lake updates its Comprehensive Plan, a 20-year guide for
growth and development covering land use, infrastructure, parks, and economic development.
The next update is due by the end of 2028. In 2026, the City will begin a community visioning
process to help shape the 2050 plan, using public engagement to guide future planning
decisions.

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Community Resources
Several community programs and services were expanded in 2025, offering
greater assistance to community businesses and residents.

Business Assistance
Open to Business – Open to Business provides free, confidential business counseling to
current and prospective entrepreneurs. Experienced consultants work with you to identify
challenges and opportunities, including financing, and tailor solutions to your business
needs.
Commercial Improvement Incentive Program - The CIIP program offers commercial and
industrial property owners forgivable loans to improve the exterior of their structures and
properties.

Housing Resources

First Generation Homebuyer Grant Program - The Washington County Community
Development Agency program provides $5,000 in grants to first-generation homebuyers who
participate in a partner program and purchase a home in Forest Lake.
Home Improvement Loans - We administer low-cost home improvement loans to help
eligible Forest Lake single-family homeowners afford critical repairs and keep their homes in
good shape. The programs focus on making homes safer to live in, easier to access, and
more energy- and water-efficient.

Public Transportation
NewTrax - Newtrax provides a transportation circulator service to many seniors in Forest
Lake on Wednesdays. This regularly scheduled transportation loop covers specifically
chosen stops to assist riders with their shopping, dining, and socialization needs.
Transit Link - Transit Link is a curb-to-curb minibus or van service for the public that
operates on weekdays throughout the seven-county metropolitan area. It is a shared-ride
service, which requires advanced reservation.
Transit Link On-Demand - Transit Link On-Demand rides are location-based, through the
Metro micro app. This service is offered between 10:00 am and 2:00 pm on Tuesdays and
Thursdays.

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FL Chamber Highlights
Community and Economic development efforts are done in
partnership with the Forest Lake Area Chamber of Commerce. Here
are some highlights of their work this year.

Business Visits
In 2025, the Forest Lake Area Chamber of
Commerce conducted business visits greater
than once every two weeks, meeting with
approximately one business each week. These
visits occur at the request of the business or as a
pop-in opportunity to learn about business
needs, showcase Chamber offerings, and
provide general information about the Forest
Lake Area.

New Business Ribbon Cuttings
Monthly ribbon cuttings are held monthly. These
are opportunities to show case business
milestones, achievements, and to welcome new
businesses to the Forest Lake area. Last year,
ribbon cutting celebrations were held for seven
new businesses, including Aztec Countertops
and Mike’s Discount Foods, pictured right.

Community Events
The Forest Lake Area Chamber of Commerce
offers several community events including, but
not limited to, the annual Lakeside Memorial
Park easter egg hunt and street dance.
Additionally, the Chamber continues to help
support the City in the administration of Arts in
the Park, the City’s Tuesday night music concert
series.

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