1
00:00:09,440 --> 00:00:24,880
Two items. The first one is Minnesota paid leave with Rachel Boss, and the second item will be a tourism update with Glenda Smith and Lisa Cochrane. Uh, so with that, we'll go to our first agenda item with Rachel Boss. Good evening.

2
00:00:24,880 --> 00:04:01,550
Good evening Council. So I'm here today to talk about Minnesota paid leave. I know you guys wanted to hear a little bit more on how things are going. Um, so I want to talk about the 2026 cost in our 2027 expected renewal review. Um, why we chose to pay 100% of the premiums in 2026 and share some of our employee feedback that we've heard about our benefits and compare some of the premium options that other comparable cities in our area are doing. Um, and then kind of discuss what those future considerations can be. So Uh. When Minnesota paid leave went in effect in 2026, the city chose to go with a private plan. Madison National Life, and we made that decision to pay 100% of that premium for employees. Uh, this was intentional as we were implementing a new benefit. It supports our strategic goal of being a premier employer. And this was done by giving those employees access to paid family and medical leave without adding another payroll deduction, strengthening our overall benefits package for recruitment and retention. Uh, our one of our employee surveys that we did with our employees, uh, gave a pretty low rating for our benefits, meet our needs. Um, so continuing to pay that 100% of that paid leave premium is one tangible way that we can help strengthen that benefit package. And it also demonstrates that we're listening to employees and investing in the benefits that matter to them. So for 2026, we budgeted about $135,000, and through July we spent about $70,000, which we lent a little bit over in the budget. Um, when we went through the budget sessions that, uh, last week, I think Emily covered it a little bit of those numbers. So currently we're expected to come in or slightly under budget from what we plan for 2026. Uh, we recently received our 2027 expected renewal information. And our premiums are expected to go from 0.78% to 0.83%. Um, this is still under that state, 10.8 8%. Um, which would bring the estimated annual premium to be about $143,000. And again, that's from 135 of what we budgeted in 2026. So the increase is largely reflective, reflective of the plan's current experience, with a paid loss ratio of 159% and an accrued loss ratio of 198%. So, uh, looking at comparable cities. Faribault is also paying 100% of the premiums right now. Red wing, Winona Austin and Albert Lea are currently splitting, splitting those premiums at 5050. But Albert Lea is being currently asked by their employees to consider paying that 100% in 2027. So just keep in mind, Faribault is right north to us. Albert Lea is right south to us. So in order to make sure that we are having an attractive benefit package, this is one way we could do that to stay competitive. Um, we also do have settled contracts through 2027. So if we do decide to change our premium contribution amount, we'll have to look at going into negotiations for that. So staff is not recommending to do anything like that at this time and hopefully can revisit it in 2027 when we start those contracts again. That's all I kind of have for you kind of an overview is there are questions that you guys have or more clarification you want on that process.

3
00:04:01,550 --> 00:04:08,750
Rachel, what are you hearing from current employees regarding that? Any negative stuff? A lot of positive stuff.

4
00:04:08,750 --> 00:04:10,030
About just using.

5
00:04:10,030 --> 00:04:12,950
Paid leave that as a as a perk.

6
00:04:12,950 --> 00:04:47,870
As a, I mean, they definitely like it not coming out of their payroll checks. Um, they do see that the city is investing in them and in their health. Um, it is an item that employees have been asking for for years is to have a type of a short term disability plan offered by the city. So this was just kind of a way that, um, we were able to offer to that to them without them having to pay for that contribution. We did have Aflac in the past where they could go and elect the coverage themselves, but most employees didn't go through that process.

7
00:04:47,870 --> 00:04:49,030
Thank you.

8
00:04:49,030 --> 00:05:04,190
Uh, a couple of things. Um, do you have any idea about what percentage of our employees have taken advantage of it as opposed to our sister communities as opposed to what was expected?

9
00:05:04,190 --> 00:05:22,950
No, I don't have any of those numbers because a lot of it's private information. And if people do take the leave. Um, but with our utilization rate, again, it's about 159%. So for every $1 in premium we're paying, um, it's about $1.50 that's getting paid out to our employees.

10
00:05:22,950 --> 00:05:30,590
So, but that's, that's coming out of our, uh, insurance pocket.

11
00:05:30,590 --> 00:05:38,750
Yes. So that's coming out of Madison National Life is paying all those payments to our employees. So we do not pay when they're out on leave. We just pay for those premiums.

12
00:05:38,750 --> 00:05:55,280
And is that going to catch up by the end of the year? Because at one point, the revenue was not coming in from the employers to offset the employees discounts. So it was like the reporting was two months off or something like that.

13
00:05:55,280 --> 00:05:57,360
I don't think I'm understanding your question.

14
00:05:57,360 --> 00:06:04,920
Can you see this program stabilizing or is it continue to to cost money?

15
00:06:04,920 --> 00:06:27,720
Um, I mean, that's tough to say because there's a lot of utilization. Um, just overall as a state, people using it right away. I envision it probably evening out now that it becomes more normal. Um, but that also just contributes to the price of the premiums increasing is because of a higher utilization. And they are needing to fund that.

16
00:06:27,720 --> 00:06:37,240
And I'm going to go back to my first question. Do you have any idea what percentage of our employees are using it? I'm not asking for anything personal.

17
00:06:37,240 --> 00:06:41,880
Uh, I would say there's probably about 10 to 12% of our employees have used it.

18
00:06:41,880 --> 00:06:52,890
Okay. Um, and then our premium is going from 135 to 143, right? 135,000 143,000.

19
00:06:52,890 --> 00:07:05,450
Yes. Yep. That's what our expected increase would be. It'd be an increase of 0.05%. So it'd be 0.83% of the eligible pay or um, employee payments.

20
00:07:05,450 --> 00:07:36,290
And then, uh, last budget meeting, I maybe, maybe it was the budget meeting. I can't remember. Um, the fire department had talked about using up almost all of their budgeted overtime for the year because of paid leave, where they have to bring another employee in to cover a fireman. Of course, we can't be without a firefighter. Um, that comes out of this, uh, citizens, the city of Owatonna pocket.

21
00:07:36,290 --> 00:07:36,770
Mhm.

22
00:07:36,770 --> 00:07:37,330
Correct.

23
00:07:37,330 --> 00:08:17,930
Yes. Yeah. Having to pay for that overtime to help out with those staffing shortages, which are going to come whether we pay the premiums or not. The things in place. But, um, at least employees are taking care of themselves if they need it. Um, it's kind of nice seeing, um, more parents being able to take more time with their children, um, when they're born and stuff like that and they're not feeling like they're obligated to come back to work because of the income shortage. So that's been nice for them. Um, but on the other hand, it really had us looking at what our staffing needs are and how to take care of the city as a whole if employees do need to be gone.

24
00:08:17,930 --> 00:08:19,330
Thank you.

25
00:08:19,330 --> 00:08:20,810
Doug.

26
00:08:20,810 --> 00:09:05,220
Rachel. My, uh, I guess I'd say issue with this is it's really almost impossible to tally the real cost of this because you just gave us some numbers. And that's all fine and good, but we're probably adding a firefighter, maybe two, because this program is really making our guys work too hard for what they do. Mhm. PD same way I'm sure it might be that way at streets. I don't know, but it puts a lot of burden on everybody else to do overtime. So there's overtime issues. There's burnout issues. So just throwing the number out that insurance is as much as really not the picture to me. It's what's it doing to the whole crew.

27
00:09:05,220 --> 00:09:27,780
Yeah. And there's a lot of cost factors to take into consideration because the employee also is not here. So we're not paying their wages unless they're using any PTO. But then again, we're having to cover some overtime. If there is any shortages. Sometimes there is, sometimes there isn't. They're able to cover those in some ways. But yeah, there are some times that it results in that overtime, especially in those public safety fields.

28
00:09:27,780 --> 00:09:38,500
Yeah. There may be a day when we're not so lucky to have such amenable people to stay and work. They might just say, I'm tired of overtime. I'm not going to do it anymore.

29
00:09:38,500 --> 00:09:46,990
Then what do we do? S2:

30
00:09:46,990 --> 00:09:57,470
I'm sure we're prepared for that. I just think there's kind of a hidden cost to this whole 100% that nobody in Saint Paul put $0.02 a thought into before they did it.

31
00:09:57,470 --> 00:09:59,990
Mandated plans are a little bit difficult.

32
00:09:59,990 --> 00:10:01,110
Yeah. All right.

33
00:10:01,110 --> 00:10:02,390
Done.

34
00:10:02,390 --> 00:10:08,350
Just a quick question for you. You had mentioned it's experience rated. Is that for the city of Owatonna, or are we the.

35
00:10:08,350 --> 00:10:08,990
City.

36
00:10:08,990 --> 00:10:14,790
In a larger pool of cities that go together to that company that we're looking at?

37
00:10:14,790 --> 00:10:16,590
My understanding that's just our rating.

38
00:10:16,590 --> 00:10:41,470
Okay. So that's not like if we were with the League of Minnesota Cities and they have, hey, all these cities are together. This is just one city and that's us. That's experience. Okay. Is there a possibility that there might be, you know, a number of cities that would come together and go, geez, we'll use this company and pool our dollars? I again, I'm just asking, I don't know.

39
00:10:41,470 --> 00:10:44,630
Yeah. No, I mean, that's something we can look into.

40
00:10:44,630 --> 00:11:02,350
And that's something the league doesn't necessarily jump into something brand new right away. But, um, you're two, three, four once they get an understanding of what it is. I could see them potentially putting that under their umbrella as well. Okay.

41
00:11:02,350 --> 00:11:18,150
Dan it's kind of a double edged sword sword. We know that the insurance companies are going to lose money on this program, right? They're in business to make a buck. So the premiums are going to go up until they as long as they're so that they can make a dollar.

42
00:11:18,150 --> 00:11:22,710
Yeah. They're also going to want to stay competitive though, because otherwise there is that state plan to go with.

43
00:11:22,710 --> 00:12:00,840
But some of the sharing, you know, if we're a community like we are, uh, that's, uh, proactive and talking about, uh, personal health, uh, whether it's, uh, back issues and, and whatnot, you know, we talk about that with our employees. Stay healthy, be healthy. Sometimes if we go with a pool, you know, we might have the best rating out there and the pool and all of a sudden we're going to get zapped because these guys don't care about, you know, they don't put on training manuals or training seminars and that for employees. So sometimes if we merge together, we're we're worse off than what we are.

44
00:12:00,840 --> 00:12:20,080
And that's one thing that we're really trying to push is growing our wellness initiatives and everything, because we want to make sure our employees are in the best health possible to help make sure that, um, that we avoid them having a need to go out. But again, there's a variety of different reasons and we want to make sure they're supported too if they go out.

45
00:12:20,080 --> 00:12:21,600
Dave.

46
00:12:21,600 --> 00:12:32,240
So just so I'm clear, um, is this something that's going to be looked at annually every year, whether or not to take a year at a time?

47
00:12:32,240 --> 00:12:33,800
It'll be in negotiations.

48
00:12:33,800 --> 00:12:46,170
Yeah. So it potentially, I mean, uh, right now, last year, it was just a one year contract that we were able to side with Madison National health. And then it comes down to contracts as well.

49
00:12:46,170 --> 00:12:52,650
So that becomes the negotiating. We're locked into 2027 for union contracts.

50
00:12:52,650 --> 00:12:56,690
Right now unless we want to negotiate with our unions.

51
00:12:56,690 --> 00:13:04,050
Brant how do our contracts address like the PER contributions?

52
00:13:04,050 --> 00:13:44,890
Um, I'm just trying to do something because PRA is directed by the state also, where employers employees have to give a certain percentage of their salary along with the city or the employer. And occasionally those numbers change. I mean, they can change a half percent. So if our contracts are written into these certain percentages on PERA, and in some year the state changes, those percentages are by doing what we're doing with Family Paid Leave Act, are we setting ourselves up to paying for those increases and percentages of the employee contributions to PRA.

53
00:13:44,890 --> 00:13:59,010
It's a good question. Um, and I don't know if the city has probably tackled that too much. Usually when they do change it's probably more in favor of the employee. So they're usually not arguing it.

54
00:13:59,010 --> 00:14:24,170
I think the difference is PEA is those percentages are required at the state level. They're set at the state level and required where the Minnesota paid leave. Um, the way that it currently reads is the employer may pay. So there's a little bit different terminology there that while they seem very similar, they are different in that regard.

55
00:14:24,170 --> 00:14:25,970
Great point.

56
00:14:25,970 --> 00:15:06,100
I mean I don't yeah. I mean, you know, my feeling on this, I feel that we shouldn't be paying the full burden of this cost, that we should expect the employees to pay 50%. And I'll stay on that, the rest on this council. So you won't be getting any of my votes for this portion of the budget. Just so you aware, because I think we can address this with our union groups by an MOU that this is mandated to the city that and then most communities are having or most employers are not picking up the full tab for this paid family leave that is being pushed on all the employers in the state of Minnesota. So.

57
00:15:06,100 --> 00:15:23,660
And Brant. Brant, we knew this was a hot button last year, and we knew again, going into this year, we just wanted to put what our recommendation in and behind the why. And obviously, you get to make the hard decision on which way to go. And so that's why we want to spend a little bit more time on it today than tomorrow.

58
00:15:23,660 --> 00:15:37,260
$140,000 isn't a lot of money in the grand scheme of the budget, but it is would be reducing our budget if we only had to pay $70,000 instead of $140,000. It is percentage of a levy.

59
00:15:37,260 --> 00:15:54,270
So and just trying to kind of meet the employees benefits where they are needing them or wanting them. And so like we heard the short term disability was an ask for several years. And so it's just that form of a short term disability. And so just putting it in front of you.

60
00:15:54,270 --> 00:15:55,230
One more question, I guess.

61
00:15:55,230 --> 00:15:55,750
Yes.

62
00:15:55,750 --> 00:16:06,230
So if an employee takes paid leave, do we allow them to supplement that income with their PTO to make up? Yes. That last dollar.

63
00:16:06,230 --> 00:16:15,110
Yes. We allow them to top off with their PTO banks up to that 100%, but not to go over.

64
00:16:15,110 --> 00:16:23,990
So I'm going to go off of one of Brent's questions. It's when it comes to PRA.

65
00:16:23,990 --> 00:16:37,870
Do they just randomly increase that in the year or does that come up around budget time so that cities are made aware that the ask is going to be this much more for next year?

66
00:16:37,870 --> 00:16:50,590
I would usually they do either that July 31st or the. Or the July 1st or the January 1st. I try to stick on those typical days when they make any legislative changes.

67
00:16:50,590 --> 00:16:54,510
They haven't changed the coordinated plan since 2015.

68
00:16:54,510 --> 00:16:56,790
So there's probably a change coming at some point.

69
00:16:56,790 --> 00:16:58,390
Changed since 2020.

70
00:16:58,390 --> 00:17:03,630
Yeah. Okay. Done nothing.

71
00:17:03,630 --> 00:17:10,350
That's not anything that ever comes up in negotiations though with the unions because PERA is yeah.

72
00:17:10,350 --> 00:17:12,830
There's no changing nothing they can change about that.

73
00:17:12,830 --> 00:17:13,870
Right.

74
00:17:13,870 --> 00:17:17,510
So.

75
00:17:17,510 --> 00:17:21,830
Let's say we go Brent's route and it's going to be a 5050 split.

76
00:17:21,830 --> 00:17:25,230
Mhm.

77
00:17:25,230 --> 00:17:37,920
Is that something that at that point the whole union contract is renegotiated, or is this just something that the city can can do.

78
00:17:37,920 --> 00:18:04,360
We would have to look into what our options are. Um, but likely we'd be looking at an MOU, but we'd have to make sure that's um going to be the right path. And we'll just check with the attorneys and everything on that too, because um, not many cities went for it while they were in, uh, contracts. Um, and so we'd have to just make sure that we're following the right rules. Um.

79
00:18:04,360 --> 00:19:03,050
And if I remember right back when this was maybe Miss Emily was still HR, um, I think we determined two things. One, that we didn't want to reopen negotiations, that we thought we were in a good place with everybody. We didn't want to do that a year and a half early. So I think we're still having an agreement through 2027 and two. I think we were hoping that, um, our use might not be as great even though the benefit is there if employees were not paying for it as opposed to an employee going, you know, I'm paying into this, I might as well use it, right? As opposed to a guy that that's a benefit. But I'm, I'm not going to use it. So that's why I always wonder about what percentage we're at as opposed to our, our, uh, sister cities, just to see if that strategy is, is working that, uh, people are not using it as much because they don't have any skin in the game, so to speak.

80
00:19:03,050 --> 00:19:30,890
Yeah, they're definitely feeling it. Um, I know all cities are the best conference I was at a couple of weeks ago. All of them. I mean, some had hundreds of employees like right when it came out, but those were the bigger cities. But and those were the ones paying 5050. Um, but definitely once you see that coming out of your paycheck, you're more enticed to use it. And as a reminder, that's all employees. So not just full time, that's regular, that's seasonal. That's all of them have options of using that.

81
00:19:30,890 --> 00:19:35,450
Then you still have to qualify, though. I can't just go. Ah, I'm leaving tomorrow.

82
00:19:35,450 --> 00:19:41,930
Correct. Yeah, but there's a variety of reasons that one would qualify.

83
00:19:41,930 --> 00:20:31,900
And I think to Doug's point earlier, how it's so difficult to. There's other to calculate the cost of this, um, benefit. And because it is, we are still in year one of this benefit. Um, employees knew that this was coming. So, you know, it's hard to gauge that utilization when we're only partially way through year one. There may have been people that knew that they needed a leave, and they purposely waited until this benefit was in place. So we may we don't know yet. It's too early to see. Um, but we may have seen that year one or year two spike and then it may level off eventually. So I don't know that, but it may.

84
00:20:31,900 --> 00:20:40,380
Someone that knew that they had a knee surgery that was needed waited until this this came in, which that's absolutely fine.

85
00:20:40,380 --> 00:20:43,220
That's the case. But I wouldn't be surprised.

86
00:20:43,220 --> 00:20:44,260
Yeah.

87
00:20:44,260 --> 00:20:56,020
Because previous before this came into place, we um, just it was an all unpaid leave. So they had to either use their time available or go unpaid during the time that they had to go out.

88
00:20:56,020 --> 00:20:57,660
Unless they had short term disability.

89
00:20:57,660 --> 00:21:01,700
Unless they had short term disability. But that was paid by a third party vendor.

90
00:21:01,700 --> 00:21:06,100
Yeah. Any other questions on this, Brant? You look like you've got another one.

91
00:21:06,100 --> 00:21:22,300
No, I was just thinking about allowing them to use their PTO to supplement that income. They're losing because they're only getting paid, what, 50% of your salary or whatever that number is? Was that how was that addressed in their contracts or is that addressed in our contracts?

92
00:21:22,300 --> 00:21:22,860
That's just.

93
00:21:22,860 --> 00:21:36,430
Addressed. Are we enticing them to use the program because we're allowing them to supplement that last income by using a portion of their PTO to make up that balance that they're losing on their full pay.

94
00:21:36,430 --> 00:21:38,790
Is that part of the state program that allows?

95
00:21:38,790 --> 00:21:50,510
It was in our it's in our city policy when we had to update our FMLA and paid leave information in there.

96
00:21:50,510 --> 00:21:55,710
You know, I, I guess myself, I.

97
00:21:55,710 --> 00:22:34,310
I understand both sides of it. It's going up $8,000 in year two. Um, I think as we negotiate contracts in 2027, I think, um, we definitely need this needs to be on the table in regards to negotiations, but at an $8,000 increase to go back and renegotiate, I think we're going to have more more dollars tied up, more than $8,000 tied up than, then we'd get back out of it personally.

98
00:22:34,310 --> 00:22:36,990
Anything else? Thank you. Rachel.

99
00:22:36,990 --> 00:22:40,470
Okay. Thank you guys. Have a great night.

100
00:22:40,470 --> 00:22:42,550
Say, Rachel, one other question. Yes.

101
00:22:42,550 --> 00:22:44,510
She already left.

102
00:22:44,510 --> 00:22:46,270
I already turned my microphone off.

103
00:22:46,270 --> 00:22:52,670
How much more paperwork and regulations hourly.

104
00:22:52,670 --> 00:23:20,950
Is this lumped on to your department? S2:

105
00:23:20,950 --> 00:23:21,790
Thank you.

106
00:23:21,790 --> 00:23:36,560
So a follow up to that because it was new for your department as well, that 2 to 3 hours a week. The first ones, I'm sure, took longer than they do now.

107
00:23:36,560 --> 00:24:08,000
Is it? Is that kind of getting squeezed down a little bit? S2:

108
00:24:08,000 --> 00:24:13,720
Yeah. But as Mr. Boke said, you know, you're either doing this or now you've got this.

109
00:24:13,720 --> 00:24:14,200
Mhm.

110
00:24:14,200 --> 00:24:20,480
And, and because this is a new program, it's hours or dollars.

111
00:24:20,480 --> 00:24:21,000
Mhm.

112
00:24:21,000 --> 00:24:33,210
And, and so we've got staff that are working on things that. and that. Nothing wrong with the program. I'm not disagreeing with that. But it takes you away from what you would have been doing a year ago.

113
00:24:33,210 --> 00:24:34,210
Mhm.

114
00:24:34,210 --> 00:24:38,130
For sure. I'm lucky to have such a hard working team.

115
00:24:38,130 --> 00:24:39,210
Thank you Rachel.

116
00:24:39,210 --> 00:24:42,090
Thank you.

117
00:24:42,090 --> 00:24:55,850
Next up we have Glenda Smith and Lisa Cochran, who is more than fired up for our final Thursday Thursday of the year this week.

118
00:24:55,850 --> 00:25:03,770
And Lisa's got just when you go to Tories just say put it on Lisa's tab and and that works.

119
00:25:03,770 --> 00:26:34,380
Main street Kevin SR firing up here getting set up uh, to sink in. If I can just add about a year ago we started a meeting a lot with Lisa and Glenda on just talking about our permit process because when we'd get event permits, sometimes the downtown folks didn't know about them. And so that was an opportunity to say, how do we do better? And so we actually added Lisa in on some of the permit reviews. And so she was aware of when permits are happening downtown, even though they don't relate to her office work, but also to help us be that liaison for the downtown businesses. So with that, we now have implemented them into our process. So they get to review it so they are aware of it and then be able to help us, um, have meetings or Lisa has meetings with the downtown group at their monthly meetings to talk about what events are going on. And then they can provide their feedback too. So it was just a good step in the direction of better collaboration and more transparency with the city is doing and what we're approving and what's happening downtown to work together better for that. And with that, then we asked them to come in twice a year to kind of tell us a quick look back of some permits that are happening, but more importantly, what's coming up that they see in the hopper. So then you're aware of it as you're starting to see some of this come on the agenda for approval, that there's some work that's happening in there. So that's where we're at. Is that fair to say, Lisa, that we'll do it. And so I'll let you guys um.

120
00:26:34,380 --> 00:26:39,660
Jackson switching it over. There you go.

121
00:26:39,660 --> 00:29:48,680
All right. Good evening everybody. Um, Lisa and I are doing a separate presentation from each other. We both have a lot to share. So thank you for inviting us today. Um, I will be sharing the tourism update, and then Lisa will go into the main street update. So my, um, focus area is tourism in Owatonna, which means a lot of different things I work with, especially our hotels, but also our meeting venues are organizations that have the opportunity to host in Owatonna, and then also reaching out beyond our community to invite groups and individuals to our community. So key questions that we keep in mind as we're going through all of this awareness is the biggest one. And we spent time with the rebrand, um, increasing the awareness of Owatonna over the past few years. Obviously, the interest in the community, the consideration about hosting or visiting the community and then moving through that purchase and commitment stage, um, to invite outsiders to our community and then in turn, hoping they have a great experience and reengaging and promoting our community. Uh, you'll probably recognize some of these logos from a few years ago before we went through the branding process. Um, during that timeline, we actually are in our third year of implementation with that and 2022, we chose a partner to help us walk through that process, we went through the brand research and development that included community surveys, community focus groups. Then we completed that branding package at the end of the year in 2023, ready to implement in 2024 where we put, um, you've seen in the flag, there's different things throughout the community with downtown signs and a lot of promotional materials that we carried out through over these years. And that's where we landed post branding development. And most of you have probably seen this around town, with the water tower being probably our most recognizable sign within the community. Uh, so this basically built a foundation for me in the tourism role to kind of be off and running with a message to deliver to potential visitors, but also building pride within the community and what our community does have to offer, focusing on our trails and our parks, our downtown businesses and area businesses that offer the shopping and dining. And then, of course, our rich in history. We have amazing history with the architecture and just the stories to tell through that. So building awareness of what our community does have to offer, both to potential visitors and within our community.

122
00:29:48,680 --> 00:31:51,930
A part of building that awareness is looking at where is our potential travel market coming from, and definitely the drive market. We could see a few fly in, but if they're flying in, they're probably staying in the Twin Cities area typically. So the drive market within that six hour drive was our target area over the last few years. And our objectives through those campaigns are growing Overall awareness about Owatonna building audience awareness of the activities and events that we have to offer, encouraging visits to our lodging properties and in adding a visitor guide requests so that they can learn more about our community. These were some campaigns that ran over the course of those years. We focused obviously on the Steele County Free Fair, one of the events that is most recognizable in our area and region, as well as other annual events, including our downtown Thursdays. Um, we have the quirky softball tournament that brings in tons of visitors every year. Um, then we also did retargeting with our lodging properties. So if we saw activity where they were interested in some of the things that our community offers, we retargeted them with our places to stay so that they could learn more about our hotels. Uh, the food tour was something that we launched earlier today. It ended up being one of our our greatest campaigns. Part of that was promoting the tour itself, but it also allowed us to promote our our restaurants locally. Visitor guide requests again, eat and drink our restaurants, the farmers market, downtown Thursdays, and then other itineraries that focused on history. And this was the results over the last four years, 2023 through 2026, year to date. Um, there was significant changes in that activity as we launched these campaigns.

123
00:31:51,930 --> 00:34:34,800
And then also an increase in followers over those years. Uh, that was something that as you gain the followers, that marketing is free. So that is a great benefit to increase the followers. And it shows that their interest in our community based on what they saw. We also built up our video assets to use for digital and social general interest, and we utilize those through social media campaigns on our website, allowing other businesses to use them if they were doing any type of recruitment type of activity. We went through the website redesign and development on generating interest and consideration. If they saw those campaigns, we were leading them directly to the pages that matched that campaign over those four years. This was the increase in activity that we saw on our website from 2023 to 2026. So we saw 400% increase in users, 430 increase in number of sessions, and then a 240% increase in site events. So they were hopping around on different pages within the site. Our top pages, I think this is just interesting to see what people are interested in when they are looking for things to do in Owatonna eating and events are top that also requesting a visitor guide. We saw an impact on some of those campaigns, some of our activities and then of course, our places to stay at the fair. Um, some people might wonder why the fair is number seven, but keep in mind that's only one week of the year. So to be in the top ten for one weekend of the year is pretty incredible in itself. Um, these are the cities that we saw the most activity from the one on the left are website users. And then the city list on the right are the visitors that we actually saw come to our community. Um, most of them match pretty well, but knowing this kind of helps allow us to adjust marketing campaigns as we move forward. Our visitor guide requests increased by 20%. And so these are people that are showing an interest in visiting Owatonna and they're interested in learning more. We had them up at the Minneapolis Saint Paul Airport. This is the first year we did have that. And then Mall of America has held that in their visitor center for the past several years. We distribute them throughout Minnesota tourism centers. And then we were sending out, based on the lead generation that we were promoting through the digital advertising.

124
00:34:34,800 --> 00:35:01,280
This is the commitment numbers. So this is a little bit, um, we don't get these results as quickly. So these results are showing from February 24th through January of 25. But we saw an increase in total trips to the community up by 9%. Average monthly visitors increased by almost 14% and then visit nights increased by 12%.

125
00:35:01,280 --> 00:40:08,680
And these are our occupancy rates for our hotels. Um, one thing I like to mention that in the last four years, we've increased our hotel room options by 50%. And so we are holding pretty steady on our occupancy even with that addition. Obviously, the long term goal is to get that increased. I'm thinking we're maybe stabilized a little bit unless we see another hotel pop up soon. But, um, building on that awareness of the available room nights helps us decide where to target for meetings and leisure activity and that type of thing. And these are our current hotel listings. One change that happened over the summer is super eight changed brands to the cartel. Currently the same owner, but they did change brands. What is next? Um, so this is a place where all of us as a community, we can continue seeking opportunities to invite again, going back to the flexibility of what our different meeting options are, we have several locations that are very popular, for example, Tories and the Eagles. They're great venues to be hosting events. We have new additions like DoubleTree with their conference space, the Art center, the Steele County History Center, the country club, all of these opportunities that we can work together to host events. So seeking opportunities that fit that market is our best bet in being able to secure that business, continuing to update our brand throughout the community and through our marketing as things are changed and updated. Um, things like the park signs is something that I hope to see in the near future with the brand, and then also continuing to tell our story and measuring results. Um, we kind of talked about the different ways that we can promote activity in Owatonna. Uh, these are typically who I turn to for partner promoters or business owners. Our corporate companies, our service clubs and nonprofits are great partners. Typically, they're a part of a regional or national organization that gives us opportunity to host things locally. Attractions, festivals, our tournament organizers, sports facilities, um, a whole list of all of these people that are able to help us be directed to people that can host things in our community. And we'll continue with the living here and livability. Some of the video activity that we've been working on over the last actually just this summer. Our community members that help tell the story about why they work and live and own a business in our community or run events, and how that impacts their life and the community that we live in. Um, looking at focusing a little bit more on some influencers over the next year. They help build that impact. They have a set group of people that they're typically marking to that are outside of our range. And that just continues to expand on the awareness of Owatonna. Just a reminder, this is something when we were going through the branding that we did some surveys to see how Owatonna engaged in being a detractor, a passer or a promoter. And I think one of the most surprising pieces of that is seeing a number 7 or 8, which most of us would consider anything above a five as better than average. Um, that's still sitting in that area where we want to move those to people that are promoting our community as a positive place to live, work, run a business. Um, all of those things just make a huge impact as we're talking about our community and we will be resurveying, um, sometime next year. Now that we're at the end of 2026 or third year. Um, I always like this. I think it just keeps in mind why it's important to know the history of our community, what we have to offer as a place to work and play. Um, well, it's important to attract tourists from out of town to boost local business and share history. It's crucial to remember the empowering effect of knowing the stories and culture that make up the places that we ourselves live. I think that's something when speaking with our community and making sure they understand what we have to offer, both to our community members and people that, um, as they visit, they spend money here, which helps our businesses. Overall, I think we can all agree that most of our businesses can't survive alone on us, um, shopping with them. We need that outside effect of people coming to our community to do that. But it's hard to promote that if our, our residents themselves don't know what we have to offer, and that is it.

126
00:40:08,680 --> 00:40:11,400
Does anybody have any questions? S1:

127
00:40:11,400 --> 00:40:15,040
You've been on channel five before.

128
00:40:15,040 --> 00:40:28,800
Are you going to do it again? S11:

129
00:40:28,800 --> 00:40:36,680
Okay, good.

130
00:40:36,680 --> 00:40:40,760
Any other questions?

131
00:40:40,760 --> 00:40:45,800
Yeah. The, um hotels.

132
00:40:45,800 --> 00:40:46,440
Yes.

133
00:40:46,440 --> 00:40:49,880
The where are we at for percentage right now?

134
00:40:49,880 --> 00:40:58,880
Um, for the past 30 years we hover between 45 and 55% and we're about about 50 still right now in 50.

135
00:40:58,880 --> 00:41:04,160
And that's with an increase in hotel opportunities within our community.

136
00:41:04,160 --> 00:41:16,880
We're definitely seeing an increase in activity. It has not quite caught up with the increase in number of rooms. Hopefully over the next couple of years we can get over that hump.

137
00:41:16,880 --> 00:41:19,280
Yes. Thank you.

138
00:41:19,280 --> 00:41:19,680
Dan.

139
00:41:19,680 --> 00:41:47,280
And I might just add the increase in hotel rooms and expand that the increase in apartment buildings. You know, these guys aren't knuckleheads that are putting their money into Owatonna. They see Owatonna as a growing, vibrant, friendly place. And sometimes our residents get to be really down on Owatonna. But these folks aren't coming here because they got so much money. They'll just dump some here.

140
00:41:47,280 --> 00:42:12,770
It is a lot of fun to interact with people visiting our community, and they're seeing it through new eyes. Um, it's very positive from the outside when we have group tours come in. They love the renovations of the downtown. They find it easy to navigate and enjoy. Um, yeah. People, people that are coming from outside of the community have a lot of positive things to say.

141
00:42:12,770 --> 00:42:15,290
Work.

142
00:42:15,290 --> 00:42:17,410
Everything else.

143
00:42:17,410 --> 00:42:58,180
I have one for Glenda. One. One really big positive is we've really upped our hotel game. I think I was at the after hours last week and man, that place is fantastic. The DoubleTree. Yeah. And the downtown one's fantastic. Everybody's up their game. So that's great to see. Um on your three little icons there of the smiley face guy. I know we've talked about this many times, but somehow we need to be able to educate Owatonna people to get their friends and relatives to come here. And, you know, everybody will say, well, you can see the bank. We need more than.

144
00:42:58,180 --> 00:43:03,500
I think it's very natural to not see what's in your own backyard when you grew up with it.

145
00:43:03,500 --> 00:43:07,980
And yeah, I don't know how we go about educating people about that, but.

146
00:43:07,980 --> 00:43:09,020
It's our job.

147
00:43:09,020 --> 00:43:12,180
Yes, that's why we pay you well.

148
00:43:12,180 --> 00:43:45,500
And just to piggyback on that, we were hosting the Cgmc next summer, and we've already met as a group to discuss tours and that and, and we do have a lot of success stories to tell and trying to squeeze that down, they made the recommendation to only have two tours. And, um, that's a challenge because there are a lot of great things that have happened in our town and continue to happen. And so it's easy to showcase what's going on.

149
00:43:45,500 --> 00:43:50,540
Definitely.

150
00:43:50,540 --> 00:43:51,580
All right. Thank you.

151
00:43:51,580 --> 00:43:52,100
Thank you.

152
00:43:52,100 --> 00:43:59,500
Thank you.

153
00:43:59,500 --> 00:44:26,620
Yeah. Before Lisa gets up. Brad's here. And in the work that Brad and Troy and Greg did to see the hotel come to fruition out, uh, the the DoubleTree that was. It was a lot of work. Uh, didn't know that it was going to happen at times, but the end result is paying benefits.

154
00:44:26,620 --> 00:44:37,380
Is that what you have?

155
00:44:37,380 --> 00:44:39,780
Done? Nothing.

156
00:44:39,780 --> 00:44:43,780
I haven't got any money.

157
00:44:43,780 --> 00:44:46,380
No money.

158
00:44:46,380 --> 00:44:49,900
For vacation. On vacation. Don't have any money.

159
00:44:49,900 --> 00:44:52,540
For the council meeting.

160
00:44:52,540 --> 00:44:56,630
I ain't going to be here tonight.

161
00:44:56,630 --> 00:45:00,870
I've never done this before, so.

162
00:45:00,870 --> 00:45:07,430
All right. Thank you. Is there a way to get rid of that stuff?

163
00:45:07,430 --> 00:45:08,830
Up there? I think.

164
00:45:08,830 --> 00:45:12,150
Control l.

165
00:45:12,150 --> 00:45:20,350
Or not?

166
00:45:20,350 --> 00:45:24,350
Thanks.

167
00:45:24,350 --> 00:47:00,480
Yes. Teamwork. Glenda and I work a lot together, and she loves to promote downtown as a venue for people to come and enjoy or meet with their organization. And I love that. So Main Street update for you and as someone mentioned, yes, last downtown Thursday, this Thursday got to be there. Fun stuff happening. So, um, I'm just going to go over a couple. I don't, I don't have very many slides, but just kind of give an overview of what's happened and what is happening in Main Street. Um, I have an advisory board and they work very hard. Each board member also serves on at least one Main Street committee, um, design and beautification, economic vitality or promotion. And they all volunteer at events and assist with sponsorships and planning. And so I value my advisory board, um, greatly. Besides the advisory board, I have about 80 other volunteers that will help with um, downtown Thursdays and the lighted parade. And so we have a great community and we have great businesses that say, hey, let's do this together. Um, you know, team building or team work. Um, and I love that. And people usually have fun. I mean, it's fun to volunteer at fun events.

168
00:47:00,480 --> 00:49:54,740
All right, so just a couple business updates for downtown. Um, hidden Rose boutique had closed and they reopened at 130 East Vine where Fresh Cafe is. She's got a great space in there and it's very conducive to shopping. When you go and order something for lunch and you have to wait for them to make it, and then you can shop over at the boutique. So that's that was really exciting that she reopened. Um, Tories celebrated 25 years in business, not 25 years downtown, but 25 years in business. But really, he was a catalyst for things that happened downtown when he decided to move down there. And so obviously we like that. Um, we did take some buildings down, but if you've been this is a way early picture. If you've been by the new ascend project. Um, it's yeah, it's tall now. I mean, they're, they're building, they're building and it's fun to watch that. Um, Roma's reopened with a fresh new look and a menu and most mostly new staff. They have maybe a couple, um, holdovers and they are open on Sundays from 11 a.m. to 10 p.m.. And that's very exciting to have somebody downtown that's open if you're at the hotel and go over and have something to eat, you don't have to leave the downtown area to eat. And so I'm very excited about that. I have talked to several businesses, and they are open to the idea of also being open on Sundays. So hopefully, um, coming soon will have some activity downtown on Sundays. Um, we've got a couple of buildings that are still, um, are utilizing our forgivable loan program through the EDA. This is a picture of, uh, Mizuki fusion. Um, they are doing an outside remodel and creating an Ada compliant bathroom inside. And so that's been really fun. They had a little bit of a stoppage. They were waiting for, uh, glass, I think. And so now they're back at it. And so we're, we'll be excited to see how that looks. Um, and then another celebration or tennis shoe celebrated 80 years in business. We have some really great businesses that have longevity. Um, Costas and Kottke's over 100 years. Owatonna shoe, 80 years. Um, we've got Alexander Lumber. I mean, we've got some businesses that have been here for a long time and they don't plan on going anywhere. So, um, that's a testament to our city as well. And that's a rich history for things downtown. Downtown Thursday. We just talked about that. Um, yes.

169
00:49:54,740 --> 00:50:38,020
Give me a second. On that last side, you talked about the forgivable loan program. You know, maybe you and Troy could double team this, but, you know, if we've got a $10,000 or $20,000 forgivable loan that is turned into a fantastic amount of investment in Owatonna, because these folks that own these buildings are not only taking the 10 or 20,000 forgivable loans they're dumping in 30, 40, 50, $60,000 or more of their own to to improve our downtown. So that's a heck of a program. And I hope that we can keep that up. I don't know if you have any figures off the top of your head.

170
00:50:38,020 --> 00:51:21,790
How about how much that's multiplied for the 10,000 that we have a forgivable? S13:

171
00:51:21,790 --> 00:51:23,710
It's been a good program.

172
00:51:23,710 --> 00:51:27,030
Absolutely. And it's a domino effect as well.

173
00:51:27,030 --> 00:52:18,560
I'm going to I'm going to go off of what Mr. Boesky said. I think it's been a great program. Um, what that's also done is when they do the improvements, they are hiring local electricians, local contractors to do this work. And, uh, The forgivable loan was the impetus for them to move forward with projects that they'd been thinking about for a while. But this kind of gave them the nudge to go ahead and you can see it in the window replacements. Uh, look at Firestone and and what they did. It's absolutely beautiful building with, with their window replacement and, and the number of businesses downtown that have used this program. And, you know, they've reinvested in their business as we continue to reinvest in downtown Owatonna. It's a great partnership.

174
00:52:18,560 --> 00:57:11,510
Absolutely. I agree. Downtown Thursday, again this Thursday. Um, we have entertainment bands, activities, vendors, a variety of food trucks. And they come every month. We do four of these during the summer. Um, we had a goal of getting $21,000 in sponsorships and we did exceed that goal by $1,300. Um, and that is why we can offer all of these great activities and entertainment at no cost to families. And that is one of the things I hear most of the time is, thank you that I don't have to pay for a balloon animal that's going to pop or, you know, face painting that you eventually wash off. And so I, our sponsors are great. And I just thought I should have had them listed here, but they will be listed. They're always, um, listed downtown with posters. They're usually, um, I put a thank you in the paper when I'm on the radio I try to mention them. And so yeah, they're, they're great. Um, just other random updates. We've got the shops at Rose Street. We're going to be talking about the retail collective in a little bit, but um, we've got a couple delays we're dealing with, with the shops. Um, mostly just the kids just didn't get them done. Um, from the building's class. And so they are starting on them right away this year. And we have an opening date set for May 8th. Um, working with the city on marketing the 117 West Bridge and the old Bubbas, um, at Cedar and Pearl. You know, I get calls here and there, talk about it, send them to the website. We got to get those, got to get those buildings, um, into something fun. Um, obviously you all know limestone gone granite in and um, I think it looks fabulous. I think black mulch was the perfect pick for that. Um, so, and I love it. And I was downtown Saturday with a friend and I was in the passenger seat and I opened my door all the way and it went right over the granite. Um, so yeah, I think that that turned out really, really great. Um, as you guys all probably know, construction on Main Street is being held off till next spring, but they have been doing some preliminary work underground on Main Street and a little on Broadway. So yeah, we'll see. We'll see what happens next summer. It will look very different for our events that are downtown. Um, and flower baskets. Um, because I was driving by them the other day and they look so beautiful. Um, I just thought I'd throw that in here. We did increase our number of flower baskets. Um, we still fund those just with donations, um, along with the holiday lights, banners and those other design initiatives, um, that make downtown Owatonna a welcoming place for visitors and for those of us that live here. So let's get to the retail collective. So we opened on May 2nd and we've tweaked a couple things. We've rearranged our hours and we've seen success with that. And so it's, it's a work in progress, but we progress every, every month. We've increased our total in sales and visitors. So that's what we want. And right now we're excited because the Rose Street Center, the building itself were open. And so the craft apothecary is open. Um, a place where you can buy, uh, donated crafts, but some of them are like new at a very reasonable price. You can come and work on a project, you can try out new machines. It's fabulous. And then the makerspace will be coming as well. And that will be, big tools like a full wood shop working and stained glass lapidary fun stuff. Um, so I do want to call out that we are having an open house at the Retail Collective and that's Saturday, September 19th, and it's from 9 to 3, which that's our regular hours for the retail collective. Um, so that we can hit farmers market people and that has worked really well.

175
00:57:11,510 --> 00:58:22,800
So of course, all these programs that I've just talked about plus more, um, are really important for downtown Owatonna. And in my opinion, um, if you have a healthy downtown, it kind of reflects on the rest of your city. Um, all the initiatives that I've talked about really do add to the appeal for people to have a business downtown. And that is the ultimate goal, is to get those buildings filled with more businesses downtown. And we worked on the Retail Collective for two years. Um, we were patient sometimes not so patient. Um, and then with the shops on Rose Street coming next spring, I just want to give a shout out to all the, the partners that we collaborated with to make that whole building, um, Rose Street building a success or on its path to being a success. So, um, wouldn't have happened if one of those entities had said nope. So very grateful for that as well.

176
00:58:22,800 --> 00:58:24,920
And what list of partnerships?

177
00:58:24,920 --> 00:58:25,400
Pardon.

178
00:58:25,400 --> 00:58:28,120
That's a great list of partnerships isn't it?

179
00:58:28,120 --> 01:00:55,460
And look at that. Branding looks perfect up there. And yeah I mean really It was a lot of talking to a lot of boards, but it was so fun. I mean, Sean from the Business Development Center and I had we had a great time doing it. So a big thank you to those partners. And so what are we going to do to keep this momentum going? Um, you know, the Business Development Center offers programs, co-starters programs, and we really want these entrepreneurs to engage in that class or some of the other classes that they have out there. Um, they can get help creating a business plan or their financial plan. Um, they get an hour free of service out there to really get them started in the right direction. Um, to be an owner of a business. Um, if they are a maker, the maker space will be available for them to use. Um, and then we've got the Rose Street Center. Um, they can be a vendor. Um, vendors pay a very nominal monthly fee inside the retail collective. They make all the money from their sales, but we share a point of sale system and so the cost is low for them. And it's a great way to start, um, maybe growing your business or just having fun with it. I've got both in there. Um, and so that's, that's been fun to watch when the shops open in the, in the spring. I hope that some of my vendors will move out there to a shop. Some, a couple have expressed interest. So that will be exciting as well. We're starting with four shops. And so the goal obviously is to have those businesses graduate from a shop and go into a brick and mortar in downtown. Um, we're already creating a community within the retail collective and I envision maybe some of our vendors doing a venture together, leasing a space together, sharing costs. Um, and I'm excited to see where that goes.

180
01:00:55,460 --> 01:02:08,740
That is slides that I have, but I have a couple other things that didn't make the slide presentation. Um, I talked to you about the open house from 9 to 3 on September 19th. Um, of course, downtown Thursdays this week. Um, what time of Main Street did win the southern Minnesota best of um, we won three best OFS this year. We won the best southern Minnesota farmers market, um, the best community event with downtown Thursday and then the best downtown. So that's pretty cool. Brag on that a little bit. Um, and so that's fun. Um, and then Main Street Owatonna is also up for an award through ethos, which is um, kind of the umbrella over Minnesota Main Street. And this is um, it's called excellence in Main Street and the retail Collective project was nominated. So we are up for that award. October 6th is the gala. And if anybody wants to join, let me know. Um, and I think, I think that's all I have. Any questions.

181
01:02:08,740 --> 01:02:10,660
Dan. Oh, sorry.

182
01:02:10,660 --> 01:02:11,740
Looking for a break?

183
01:02:11,740 --> 01:02:19,020
Dan's taking a break.

184
01:02:19,020 --> 01:02:22,740
Any questions for Lisa on this? S1:

185
01:02:22,740 --> 01:02:38,030
With a full time, uh, Main Street director that is created so much more opportunity. Um, it's, uh, like the tourism, the main street.

186
01:02:38,030 --> 01:03:00,910
It's a positive impact on, on the city of Owatonna. And, uh, appreciate your efforts. Uh, it doesn't go unnoticed. Uh, and the weather is supposed to be really nice this Thursday, and I would encourage everyone to go to downtown Owatonna Thursday night, meet your friends, meet your neighbors. It is a fantastic event.

187
01:03:00,910 --> 01:03:04,430
I couldn't agree more. Don.

188
01:03:04,430 --> 01:03:11,470
Um, and Lisa, you probably don't know the answer to this, but social districts, I mean, is that something you're exploring?

189
01:03:11,470 --> 01:04:19,800
Yes, we're working on that. Um, yes, I've talked to several different people about that and I've done a little recon on my own. And we're hoping actually, many of us are hoping that it's just going to be something in the legislature that passes statewide. We've got a couple people that are willing to bring that bill forward or write that bill and bring it forward. So that's what we're really hoping. Otherwise, I mean, it's a process that we need to start with, um, applying to be a social district. The couple social districts that I've talked to now, because now we have three in the state of Minnesota. They love it. They're doing great. Um, I don't have any stats from them, but they can see a change. Um, nobody's gotten in fights. It hasn't been rowdy. They're doing very well. And so at some point it would be nice to have that here in Owatonna.

190
01:04:19,800 --> 01:04:20,600
Thank you.

191
01:04:20,600 --> 01:04:46,880
Yes, I will say on that, um the three that are using it right now. They were struggling within their downtown district as a retail front. We're already ahead on that, on that part. So, um, as we go to our fall conference in that we will continue to push that agenda as well.

192
01:04:46,880 --> 01:04:47,520
All right. Any other.

193
01:04:47,520 --> 01:04:49,440
Questions?

194
01:04:49,440 --> 01:04:52,600
Thank you so much.

195
01:04:52,600 --> 01:05:06,120
Any board updates from council?

196
01:05:06,120 --> 01:05:08,600
I don't a lot of them were canceled.

197
01:05:08,600 --> 01:05:08,600
Yeah. Yeah. The fair fair week. So all right. With that we will, uh, we will close our study session and we will be back at 7:00 for the council meeting. Thank you all.