Staff described multiple grant pursuits (Taylor Family Farms Foundation, EMS coordination with Napili Health, county SWCD cooperation) and said the board may approve a change order for an existing drought well project so the work can proceed without rebidding.

EDA staff reported Madelia Health received a $3,000,000 loan on Aug. 5 and has posted a positive net margin for two months of the new fiscal year, though revenues and accounts receivable remain points of concern.

Chair and staff scheduled the Oct. 26 EDA meeting to include a discussion of a potential local‑option sales tax (example rate discussed: 0.5%) earmarked for parks and recreation; staff noted the process requires legislative approval and a ballot measure.

City engineer Adam Jacobs said five bids were received for the force-main replacement, that the low bidder was roughly $88,000 under a competitor, and that the city will receive $686,250 in grant funds while its local share has risen with cost escalation.

Hospital leaders told the EDA the $3 million would be used largely to convert a roughly $2.25 million short-term line into long-term financing and consolidate existing obligations; the presentation identified a $411,000 REIT loan and ongoing efforts to negotiate payer contracts.

The Economic Development Authority heard a proposal to provide a $3,000,000 loan at 5% for 15 years to refinance short-term credit for Madelia Health. Presenters warned the hospital’s low average census and revenue shortfalls threaten services; no EDA vote was taken and adoption is planned for a later meeting.

Staff proposed a $3 million loan at 5% over 15 years to retain Midway Health as a local hospital, citing thousands of dollars in labor income and tens of millions in economic output tied to the provider; councilors acknowledged the scale and vowed continued oversight.

Lily, a lobbyist representing Greater Minnesota cities, told the Madelia council that this year’s bonding bill included $1.24 billion in commitments for water, wastewater and local infrastructure but provided only $15 million for lead service-line replacement — far less than the $250 million advocates requested.

A hospital representative told the council the facility faces about $5.25 million of combined debt and accounts payable and outlined revenue-cycle fixes and service-line strategies; the council moved to form a hospital committee and called a public hearing for July 27, 2026.

The Economic Development Authority authorized staff to move forward on a redevelopment plan to refinance Madelia Health and scheduled a public hearing for July 27, 2026. The action authorizes next steps but does not itself approve a loan.

At a special Madelia meeting, council members approved a professional services contract with Northland Securities and a preliminary resolution authorizing loan procedures; they set a public hearing for July 27 and discussed funding timing for a related hospital project, including a reported $1.4 million state capital award and potential bridge funding.