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ITEM 4.2 Prairie Park Phase 1 Item 4.2 1 TO: Parks and Recreation Commission FROM: Nick Jacobs, Parks and Recreation Director DATE: January 15, 2026 RE: Prairie Park Phase 1 Background Information Minnesota DNR Outdoor Recreation Grant – Prairie Park Phase 1 (2026 Application) Since the adoption of the Prairie Park Master Plan in August of 2024, City staff has been actively strategizing ways to initiate construction of Prairie Park Phase 1. Securing outside funding has been a key focus in advancing the project, and the Minnesota Department of Natural Resources (DNR) Outdoor Recreation Grant presents an opportunity to help achieve this goal. Phase 1 of Prairie Park includes the following improvements, as discussed by the Parks and Recreation Commission in June 2025: • New Park open air shelter/concession/restroom facility • Destiantion playground • Ballfield updates • Parking lot resurfacing and expansion • Common excavation and general grading • Concrete plazas • Veterans Memorial • New landscaping • New irrigation systems • New tree plantings Item 4.2 2 • Drinking fountain • Resurfacing of existing trails • Stormwater allowance Staff is proposing to apply for the Minnesota DNR Outdoor Recreation Grant during the 2026 funding cycle. The grant application is due on March 31, 2026, with award notifications anticipated in summer of 2026. This timeline aligns well with the City’s anticipated construction start for Prairie Park Phase 1 in 2027, allowing adequate time for final design, bidding, and coordination if grant funding is awarded. If successful, the potential grant award could be up to $500,000, which would significantly offset local costs and help advance Prairie Park Phase 1 toward construction. To support a competitive application, park planning consultants HKGi have proposed a fee of $13,500 to provide professional grant writing and application assistance. This represents a modest investment relative to the potential return. A $13,500 expenditure to pursue up to $500,000 in grant funding equates to approximately a 37-to-1 return on investment. Additionally, HKGi’s familiarity with the Prairie Park project and experience with similar grant programs reduces risk and increases the likelihood of submitting a strong, well-aligned application. Staff believes pursuing this grant is a cost-effective and strategic approach to advancing a priority park project while leveraging external funding to reduce the City’s reliance on local funds. Requested Commission Action Staff is requesting Parks and Recreation Commission support and direction to proceed with the 2026 Minnesota DNR Outdoor Recreation Grant application for Prairie Park Phase 1. Possible recommendation: • To recommend the City Council approve the HKGi grant writing proposal and authorize staff to apply for the Minnesota DNR Outdoor Recreation Grant. Attachments: • HKGi Grant Writing Proposal 800 Washington Avenue North, Suite 207 Minneapolis, MN 55401 Proposal To : Nick Jacobs, Parks and Recreation Director, City of Otsego From: Gabrielle Grinde, HKGi Subject: Proposal to assist with writing DNR Outdoor Rec Grant for Prairie Park Date: January 9, 2026 Dear Nick, HKGi is pleased to submit this proposal for grant writing services to assist the city in applying for a DNR Outdoor Recreation Grant for recreation components of the Prairie Park Master Plan Phase 1 Implementation. HKGi staff have worked with several cities and counties in Minnesota to collaborate and write DNR and other grant applications. We understand that the city plans to submit an application for the 2026 MN DNR Outdoor Recreation Program. Eligible projects at Prairie Park include internal park trails, picnic shelter, playground, athletic facilities, and fixed-in-place skate park, while support facilities such as restrooms and parking lots can only be funded as part of a larger project that includes a primary recreation facility. The total project cost must be at least $100,000. The maximum grant award is $500,000, with a 50% match. Proposed Work Plan and Schedule The following table describes our anticipated tasks and timeline. Timeline Task January- February 2026 » Review 2026 Outdoor Rec Grant Program Manual. » Work with city staff to determine grant projects. » Develop base maps, graphics, and details required for the grant. » Update cost estimates for proposed grant projects. » Develop written narratives to fill in required sections of the grant application. » Assemble all materials into one PDF for draft submittal. » Coordinate review of grant with city staff before submitting to DNR. Feb. 28, 2026 » Submit draft grant application to DNR staff for feedback. March 2026 » Receive and review feedback from DNR. » Adjust and edit the final grant application as noted. March 31, 2026 » Submit final grant application to DNR. January 9, 2026 Proposal for Prairie Park DNR Outdoor Rec Grant Proposal 2 Proposed Fees HKGi proposes to accomplish the above-described scope of work for a not-to-exceed fee of $13,500 including reimbursable expenses. We will bill time on an hourly basis and all expenses for travel or printing will be billed at cost. We look forward to the opportunity to help the City of Otsego with this important community project. SINCERELY, GABRIELLE GRINDE | PLA (MN) Principal Project Manager Gabrielle@hkgi.com 608.852.3370