03-29-2017 EDAM
EDA Board Meeting
Main Conference Room – City Center
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11:30 AM Wednesday, March 29, 2017
____________________________________________________________________________
Members present in bold.
MEETING MINUTES
Members
Mike Cannon Corey Stearns Daron Vanderheiden Chad Czmowski
Mary Christensen Mike McGraw Jonny Block
Staff
Miles Seppelt, EDA Director
Matt Jaunich, City Administrator
Andy Reid, Finance Director
Jeff Page, EDA Program Assistant
Economic Development Authority
Financial Summary
Operations
I. Call to Order
Cash Available $142,389
Reserved $56,736
Mike McGraw called the meeting to order
Unreserved $82,985
at 11:34 AM.
Economic Development Loan Fund
Cash Available $436,604
II. Approve Agenda
Loan 1 Balance $14,752
Loan 2 Balance $14,752
III. Review Minutes
Downtown Revolving Loan Fund
Cash Available $358,431
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Loans Receivable $563,117
A. February 15 Finance Team
Capital Assets $201,329
Meeting
Total Assets $1,107,226
M/S/P: Stearns, Cannon to MIF Loan Fund
approve the minutes as written. Cash Available $202,937
Passed unanimously. Loan Receivable $88,981
Enterprise Center Fund
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B. February 22 EDA Board Meeting
Cash Available $687,761
Expenditures $0
M/S/P: Block, Christensen to
SHOPKO TIF District (TIF 4-5)
approve the minutes as written.
Cash Available $247,088
Passed unanimously.
Interfund Loan Receivables $287,948
Expenditures $0
MEDICAL CLINIC TIF District (TIF 4-16)
IV. Review of February EDA Financial
Interfund Loan Payable $279,948
Statements
Finance Director reviewed the EDA financials for the benefit of the Board. EDA Director noted the
following:
$5,000 support for SWIF will be disbursed shortly. Donations to Civil Org. line item will be
$500 over budget due to the $500 donation to the EDAM Foundation.
The Downtown loan for the Arts Building will be paid off this week, bringing roughly $37,000
in cash back into the Downtown Loan Fund.
Westinghouse has declared bankruptcy as of today. How this will impact the NuCrane loan
($88,981 outstanding balance) is unknown at this point.
Discussion followed.
M/S/P: Block, Stearns to approve the financial report as presented. Passed unanimously.
V. Director’s Report
A. Marketing Plan Report:
o Facebook updates = 13, Twitter activity = 14, Website updates = 3
o Social media effort has 191 likes on Facebook and 62 followers on Twitter.
B. Business recruitment / expansions: Staff provided an update on recent prospects and ongoing
conversations.
C. Old Medical Clinic Redevelopment – no update.
D. Hotel Project – Purchase & development agreements should be signed this week.
E. Hutchinson Enterprise Center
o Pre-construction meeting was held this morning
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o Weather permitting, construction should commence around April 17
o We’ve received our first reimbursement from DEED on the incubator grant, in the amount
of $24,299 (3.18% of the grant)
F. Workforce Development Plan
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o Presentation was given to representatives of St. Cloud School district on March 21.
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o 3M Gives (source of our $600K grant) will be visiting Hutchinson on April 7.
o Thus far a total of $1,213,524 has been pledged to the project
o Of that amount, $787,575 has been collected thus far (64.9%)
o The remaining amount is scheduled to be collected over the next 18 months or so.
o Equipment is being ordered for the new CTE Center at Hutchinson High School.
o Hutchinson received a nice write up in Spring 2017 edition of Enterprise Minnesota
magazine for its skilled workforce development efforts.
G. Hay Land Rental – land has been advertised. Bids are due in April.
H. Westinghouse Ch. 11 Bankruptcy
VI. Loan Subordination – BARTCO (Aquaria Pets)
Citizens Bank is refinancing the BARTCO property on Main Street and has requested that the EDA
subordinate its loan on the property to that of the bank.
The value of the property is $236,300 and Citizen’s Bank financing will not exceed $145,000. The
EDA’s loan has a balance of $17,136.57. All debt against the building is less than its value, so it
continues to meet all EDA loan program guidelines.
Discussion followed.
M/S/P: Czmowski, Block to approve the request for loan subordination. Passed unanimously.
VII. McLeod County Economic Forum
McLeod County Commissioners Paul Wright and Joe Nagel are spearheading a discussion about
the economic outlook for McLeod County. They are organizing a meeting in Glencoe and are
inviting the County Board, City Councils, School Boards, Township Boards and EDA Board
members to attend.
To comply with open meeting statute the EDA Board should set the event as a special meeting, in
case four or more members wish to attend.
M/S/P: Czmowski, Vanderheiden to set a special meeting of the Hutchinson EDA Board of
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Directors for 6:30 PM, Thursday, April 20, 2017 at the Media Center of Glencoe High School.
Approved unanimously.
VII. University of Minnesota BR & E Program
Staff presented information about the Business Retention & Expansion Program offered by
University of Minnesota Extension.
This is more of a community BR&E effort, as opposed to a staff-level BR&E program.
Includes a U of M developed survey, data analysis and report.
Cost ranges from $9,500 to $12,000 – depending on the level of customized assistance
included.
Discussion followed. Some of the key points:
BR & E is very important to our efforts / we maintain a strong outreach effort to our
manufacturing community as a result (most recent event being the Skilled Workforce
Summit in February)
Given the major projects currently underway by the EDA, it would be difficult to launch
another major initiative at the current time.
With its stepped up marketing / advertising efforts the EDA’s budget is already fully
allocated.
This initiative would make a great first project for a county-level economic development
effort, if Commissioner Wright’s & Nagel’s efforts bear fruit.
M/S/P: McGraw, Block to table the proposal for the time being. Passed unanimously.
VIII. Van for Hutchinson Enterprise Center
Discussion was held about acquiring an old city vehicle for use by EDA staff to be based at the
Hutchinson Enterprise Center.
Vehicle would be the city’s 2004 Ford Freestar Van (has about 65,000 miles on it)
Acquisition cost would likely be $0 – City Fleet Committee will make a determination in
April.
Needed repairs would include the rear hatch handle ($340) and possibly a brake job.
Monthly operational costs would be negligible (insurance & gas).
Staff will add the item to the April agenda of the EDA Finance Team for their consideration.
IX. Grant & Loan Program Applications
Commercial Rehabilitation Loan Program $30,000
Casey Clark / Premier Investments LLC 10 years @ 4.00%
31 Main Street North (Janosek’s Café)
No action taken due to an incomplete application.
X. Other Business
Mr. Vanderheiden indicated that the school renovation project was slightly ahead of schedule and
on budget.
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XI. Set Next Meeting – 11:30 AM Wednesday, April 26, 2017.
XII. Adjourn
M/S/P: Stearns, Christensen to adjourn the meeting at 12:35 PM. Passed unanimously.
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director