05-24-2017 EDAM
EDA Board Meeting
Main Conference Room – City Center
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11:30 AM Wednesday, May 24, 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
I. Call to Order
Financial Summary as of April 30, 2017
Operations
Cash Available $107,513
Vice-President Block called the meeting to
Reserved $56,736
order at 11:34 AM.
Unreserved $50,045
Economic Development Loan Fund
II. Approve Agenda
Cash Available $438,121
Loan 1 Balance $14,071
III. Review Minutes
Loan 2 Balance $14,522
th Downtown Revolving Loan Fund
A. April 19 Finance Team Meeting
Cash Available $412,601
Loans Receivable $511,919
M/S/P: Stearns, Cannon to
Capital Assets $201,329
approve the minutes as written.
Total Assets $1,109,671
Passed unanimously.
MIF Loan Fund
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Cash Available $214,396
B. April 26 EDA Board Meeting
Loan Receivable $77,988
Enterprise Center Fund
M/S/P: Czmowski, Block to
Cash Available $700,715
approve the minutes as written.
Expenditures (Architect & Ebert Construction) $0
Passed unanimously.
SHOPKO TIF District (TIF 4-5)
Cash Available $247,298
Interfund Loan Receivables $297,103
IV. Review of April EDA Financial
Expenditures $0
Statements
MEDICAL CLINIC TIF District (TIF 4-16)
Interfund Loan Payable $288,958
Finance Director reviewed the EDA
financials for the benefit of the Board.
M/S/P: Christensen, Cannon to approve the financial report as presented. Passed unanimously.
V. Director’s Report
A. Marketing Plan Report:
o Facebook updates = 11, Twitter activity = 11, Website updates = 1
o Social media effort has 203 likes on Facebook and 63 followers on Twitter.
B. Business recruitment / expansions: Staff provided an update on recent prospects and ongoing
conversations.
C. Old Medical Clinic Redevelopment – waiting for a callback from Inland Development Partners
D. Skilled Workforce Development Plan
o A steering committee is being formed to bring more structure to the project
o Work is beginning on developing the HutchTigerPath.com website
o Staff made a second visit to Raider Grafix at Roseville Area High School (student run
automated screen printing business) with school superintendent Daron Vanderheiden
and two representatives from 3M to learn how a similar operation can be established as
part of Tiger Manufacturing.
o Hutchinson has won the 2017 “City of Excellence Award” from the League of Minnesota
Cities for our work on the TigerPath Initiative.
VI. Economic Development Incentives
Discussion of economic development incentives in general.
Discussion as to whether we should establish a written policy to govern the use of Tax
Abatement as an economic development tool.
o Staff will obtain information from other cities to see what they are doing in this regard.
Discussion of a land incentive for the industrial park.
VII. Hotel Project
Staff provided an update on the Hotel Project
o Developer has not submitted materials for the June meeting of the Planning
Commission, as hoped.
o Design work is complete on the access road / retaining wall / storm water feature.
o The updated Engineer’s estimate is about $500,000 – higher than the $365,000
initially estimated. Retaining wall was more expensive than initially thought.
o Bids may well come in lower.
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o The city will advertise the project shortly, with bids due on June 16
Consideration was given to allocating $100,000 from the SHOPKO TIF District to offset city
project costs relating to the Hotel development site.
o This had been discussed in August of 2016 but no formal action was taken.
M/S/P: Cannon, Stearns to authorize up to $100,000 from the SHOPKO TIF District to offset
qualifying costs at the Hotel development site. Passed unanimously.
VIII. Hutchinson Enterprise Center
Staff provided an update on the parking lot excavation and why there was no savings to
realized by not excavating and utilizing the existing soils.
Most the site work is completed.
Soil corrections for the building pad have been completed.
Rain has slowed things down for the last week.
Next step will be building footings & foundations, once things dry out.
Discussion of Incubator Project Team role / function /authority.
M/S/P: Cannon, Stearns to authorize the City Administrator & Economic Development
Director (working jointly) to approve change orders up to $50,000 as long as all project
expenses remain within original project budget. Passed unanimously.
12:53 PM – EDA Vice-President Block left the meeting. Mr. Cannon took over as chair for
the remainder of the meeting.
Discussion of Laser Dynamics leasehold improvements
o Company will be investing upwards of $60,000 - $70,000 to make leasehold
improvements in their space at the Enterprise Center.
o Per the lease agreement, at the option of the City, those improvements become
City property when the tenant moves out of the building.
o Company is poised to grow very rapidly – projecting 10 employees in 2 years and
15 employees by Year 3.
o The company has asked the EDA if they would consider putting in the epoxy
flooring they need, at a cost of $22,656. Pro Maintenance of Hutchinson provided
the lowest quote.
o Discussion followed.
o Options available to the EDA:
o 0% loan with back-loaded payments (i.e. higher payments towards the end
of the loan)
o Forgivable loan, contingent upon job creation
o Could fund the improvement from any remaining project contingency
dollars
o Staff noted that our goal is to help the company save as much money as possible
so that in 3-5 years or so the company can build its own building in the industrial
park.
VII. Marketing Plan (Minnesota Thriving in the North)
Staff reported there was only minimal cost savings to be realized from purchasing a half-
page advert compared to the full-page advert.
o Full page ad = $5,995 ($400 more than last year)
o ½ page ad = $4,915
It was noted that the EDA has budgeted for the full-page ad.
M/S/P: Christensen, Vanderheiden to proceed with the full-page advertisement at $5,995. Passed
unanimously.
VIII. Grant & Loan Program Applications
Commercial Rehabilitation Loan Program $30,000
Casey Clark / Premier Investments LLC 10 yrs @ 4%
31 Main Street North (Janosek’s Café building)
M/S/P: Czmowski, Stearns to authorize the loan. Passed unanimously.
IX. Other Business – None
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M/S/P: Vanderheiden, Cannon to set a special meeting of the EDA Board for Tuesday, June 27 at
11:30 AM for the annual joint meeting with the City Council.
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X. Set Next Meeting – 11:30 AM Wednesday, June 28, 2017.
XI. Adjourn
M/S/P: Czmowski, Cannon to adjourn the meeting at 1:17 PM. Passed unanimously.
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director