11-22-2017 EDAM
EDA Board Meeting
Main Conference Room – City Center
nd
11:30 AM Wednesday, November 22, 2017
____________________________________________________________________________
Members present in bold.
MEETING MINUTES
EDA Board 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
Economic Development Authority
I. Call to Order
Financial Summary as of October 31, 2017
Operations
EDA President McGraw called the Board
Cash Available $111,310
to order at 11:35 AM.
Reserved $56,736
Unreserved $53,504
II. Approve Agenda – no action.
Economic Development Loan Fund
Cash Available $406,362
III. Review Minutes
Redline Systems Balance $12,463
Ashwill Industries Balance $13,389
A. October 18, 2017 Finance Team
Laser Dynamics Balance (forgivable) $23,000
meeting.
Innovative Foam Balance (forgivable) $14,355
Downtown Revolving Loan Fund
M/S/P: Cannon, Stearns to
Cash Available $443,826
approve the minutes as written.
Loans Receivable $470,137
Passed unanimously.
Capital Assets $201,329
Total Assets $1,115,292
B. October 25, 2017 EDA Board
MIF Loan Fund
meeting.
Cash Available $249,388
NuCrane Loan Receivable $44,787
M/S/P: Block, Christensen to
Enterprise Center Fund
approve the minutes as written.
Cash Available ($208,809)
Passed unanimously.
Expenditures (Ebert Construction) $662,021
SHOPKO TIF District (TIF 4-5)
IV. Review of October EDA Financial
Cash Available $21,175
Statements
Interfund Loan Receivables $297,203
A. Financial Update
Expenditures $0
MEDICAL CLINIC TIF District (TIF 4-16)
City Finance Director Andy Reid
Interfund Loan Payable $289,058
provided an update on the EDA
financials. (see table)
M/S/P: Stearns, Block to approve the financial report as presented. Passed unanimously.
B. Ashwill Industries Loan
Ashwill Industries has relocated to Brownton.
Collateral for the loan remains here in Hutchinson and is used by Redline Systems,
LLC.
It has not been feasible to refinance the loan through another entity in order to pay off
the EDA.
M/S/P: Czmowski, Cannon to maintain the existing loan with Ashwill Industries until it is
fully paid off, on the condition that electronic payments are set up. Passed unanimously.
C. Consider making electronic payment a requirement for all EDA loan programs.
Staff was directed to get as many of the existing EDA loans as possible set up for
electronic payments.
M/S/P: Block, Christensen to make electronic payment a requirement for all new loans
provided through EDA programs effective immediately. Passed unanimously.
V. Director’s Report
A. Marketing Plan Report:
Facebook updates = 12, Twitter activity = 12, Website updates = 0
Social media effort has 253 likes on Facebook and 71 followers on Twitter.
B. Business Recruitment / Expansions – staff updated the board on recent contacts and
conversations.
C. TigerPath Steering Committee
Funds collected thus far = $853,150
Should hear back on the $150K 3M Grant sometime in December
New website currently under development and should be ready by the end of the year.
D. Old Medical Clinic Redevelopment – Staff has visited with a potential developer.
E. Hotel Project
Closing on financing & land sale is done.
Construction should commence shortly.
F. Sub-Committee to look at Downtown Programs (MainStreet 2020) – staff has not had time to
work on this…
G. Intern Update – Three candidates have applied and interviews will take place in early
December.
H. Strategic Planning – staff will begin research for EDA strategic planning sometime in Q1 2018.
VI. UPONOR
Staff provided a review of UPONOR’s plans at their new Hutchinson facility.
Next step is to apply for DEED funding to assist the company with establishing operations in
Hutchinson.
M/S/P: Stearns, Cannon to authorize staff to submit applications for the Minnesota Investment
Fund and Job Creation Fund to DEED for the UPONOR Project. Passed unanimously.
VII. Hutchinson Enterprise Center
A. Progress Report
Building is essentially done, with only a few small details remaining.
Tenant leases are signed and they should be operating in their new spaces by mid-
December.
EDA offices should be relocated by the turn of the year.
B. Allocate funding for furniture
Staff reported that furniture / equipment for the building was not included in the project
budget.
Given pending Change Orders, it may be possible to fund most or all of furniture needs
through the remaining contingency budget.
Staff proposed funding furniture / equipment through the EDA Operations budget, with
some or all being reimbursed from remaining Contingency Fund dollars once the project
was formally closed out.
M/S/P: Christenson, Block to authorize up to $17,191 from the EDA Operations budget for the
acquisition of furniture / equipment for the Hutchinson Enterprise Center. Funds to be repaid as
much as possible from remaining contingency fund once the project is wrapped up. Passed
unanimously.
VIII. Discuss potential donation of property to City (Hansen Property)
A local property owner has approached the City with a proposal to donate two lots / buildings
to the City.
These are the original “chicken coop” where HTI was founded and a 20,000 sf climate
controlled warehouse on 3.14 acres just south of the TDK-HTI headquarters building.
Building Condition Market Value
“Chicken COOP”
Fair $122,400
Warehouse
Excellent $288,100
TOTAL $410,500
Key challenge is that there is very limited access to State Hwy 7 and this would have to be
corrected before effective use could be made of the properties.
Acquisition of a neighboring property would most likely be necessary (Market Value of
$93,500)
Discussion followed. No action taken at this time.
IX. Grant & Loan Program Applications – none.
X. Other Business
A. Gateway Park Development
Discussion of funding for continued development of Gateway Park.
It was noted that the EDA utilized those dollars for the Signage & Wayfinding project.
B. Resignation from Finance Team
Gus Wurdell has resigned from the EDA Finance Team
rd
XI. Set Next Meeting – 11:30 AM Wednesday, January 3, 2018.
XII. Adjourn
M/S/P: Block, Stearns to adjourn the meeting at 12:46 PM. Passed unanimously.
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director