01-03-2018 EDAM
EDA Board Meeting
Main Conference Room – City Center
11:30 AM Wednesday, January 3, 2018 (December meeting)
____________________________________________________________________________
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
I. Call to Order
EDA President McGraw called the Board to order at 11:32 AM.
II. Board Elections
The following slate of candidates was nominated:
Mike McGraw – President
Jonny Block – vice-President
Chad Czmowski – Treasurer
Andy Ried – Asst. Treasurer
Miles Seppelt – Secretary
M/S/P: Stearns, Christensen to elect the nominated slate of candidates to be the officers of the EDA
for 2018. Passed unanimously.
III. Approve Agenda – no action.
IV. Review Minutes
A. November 15, 2017 Finance Team meeting.
M/S/P: Stearns, Cannon to approve the minutes as written. Passed unanimously.
B. November 22, 2017 EDA Board meeting.
M/S/P: Block, Stearns to approve the minutes as written. Passed unanimously.
V. Review of November EDA Financial Statements
A. Financial Update
City Finance Director Andy Reid provided an update on the EDA financials. (see table below)
M/S/P: Cannon, Christensen to
Economic Development Authority
approve the financial report as
Financial Summary as of November 30, 2017
presented. Passed
Operations
unanimously.
Cash Available $100,249
Reserved $56,736
It was noted that the Ashwill
Unreserved $43,052
Industries loan needs to get
Economic Development Loan Fund
set up on automatic payment
Cash Available $407,321
Redline Systems Balance $12,463
as soon as possible.
Ashwill Industries Balance $13,160
Laser Dynamics Balance (forgivable) $23,000
Innovative Foam Balance (forgivable) $14,355
VI. Director’s Report
Downtown Revolving Loan Fund
Cash Available $454,971
A. Marketing Plan Report:
Loans Receivable $460,751
Facebook updates = 8,
Capital Assets $201,329
Twitter activity = 8,
Total Assets $1,117,051
Website updates = 0
MIF Loan Fund
Social media effort has
Cash Available $249,805
260 likes on Facebook and
NuCrane Loan Receivable $44,787
72 followers on Twitter.
Enterprise Center Fund
Cash Available ($148,844)
B. Business Recruitment /
Expenditures (Ebert Construction) $15,160
Expansions – staff updated the
SHOPKO TIF District (TIF 4-5)
board on recent contacts and
Cash Available $21,211
conversations.
Interfund Loan Receivables $297,203
Expenditures $0
C. UPONOR
MEDICAL CLINIC TIF District (TIF 4-16)
Staff is still working with
Interfund Loan Payable $289,058
HTI to move the road
project forward.
D. Hotel Project
Excavation permit is ready for pick-up.
Builders are waiting for extreme cold weather to pass before beginning excavation.
E. Skilled Workforce Development Plan
Funds collected thus far = $1,005,025
3M Grant for $150K was approved.
New website currently under development and should be ready by the end of the year.
th
Manufacturer’s Summit scheduled for February 7 at the high school.
VII. Old Medical Clinic Site Proposal
Staff indicated that a local developer wanted to develop market-rate rental workforce housing
on the site.
Discussion on whether this would be a suitable way to redevelop the property.
Consensus was that the EDA would be open to this type of development.
Staff indicated that a formal proposal would be submitted in time for next month’s meeting.
VIII. Hutchinson Enterprise Center
Staff provided a brief update on the status of building & tenants.
Discussion of a draft annual operating budget for the facility.
Projected Budget
Annual Rental Revenue $49,920
Property Taxes $22,100
Building Insurance $1,500
Energy $3,000
Garbage Service $1,750
Snow Removal $4,500
Operating Supplies $750
EDA Loan Payments $15,458
Total Expenses $49,058
EDA loan payments are to repay $140,000 borrowed from the Economic Development Loan Fund
for 10 years at 2% interest.
Additional discussion followed.
IX. Discuss potential donation of property to City (Hansen Property)
Further discussion on the possible donation of property to the EDA.
Proposed donation consists of two adjoining parcels with two buildings:
Building Condition Market Value
“Chicken COOP”
Fair $122,400
Warehouse
Excellent $288,100
TOTAL $410,500
After further discussion about potential uses for the property, the consensus of the Board
members present was “we’re interested.”
The current owners of the property still have not decided what action to take – staff will follow
up.
X. Grant & Loan Program Applications – none.
XI. Other Business – none
XII. Set Next Meeting – 11:30 AM Wednesday, January 24, 2018
XIII. Adjourn
M/S/P: Block, Czmowski to adjourn the meeting at 12:47 PM. Passed unanimously.
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director