01-24-2018 EDAM
EDA Board Meeting
Main Conference Room – City Center
11:30 AM Wednesday, January 24, 2018
____________________________________________________________________________
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
Meagan Donahue, EDA Intern
I. Call to Order
Jonny Block, EDA vice-president, called the Board to order at 11:30 AM.
II. Introduction – Meagan Donahue, new EDA Intern was introduced.
III. Approve Agenda – no action.
IV. Review Minutes
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A. December 20 Finance Team meeting.
M/S/P: Stearns, Vanderheiden to approve the minutes as written. Passed unanimously.
B. January 3rd EDA Board meeting. (December Meeting)
M/S/P: Block, Christensen to approve the minutes as written. Passed unanimously.
V. Review of December EDA Financial Statements
City Finance Director Andy Reid provided an update on the EDA financials. (see table on
following page)
EDA operations budget finished the year with a projected net loss of $687.
TIF administration income still needs to be recorded.
NuCrane Mfg. has paid thru the end of January on their loan.
Both tenants at the Hutchinson Enterprise Center are paid up on their rent.
M/S/P: Vanderheiden, Stearns to approve the financial report as presented. Passed
unanimously.
VI. Director’s Report
Economic Development Authority
Financial Summary as of December 31, 2017
A. Marketing Plan Report:
Operations
Facebook updates = 10,
Cash Available $165,933
Twitter activity = 10,
Reserved $56,736
Website updates = 0
Unreserved $103,480
Social media effort has
Economic Development Loan Fund
263 likes on Facebook and
Cash Available $407,892
72 followers on Twitter.
Redline Systems Balance $12,463
Ashwill Industries Balance $12,928
B. Business Recruitment /
Laser Dynamics Balance (forgivable) $23,000
Expansions – staff updated the
Innovative Foam Balance (forgivable) $14,355
board on recent contacts and
Downtown Revolving Loan Fund
conversations.
Cash Available $429,708
Loans Receivable $483,783
C. UPONOR
Capital Assets $201,329
Staff is still working with
Total Assets $1,114,820
HTI to move the road
MIF Loan Fund
project forward.
Cash Available $261,268
NuCrane Loan Receivable $33,646
D. Hotel Project
Enterprise Center Fund
With the warmer temps,
Cash Available ($436,278)
construction is underway.
Expenditures (TOTAL) $2,296,478
SHOPKO TIF District (TIF 4-5)
E. Skilled Workforce Development
Cash Available $20,967
Plan
Interfund Loan Receivables $297,459
Funds collected thus far =
Expenditures $352,001
$1,006,275
MEDICAL CLINIC TIF District (TIF 4-16)
New website currently
Interfund Loan Payable $289,058
under development.
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Manufacturer’s Summit scheduled for February 7 at the high school.
VII. Downtown Program Adjustments (Main Street 2020)
Board reviewed proposed revisions to the Downtown EDA programs.
Sign & Awning Grant Program – Waive 8-year rule for rear/secondary/non main
street business entrances.
Façade Improvement Program – Waive 5-year rule for rear/secondary/non main
street entrances. Increase maximum grant amount to $5,000. Make handicap
accessibility and cement work eligible until 1/1/2021.
Commercial Rehabilitation Loan Program – New downtown loans will defer payments
& interest until 1/1/2021. Upon request, existing loans defer payments & interest for
the months the project is physically underway up to 1/1/2021.
M/S/P: Cannon, Vanderheiden to approve revisions to the rules of the three downtown
programs. Passed unanimously.
VIII. Consider Redevelopment Proposal for Old Medical Clinic Site (126 Franklin Street
NW)
Staff indicated that a local developer wanted to develop market-rate rental workforce
housing on the site.
Proposal calls for four “brownstone” style buildings to be constructed, each featuring two
rental units.
Each unit would have 3 bedrooms, 2 bathrooms and a 2-car garage, and would rent for
$1,085 per month.
This would be part of a larger three-site project the developer is planning.
Discussion on how the proposed development fits with the Downtown Plan.
Consensus was that the EDA would find this a suitable type of development for the area.
M/S/P: Czmowski, Stearns to accept the development proposal and sell the lot to the Developer
(Bonneville Land and Cattle Co LLC) for $1, on the condition that primary project financing is
approved and a $650,000 grant from the Minnesota Housing Finance Agency is obtained.
Passed unanimously.
IX. Grant & Loan Program Applications – none.
X. Other Business – Staff provided a brief update on the Hansen Property.
XI. Set Next Meeting – 11:30 AM Wednesday, February 28th, 2018
XII. Adjourn
M/S/P: Cannon, Block to adjourn the meeting at 12:20 PM. Passed unanimously.
Respectfully Submitted,
Meagan Donahue
EDA Intern