09-26-2018 EDAM
EDA Board Meeting
Main Conference Room – Enterprise Center
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11:30 AM Wednesday, September 26, 2018
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MEETING MINUTES
Members present in bold.
Economic Development Authority
Financial Summary as of August 2018
EDA Board Members
Operations
Mike McGraw
Cash Available $119,853
Jonny Block
Reserved $56,736
Mike Cannon
Unreserved $60,533
Corey Stearns
Economic Development Loan Fund
Daron Vanderheiden
Cash Available $103,268
Chad Czmowski
Redline Systems Balance $10,079
Mary Christensen
Ashwill Industries Balance $10,804
Laser Dynamics Balance (forgivable) $23,000
Innovative Foam Balance (forgivable) $14,355
Downtown Revolving Loan Fund
Staff
Cash Available $459,511
Miles Seppelt, EDA Director
Loans Receivable $460,079
Matt Jaunich, City Administrator
Capital Assets $201,329
Andy Reid, Finance Director
Total Assets $1,120,208
Maddie Christie, EDA Program Manager
MIF Loan Fund
Cash Available $0
MOXY Loan Receivable $20,000
Enterprise Center Fund
Guests
Cash Available $23,518
None
SHOPKO TIF District (TIF 4-5)
Cash Available $46,745
Interfund Loans Receivable $446,992
MEDICAL CLINIC TIF District (TIF 4-16)
Interfund Loan Payable $300,257
I. Call to Order
EDA President Mike McGraw called the Board to order at 11:37 AM.
II. Approve Agenda – no action.
III. Review Minutes
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a. August 21 Finance Team meeting:
M/S/P: Stearns, Czmowski to approve the minutes as written. Passed unanimously.
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b. August 16 Joint City Council / EDA Board meeting:
M/S/P: Czmowski, Block to approve the minutes as written. Passed unanimously.
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c. August 29 EDA Board Meeting
M/S/P: Czmowski, Christensen to approve the minutes as written. Passed unanimously.
IV. Review of EDA Financial Statements
EDA Director Miles Seppelt provided an update on the EDA financials. (please refer to table)
Staff noted that the budget would most likely end the year in the red due to increased
insurance costs and payment of unemployment benefits.
M/S/P: Block, Cannon to approve the financial report as presented. Passed unanimously.
V. Director’s Report
A. Marketing Plan:
Facebook updates = 9 Twitter activity = 9, Website updates = 0
Social media has 292 likes on Facebook and 81 followers on Twitter.
B. Business Recruitment / Expansions – staff updated the board on recent contacts and conversations.
C. UPONOR Street Project Annexation approved by City Council
D. Farmer’s Market 6 board members identified / writing up by-laws
E. Hutchinson Enterprise Center RD Machine lease approved
F. Hotel Project DONE!
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G. Hutchinson Skilled Workforce Conference Set for Thursday, Nov. 15
H. Skilled Workforce Development Plan Numerous presentations & tours
I. DEED MN Magazine Advert Finalizing design
J. Update on TDK-HTI layoffs Company divested stamping operations / only HQ, R & D left
K. Stamp-N-Storage Moved into 30K sf American Energy Systems Bldg.
L. BR & E Visits Innovative Foam, Stearnswood
VI. Authorization for Trip to Chicago
Staff updated the Board on the 2018 Mid-America Competitiveness Conference and Site
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Selector Forum, to be held in Chicago December 2 thru the 4. Conference has breakout
sessions on skilled workforce development and staff would also accept Hutchinson’s award.
Discussion followed.
M/S/P: Block, Cannon to authorize staff to go to Chicago to accept the 2018 Mid-America
EDC Economic Development Award for Workforce Development and appropriate up to
$2,500 for the trip. Passed unanimously.
VII. Proposal for Old Medical Clinic Site
Staff provided a brief update on the status of the proposed redevelopment project and
indicated that FEMA funding might be available to purchase and remove properties in the
100-year floodplain. The FEMA grant program pays 75% of:
o Acquisition
o Demolition
o Appraisals / inspections
o Title transfer
o Asbestos abatement
o Site stabilization
A letter has been sent to the three property owners to assess their interest in selling
their property and staff will be following up with them in the near future.
Discussion followed.
VIII. Industrial Park Land Price
Staff suggested raising the price the city charges for industrial park land to $1 per square foot
from the current 69₵ per square foot.
Prices were collected for municipally-owned industrial park land in 10 other greater
Minnesota cities.
Hutchinson’s land price was the fourth lowest of the comparison group.
The goal of having a higher land price would be to obtain more resources for the
acquisition of future industrial park land – the price of which is sure to increase over the
coming years.
Even with a $1 psf land price, Hutchinson would still be in the lower half of the
comparison cities and could still offer incentives as needed.
Staff noted that Hutchinson has no assessments on its industrial park land and all storm
water drainage is already accounted for on each lot.
Finance Team has reviewed the proposal and recommended the change.
M/S/P: Stearns, Christensen to establish a price of $1 per square foot for all industrial park
lots excepting the 3-acre lot bisected by the gas pipeline. Passed unanimously.
IX. EDA Strategic Planning
Discussion on whether to include the establishment of a McLeod County economic
development entity as a strategic goal of the Hutchinson EDA. Two county commissioners are
known to be in favor of a county role in economic development while two others are thought to
be opposed. The position of Commissioner Rich Pohlmeier is not known.
Discussion.
Staff will reach out to Mr. Pohlmeier to gain a better understanding of his views on the
subject.
X. Grant & Loan Program Applications – None.
XI. Other Business – None.
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XII. Set Next Meeting – 11:30 AM Wednesday, October 24, 2018
XIII. Adjourn
M/S/P: Cannon, Stearns to adjourn the meeting at 12:31 PM. Passed unanimously.
Respectfully Submitted,
Miles R. Seppelt
EDA Director