11-28-2018 EDAM
EDA Board Meeting
Main Conference Room – Enterprise Center
11:30 AM Wednesday, November 28, 2018
____________________________________________________________________________
MEETING MINUTES
Members present in bold.
Economic Development Authority
Financial Summary as of October 2018
EDA Board Members
Operations
Cash Available $90388
Mike McGraw
Reserved $56,736
Jonny Block
Unreserved $31,179
Mike Cannon
Economic Development Loan Fund
Corey Stearns
Cash Available $104,679
Daron Vanderheiden
Redline Systems Balance $9,590
Chad Czmowski
Ashwill Industries Balance $10,322
Mary Christensen
Laser Dynamics Balance (forgivable) $23,000
Innovative Foam Balance (forgivable) $14,355
Downtown Revolving Loan Fund
Staff Cash Available $477,448
Miles Seppelt, EDA Director Loans Receivable $445,280
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 $514
MOXY Loan Receivable $19,286
Enterprise Center Fund
Cash Available $42,536
SHOPKO TIF District (TIF 4-5)
Cash Available $38,260
Interfund Loans Receivable $455,492
MEDICAL CLINIC TIF District (TIF 4-16)
Interfund Loan Payable $300,257
I. Call to Order
EDA President McGraw called the meeting to order at 11:34 AM.
II. Approve Agenda – no action.
III. Review Minutes
th
a. October 17 Finance Team meeting:
M/S/P: Cannon, Stearns to approve the minutes as written. Passed unanimously.
th
b. October 24 EDA Board Meeting
M/S/P: Block, Czmowski to approve the minutes as written. Passed unanimously.
IV. Review of EDA Financial Statements
Finance Director Andy Reid provided an update on the EDA financials. (Please refer to table on
the previous page)
The (11,143) item on the Hutchinson Enterprise Center Statement of Revenues &
Expenditures was the energy rebate provided by the Hutchinson Utilities Commission.
This will be applied to lower the overall cost of the building.
M/S/P: Czmowski, Christensen to approve the financial report as presented. Passed
unanimously.
V. Director’s Report
A Marketing Plan Facebook updates = 7 Twitter activity = 7 Website updates = 2
Social media has 292 likes on Facebook and 83 followers on
Twitter.
B Business Recruitment / Expansions staff updated the board on recent contacts and conversations
C UPONOR street project Property now annexed to City, next step is to have HTI &
Uponor deed their respective parcels to the City. BDPI grant
application is mostly written.
D Farmer’s Market Initial board meeting will be 12/13/18
E Enterprise Center HUC Board will decide on support of the Enterprise Center
later today; New key card readers now added; Still awaiting
monument sign installation
F Skilled workforce development plan Working to formalize Tiger Manufacturing
G DEED MN magazine advert Done
H TigerPath conference Very successful / about 144 in attendance
I BR & E Visits 7 complete thus far
VI. Consider Application Fee for Tax Increment Financing
Staff reported on their survey of other communities to see if they were charging a fee to the
developer for Tax Increment Financing projects and what those fees were:
St. Cloud $15,000
Elk River $10,000
North St. Paul $5,000
Fergus Falls $9,000
Coon Rapids $12,000
Monticello $10,000
Key points raised in the discussion:
Purpose of the fee would be to cover consultant and other costs incurred to develop
the TIF plan and establish the TIF District.
To date, the City’s practice was to incur these costs and then be reimbursed later out
of tax increment generated by the district.
This created some risk if, for whatever reason, the project did not move ahead.
Under the new policy, developers will pay the fee and get reimbursed plus interest if
the project moves forward. The developer will incur the risk.
Staff found it was fairly typical that city’s charged a fee.
More than one of the cities listed indicated that they had to increase their fee amount.
Any unused fee amount would be refunded to the developer once the TIF District was
established.
Staff will develop a short TIF application form.
The Finance Team has reviewed the proposal and are recommending the adoption of a
$15,000 TIF application fee.
M/S/P: Block, Vanderheiden to recommend to the City Council that they implement a TIF
Application fee of $15,000. Passed unanimously.
VII. EDA Strategic Planning
Discussion on formulating Mission, Vision & Values Statements for the EDA. To be
continued next month.
VIII. Grant & Loan Program Applications
Sign & Awning Grant
Veiled by Sisters Bridal – 228 Main Street South $1,000
M/S/P: Czmowski, Block to approve the grant. Passed unanimously.
Staff noted that Innovative Foam will not be applying for an Economic Development Loan
after all, as they will be able to secure the financing they need from their bank.
IX. Other Business – None.
X. Set Next Meeting – 11:30 AM Wednesday, January 2, 2019
XI. Adjourn
M/S/P: Czmowski, Christensen to adjourn the meeting at 12:22 PM. Passed unanimously.
Respectfully Submitted,
Miles R. Seppelt
EDA Director