06-24-2020 EDAM
EDA Board Meeting
Video / Conference Call
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11:30 AM Wednesday, June 24, 2020
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MEETING MINUTES
Economic Development Authority
Financial Summary as of May 2020
Members present in bold.
Operations
Cash Available $64,686
EDA Board Members
Reserved $56,736
Unreserved $6,885
Mike McGraw
Economic Development Loan Fund
Jonny Block
Mike Cannon Cash Available $70,516
Ashwill Industries Balance $6,050
Corey Stearns
Zephyr Wind Services $94,798
Daron Vanderheiden
Laser Dynamics Balance (forgivable) $23,000
Chad Czmowski
Innovative Foam Balance (forgivable) $14,355
Mary Christensen
Jeremy Carter
Advances to other funds (Enterprise $283,146
Center)
Downtown Revolving Loan Fund
Cash Available $582,188
Staff
Loans Receivable $337,052
Miles Seppelt, EDA Director
Capital Assets $201,329
Matt Jaunich, City Administrator
Total Assets $1,120,569
Andy Reid, Finance Director
MIF Loan Fund
Maddie Newcomb, EDA Program Manager
Cash Available $3,143
MOXY Loan Receivable $15,240
I. Call to Order
Enterprise Center Fund
Meeting called to order at 11:30 AM.
Cash Available $25,160
SHOPKO TIF District (TIF 4-5)
II. Review Agenda
Cash Available $185,037
Interfund Loans Receivable $480,906
III. Review Minutes
MEDICAL CLINIC TIF District (TIF 4-16)
Interfund Loan Payable $322,661
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a. May 20 Finance Team meeting
M/S/P: Cannon, Stearns to approve the minutes as written. Passed unanimously.
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b. May 27 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)
M/S/P: Czmowski, Cannon to approve the financial report as presented. Passed unanimously.
V.
A. Marketing Plan: FB = 367, T = 93, Facebook updates = 14, Twitter updates = 14, Website updates = 5.
B. Business recruitment / expansions Staff provided an update on recent prospects and ongoing
conversations.
C. Solar Project Hutchinson Utilities talking with developer, Utilities Commission to discuss developer
options. Next month will have an answer as to whether this project moves forward.
D. Jorgenson Hotel Redevelopment DEAD too costly to renovate and redevelop top two floors.
E. Hutchinson COOP land inquiry staff reached out with options, no response as of yet.
F. Market spin-off done, 501c4 application submitted with IRS, staff to step back end of June.
G. Cenex Site Redevelopment talking with developer, trying to come up with a feasible model that will
work with the market level of rents seen in Hutchinson.
H. Medical Clinic Site Last correspondence with FEMA sounded very positive about our grant
application. Hoping to hear back from them in a couple months.
VI. EDA Loan Programs
A. Downtown Loans: consider additional 3-month deferment
To help businesses during this time of reopening.
Original deferment was April, May, and June.
Staff to send letter to downtown load holders explaining the new 90-day extension of deferment.
M/S/P: Block, Stearns to approve extending the deferment of principal and waiving interest for an additional
90 days for downtown loans (July, August & September). Passed unanimously.
B. Economic Development & MIF loan Funds: consider allowing existing deferments to end.
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Staff to send a letter stating that payments will restart July 1.
Loan holders can request extended deferment, to be approved by the EDA Board on a case-by-
case basis.
VII. Enterprise Center
A. Consider 3-month extension of rent deferment
Gives the tenants the opportunity to hold their cash if they so choose.
Discussion on whether the EDA can get by without rent payments for an extended period.
M/S/P: Block, Christensen to approve extending the rent deferment for an additional 90 days. Passed
unanimously.
B. Discuss rent catch-up strategy
One option is to convert the rent balance owed to a 0% loan from the Economic Development Loan
Fund. Term would match the remaining months on their lease.
Discussion on what monetary opportunities are available for small businesses through DEED and
the federal CARES Act.
No decisions made today, will bring back at a later date.
VIII. EDA Website Update
Estimated Cost of $3,500 by Vivid Image / Can be accommodated within existing EDA Budget
Get marketing materials modernized for when things fully open up.
Prioritize items that are most clicked on and get rid of those that do not.
Update look and functionality and check that it is ADA compliant.
Consensus of the board is to move forward with updating the EDA website.
IX. Consider acceptance of 2019 EDA Annual Report
M/S/P: Block, Czmowski, to accept the 2019 EDA Annual Report as presented. Passed unanimously.
X. Consider adoption of EDA 2020-2023 Strategic Plan
M/S/P: Christensen, Stearns to approve the adoption of the 2020-2023 Strategic Plan as presented. Passed
unanimously.
XI. Consider EDA 2021 Levy Amount $200,325
County provided us with the amount we can request from the City Council.
2019 Levy was $189,133, 2020 amount is an increase of $11,192, about 6%.
The increase from 2020 reflects the growing tax base.
Discussion on setting the preliminary number high, the EDA can always come down in price for the
final can never raise the levy amount after the preliminary is set.
M/S/P: Cannon, Czmowski to approve the EDA 2021 Levy amount of $200,325. Passed unanimously.
XII.
McLeod County Treatment Program is consolidating treatment programs into one house.
They will be selling the property at 135 Franklin St N and asked if the EDA would be
interested in acquiring the property.
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-range redevelopment plan along the river.
Discussion on whether this project is viable with its location and what the property could be
used for long-term.
Staff to approach the County to see what theyre asking for the property.
Discussion to continue next month.
XIII. Grant & Loan Program Applications - NONE
XIV. Other Business
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XV. Set Next Meeting 11:30 AM Wednesday, July 22, 2020 via Video / Conference Call.
XVI. Adjourn
M/S/P: Block, Czmowski to adjourn the meeting at 12:29 pm. Passed unanimously.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager