08-26-2020 EDAM
EDA Board Meeting
Hutchinson Event Center
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11:30 AM Wednesday, August 26, 2020
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MEETING MINUTES
Economic Development Authority
Financial Summary as of July 2020
Members present in bold.
Operations
Cash Available $131,824
EDA Board Members
Reserved $56,736
Unreserved $72,478
Mike McGraw
Economic Development Loan Fund
Jonny Block
Mike Cannon Cash Available $72,255
Corey Stearns
Ashwill Industries Balance $5,788
Daron Vanderheiden
Zephyr Wind Services $93,747
Chad Czmowski
Laser Dynamics Balance (forgivable) $23,000
Mary Christensen
Innovative Foam Balance (forgivable) $14,355
Jeremy Carter
Advances to other funds (Enterprise Center) $283,146
Downtown Revolving Loan Fund
Cash Available $578,537
Staff
Loans Receivable $334,708
Miles Seppelt, EDA Director
Capital Assets $201,329
Matt Jaunich, City Administrator
Total Assets $1,114,573
Andy Reid, Finance Director
Maddie Newcomb, EDA Program Manager MIF Loan Fund
Cash Available $3,385
MOXY Loan Receivable $15,002
I. Call to Order
Enterprise Center Fund
Meeting called to order at 11:33 AM.
Cash Available $24,738
SHOPKO TIF District (TIF 4-5)
II. Review Agenda
Cash Available $184,330
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. July 15 Finance Team meeting
M/S/P: Cannon, Christensen to approve the minutes as written. Passed unanimously.
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b. July 22 EDA Board Meeting
M/S/P: Block, Vanderheiden 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: Vanderheiden, Stearns to approve the financial report as presented. Passed
unanimously.
V.
A. Marketing Plan: FB = 507, T = 96, Facebook updates = 14, Twitter updates = 14, Website
updates = 0.
B. Business recruitment / expansions Staff provided an update on recent prospects and
ongoing conversations.
C. CARES Act Forgivable Loan Program 24 applicants thus far, roughly $267,000 or 35% of
funding allocated. Average of $12,136 per applicant could potentially help 61-62
businesses. Noted that not as many applications have been submitted than was expected at
this point in time.
D. Franklin Redevelopment & House Staff approached McLeod County Treatment Programs
to discuss price points; they want more than what the EDA would like to pay. They will be
listing with a realtor and EDA will keep an eye on it.
E. EDA Website Update working with Vivid Image, will finish next month.
F. County EDA moving along, County Commissioners have met with Janet Ady discussing
options for McLeod County. County Board appears likely to hire Ady to help them through this
process.
G. Concerns with Building Inspection Dept. two part plan in place, call Planning Director
directly and be specific with concern/complaint so they know how to address the issue.
H. Solar Project spring 2021 project, 3-acre lot, 600-700kW system, could potentially add on to
this system in the future. EDA would save anywhere from $2000-$2500 per year on
Enterprise Center energy bill. Utilities in the process of creating RFP document.
VI. Report on Incubator Companies Duane Hoversten
o Innovative Foam has all employees back, couple big jobs going and working on marketing.
o Laser Dynamics has had many phone calls, overall doing well, and working on a new website.
VII. Consider appointment of Josh Laffen to Finance Team
Bank Manager at Home State Bank, would bring the FT membership back to nine.
o Josh came to Hutchinson about 5 years ago
o Other members of the FT know him and vouch for him.
o Participates in other community programs
M/S/P: Stearns, Cannon to appoint Josh Laffen to a 1-year term on the Finance Team. Passed
unanimously.
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VIII. 1140 5 Ave SE Lot Development
o Roughly 1.7 acre lot that needs a storm-water retention pond, a new access, and to remove
the old approach
o This is to make to replace two lots taken by ongoing projects,
and to (hopefully) recruit a new company.
o SEH process (estimates):
Preliminary Design - $5,000
Final Design - $5,000-$7,000
Pond - $10,000
Access - $2500
o Total cost of the project to be roughly $22,500 - $24,500
o Proposed funding from Shopko TIF District, about $34,000 available after consideration of
local match for FEMA grant.
M/S/P: Cannon, Christensen to approve a preliminary design for $5,000 at 1140 5th Ave SE.
Passed unanimously.
IX. Grant & Loan Program Applications
Sign & Awning Grant Program
Clay Coyote Morgan Baum $1,000
22 1ST Ave North
M/S/P: Block, Stearns to approve the Sign & Awning Grant application for $1,000. Passed
unanimously.
Façade Improvement Matching Grant
Engineering LLC Tammy Lauer $2,483.07
28 Main St N
M/S/P: Cannon, Christensen to approve the Façade Improvement Grant application in the amount
of $2,483.07. Passed unanimously.
Commercial Rehabilitation Loan Program
Main street Sports Bar Ryan Alsleben $150,000
16, 18 & 22 Main Street North ($91,000 of new funding)
Discussion: Larger loan than current loan rules allow, although weve done larger loans previously
and rules specifically indicate larger loan sizes considered. Applicant is very strong financially /
existing loan of $71K would be paid off, so loan would represent about $91K of new money /
business is doing extremely well / project contributes to creating an arts & entertainment district
downtown / considered a downtown anchor.
M/S/P: Block, Stearns to approve the Commercial Rehabilitation loan of $150,000 for Main Street
Sports Bar. Cannon abstained. Passed unanimously.
X. Other Business Cenex Site: talking with a couple developers about market rate apartments with
a possible Housing TIF district. Staff reached out to Maxfield who does housing market surveys and
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XI. Set Next Meeting 11:30 AM Wednesday, September 23, 2020
XII. Adjourn
Cannon, Christensen to adjourn the meeting at 12:47pm. Passed unanimously.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager