09-23-2020 EDAM
EDA Board Meeting
Hutchinson Event Center
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11:30 AM Wednesday, September 23, 2020
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MEETING MINUTES
Economic Development Authority
Financial Summary as of August 2020
Members present in bold.
Operations
Cash Available $118,036
EDA Board Members
Reserved $56,736
Unreserved $60,470
Mike McGraw
Economic Development Loan Fund
Jonny Block
Mike Cannon Cash Available $74,087
Corey Stearns
Ashwill Industries Balance $5,526
Daron Vanderheiden
Zephyr Wind Services $92,692
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 $580,704
Staff
Loans Receivable $333,336
Miles Seppelt, EDA Director
Capital Assets $201,329
Matt Jaunich, City Administrator
Total Assets $1,115,370
Andy Reid, Finance Director
Maddie Newcomb, EDA Program Manager MIF Loan Fund
Cash Available $3,632
MOXY Loan Receivable $14,764
I. Call to Order
Enterprise Center Fund
Meeting called to order at 11:32 AM.
Cash Available $24,194
SHOPKO TIF District (TIF 4-5)
II. Review Agenda
Cash Available $184,298
Interfund Loans Receivable $480,906
III. Review Minutes
MEDICAL CLINIC TIF District (TIF 4-16)
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Interfund Loan Payable $322,661
a. August 19 Finance Team meeting
b. M/S/P: Stearns, Czmowski to approve the minutes as written. Passed unanimously.
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c. August 26 EDA Board Meeting
M/S/P: Christensen, 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: Stearns, Czmowski to approve the financial report as presented. Passed unanimously.
V.
A. Marketing Plan: FB = 507, T = 98, Facebook updates = 0, Twitter updates = 0, Website updates =
many.
B. Business recruitment / expansions Staff provided an update on recent prospects and ongoing
conversations.
C. County EDA movement on an EDA at the County level, County is bringing in Janet Ady to help
develop and economic development strategic plan and actions steps.
D. Enterprise Center Rents & Downtown Loans back in payment status tenants will start paying rent in
st
October; all downtown loans will be put back into repayment as of October 1.
E. Updated Retail Trade Analysis University of Minnesota Extension puts together, will send out once its
finalized.
F. FT proposal to consider adjustment to Downtown Program grant & loan amounts discussion on
increasing our grant and loan amounts to help Downtown area with the pandemic and main street road
construction. Staff will bring back proposals next month for consideration.
G. Civil Air Patrol Project moving forward, site plan to come this fall, spring 2021 build out
VI. CARES Act Forgivable Loan Program
A. Staff Report 71 applicants, $611,821 allocated. Average of $12,000 per applicant, application will
remain open until funds are exhausted. Some applications had irregularities with paperwork (i.e. 2019
taxes were not done so used 2018, no 941 form but submitted other documentation showing payroll, etc.)
A couple applications require more information, emails have been sent. 11 applicants were not eligible.
B. Consider Waiving Irregularities
M/S/P: Czmowski, Stearns to waive all irregularities in eligible CARES Act applications. Passed
unanimously.
C. Consider authorizing loans
M/S/P: Block, Vanderheiden to authorize eligible CARES Act loans at the amount determined. Passed
unanimously.
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VII. Consider Purchase Agreement for 3 Ave NW (CENEX) lot
(Price = $351,329 / Housing TIF District / 50-unit apartment project)
$150,000 would go
Purchase Agreement provides developer with security during the due diligence period.
City maintains control due to need for City Council approval of Development agreement, site and
project approval, Housing TIF district, and sale of the lot by City Ordinance.
Estimated $9.1 million project, 50-units (10 of which would need to go to those making 50% or less of
M/S/P: Stearns, Block to recommend to the City Council that they move forward with the purchase agreement
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for the 3 Ave NW lot for $351,329. Passed unanimously
VIII. Consider Proposal for development of Franklin Street lot
Walked through RFP response, there are two options for the project depending on FEMA grant decision,
could see a 2021 build out. Will bring back next month for a decision.
IX. Consider Acquisition of Franklin House $120,000
Sellers have reconsidered price / proposed funding source would be downtown loan fund
McLeod County Treatment Program wanted EMV or more for the property ($180k-200k)
Realtor market study indicated a price of $130K was more realistic now being offered to EDA for $120K.
Lot is 0.332 acres, could potentially be used for row houses, or a small commercial project.
Property is located within the downtown redevelopment plan, EDA has wanted to acquire for some time.
M/S/P: Block, Czmowski to offer $105,000 with approval for staff to negotiate up to a maximum of $120,000 for
the acquisition of the Franklin House. Passed unanimously
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X. 1140 5 Ave SE Lot Development $5,550
(final design)
Next steps are to get the final design, obtain quotes for site work, and look for additional funding if
M/S/P: Vanderheiden, Block to approve completing final pond design work for $5,550. Passed unanimously
XI. Tour of new EDA Website next month.
XII. Grant & Loan Program Applications - None
XIII. Other Business None.
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XIV. Set Next Meeting 11:30 AM Wednesday, October 28, 2020
XV. Adjourn - With no further business to attend to, the meeting adjourned at 12:52pm.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager