10-28-2020 EDAM
EDA Board Meeting
Hutchinson Event Center
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11:30 AM Wednesday, October 28, 2020
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MEETING MINUTES
Economic Development Authority
Financial Summary as of September 2020
Members present in bold.
Operations
Cash Available $104,964
EDA Board Members
Reserved $56,736
Unreserved $46,797
Mike McGraw
Economic Development Loan Fund
Jonny Block
Mike Cannon Cash Available $75,804
Corey Stearns
Ashwill Industries Balance $5,263
Daron Vanderheiden
Zephyr Wind Services $91,635
Chad Czmowski
Laser Dynamics Balance (forgivable) $23,000
Mary Christensen
Innovative Foam Balance (forgivable) $14,355
Jeremy Carter
Advances to other funds (Enterprise $283,146
Center)
Downtown Revolving Loan Fund
Cash Available $650,788
Staff
Loans Receivable $261,005
Miles Seppelt, EDA Director
Capital Assets $201,329
Matt Jaunich, City Administrator
Total Assets $1,113,122
Andy Reid, Finance Director
Maddie Newcomb, EDA Program Manager MIF Loan Fund
Cash Available $3,874
MOXY Loan Receivable $14,526
I. Call to Order
Enterprise Center Fund
Meeting called to order at 11:32 AM.
Cash Available $13,422
SHOPKO TIF District (TIF 4-5)
II. Review Agenda
Cash Available $184,387
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. September 16 Finance Team meeting
b. M/S/P: Stearns, Vanderheiden to approve the minutes as written. Passed unanimously.
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c. September 23 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: Cannon, Stearns to approve the financial report as presented. Passed unanimously.
V.
A. Marketing Plan: FB = 519, T = 99, Facebook updates = 12, Twitter updates = 12, Website updates =
many.
B. Business recruitment / expansions Staff provided an update on recent prospects and ongoing
conversations.
C. Civil Air Patrol Project - moving forward, preliminary site plan shown, looks like a Spring 2021 build
D. Lot 1140 Improvements design work is done, will put on hold until a company is lined up, then will look
E. Rite Way Conveyors extremely busy, moving production into the new space in December, office
portion to follow.
F. McLeod County EDA significant movement at the county level for an economic development
organization. Meeting was held with county commissioners and Janet Ady who will be hired to help with
their strategic plan. County has office area ready for this new development. Discussion on how this
could potentially be structured and funded.
VI. CARES Act Forgivable Loan Program
A. Staff Report 81 applicants, 11 disqualified, 1 flagged for more information. ~$736k allocated, website
taken down, could have enough money for 1-2 more applicants before the deadline.
B. submitted all the necessary paperwork, and could be eligible for $13k
C. Greener Pastures Application one requirement of the CARES program is to have a net profit, Greener
Pastures had a substantial loss in 2019 making them ineligible.
D. Consider Waiving Irregularities ex: no form 941, Profit and Loss statements in various formats, no tax
return or certificate of good standing. However, these items were verified by different documents.
M/S/P: Cannon, Vanderheiden to waive all irregularities in eligible CARES Act applications. Passed
unanimously.
E. Consider authorizing loans 9 new loans
M/S/P: Block, McGraw to approve authorization of all eligible CARES Act loans at the amount requested.
Passed unanimously.
VII. Consider development proposal for Franklin Street Site
Developer Matt Ward is proposing a townhome development
Three different layout concepts depending on FEMA grant outcome. 27, 40, and 45 units.
First floor garages due to property being in the 100-year floodplain
M/S/P: Block, Vanderheiden to
$1. Passed unanimously.
VIII. Consider Modification to TIF District 4-16
Revise boundaries to include Franklin House
Franklin House to be purchased at $120k.
Working on a Redevelopment TIF district, we will still be able to capture all 25 years of tax increment.
M/S/P: Czmowski, Cannon to approve the expansion of TIF District 4-16 to include the Franklin House.
Passed unanimously.
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IX. Consider Housing TIF for 3 Ave NW (CENEX) Redevelopment
Authorization for Housing Tax Increment Financing District
Developer has signed a purchase agreement that was brought forth to the City Council meeting last
their due diligence period. PA included contingencies built in so the City Council could reject the
project at any point and not sell the lot. City Council had some concerns about the nature of the
proposed development, item was tabled until the next meeting. Staff will work with the Developer to
see if the concerns can be addressed.
Project will require a Housing TIF.
X. Consider EDA 2021 Budget
Proposed EDA operations budget was reviewed.
M/S/P: Cannon, Stearns to approve the 2021 EDA budget as presented. Passed unanimously
XI. Consider Downtown Program Updates
Consider changes to downtown program maximum award amounts
It has been a while since the downtown programs were updated. Main Street road construction is
over, this can be an opportunity to help some bigger projects in our downtown area happen. Updates
would go into effect as of January 2021.
Proposed Updates:
o Sign & Awning Grant increased to $2,000
o Façade Improvement Matching Grant increased to $7,500
o Commercial Rehabilitation Loan maximum increased to $60,000
M/S/P: Block, Vanderheiden to approve the downtown program updates as proposed. Passed unanimously.
XII. Tour of new EDA Website next month
XIII. Grant & Loan Program Applications
Sign & Awning Grant Program
Aspire Counseling Andrea Markworth $870.40
228 Main Street South
M/S/P: Block, Cannon to approve the Sign & Awning Grant application in the amount of $870.40. Passed
unanimously.
Façade Improvement Matching Grant
Main Street Sports Bar Ryan Alsleben $5,000
22 Main Street North
M/S/P: Czmowski, Stearns to approve the Façade Improvement Grant application in the amount of $5,000.
Passed unanimously.
XIV. Other Business None.
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XV. Set Next Meeting 11:30 AM Wednesday, December 2, 2020 (in consideration of Thanksgiving week).
XVI. Adjourn - With no further business to attend to, the meeting adjourned at 12:58pm.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager