03-24-2021 EDAM
EDA Board Meeting
Hutchinson Event Center
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11:30 AM Wednesday, March 24, 2021
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MEETING MINUTES
Economic Development Authority
Financial Summary as of February 2021
Members present in bold.
Operations
Cash Available $119,577
EDA Board Members
Reserved $56,736
Unreserved $50,539
Mike McGraw
Jonny Block Economic Development Loan Fund
Mike Cannon Cash Available $109,376
Corey Stearns
Ashwill Industries Balance $3,117
Daron Vanderheiden
Zephyr Wind Services $86,292
Chad Czmowski
Laser Dynamics Balance (forgivable) $23,000
Mary Christensen
Innovative Foam Balance (forgivable) $14,355
Jeremy Carter
Advances to other funds (Enterprise $264,794
Center)
Downtown Revolving Loan Fund
Cash Available $666,306
Staff
Loans Receivable $240,161
Miles Seppelt, EDA Director
Capital Assets $201,329
Matt Jaunich, City Administrator
Total Assets $1,112,980
Andy Reid, Finance Director
Maddie Newcomb, EDA Program Manager MIF Loan Fund
Cash Available $5,088
MOXY Loan Receivable $13,336
I. Call to Order
Enterprise Center Fund
Meeting called to order at 11:35 AM.
Cash Available $23,354
SHOPKO TIF District (TIF 4-5)
II. Review Agenda
Cash Available $194,844
Interfund Loans Receivable $483,475
III. Review Minutes
MEDICAL CLINIC TIF District (TIF 4-16)
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Interfund Loan Payable $333,863
a. February 17 Finance Team meeting
b. M/S/P: Cannon, Stearns to approve the minutes as written. Passed unanimously.
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c. February 24 EDA Board Meeting
M/S/P: Block, Christensen 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 = 554, T = 98, Facebook updates = 18, Twitter updates = 18, Website updates = 2
B. Business recruitment / expansions Staff provided an update on recent prospects and ongoing
conversations.
C. Enterprise Center Update
Fire Restoration Update 99% completed, Innovative Foam is back up and working.
Tenant Rents Innovative Foam is waiting for insurance settlement and then will get caught up on
past due rent.
SCSU MBA Connectionstaff talked to the Chair of the MBA department, we will submit a
proposal for each incubator business and hope they get picked in the fall for a class project. This
would give the MBA students real-life scenarios and help our companies with market analysis,
studies, etc.
D. Nystrom & Associates @ Cornerstone Commons (4,000 sf) offers counseling services, moving into
Cornerstone Commons.
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E. Jump-Start Downtown 3 entries so far, April 9 is the idea submittal deadline. Czmowski, Stearns,
and Carter volunteered to be on the review committee for this program.
F. County EDA moving ahead, met at the beginning of March with Ady Advantage and identified
economic development priorities for the county. Final report expected in May. Adding staff later this
year?
G. CARES Program wrapping up some administrative work, 1 recipient we still need documentation
from.
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VI. 3 Avenue NW Redevelopment Project (Cenex Site)
A. Project Update
Developer in the process of putting together a project budget.
B. Options for Public Assistance Narrow
Waiting for the budget to determine how much assistance is needed.
Original idea of an Economic Development TIF District for Workforce Housing + City tax
For the TIF district, we needed to
be under a 3% vacancy for the previous two years and Hutch jumped to over 4% in 2020.
Housing TIF district is the next option for public assistance. This would require 20% of units to be
occupied by those making below 50% of Area Median Income (AMI), this would need to be
reported yearly to the City.
C. Authorization to negotiate Purchase and Development Agreements
M/S/P: Cannon, Stearns to approve the negotiation of the purchase and development agreements to move
the project forward. Passed unanimously.
VII. Franklin Redevelopment Site $2,950
A. Hazardous Materials Survey
Quotes were obtained for the hazardous materials assessment, staff recommends acceptance of
Funds to come from the SHOPKO TIF district and will be reimbursable from future tax increment.
B. Developer Update
Waiting on FEMA grant decision due to an administrative rule that requires the County to have a
hazard mitigation plan in place before grant award. The County is working on this, once they have
it in place FEMA can approve the grant. This could give us about $550k to cover 75% of
purchasing property, demolition, and other expenses. Hoping to hear the decision in September.
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There is a 5-year activity rule in place due to the Redevelopment TIF District, by August 31 we
must have a development agreement signed to meet that activity rule requirement.
M/S/P: Vanderheiden, Christensen to approve authorization of the hazardous materials survey, not to
exceed $2,950, funding to come from SHOPKO TIF funds. Passed unanimously.
VIII. EDA Annual Report
Discussion on our year in 2020 and activities despite the pandemic.
IX. Grant & Loan Program Applications - None
X. Other Business
Solar Project hopefully in a contract with developer by end of April, work to begin by August.
School Project on schedule, and on budget. Plan to move into new West addition after
Thanksgiving break next year.
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XI. Set Next Meeting 11:30 AM Wednesday, April 28, 2021
XII. Adjourn With no further business to attend to the meeting adjourned at 12:31pm.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager