02-24-2021 EDAM
EDA Board Meeting
Hutchinson Event Center
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11:30 AM Wednesday, February 24, 2021
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MEETING MINUTES
Economic Development Authority
Financial Summary as of January 2021
Members present in bold.
Operations
Cash Available $133,481
EDA Board Members
Reserved $56,736
Unreserved $75,926
Mike McGraw
Jonny Block Economic Development Loan Fund
Mike Cannon Cash Available $107,478
Corey Stearns
Ashwill Industries Balance $3,389
Daron Vanderheiden
Zephyr Wind Services $87,368
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 $660,727
Staff
Loans Receivable $243,695
Miles Seppelt, EDA Director
Capital Assets $201,329
Matt Jaunich, City Administrator
Total Assets $1,110,935
Andy Reid, Finance Director
Maddie Newcomb, EDA Program Manager MIF Loan Fund
Cash Available $4,839
MOXY Loan Receivable $13,574
Enterprise Center Fund
Cash Available $21,620
I. Call to Order
SHOPKO TIF District (TIF 4-5)
Meeting called to order at 11:34 AM.
Cash Available $194,406
Interfund Loans Receivable $483,475
II. Review Agenda
MEDICAL CLINIC TIF District (TIF 4-16)
Interfund Loan Payable $333,863
III. Review Minutes
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a. January 20 Finance Team meeting
b. M/S/P: Stearns, Cannon to approve the minutes as written. Passed unanimously.
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c. January 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)
Reviewed updated 2020 and January 2021 financials.
M/S/P: Christensen, Stearns to approve the financial report as presented. Passed unanimously.
V.
A. Marketing Plan: FB = 550, T = 99, Facebook updates = 13, Twitter updates = 13, Website updates = 1
B. Business recruitment / expansions Staff provided an update on recent prospects and ongoing
conversations.
C. Enterprise Center Update Fire damage to the building is virtually zero, mainly consists of soot on the
wall and ceiling. Water / dry out is done, 2 weeks for Service Master to clean and wipe down everything
(cost is $54k), then repairs can take place.
D. County EDA moving forward, waiting for an update.
E. Minnesota Marketing Partnership the Hutchinson EDA paid to partner with them, this got our logo,
linked to our website, added onto their webpage. DEED uses this as a website aimed at corporate site
selectors.
F. Incubator Marketing (Tech.mn & Ideagist.com) information on the Enterprise Center was added to
both of these websites for people to research.
G. Jump-Start Downtown launched two weeks ago, website is up. All partners that were involved in 2014
are contributing again this year. 2 entries received thus far.
H. County Ring Road County is looking at connecting HWY 7/22 to HWY 15 around town.
I. Shopko Building started a conversation with Hy-Vee
towns but they might come out to take a look at the building.
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VI. 3 Avenue NW Redevelopment Project (Cenex Site)
Project Update / Public Assistance
Developer has hired SEH for site design work.
$9.5 10 million project, hopefully this year.
Determining what public assistance, if any, we can offer. The most desirable option is an Economic
Development TIF District + City Tax Abatement. This would last about 29 years and offer roughly
$1.9 million in assistance over that time period.
Currently looking at the various requirements the TIF district would require. These include a
vacancy rate in Hutchinson below 3%, along with 14 surrounding cities, and approvals from the
School Board and County.
Staff will continue doing research for this public assistance combination while the developer
finalizes their project budget.
Extensive discussion.
VII. Solar Project
Consider allocation of 3-acre -rata share
of energy savings. Estimated to be about $3,962 per year.
Ziegler- Cat to construct this 766-kw system that will generate about 1.1 million kw hours.
Project is a good use of the lot, given the presence of the high-pressure gas line.
Hutchinson Utilities Commission would go into a land-
,000.
Next step is to have the City Council approve in March, project completion expected in October.
M/S/P: Block, Cannon to approve the allocation of the 3-acre lot for the Solar Project. Passed unanimously.
VIII. Warehouse Project
Consider sale of lot remnant (about 2 or 2.5 acres) north of Rite-Way Conveyors for a 12,000-sf warehouse
project for Viking Coca-Cola.
Would replace their existing warehouse on Michigan Street.
Plan would be to split off about 2 acres north of Rite-Way Conveyors and sell it for $1.
2021 or 2022 project, depending on the sale of their existing building.
Project would make productive use of the space and create more tax increment from the existing
TIF District.
M/S/P: Stearns, Vanderheiden to approve the sale of the lot remnant for $1. Passed unanimously.
IX. Franklin house
Consider Cooperation with Historic Hutch so they can recover historical artifacts (i.e. the original building itself,
to be relocated to Harrington-Merrill site, less the 2007 addition)
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City closed on the house on February 1.
Working on getting quotes for a hazardous materials assessment
Turns out the original house is in fact the barn of the Harrington-Merrill house.
M/S/P: Stearns, Vanderheiden to cooperate with Historic Hutch on their plan to move the house to the
Herrington-Merrill site. Passed unanimously.
X. 101 Park Place
Discussion on employing a Redevelopment TIF District to facilitate redevelopment.
Developer approached staff about financial assistance to redevelop this property to help offset
costs. Most likely will result in demolition of the building.
EDA Board is in favor of the redevelopment of this space. Consensus is to notify the developer and
ask for a proposal of the redevelopment.
XI. Grant & Loan Program Applications
Sign & Awning Grant Program
Olita Gifts & Goods Jill Haas $2,000
3 Main St N
M/S/P: Christensen, Stearns to approve the sign & awning grant application in the amount of $2,000. Passed
unanimously.
XII. Other Business NONE
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XIII. Set Next Meeting 11:30 AM Wednesday, March 24, 2021
XIV. Adjourn With no further business to attend to the meeting adjourned at 12:53pm.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager