05-26-2021 EDAM
EDA Board Meeting
Hutchinson Enterprise Center
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11:30 AM Wednesday, May 26, 2021
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MEETING MINUTES
Economic Development Authority
Financial Summary as of April 2021
Members present in bold.
Operations
Cash Available $84,210
EDA Board Members
Reserved $56,736
Unreserved $22,718
Mike McGraw
Jonny Block Economic Development Loan Fund
Cash Available $114,202
Mike Cannon
Corey Stearns Ashwill Industries Balance $2,569
Daron Vanderheiden
Zephyr Wind Services $84,130
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
Staff Cash Available $589,127
Miles Seppelt, EDA Director Loans Receivable$208,407
Capital Assets$201,329
Matt Jaunich, City Administrator
Andy Reid, Finance Director Total Assets $1,121,574
Maddie Newcomb, EDA Program Manager
MIF Loan Fund
Cash Available $5,631
MOXY Loan Receivable $12,860
I. Call to Order
Enterprise Center Fund
Meeting called to order at 11:35 AM.
Cash Available $11,947
SHOPKO TIF District (TIF 4-5)
II.ReviewAgenda
Cash Available$195,068
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. April 21 Finance Team meeting
b. M/S/P: Stearns, Cannon to approve the minutes as written. Passed unanimously.
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c. April 28 EDA Board Meeting
M/S/P: Block, Christensen to approve the minutes as written. Passed unanimously
IV. Review of EDA Financial Statements
EDA Director Miles Seppelt provided an update on the EDA financials. (Please refer to table)
M/S/P: Czmowski, Stearns to approve the financial report as presented. Passed unanimously.
V.
A. Marketing Plan: FB = 554, T = 98, Facebook updates = 14, Twitter updates = 14, Website updates = 0
B. Business recruitment / expansions Staff provided an update on recent prospects and ongoing
conversations.
C. MITGI Update looking to purchase the Shopko building from auction winners, purchase agreement
pending rezoning of the property. Looking at transitioning and making the move in 2021-2022.
D. there is no VBOC office in Minnesota, they will
couple months.
E. Tiger Manufacturing staff showed a piece of metal fabrication done by Tiger Mfg.
F. Uptown Commons projecting a 2022 project, working on rezoning the Clinic Site and Franklin house,
purchase agreement and development agreement will go to City Council after rezoning approval.
G.Enterprise Center Update
Rents expected to be made full by September.
Landscaping Project done ($1,232.71) project complete.
H. McLeod County Economic Development had 10 applicants for the position, interviewed 4 and invited one
back for a second interview/presentation
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strategic plan on June 8.
I. Industrial Park Phasing City engineering dept is working on an infrastructure plan on the corner of HWY 7
& HWY 22, City is looking at what their next step is in regards to expanding the industrial park. Staff to
research land pricing, taxes, rents and how to fund this. Will bring back next month.
J. Civil Air Patrol plans were approved at the May City Council meeting, project to start end of summer.
VI. Franklin House Update / Hazardous Material Removal $3,666
Authorization for asbestos removal / TWELL Environmental / funds to come from SHOPKO TIF district
Received quotes for removing the asbestos in the Franklin house prior to demolition.
Funds to come from the Shopko TIF district.
M/S/P: Cannon, Block to approve $3,666 for the removal of hazardous materials at the Franklin House to be
funded via SHOPKO TIF district. Passed unanimously.
VII. Jorgenson Hotel Redevelopment
Discuss possible incentives
Staff met with a developer looking to make the top floors of the Jorgenson Hotel into classy hotel
rooms. Existing first-floor offices would be retained.
Could add two additional floors the building to allow for more rooms. (10 rooms per floor)
Starting their 4-month due diligence period.
Potential EDA assistance could include: Redevelopment TIF and a downtown loan ($150k)
VIII. Jump-Start Downtown
Are projects already happening still eligible for Jump-Start funding?
Received 5 business plans
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Committee to meet on Thursday May 27 to determine who moves on to the last round.
Discussion on eligibility and how many projects the EDA could fund if more than one concept is
desirable.
Consensus was to continue the process with all applicants and decide later if project already
happening would receive funding.
IX. Julie Elder Loan
Request for forbearance / Finance Team recommending 6-month forbearance, no payment, interest still
accrues
Requesting a forbearance on her Commercial Rehabilitation Loan due to medical reasons.
M/S/P: Block, Cannon to approve the 6-
loan. Passed unanimously.
X. Grant & Loan Program Applications None
XI. Other Business None
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XII. Set Next Meeting 11:30 AM Wednesday, June 23, 2021
XIII. Adjourn With no further business to attend to the meeting adjourned at 12:38pm.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager