12-01-2021 (Nov Mtg) EDAM
EDA Board Meeting
Hutchinson Enterprise Center
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11:30 AM Wednesday, December 1, 2021 (November Meeting)
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MEETING MINUTES
Economic Development Authority
Members present in bold.
Financial Summary as of October 2021
Operations
EDA Board Members
Cash Available $99,028
Reserved $56,736
Mike McGraw
Unreserved $36,850
Jonny Block
Mike Cannon Economic Development Loan Fund
Corey Stearns Cash Available $136,759
Daron Vanderheiden
Ashwill Industries Balance $897
Chad Czmowski
Zephyr Wind Services $77,557
Mary Christensen
Laser Dynamics Balance (forgivable) $23,000
Jeremy Carter
Innovative Foam Balance (forgivable) $14,355
Advances to other funds (Enterprise $255,423
Center)
Staff
Downtown Revolving Loan Fund
Miles Seppelt, EDA Director
Cash Available $333,238
Matt Jaunich, City Administrator
Loans Receivable $419,242
Andy Reid, Finance Director
Capital Assets $201,329
Maddie Newcomb, EDA Program Manager
Total Assets $1,089,838
MIF Loan Fund
I. Call to Order
Cash Available $5,911
Meeting called to order at 11:33 AM.
MOXY Loan Receivable $11,432
Enterprise Center Fund
II. Review Agenda
Cash Available $38,731
SHOPKO TIF District (TIF 4-5)
III. Review Minutes
Cash Available $197,721
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Interfund Loans Receivable $474,085
a. October 20 Finance Team meeting
MEDICAL CLINIC TIF District (TIF 4-16)
M/S/P: Cannon, Stearns to approve the
minutes as written. Passed unanimously.
Interfund Loan Payable $333,863
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b. October 27 EDA Board Meeting
M/S/P: Stearns, 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, Czmowski to approve the financial report as presented. Passed unanimously.
V.
A. Marketing Plan: FB = 616, T = 99, Facebook updates = 12, Twitter updates = 12, Website updates = 1
B. Business recruitment / expansions Staff provided an update on recent prospects and ongoing
conversations.
C. BR & E Visits Staff gave an overview on the visit done with Customer Elation this month. Their industry is
really changing so their staffing needs are way down. Half of their building is for lease.
D. FEMA Grant / Uptown Commons / Franklin House update Will close on the clinic site and franklin house
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property on December 16. The responses received from FEMA indicate the grant will be approved but
E. Hutchinson Housing Market talked with a local realtor, the current housing market is booming. Usually
home appreciation is 3%, right now its 15-20%. There are normally around 60-80 houses on the market,
right now there are only 25-30. Houses normally stay on the market for 45-90 days, today they only sit for
maybe 25-30 days. Average price to buy a brand-new home is $350k.
F. Jorgenson Hotel talked with Developer, upper two stories are not feasible. Project is moving forward with
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3 stories, 24 rooms around $200 per night. Public Hearing being held on December 14 to approve the
Redevelopment TIF District. Could be March/April before project takes off.
G. Industrial Park Property Owner meetings staff met with one property owner already. Got in touch with the
second owners and will set up a time to meet with them in January or February. Had a nice phone visit.
H. Marketing Initiative working on a quarterly newsletter to send to 7-10 site selectors. This will focus on the
main factors site selectors look at when choosing a location for their clients. These include: sites, buildings,
talent, and incentives.
I. TigerPath presentation: The Valley Economic Alliance Staff was asked to give a presentation to The
Valley Economic Alliance in Los Angeles, California about TigerPath.
J. McLeod County EDA staff County appears to be posting the job internally.
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K. Splash Pad City Council decided the 3 Ave Cenex site is the best option for the splash pad. This project
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might be multi-phased. 1 phase being the splash pad and parking lot, second being a trailhead for the
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Luce line and 3 being a possible event center/community building flex space. City will bring forth a
proposal on payment for the site. Currently projected to be a 2022 project.
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L. HHS update Current principal has accepted a new position, will be officially done on December 31.
VI. Further discussion of Enterprise Center Lease Terms
Consider Pros & Cons of extending lease terms for Laser Dynamics and Innovative Foam
Both companies have expressed interest in extending their leases.
Initial thoughts were to extend them until Dec. 2024, with a couple added conditions onto their
extended lease agreement.
Discussion on reassessing the leasehold improvement loan forgiveness qualifications to include
Also, discussion on the downfalls of extending their lease. This gives us less time to incubate new
companies meanwhile the EDA does not want to become a landlord and keep business away from
private companies leasing buildings.
Staff will market the Enterprise Center about a year before tenants move out, they will target the
Minnesota Cup and focus on recruiting potential businesses that have a desire and will to learn and
grow their business.
Will bring back next month for consideration.
VII. Consider EDA Resolution of support for TIF 4-22 (Jorgenson Hotel project)
M/S/P: Stearns, Cannon to approve the resolution of support for TIF 4-22. Passed unanimously.
VIII. Consider revision to EDA 2022 Annual Budget
en requested that the EDA reduce its 2022 levy request from an 11.1% increase to 9%
City Council has asked the EDA to lower its 2022 levy request by 2.1%. This will not have a significant
negative effect .
M/S/P: Cannon, Czmowski to approve the revision to the 2022 EDA annual budget. Passed unanimously.
IX. Grant & Loan Program Applications None.
X. Other Business None.
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XI. Set Next Meeting 11:30 AM Wednesday, January 5, 2021 (Due to Christmas Holiday)
XII. Adjourn M/S/P: Czmowski, Stearns to adjourn the meeting at 12:29pm. Passed unanimously.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager