01-05-2022 (Dec Mtg) EDAM
EDA Board Meeting
Hutchinson Enterprise Center
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11:30 AM Wednesday, January 5, 2022 (December Meeting)
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MEETING MINUTES
Economic Development Authority
Members present in bold.
Financial Summary as of November 2021
Operations
EDA Board Members
Cash Available $175,030
Reserved $56,736
Mike McGraw
Unreserved $113,580
Jonny Block
Mike Cannon Economic Development Loan Fund
Corey Stearns Cash Available $138,550
Daron Vanderheiden
Ashwill Industries Balance $614
Chad Czmowski
Zephyr Wind Services $76,448
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 $338,148
Matt Jaunich, City Administrator
Loans Receivable $413,404
Andy Reid, Finance Director
Capital Assets $201,329
Maddie Newcomb, EDA Program Manager
Total Assets $1,085,135
MIF Loan Fund
I. Call to Order
Cash Available $6,156
Meeting called to order at 11:32 AM.
MOXY Loan Receivable $11,194
Enterprise Center Fund
II. Review Agenda
Cash Available $40,376
SHOPKO TIF District (TIF 4-5)
III. Review Minutes
Cash Available $197,919
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Interfund Loans Receivable $474,085
a. November 17 Finance Team meeting
MEDICAL CLINIC TIF District (TIF 4-16)
b. M/S/P: Stearns, Cannon to approve the
minutes as written. Passed
Interfund Loan Payable $333,863
unanimously.
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c. November 24 EDA Board Meeting
M/S/P: Czmowski, Block 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: Block, Christensen to approve the financial report as presented. Passed unanimously.
V.
A. Marketing Plan: FB = 618, 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. BR & E Visits meeting with Resonetics next week.
D. FEMA Grant / Uptown Commons / Franklin House update closing on two lots in January, removal of the
Franklin house to happen the third week in February. Hoping to hear an official word from FEMA in March,
homeowners to update them, will touch base with them next week. 3-story building option may be out due
to construction costs, developer is trying toestimate costs with a 2-story option now this could look
similar to the Century Court West development. Upcoming tasks include: new appraisals for 5 houses,
negotiate purchases, expand TIF district, demo properties, meet with DNR, and many more. Discussion on
new overlook for handicap accessibility by the dam.
E. Jorgenson Hotel not feasible to add 2 stories so developer will renovate the existing building into a 24-
room upscale hotel. Currently working on getting cost estimates done for the project. Public hearing to
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consider the TIF District will be continued at the City Council meeting of January 25. Project would
include: new elevator, tuckpointing, roof, windows and extensive interior renovations.
F. Site Selector Marketing Initiative Outreach to site selectors has been positive. Newsletter is going out
quarterly, added 5-6 more site selectors to mailing list.
G. JumpStart Downtown Updates Staff reached out to Gold Coin, waiting on a response. Flank Steakhouse
is doing better.
H. River House Kitchen + Drinks Contractors goal is to finish by April.
I. McLeod County Economic Development Position has been downgraded from Director to Coordinator,
interviewing their one internal applicant today.
J. Systems West Rite Way has occupied and is using their new addition, however there were a couple of
permits and inspections that were not applied for and completed. Building Dept and other staff are working
through this to remedy the situation.
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K. TigerPath Update Uponor donated another $20k to TigerPath, this is the 74 gift received totaling
$1,677,024 from 23 companies and 2 grants. Jennifer Telecky is the new interim HS Principal.
VI. Consider Enterprise Center Lease Terms
Finance Team recommending a 1-year extension for Innovative Foam and $1 psf annual rent escalator.
Both incubator tenants asked for additional time on their leases to recover from the pandemic.
Staff will communicate that this will be the last extension given.
Will update loan forgiveness terms to include leasing within the city limits of Hutchinson.
Staff to market the Enterprise Center well before each of them move out.
St. Cloud MBA program wrote a marketing plan for Laser Dynamics. Good connections made.
Discussion on extending the leases and implementing the rent escalator with the next batch of clients.
M/S/P: Stearns, Block to approve extending leases for both Innovative Foam and Laser Dynamics to the end of
2023. Passed unanimously.
VII. Julie Elder Loan
Consider interest only payments for six months
Consensus to leave already accrued interest hanging, Julie Elder can bring this back for
reconsideration after 6 months.
M/S/P: Cannon, Block to approve interest only payments for six months for
unanimously.
VIII. Consider EDA 2022 Work Plan & Goals
Reviewed 2021 work plan and accomplishments and set/discussed new goals for 2022.
IX. EDA Board Vacancies
Terms are up for both Daron Vanderheiden and Mike Cannon
A. Consider options to fill vacancy (Vanderheiden)
Discussion on the importance of having a connection with the education sector.
Will brainstorm/put out some feelers and bring back next month for further discussion.
B. Consider recommendation of Mike Cannon for a new 6-year term
M/S/P: Czmowski, Stearns to recommend reappointing Mike Cannon for a 6-year term. Passed unanimously.
X. Grant & Loan Program Applications
Sign & Awning Grant Program
River House Kitchen + Drinks Eric Labraaten $2,000
122 Main St S
M/S/P: Cannon, Block to approve the Sign & Awning grant application in the amount of $2,000. Passed
unanimously.
Wildflower Properties Ian McDonald $2,000
48-50 Main St S
M/S/P: Czmowski, Christensen to approve the Sign & Awning grant application for $2,000. Passed
unanimously.
Façade Improvement Matching Grant Program
River House Kitchen + Drinks Eric Labraaten $7,500
122 Main St S
M/S/P: Czmowski, Block to approve the Façade Improvement grant application in the amount of $7,500.
Passed unanimously.
Commercial Rehabilitation Loan Program
River House Kitchen + Drinks Eric Labraaten $100,000
122 Main St S ΛЊЉΏǤĻğƩƭ θ Ћ͵ЋЎіΜ
Some uncertainty as to how the overall project financial package will be structured.
Staff will bring this back at next months meeting.
XI. Other Business elections for EDA Board officers will be at the next meeting.
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XII. Set Next Meeting 11:30 AM Wednesday, January 26, 2021
XIII. Adjourn M/S/P: Stearns, Cannon to adjourn the meeting at 12:46pm. Passed unanimously.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager