10-26-2022 EDAM
EDA Board Meeting
Hutchinson Enterprise Center
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11:30 AM Wednesday, October 26, 2022
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MEETING MINUTES
Economic Development Authority
Members present in bold.
Financial Summary as of September 2022
Operations
EDA Board Members
Cash Available $114,005
Reserved $56,736
Mike McGraw
Unreserved $53,661
Jonny Block
Mike Cannon Economic Development Loan Fund
Corey Stearns Cash Available $143,547
Chad Czmowski
Zephyr Wind Services $65,159
Mary Christensen
Laser Dynamics Balance (forgivable) $23,000
Jack Daggett
Innovative Foam Balance (forgivable) $14,355
Jeremy Carter
Advances to other funds (Enterprise $236,488
Center)
Staff
Downtown Revolving Loan Fund
Miles Seppelt, EDA Director
Cash Available $383,029
Matt Jaunich, City Administrator
Loans Receivable $350,127
Andy Reid, Finance Director Capital Assets $201,329
Maddie Newcomb, EDA Program Manager Total Assets $1,071,398
MIF Loan Fund
Cash Available $8,546
I. Call to Order
MOXY Loan Receivable $8,814
Meeting called to order at 11:33 AM.
Enterprise Center Fund
Cash Available $39,947
II. Review Agenda
SHOPKO TIF District (TIF 4-5)
Cash Available $288,671
III. Review Minutes
Interfund Loans Receivable $384,685
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MEDICAL CLINIC TIF District (TIF 4-16)
a. September 21 Finance Team meeting
M/S/P: Cannon, Daggett to approve the
Interfund Loan Payable $260,412
minutes as written. Passed unanimously.
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b. September 28 EDA Board Meeting
M/S/P: Block, Stearns to approve the minutes as written. Passed unanimously
IV. Review of EDA Financial Statements
Staff provided an update on the EDA financials. (Please refer to table)
M/S/P: Christensen, Cannon to approve the financial reports as presented. Passed unanimously.
V.
A. Marketing Plan: FB = 773, T = 98, Facebook updates = 12, Twitter updates = 0, Website updates = 4
B. Business Recruitment / Expansions staff gave an overview of projects.
C. Laser Dynamics expecting a presentation from PEZO solutions next month.
D. Innovative Foam looking at options for more space. Possible future agenda item.
E. Jorgenson Hotel Moving forward, looking like a spring project.
F. Gold Coin staff touching base with builder and architect regularly.
G. receiving calls regarding the spec building proposal and are
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H. Central Hydraulics still interested in the 5 Ave lot, waiting to hear more from them.
I. EDA Preliminary Levy $258,169 City Council approved a preliminary levy, they do have the option to
back it down for the final decision. The full levy amount allows the EDA to put more towards workforce
marketing.
J. 8,000 Workers Campaign staff meeting with 3M and Hutch Health this week, talked with DEED labor
market analyst and learned McLeod County actually has 9,500 people commuting out of the county daily
for work.
K. MNSCU Board of Trustees staff gave a short presentation explaining
Manufacturing City (largest U.S 3M, 1/3 of our workforce is employed in manufacturing, and we have an
industry cluster of precision, high-tech manufacturing companies)
VI. Uptown Grand
Developer is ready to go. Project is budgeted about $16-17 million.
Should receive the pond design and cost from SEH next week.
Eligibility inspections for the Redevelopment TIF are done, it was determined that 60% of the houses are
structurally substandard and qualify for the TIF. This allows us to pool money from the neighboring TIF
district.
Reviewed sources and uses for the project.
Received final # for the Olson house - $374,025.
Discussion on purchasing the houses as soon as possible and leasing it back to the homeowners in order to
keep the project moving forward.
M/S/P: Block, Cannon to authorize staff to pursue early purchase agreements with the offer to rent it back at a
later approved price contingent on discussions with the City Attorney. Passed unanimously.
VII. RD Machine TIF District $624,474
Employs 38 people, and currently has 15,000 sf of building space.
Looking at a 21,000-sf expansion along with new windows/doors, roof, and siding on existing bldg.
This would add about 3-5 jobs over the next two years.
Contractor severely underestimated the bid for site work. Project cost went from $3.3 million to $4.2 million.
RD Machine reduced some aspects of the project to cut costs.
Proposed remedy: Economic Development TIF district up to nine years, they would get 80% ($624,474) of
the available TIF, the City would retain 20% which can be used for other infrastructure improvements.
FT proposed considering the 80/20 TIF structure as a new policy for the EDA. Discussion. Will bring a draft
policy forward next month for consideration.
M/S/P: Stearns, Czmowski to approve moving forward with the Economic Development Tax Increment
Financing District for RD Machine as proposed, retaining 20% of the tax increment. Cannon abstained. Passed
unanimously.
VIII. Innovative Foam
Looking at purchasing a building, staff trying to assist with recommendations.
Need 8,000 sf.
Will bring back next month.
IX. Consider Resolution of Support for ISD 423 Operating Referendum
Community will vote on election day on an operating referendum, discussion on whether the EDA should
pass a resolution in support.
Consensus of the EDA Board is to not provide a formal resolution.
X. Grant & Loan Program Applications
Sign & Awning Grant
North Star Foundation Properties, LLC Joshua Fahey $2,000
25 Washington Ave E
M/S/P: Cannon, Christensen to approve the sign and awning grant in the amount of $2,000. Passed
unanimously.
Outdoor Motion Bike Shop Chad Czmowski$2,000
141 Main St S
M/S/P: Daggett, Christensen to approve the sign and awning grant in the amount of $2,000. Passed
unanimously.
Fahey Equities, LLC Jim Fahey $2,000
101 Main St S
M/S/P: Block, Stearns to approve the sign and awning grant in the amount of $2,000. Passed unanimously.
Salon Montage Charlene Schlueter $2000
133 Main St S
M/S/P: Cannon, Block to approve the sign and awning grant in the amount of $2,000. Passed unanimously.
Façade Improvement Matching Grant Program
Quade Investments Kirk Quade $6,750
140 Main St N
M/S/P: Block, Cannon to approve the façade improvement grant in the amount of $6,750. Passed unanimously.
XI. Other Business November and December meeting dates will be changed due to holidays. December
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meeting will be on Thursday, December 22.
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XII. Set Next Meeting 11:30 AM Wednesday, November 30, 2022
XIII. Adjourn M/S/P: Block, Christensen to adjourn the meeting at 12:36pm. Passed unanimously.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager