04-26-2023 EDAM
EDA Board Meeting
Hutchinson Enterprise Center
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11:30 AM Wednesday, April 26, 2023
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MEETING MINUTES
Economic Development Authority
Members present in bold.
Financial Summary as of March 2023
Operations
EDA Board Members
Cash Available $103,509
Reserved $56,736
Mike McGraw
Unreserved $41,934
Jonny Block
Mike Cannon Economic Development Loan Fund
Corey Stearns Cash Available $165,758
Chad Czmowski
Zephyr Wind Services $58,204
Pat May
FireLake Mfg. $31,807
Jack Daggett
Laser Dynamics Balance (forgivable) $23,000
Jeremy Carter
Innovative Foam Balance (forgivable) $14,355
Advances to other funds (Enterprise $226,925
Center)
Staff
Downtown Revolving Loan Fund
Miles Seppelt, EDA Director
Cash Available $381,962
Matt Jaunich, City Administrator
Loans Receivable $325,460
I. Call to Order
Capital Assets $201,329
Meeting called to order at 11:31 AM.
Total Assets $1,050,953
MIF Loan Fund
II. Review Agenda
Cash Available $286,187
MOXY Loan Receivable $8,100
III. Review Minutes
Enterprise Center Fund
Cash Available $39,333
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a. March 15 Finance Team meeting
SHOPKO TIF District (TIF 4-5)
M/S/P: Cannon, Stearns to approve the minutes
Cash Available $84,117
as written. Passed unanimously.
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b. March 22 EDA Board Meeting
Interfund Loans Receivable $418,793
M/S/P: Block, Czmowski 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)
MIF loan fund cash available is inflated this month due to the pass through of a DEED MIF Grant for UPONOR. Will
return to a more familiar level (about $9,200) next month.
Finance Director has added a page to track expenses on the Hutch Uptown Grand project.
M/S/P: Block, May to approve the financial report as presented. Passed unanimously.
V.
A. Marketing Plan Report: Facebook updates = 12, Website updates = 3
Social media effort has 821 likes on Facebook.
B. Business recruitment / expansions Staff provided an update on recent prospects and ongoing conversations.
C. Project 9500 on hold until major employers are hiring again.
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D. Human Resources Roundtable successful event on April 11. Next event is June 11.
E. Gold Coin application for plumbing permit okayed by State. Project is inching forward.
F. Child Care Grant Chamber has submitted application. 3M potentially providing $10K of local match, reducing
EDA commitment to $5K.
G. Spec Building Marcus Construction may be too busy to pursue this.
H. TigerPath Conference 198 signed up to attend from all parts of Minnesota.
I. Jorgensen Hotel On hold due to high interest rates and material costs.
J.3M additional layoffs worldwide, but impact on Hutchinson plant unclear
VI. Uptown Grand Redevelopment
A. Project update / timeline
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City is scheduled to close on the three Witt properties on Monday, May 1. This will complete property
acquisition for the project.
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Due to high interest rates & material costs developer is looking at 2 half of 2024 for construction.
Current plan is to acquire and demo the buildings on the west half of the block in 2023.
City would then relocate sanitary sewer pipe, repave streets, dig retention pond and clean-up & stabilize the
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river bank in spring 2024, with work to be completed by July 4. Developer would then take over site after
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July 4.
B. Consider donation of house to HRA
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House at 135 1 Ave NW is in good shape and could be recycled. HRA wants it.
Since its being purchased with non-FEMA dollars we could donate to HRA if desired.
Discussion
M/S/P: Block, Stearns to donate the house, and the nearby garage (if they want it) to the HRA. Passed
unanimously.
VII. Enterprise Center Business Plan
Staff summarized the updated business plan for the Hutchinson Enterprise Center.
Application process has been revised, now similar to the process we use for JumpStart Downtown.
Rent escalator added.
Regular meetings between tenants and incubator staff added.
Next step is to get the on-line application put up, and start marketing for new clients.
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VIII. Development of Lot 1140 (5 Ave. SE)
Staff presented a proposal for funding the clean-up and infrastructure needed for the lot
Project to add a stormwater pond, driveway and clean up the lot would cost an estimated $120,000.
Half of the funding could potentially come from DEED, via their Business Development Public Infrastructure
(BDPI) grant program.
The other half would be funded by pooling TIF dollars from existing economic development TIF district(s), with
dollars fronted by a loan from the Economic Development Loan Fund.
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A grant application could be submitted once the current legislative session ends on May 22.
Discussion.
IX. Enterprise Center Tenants Update
Innovative Foam is buying a 7,000 sf building just outside of city limits on Hwy 7.
Laser Dynamics has
The company is currently for sale, and may be liquidated if a buyer cannot be found.
Currently both companies have forgivable loans with the EDA. The condition for loan forgiveness is that they
build or buy a building within the city limits of Hutchinson.
Discussion on what to do with these loans.
Will bring this back next month for further discussion.
X. Next Steps in TigerPath
Staff provided an update on the progress of TigerPath.
Next step is potentially expanding TigerPath into middle school.
Discussion.
XI. Grant & Loan Applications none.
XII. Other Business none.
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XIII. Set Next Meeting 11:30 AM Wednesday, May 24, 2023.
XIV. Adjourn M/S/P: Czmowski, Block to adjourn the meeting at 1:07 PM. Passed unanimously.
Respectfully Submitted, Miles R. Seppelt, Economic Development Director