05-24-2023 EDAM EDA Board Meeting
Hutchinson Enterprise Center
11 :30 AM Wednesday, May 24th, 2023
MEETING MINUTES
Members present in bold.
EDA Board Members Operations
Cash Available $82,296
Mike McGraw Reserved $56,736
Jonny Block Unreserved $25,489
Mike Cannon Economic Development Loan Fund
Corey Stearns Cash Available $167,937
Chad Czmowski Zephyr Wind Services $57,031
Pat May FireLake Mfg. $31,445
Jack Daggett Laser Dynamics Balance (forgivable) $23,000
Jeremy Carter Innovative Foam Balance $14,355
Advances to other funds (Enterprise $226,925
Staff Center)
Miles Seppelt, EDA Director Downtown Revolving Loan Fund
Matt Jaunich, City Administrator Cash Available $386,773
Loans Receivable $322,108
I. Call to Order Capital Assets $201,329
Meeting called to order at 11:30 AM. Total Assets $1,052,413
MIF Loan Fund
II. Review Agenda
Cash Available $10,942
III. Review Minutes MOXY Loan Receivable $7,148
Enterprise Center Fund,
a. April 19th Finance Team meeting Cash Available $44,112
M/S/P: Daggett, Cannon, to approve the minutes SHOPKO TIF District(TIF 4-5)
as written. Passed unanimously. Cash Available ($4 7'2,6'"n )
b. April 26th EDA Board Meeting Interfund Loans Receivable $418,793
M/S/P: Block, Stearns to approve the minutes as
written. Passed unanimously
IV. Review of EDA Financial Statements (Please refer to table)
M/S/P: Block, Daggett to approve the financial report as presented. Passed unanimously.
V. Director's Report
A. Marketing Plan Report: Facebook updates=9,Website updates= 3
Social media effort has 825 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.
D. Gold Coin—no progress to report
E. Child Care Grant—First Children's Finance has approved the grant. 3M providing $1 OK of local match,with
EDA covering the remaining $5K.
F. Uptown Grand—Rannow has moved out/Olson almost completely moved out/Witt properties have been
closed upon and are now city-owned/HRA is taking small 1st Ave. house/staff will look into selling one garage
/demolition of remaining buildings to take place this fall/$174K FEMA reimbursement applied for/City
improvements to be completed next year before July 4th
G. TigerPath Conference—Over 200 attended from all parts of Minnesota/SWIF paid for everything/staff also
presented on TigerPath to the MIRES conference
H. Franklin House RFP—submission period reopened/proposals due June 16th
I. Intern—looking to add a possible intern for this summer
J. Hay Land Rental—adverts&letters to interested parties to go out today.
M/S/P: May, Cannon to authorize staff to award bid to highest qualified bidder. Passed unanimously.
VI. Innovative Foam
Continued discussion from last month on whether the EDA's$14,355 leasehold improvement loan to Innovative Foam
could or should be forgiven. Key points:
■ Company will be moving outside of Hutchinson city limits,triggering repayment per the loan agreement.
■ Loan terms are: $14,355 at 0%interest for 60 months. Monthly payments would be$239.25
■ No building options currently exist in Hutchinson for the company to move to.
■ Company cannot afford to build a new building
■ Any loan forgiveness would have to be authorized by the City Council.
Discussion turned to the leasehold improvements, comprised of two offices and a break room totaling about 750
square feet.
■ The lease requires the tenants to return the bay to its original condition when the company moved in.
■ The offices and breakroom would be beneficial to the Enterprise Center, being an asset that could be
marketed to incubator prospects.
■ Further discussion.
M/S/P: Block, McGraw to purchase the leasehold improvements from Innovative Foam for$6,000, on the condition
that the purchase price is used to pay down the loan by an amount equaling 25 months of payments. Passed
unanimously.
VII. Strategic Plan Overview(Part 1)
SWOT Analysis was reviewed and several updates made. SWOT Analysis is ATTACHED.
Vill. Update on State Theatre(potential purchase)
Staff provided an update on the possible purchase of the State Theatre downtown by a couple from the Twin Cities.
Discussion.
IX. Grant& Loan Applications
Fagade Improvement Matching Grant $7,390
Clinton Scherping—44 Main Street South
M/S/P: Czmowski, Block to approve the grant application. Passed unanimously.
X. Other Business—none.
XI. Set Next Meeting—11:30 AM Tuesday, June 27th,2023 (note revised date)
XII. Adjourn—M/S/P: Cannon, Block to adjourn the meeting at 1:00 PM. Passed unanimously.
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director