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08-23-2023 EDAM EDA Board Meeting Hutchinson Enterprise Center 11 :30 AM Tuesday, August 23rd, 2023 MEETING MINUTES Members present in bold. EDA Board Members Operations Cash Available $217,701 Mike McGraw Reserved $56,736 Jonny Block Unreserved $150,759 Mike Cannon Economic Development Loan Fund Corey Stearns Cash Available $187,119 Chad Czmowski Zephyr Wind Services $53,489 Pat May FireLake Mfg. $30,350 Jack Daggett Laser Dynamics Balance (forgivable) $23,000 Jeremy Carter Innovative Foam Balance $14,355 Advances to other funds (Enterprise $217,166 Staff Center) Miles Seppelt, EDA Director Downtown Revolving Loan Fund Matt Jaunich, City Administrator Cash Available $403,045 Andy Reid, Finance Director Loans Receivable $311,627 Capital Assets $201,329 I. Call to Order Total Assets $1,058,203 Meeting called to order at 11:35 AM. MIF Loan Fund Cash Available $11,762 II. Review Agenda MOXY Loan Receivable $6,434 III. Review Minutes Enterprise Center Fund Cash Available $37,461 a. July 19th Finance Team meeting SHOPKO TIF District(TIF 4-5) M/S/P: Daggett, Czmowski to accept the minutes Cash Available ("� ) as written. Passed unanimously. Interfund Loans Receivable $418,793 b. July 26th EDA Board Meeting M/S/P: Stearns, May to accept the minutes as written. Passed unanimously IV. Review of EDA Financial Statements (Please refer to table) M/S/P: Cannon, Stearns to approve the financial report as presented. Passed unanimously. V. Director's Report A. Marketing Plan Report: Facebook updates=9,Website updates= 6 Social media effort has 835 follows 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—very slow movement E. Child Care Forgivable Loan Program—$5,080 forgivable loan provided to Our Savior's Lutheran Early Learning /12 infant slots to be created. F. DEED Grant—has been approved/about$50,000/still waiting for award letter G. Uptown Grand—Witt's have moved out but are renting their house through September/Demo in October H. Franklin Site RFP—MITGI proposal approved by City Council/Ordinance passed to sell land I. H-R Roundtable—held event on August 15th/about 11 in attendance/good discussion VI. Lot 1140 Development ■ DEED grant awarded ■ Scope of work would be to: o Construct needed stormwater pond o Remove old driveway on Arch Street o Put in new driveway on 51h Avenue SE, opposite of Warrior Mfg. o Remove about 80%of the trees and brush ■ Estimated cost is$120,000 for everything ■ Funding would be from the DEED grant with the local match coming from the ED Loan Fund, to be repaid via tax increment pooled from the Warrior and/or RD Machine TIF Districts ■ Potential fall project ■ Next step is to obtain bids ■ Staff will bring back next month for formal action VII. HUC Project in the Industrial Park ■ Hutchinson Utilities Commission (HUC)needs roughly 1 00'x 100' (about'/4 acre)to construct a new step- down transformer. ■ This will provide redundancy and additional capacity for HUC as they serve future customers in the industrial park. ■ Originally, we were looking at a sale of land from the City to HUC, but it turns out that the City owns all of HUC and the land everything sits on. Thus, a sale would not make sense. ■ Staff will work with HUC to site the new facility so it won't impact future development opportunities. ■ HUC to cover all costs to establish the site ■ EDA Board indicated agreement with plan, but no formal action taken. Vill. Consider setting EDA Policies ■ Staff proposed establishing two EDA budget policies: A) Maintaining a 60% budget reserve o Goal is to ensure sufficient budget reserves are on hand for the EDA to operate between semi- annual revenue receipts. o Staff noted that, as the annual budget grows, it would be necessary to budget for growing the budget reserve in tandem. A new line-item in the annual budget would be created for this purpose. B) Funding downtown programs through the EDA operations budget o Goals are to: (A)halt the erosion of the downtown loan fund; (B)match recurring expenses with recurring revenues; and, (C)Build the DT loan fund so it can provide meaningful financial assistance in the future,when everything will inevitably cost more. o Going forward downtown programs would be funded via line items in the EDA's annual budget. In addition, downtown studies would be funded the same way,with costs initially covered by the DT loan fund, but repaid annually via EDA budget line-item. o Any left-over amounts from these three line-items would then be transferred to the DT loan fund at the end of each budget year. o The DT loan fund would then grow each year from interest earnings+small transfers from the EDA operations budget. ■ Consensus from the Board was that these were sound proposals. ■ Staff will draft policy language for the Board to consider next month. IX. EDA Strategic Plan ■ Discussion of Childcare and Workforce Housing components of EDA Strategic Plan ■ Both issues were the result of market failure—the economics of child care and workforce housing (at least in rural Minnesota)simply do not work. ■ Child Care o Desired Outcomes ■ Existing child care providers are retained. ■ New family(in-home)childcare facilities are established. ■ New Childcare Centers are established. ■ A net additional 400 new childcare slots are created in Hutchinson by 2030. o Action Items 1. Complete childcare provider census in Hutchinson (establish baseline) 2. Implement regular BR& E visits with Childcare Centers • Convey appreciation &support • Identify challenges&address them to the extent possible • Identify opportunities for expansion &facilitate 3. Partner with Chamber on annual childcare provider appreciation event. 4. Research models&funding options to expand both Family (in-home)Childcare businesses and Childcare Centers. X. Workforce Housing o Desired Outcomes ■ The EDA will partner with the HRA to facilitate the development of general-occupancy rental (i.e. workforce)housing in Hutchinson. ■ At least 263 units of new general-occupancy rental housing is created by 2030. o Action Items 1. Gain understanding of the economics of rental housing development. 2. Identify options make development of rental housing financially viable and attractive for developers. • $1 for lot? • No assessments for infrastructure? • Eliminate city fees? • Tax Abatement • Other? (will these even be enough?!) 3. Recruit developer(s)to do rental housing projects in Hutchinson. XI. Grant& Loan Program Applications Sign &Awning Grant Program $1,642 Masonic Temple Lodge—34 Main Street South Jack Bonniwell M/S/P: Czmowski, Daggett to okay the grant request. Passed unanimously. NOTE: This application came in after the Finance Team meeting, so staff will bring it to the FT next month for their consideration. XII. Set Next Meeting—11:30 AM Wednesday, September 27',2023 XIII. Adjourn—M/S/P: May, Czmowski to adjourn the meeting at 12:54 PM. Passed unanimously. Respectfully Submitted, Miles R. Seppelt Economic Development Director