09-27-2023 EDAM EDA Board Meeting
Hutchinson Enterprise Center
11 :30 AM Tuesday, September 27th, 2023
MEETING MINUTES
Members present in bold.
EDA Board Members
Operations
Mike McGraw Cash Available $197,406
Jonny Block Reserved $56,736
Mike Cannon Unreserved $133,273
Corey Stearns Economic Development Loan Fund
Chad Czmowski Cash Available $189,666
Pat May Zephyr Wind Services $52,300
Jack Daggett FireLake Mfg. $29,981
Jeremy Carter
Laser Dynamics Balance(forgivable) $23,000
Staff Innovative Foam Balance(forgivable) $14,355
Miles Seppelt, EDA Director Downtown Revolving Loan Fund
Matt Jaunich, City Administrator Cash Available $409,029
Andy Reid, Finance Director Loans Receivable $307,812
I. Call to Order Capital Assets $201,329
Meeting called to order at 11:30 AM. Total Assets $1,060,373
MIF Loan Fund
II. Review Agenda Cash Available $12,043
III. Review Minutes MOXY Loan Receivable $6,196
Enterprise Center Fund
a. August 16th Finance Team meeting Cash Available $39,774
M/S/P: Cannon, Stearns to accept the minutes as SHOPKO TIF District(TIF 4-5)
written. Passed unanimously.
b. August 23'd EDA Board Meeting Cash Available $0.00
M/S/P: Czmowski, May to accept the minutes as Interfund Loans Receivable $418,793
written. Passed unanimously
IV. Review of EDA Financial Statements (Please refer to table)
M/S/P: Cannon, Czmowski, to accept the financial report as presented. Passed unanimously.
V. Director's Report
A. Business Retention &Expansion—two BR&E visits made: Resonetics and Zephyr Wind Services. Both are
seeing strong business, plan to hire additional staff in the upcoming year, and have expansion potential.
B. Business Incubation—Both RD Machine and Innovative Foam will be moved out by the end of October. To recruit
new tenants, press releases have been sent to newspapers in the region and an advertising push in area
newspapers is being launched to recruit new tenants. A total of 10,000 sf will be available.
C. Business Recruitment—Staff provided an update on recent prospects and on-going conversations.
D. Skilled Workforce Development—TigerPath Advisory Committee meetings are starting up again.
E. Downtown Development—Gold Coin met with Larson Builders to get a price quote for needed renovations/MITGI
is forming a new business to own and manage their rowhome project on Franklin; should be under construction
next summer./Developer of Uptown Grand indicated he wants to wait until 2025,due to high interest rates. Staff
obtained a new estimate of the amount of TIF the project will generate: $4.17 million with a NPV of$2.27 million at
4%. The TIF District could run until 2049 if needed. About$1 million would be available for pooling.
F. Housing Development—City is looking to support construction of Michael Court,which will help the developer
there construct a total of 80 market rate apartments. Five buildings of 16 apartments each are to be constructed.
Staff is also meeting with another builder of workforce apartment housing in the near future.
G. Childcare Business Development—There is a potential for one new in-home daycare provider and one new child
care center to be developed in 2024. Staff is also meeting with New Horizons Academy in the near future to see
what it would take to bring one to Hutchinson. A total of 414 new childcare slots are needed in the community.
H. Marketing—the 10 Facebook updates,4 Website updates, 835 followers on FB
I. Other—Planned HUC project is being looked at by engineers to determine the feasibility of the proposed site.
VI. Presentation by GVL Medical, LLC—Allan Cronen
■ Allan Cronen, President of GVL Plastics in Litchfield, presented to the EDA Board.
■ They are planning to purchase Laser Dynamics and create a new company to be called"GVL Medical, LLC."
■ They are seeking a three-year lease in the Enterprise Center.
■ Company goals are to grow the new company to$5 million in revenue and 20-25 employees within three
years.
■ After presenting, Mr. Cronen left the meeting.
■ Discussion
M/S/P: May, Stearns to offer the company a three-year lease in the Hutchinson Enterprise Center. Passed
unanimously.
VII. Authorization of funding support for Downtown Plan 2023
■ Hoisington-Koegler Group, the consultant that prepared the last two Hutchinson Downtown Plans, has
submitted a proposal to develop a new downtown plan at a total cost of$85,900.
■ Cost would be split between the City and the EDA, so each would cover$42,950.
■ The EDA would front$42,950 from the Downtown Loan Fund,to be reimbursed over the next two years or so
by a line-item in the EDA's operations budget.
M/S/P: Czmowski, Cannon to authorize the expenditure for a new Hutchinson Downtown Plan. Passed unanimously.
Vill. Consider adoption of EDA budget policy language
Staff presented two proposed budget policies for consideration by the Board:
1. Establishing and maintaining at 60%budget reserve in the EDA operations budget
2. Funding the Sign &Awning Grant, Fagade Improvement Matching Grant and Downtown Studies (and related)
from the EDA operations budget.
■ The Downtown loan fund would continue to serve as a back-up funding source if needed.
■ Any un-used amounts from these three Operations Budget line items would be transferred to the DT Loan
Fund at the end of each budget year.
■ Discussion.
M/S/P: May, Stearns to adopt the language as presented. Passed unanimously.
IX. EDA Strategic Plan—Workforce development, Part 1 (TigerPath)
Staff provided a status report on TigerPath:
■ Total enrollment in tech-ed classes at HHS has more than doubled, with a record 871 students enrolling in at
least one tech-ed class.
■ More local companies are finding employees as a result of TigerPath: Rath Racing, MITGI, 3M, etc.
■ The TigerPath CNA Program has been a huge success, with at least two CNA students having gone on to
become RN's so far
■ Of the six strategies being implemented, five are going very well.
■ Probably the biggest opportunity for improvement is with the implementation of Tiger MFG.
■ Key challenge is that there is no one at HHS to really be in charge of it, so there is no front office operation to
coordinate sales, marketing,financials, etc.
■ Tiger MFG is important because it provides an avenue to make all of TigerPath financially self-sufficient and
can help support the TigerPath Coordinator position.
■ Discussion of proposed action steps. Included were(A)expand TigerPath into the middle school; (B)Ramp up
Tiger MFG; (C)Build up annual TigerPath open house event at HHS
No formal action taken, but the EDA Board indicated the proposed action steps were appropriate.
X. Grant& Loan Program Applications—NONE
XI. Other Business—NONE
XII. Set Next Meeting—11:30 AM Wednesday, October 25th, 2023
XIII. Adjourn—M/S/P: May, Cannon to adjourn the meeting at 12:51 PM. Passed unanimously.
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director