11-29-2023 EDAM EDA Board Meeting
Hutchinson Enterprise Center
11 :30 AM Tuesday, November 29th, 2023
MEETING MINUTES
Members present in bold.
EDA Board Members
Operations
Mike McGraw Jonny Block Cash Available $168,384
Mike Cannon Reserved $56,736
Corey Stearns Unreserved $105,340
Chad Czmowski Economic Development Loan Fund
Pat May Cash Available $194,317
Jack Daggett Zephyr Wind Services $49,911
Jeremy Carter FireLake Mfg. $29,240
Staff Laser Dynamics Balance(forgivable) $23,000
Miles Seppelt, EDA Director Innovative Foam Balance(forgivable) $14,355
Matt Jaunich, City Administrator Downtown Revolving Loan Fund
Andy Reid, Finance Director Cash Available $419,723
I. Call to Order Loans Receivable $300,464
Meeting called to order at 11:36 AM. Capital Assets $201,329
Total Assets $1,063,719
II. Review Agenda MIF Loan Fund
III. Review Minutes Cash Available $12,579
MOXY Loan Receivable $5,720
a. October 18th Finance Team meeting Enterprise Center Fund
M/S/P: Cannon, Czmowski to accept the minutes as Cash Available $38,456
written. Passed unanimously.
b. October 25th EDA Board Meeting SHOPKO TIF District(TIF 4-5)
M/S/P: Block, Czmowski to accept the minutes as Cash Available $0.00
written. Passed unanimously Interfund Loans Receivable $418,793
IV. Review of EDA Financial Statements (Please refer to table)
M/S/P: Cannon, Block to accept the financial report as presented. Passed unanimously.
V. Director's Report
A. BR&E Visits—Kids Junction Daycare Center
B. Business incubation—summarized ad campaign/one application received, but significant work to be done
C. Business recruitment/expansions—Staff provided an update on recent prospects and ongoing
conversations
D. Workforce Development—
E. Downtown Development—Exploring possibility of leasing a building for Gold Coin
F. Housing Development—
G. Childcare Development—Looking at Woman Venture seminar(s)
H. Marketing—FB=847/Website updates=3/FB updates= 10
I. Miscellaneous—Owner of Sorensen's has passed away/future of business uncertain
VI. Laser Dynamics Forgivable Loan
■ When they moved in, Laser Dynamics requested a leasehold improvement loan of$23,000 to epoxy the
floor,which the EDA provided.
■ The company is now requesting that the loan be partially or fully forgiven.
■ Terms for loan forgiveness are that the company buy or build a building in Hutchinson when their lease
at the Enterprise Center is up. These conditions have not been met.
■ Staff summarized factors for and against loan forgiveness
■ Discussion followed
■ The Finance Team settled on recommending a partial loan forgiveness, equal to what was done for
Innovative Foam.
M/S/P: Cannon, Block to forgive 41.8% ($9,614)of the Laser Dynamics loan, provided the loan balance of$13,386
is paid immediately. Passed unanimously.
VII. EDA Strategic Plan
■ Discussion of the EDA's Business Retention & Expansion (BR&E)strategy
■ BR&E is the fundamental strategy for growing a local economy
■ #1 source of new jobs and overall economic growth (80—90%of new economic growth)
■ Least expensive economic development program and most effective
■ Provides significant marketing benefits as local companies promote Hutchinson
■ Expansions of existing Hutchinson companies have totaled about 258,000 square feet since 2019
Proposed Strategies
1. Maintain a 12 to 18-month schedule of site visits to manufacturers&child-care centers
2. Increase awareness of assistance programs that can help companies expand
3. Ramp up activities that support our existing manufacturers: e.g. TigerPath,Workforce recruitment
&development, Childcare availability, more work force housing
The Board agreed with the proposed strategies. No formal action taken.
Vill. Grant& Loan Program Applications
Sign &Awning Grant Program
Crow River Electrolysis—Grace Anderson $2,000
23 Washington Avenue West
M/S/P: Czmowski, Block to approve the grant. Passed unanimously.
IX. Other Business—NONE
X. Set Next Meeting—11:30 AM Thursday, December 21, 2024 [in consideration of Christmas week]
XI. Adjourn—M/S/P: Block, Cannon to adjourn the meeting at 12:40 PM. Passed unanimously.
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director