01-24-2024 EDAM EDA Board Meeting
Hutchinson Enterprise Center
11 :30 AM Wednesday, January 24, 2024
MEETING MINUTES
Members present in bold.
EDA Board Members
Mike McGraw Cash Available $256,545
Jonny Block Reserved $56,736
Mike Cannon
Corey Stearns Unreserved $193,215
Chad Czmowski
Pat May Cash Available $224,520
Jack Daggett Zephyr Wind Services $47,506
Jeremy Carter FireLake Mfg. $28,493
Staff Laser Dynamics Balance(forgivable) $0
Miles Seppelt, EDA Director Innovative Foam Balance(forgivable) $8,355
Matt Jaunich, City Administrator
Andy Reid, Finance Director Cash Available $427,652
Loans Receivable $293,024
I. Call to Order Capital Assets 201 329
Meeting called to order at 11:31 AM.
Total Assets $1,069,498
II. Election of 2024 EDA Officers
Cash Available $13,139
Proposed slate
President Mike McGraw MOXY Loan Receivable $5,244
Vice-President Jonny Block
Secretary Miles Seppelt Cash Available $27,152
Treasurer Chad Czmowski
Asst. Treasurer Andy Reid
Cash Available $5,214
M/S/P: Block, Czmowski to approve the proposed slate of Interfund Loans Receivable $412,737
officers. Passed unanimously.
Ill. Review Agenda—no action
IV. Review Minutes
a. December 20th Finance Team meeting
M/S/P: Cannon, Daggett to accept the minutes as written. Passed unanimously.
b. December 22nd EDA Board Meeting
M/S/P: Block, May to accept the minutes as written. Passed unanimously
V. Review of EDA Financial Statements(Please refer to table)
The Finance Director noted that EDA revenues for the year outpaced expenditures by approximately$94,000 but this
was due to(A) receiving a childcare grant of$35,000; (B) Maddie Newcomb resigning early in the year and not being
replaced; and (C)the Hutchinson Job Board project being put on hold due to large employers scaling back their hiring.
M/S/P: Block, May to accept the financial report as presented. Passed unanimously.
VI. Director's Report
A. Marketing—876 Facebook follows/6 FB updates and 4 website updates for the month
B. Business recruitment/expansions—Staff provided an update on recent conversations and ongoing
conversations.
C. Lallemand—actively considering an expansion in Hutchinson. Decision to come in February.
D. Jorgensen Hotel—staff is writing a Redevelopment Grant to help move that project forward/February 1
deadline for submission to DEED/multiple conversations held recently with the building owner/Discussion
E. Downtown Plan 2024—Staff met with the consultant last week for a project kick-off meeting. Goal is to have
the new plan completed by November or December.
F. Rite-Way Conveyors—Now defunct/staff is working with building owner to find a new tenant.
G. Luthens Land Purchase—The Luthens family has purchased all the land east of the Enterprise Center.
H. FEMA Reimbursement—final reimbursement request has been submitted to FEMA in the amount of$51,375
for the Clinic Site Redevelopment project.
VII. Clinic Site Redevelopment
A. Update on status of TIF District—staff has requested a report from the City's financial consultant, Ehlers &
Associates, on the status of the TIF District. Staff will provide a report next month.
B. Review Draft of Request for Proposals(RFP)—The new Request for Proposals forthe Clinic site was reviewed
and discussed. To give developers an incentive to keep things moving forward a$50,000 earnest money deposit
will be required. This will be applied to project-related city fees as long as they meet project schedule milestones.
If they need more time to meet milestones, they can "purchase" additional time in 90-day increments for$10,000
additional earnest money, with EDA Board approval. Failure to meet schedule milestones will result in forfeiture of
the earnest money.
Discussion. EDA Board indicated approval of the RFP. Staff will begin distributing the RFP to developers by
February 1st, with proposals due on May 10th
VIII. Childcare Proposals for consideration
A. Family Childcare "Explore"Workshop—Staff reported that a workshop was being organized for individuals
who might consider starting a Family Childcare business but don't know where to begin. The workshop will be held
at the Chamber offices at 6 PM, Tuesday, February 20th. Facebook advertising is underway and the Hutchinson
Utilities Commission will have an insert promoting it in their next mailing of utility bills.
B. Childcare Business Lab—Staff introduced two ideas for consideration:
1. Establishing the Hutchinson Childcare Business Lab—this would be a"virtual" small business incubator
specifically for individuals thinking about starting a childcare business. Features include:
■ It would be cohort based—people would participate in groups, learning with and from each
other, and providing mutual support
■ Various workshops would be offered: "Explore"to help people determine if owning a
childcare business is a good fit for them; "Build"would focus on getting licensed and open;
and "Thrive"workshops focusing on professional development and growth.
■ Coaching &mentoring would be standard, everyone would have a coach/mentor assigned
■ Financial assistance
EDA staff's role would be to market the program and schedule the workshops utilizing existing childcare
business resources such as First Children's Finance and Woman Venture.
The vision: No one in Hutchinson will ever have to start a childcare business on their own again.
2. A pilot program, establishing the Family Childcare Grant. Very similarto the Sign&Awning grant program,
but geared towards helping individuals offset some of the costs of establishing a Family Childcare
business. Grants would be up to$2,000. To fund the program, $10,000 could be allocated from the EDA
operations budget. This would be a one-year"pilot" program to test out the idea.
Both ideas will be brought back next month for further discussion.
IX. Enterprise Center: Server/Card Readers
Staff reported that the server that runs the security key card system needs replacement, and that technology
advancements have made the existing key card security system obsolete. This creates a potential problem for
building security.
Possible funding sources for replacing the system would be the MIF Loan Fund(being Federal dollars, using them
on the business incubator is an authorized use)and the Hutchinson Enterprise Center Building Maintenance Fund.
M/S/P: May, Daggett to authorize purchase of a new server and card readers for an amount not to exceed$30,000.
Passed unanimously.
X. Grant& Loan Program Applications
Sign &Awning Grant Program
The Wine Lounge—Erika Kellen $1,989
8 Main Street North
M/S/P: May, Cannon to approve the grant request. Passed unanimously.
XI. Other Business
The City Administrator may be reaching out to Board members for feedback on the EDA Director's job performance
(for the annual review)
XII. Set Next Meeting— 11:30 AM Wednesday, February 28, 2024
XIII. Adjourn—With no further business to attend to, the meeting was adjourned at 12:54 PM.
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director