04-24-2024 EDAM EDA Board Meeting
Hutchinson Enterprise Center
11 :30 AM Wednesday, April 24th, 2024
MEETING MINUTES
Members present in bold.
EDA Board Members I I
Operations,
Mike McGraw Cash Available $184,785
Jonny Block Reserved $56,736
Mike Cannon Unreserved $133,649
Corey Stearns Economic Development Loan Fund
Chad Czmowski Cash Available $224,926
Pat May
Jack Daggett Zephyr Wind Services $43,868
Jeremy Carter FireLake Mfg. $27,361
Laser Dynamics Balance (partially forgiven) $0
Staff Innovative Foam Balance (12/1/2025) $8,355
Miles Seppelt, EDA Director Downtown Revolving Loam Fund
Matt Jaunich, City Administrator Cash Available $437,311
Andy Reid, Finance Director Loans Receivable $279,960
I. Call to Order Capital Assets 201 329
Meeting was called to order at 11:31 AM. Total Assets $1,066,093
MIF Loan Fund
II. Review Agenda Cash Available $13,983
Ill. Review Minutes MOXY Loan Receivable $4,530
Enterprise Center Fund
a. March 20th Finance Team meeting Cash Available $23,932
MIS/P: Cannon, Stearns to accept the minutes as SH RKO°TIF District(T,IF 4-5)
written. Passed unanimously. Cash Available $15,652
b. March 27th EDA Board Meeting Interfund Loans Receivable $434,772
MIS/P: Block, Czmowski to accept the minutes as written. Passed unanimously
IV. Review of EDA Financial Statements(Please refer to table)
MIS/P: Stearns, Daggett to accept financial report as presented. Passed unanimously.
V. Director's Report
A. Marketing Plan—890 likes' on FB; 4 website updates, 9 FB postings
B. Business recruitment/expansions-Staff provided an update on recent prospects and ongoing
Conversations.
C. Lallemand Project—awaiting site plan from company
D. Jorgensen Hotel Project—developer continuing to negotiate with next door neighbor
E. Civil Air Patrol Project—seeking additional bonding dollars from State
F. Enterprise Center Painting—about 90%done
G. Grand Rapids Visit May 1St—group visiting to learn about our downtown
H. Sweet Rolls& Boba—no contact, considering this project dead
I. Minnesota Cup Connection—called, waiting to hear back
J. Lot 1140 Project—Estimated at$103,000, low bid came in at$51,059(!)
K. Women to Workforce Intern—working with HHS to implement project and recruit candidate(s)
L. Child Care—Peace Lutheran estimates it needs$60,000 or so of working capital to get up and running
VI. Hay Land Rental
Discussion of desirability of renting the land on a three-year term. This would allow the renter to put down fertilizer and
actually get a return on that investment.
Discussion of revising the terms of the rental agreement.
Consensus was to offer a three-year lease for the hay ground. No official action taken.
VII. Reports:
A. Annual Employment Census
■ 31 companies surveyed
■ 13 had higher employment than 1-year ago/3 the same/12 slightly lower/3 unknown
■ 16 companies are hiring/12 not hiring/3 unknown
■ Warrior Mfg., Millrock Packaging &Milk Specialties Global showed the strongest growth
■ TDK-HTI was down to 41 employees locally
B. Incubator Tenants Quarterly Report—Q1 2024 financial results for Laser Dynamics were reviewed
C. EDA Annual Report—briefly discussed
VIII. State Theatre
Staff reported on a Developer interested purchasing the State Theatre:
■ Would run it as a movie theater
■ Potentially would create a stage for live performances
■ Apartments would be converted to high-end hotel rooms
■ Desires liquor license
Key question was if the EDA would be open to providing subordinate financing with favorable rates/terms to facilitate the
acquisition.
Consensus was that the EDA would be open to having that conversation.
Discussion of Developer's interest in a liquor license: it was noted that because the City has a municipal liquor store, it
would only be able to obtain a liquor license if 40%of business revenue came from food sales.
IX. EDA Website Update
■ EDA website is at the end of its life and will need to be rebuilt
■ Last website rebuild was in 2017
■ The current website code is outdated and won't be supported beyond this year
■ Cost for new website will be approximately$10,000
■ This was already factored into the EDA budget adopted for 2024
X. Grant& Loan Program Applications—NONE
XI. Other Business
XII. Set Next Meeting— 11:30 AM Wednesday May 22nd, 2024.
XIII. Adjourn-M/S/P: Cannon, Stearns to adjourn the meeting at 12:26 PM. Passed unanimously.
Respectfully Submitted,
Miles R. Seppelt, Economic Development Director