08-28-2024 EDAM EDA Board Meeting
Hutchinson Enterprise Center
11 :30 AM Wednesday, August 28th, 2024
Members present are in bold.
Economic Development Authority
Financial Summary thru July 2024
MEETING MINUTES Operations
Cash Available $222769
Members (bold = present) Reserved $56,736
Mike McGraw Unreserved $181,015
Jonny Block Economic Development Loan Fund
Mike Cannon Cash Available $236,507
Corey Stearns Zephyr Wind Services $38,961
Chad Czmowski FireLake Mfg. $25,828
Pat May Laser Dynamics Balance (partially forgiven) $0
Jack Daggett Innovative Foam Balance (12/1/2025) $8,355
Jeremy Carter Downtown Revolving Loan Fund
Cash Available $459,811
Staff Loans Receivable $262,642
Miles Seppelt, EDA Director Capital Assets 201 329
Andy Reid, Finance Director Total Assets $1,071,275
MIF Loan Fund
I. Call to Order— 11:31 AM Cash Available $6,621
MOXY Loan Receivable $3,578
Enterprise Center Fund
II. Approve Agenda Cash Available $19,062
SHOPKO TIF District(TIF 4-5)
No action.
Cash Available $3,086
III. Review previous meeting minutes Interfund Loans Receivable $434,772
A. June 18th Finance Team
M/S/P: Daggett, Cannon to accept minutes as written. Passed unanimously
B. June 26th EDA Board
M/S/P: Block, May to accept minutes as written. Passed unanimously
C. August 1st Special EDA Board
M/S/P: Czmowski, Block to accept minutes as written. Passed unanimously
IV. Review EDA Financial Statements
• EDA's share of downtown plan is $42,950
• No payment from Enterprise Center Fund to Economic Development Loan Fund made;
will look at this in December.
M/S/P: Block, Daggett to accept the financial report as presented. Passed unanimously.
V. Director's Report
A. Marketing Plan: FB=913/3 website updates/ 12 FB entries
B. Business recruitment/expansions—update on prospects and ongoing conversations
C. Downtown Plan Update—new plan should be completed mid-December
D. TigerPath Update:
➢ We might have a possible candidate for our Women-to-Workforce intern
➢ With HUC assistance, recruiting volunteer helpers for HHS welding classes, 5 candidates
➢ Staff presented on TigerPath at the MMPA conference in Fargo
E. Jorgensen Hotel Project—Developer still negotiating for purchase of Koch Jewelry/Spring demo.
F. Franklin Project: Clinic Site—Staff is talking with a 2nd developer about the site
G. Franklin Project: Group Home Site—waiting for attorneys to sign off on Development Agreement
H. Labraaten Lot Purchase—Still waiting for them to return the signed purchase agreement
I. Lot 1140 Improvements—Juul Contracting working on project now, should be done in 10-14 days
J. Systems West Building—Possible data center might go into the building
K. State Theatre—Two possible buyers
VI. Consider 2025 EDA Budget
Staff provided an overview of the proposed 2025 EDA budget. Brief discussion.
M/S/P: Block, Stearns to approve the proposed 2025 EDA budget. Passed unanimously
VII. Peace Lutheran Church Daycare Center
Discussion on the potential reopening of the daycare center operated by Peace Lutheran
Church.
Staff reported:
■ Mike McKimm is coordinating the effort/separate 501(c)(3) established
■ Goal is to start up again in late fall (November/ December time-frame)
■ At start there would be 46 slots available (28 toddlers and 18 school-age)
■ Goal would be to ramp up from there to include infants
■ Total potential capacity would be about 70-75 slots
■ $80,000 would be needed to get the daycare center reopened
O 15,000 for a new fence
o $65,000 in working capital to hire staff(staff needs to be in place before the first
kid arrives)
■ Partnering with the Chamber, the EDA was able to get permission from First Children's
Finance to utilize the $19,919 left over from the previous FCF grant. This will cover about
25% of the needed funding.
■ When the grant period re-opens (probably September)the EDA will apply for a DEED
Childcare Business grant. This could potentially provide $40,000.
■ Remaining funding would have to come from local sources
■ Finance Team discussed several alternative formulas for EDA participation and generally
settled on applying the EDA's grant formula of$200 per slot created; this would allow the
EDA to potentially provide $9,200 initially and a second round of funding later.
Discussion of EDA participation in the project.
■ It was noted that start-up funding is the need, not necessarily funding later
■ It was further noted that given the high need for additional childcare slots in the community,
maybe the EDA should be ready to provide the entire $20,000 needed to bridge the gap.
• Staff noted that the EDA finished last year with a substantial operating balance, so the
resources are certainly there.
• Next step is to see if we can get the $40,000 DEED grant.
No action taken at this time.
VIII. Grant& Loan Program Applications
Sign &Awning Grant Program
Hutchinson Center for the Arts
218 Main Street South — Mark Schierman Bldg. $1,015
M/S/P: Cannon, May to approve the grant application. Passed unanimously
Hutchinson Station Newspaper
149 Main Street South —George Quast Bldg. $1,998
M/S/P: May, Daggett to approve the grant application. Passed unanimously
IX. Other Business— NONE
X. Set Next Meeting— 11:30 AM Tuesday, September 24th, 2024
(Miles is in Duluth for a presentation that Wednesday)
XI. Adjourn
M/S/P: May, Stearns to adjourn the meeting at 12:28 PM.
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director