10-23-2024 EDAM EDA Board Meeting
Hutchinson Enterprise Center
11 :30 AM Wednesday, October 23rd, 2024
Members present are in bold.
MEETING MINUTES Operations
Cash Available $192,592
Members (bold = present) Reserved $56,736
Mike McGraw Unreserved $152,054
Jonny Block Economic Development Loan Fund
Mike Cannon Cash Available $241,665
Corey Stearns Zephyr Wind Services $36,483
Chad Czmowski FireLake Mfg. $25,052
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 $454,357
Staff Loans Receivable $258,276
Miles Seppelt, EDA Director Capital Assets $O0
Matt Jaunich, City Administrator Total Assets $860,126
Andy Reid, Finance Director MIF Loan Fund
Cash Available $7,139
Guests MOXY Loan Receivable $3,102
Liz Danielson, McLeod County
Enterprise Center Fund
Cash Available $11,315
I. Call to Order— 11:35 AM SHOPKO TIF District(TIF 4-5)
Cash Available $3,052
Interfund Loans Receivable $434,772
II. Approve Agenda
No action.
III. Review previous meeting minutes
A. September 18th Finance Team
M/S/P: Cannon, Daggett to accept minutes as written. Passed unanimously
B. September 25th EDA Board
M/S/P: Block, Stearns to accept minutes as written. Passed unanimously
IV. Review EDA Financial Statements
■ It was noted that the EDA's =$201 K capital asset in the Cenex site was no longer shown.
M/S/P: May, Stearns to accept the financial report as presented. Passed unanimously.
V. Director's Report
A. Marketing Plan: FB=926/3 website updates/6 FB entries
B. Business recruitment/expansions—update on prospects and ongoing conversations
C. Women to Workforce Intern—Lauren Lindemeier has been hired
D. DEED Childcare grant—currently working on this, due October 31st
E. TigerPath: INGITE/Mixer/Goal Setting—Career fair at Ridgewater/Employer—teacher mixer at
HHS/goal setting meeting held
F. Human Resources Roundtable—Della Ludwig, workforce development consultant from DEED
presented
G. Franklin Redevelopment(MITGI)—Development agreement approved,just need to close on the
property. 2025 project.
H. Hotel Project—On track to begin April, 2025. Staff will visit with Koch Jewelry owner to confirm that
they don't want to sell.
VI. Consider Development Proposals for Old Clinic Site Lot
Development proposals from GC Real Estate Partners, Titanium Partners and Ebert
Construction were reviewed.
• GC Real Estate Partners is proposing a $17.2 million, 79-unit apartment project; requesting
about $2 million in public assistance.
• Titanium Partners is proposing a $21 million 40-unit CO-OP housing project; seeking $2
million in public assistance,
• Ebert Companies is proposing an $11.5 million 64-unit apartment project and is seeking
about $3 million of public assistance.
■ Discussion of public assistance options (TIF, tax abatement, etc.)
■ All three proposals are aiming for a 2025 construction start.
■ Discussion
M/S/P: Czmowski, Block to invite all three developers to present before a joint meeting of the
EDA Board and Finance Team. Passed unanimously.
VII. Business Prospect for Lot 1140
A cannabis testing company has indicated an interest in building a new 10,000 sf lab facility in
Hutchinson. Employment would be potentially 30-40 comprised of lab technicians, chemists,
etc. Essentially it would be same as food safety testing, but specifically for cannabis products.
The EDA has $52,967 invested in the lot putting in the stormwater pond and driveway.
M/S/P: Block, May to authorize sale of the lot at our standard industrial park lot pricing of$1 per
square foot ($78,277). Passed unanimously.
Staff will get this organized.
VIII. Preliminary discussion of potential loan for Smoky Dukes Pretzels.
Discussion of a potential loan for Smoky Dukes; needed to make leasehold improvements at
the Enterprise Center.
• This business is a true start-up
• Company is finalizing its business plan with assistance from Pam Lehman at SBDC
• About $152,000 in leasehold improvements are needed (separate room w/air
exchange system, conversion of existing break room into a cleaning room, etc.)
• Company is aiming for an early Q1 start up
• Discussion
A loan review committee comprised of Mike Cannon, Anthony Hanson and Josh Laffen was
established. No formal action was taken.
IX. Grant& Loan Program Applications— NONE
A potential buyer of the State Theatre has come forward. Discussion about EDA participation
in funding the acquisition. Most likely will be the EDA's agenda for consideration next month.
X. Other Business
■ Staff indicated that an ALTA Survey was being ordered for Lot 1140
XI. Set Next Meeting— 11:30 AM Friday, November 22, 2024
(in consideration of Thanksgiving Holiday)
XII. Adjourn
M/S/P: May, Stearns to adjourn the meeting at 12:50 PM. Passed unanimously
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director