11-22-2024 EDAM EDA Board Meeting
Hutchinson Enterprise Center
11 :30 AM Wednesday, November 22nd, 2024
Members present are in bold.
MEETING MINUTES Operations
Cash Available $174,779
Members (bold = present) Reserved $56,736
Mike McGraw Unreserved $132,327
Jonny Block Economic Development Loan Fund
Mike Cannon Cash Available $244,017
Corey Stearns Zephyr Wind Services $35,238
Chad Czmowski FireLake Mfg. $24,662
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 $458,044
Staff Loans Receivable $256085
Miles Seppelt, EDA Director Total Assets $861,622
Matt Jaunich, City Administrator
Andy Reid, Finance Director MIF Loan Fund
Cash Available $7,390
Guests MOXY Loan Receivable $2,864
Valerie Mackenthun —Chamber Enterprise Center Fund
Cash Available $11,553
SHOPKO TIF District(TIF 4-5)
I. Call to Order— 11:31 AM Cash Available $1,823
Interfund Loans Receivable $434,772
II. Approve Agenda
No action.
III. Review previous meeting minutes
A. October 16th, 2024 Finance Team
M/S/P: Daggett, Stearns to accept minutes as written. Passed unanimously
B. October 23rd, 2024 EDA Board
M/S/P: Block, Czmowski to accept minutes as written. Passed unanimously
C. November 13, 2024 EDA Board Special Meeting
M/S/P: Czmowski, Stearns to accept minutes as written. Passed unanimously
IV. Review EDA Financial Statements
M/S/P: Block, Daggett to accept the financial report as presented. Passed unanimously.
V. Director's Report
A. Marketing Plan: FB=925/0 website updates/4 FB entries
B. Business recruitment/expansions—update on prospects and ongoing conversations
C. DEED Childcare grant—should hear back by the end of November
D. Smokey Dukes Pretzels—Lease will start January 1st
E. Franklin Redevelopment(MITGI)—working to complete the purchase of the lot. 2025 project.
F. Systems West Building—proposed data center is not an allowed use in an economic development
TIF District, work-around is to create a condominium for the 19,000-sf section and drop that out of
the existing TIF District
G. Hotel Project—On track to begin April, 2025.
VI. Consider Development proposals for Old Clinic Site lot/Make recommendation on
ranking
Proposals from Ebert Companies, GC Real Estate Partners and Titanium Partners were reviewed
and discussed.
Staff summarized the discussion from the Finance Team —that GC Real Estate Partners were
proposing the highest number of units, had considerable experience doing similar projects, was
perhaps a bigger developer with more resources, was proposing an on-site manager for the
building and was okay with using a Housing TIF District.
Concerns were expressed about Titanium Partners building being too high for the site and their
proposed 2026 (or later) project timing.
Consensus was that any of the projects would be a great addition to the community and other
site options were discussed.
M/S/P: Block, Stearns to rank the proposals as (1) GC Real Estate Partners; (2) Ebert
Companies; and, (3) Titanium Partners for the Clinic Site lot. Passed unanimously.
Staff will notify the three developers immediately of the ranking, subject to final approval by the
City Council.
VII. Grant& Loan Program Applications
Note: separate three-member loan committees met previously to review each loan, reviewing
business plans and financial projections, and examining them for credit-worthiness. Both loan
requests received favorable recommendations for funding.
Economic Development Loan Fund
Smokey Dukes Pretzels $100,000
7-years at 6.75%, fixed, interest only for first six months
M/S/P: Czmowski, Daggett to approve the loan as presented. Passed unanimously
Downtown Commercial Rehabilitation Loan Fund
Jayson Wall/State Theatre $150,000
15-years at 6.75%, fixed
M/S/P: Block, Daggett to approve the loan as presented. Passed unanimously
VIII. Other Business
A. Letter to McLeod County Board on expansion of Skyview Dairy
B. Miles on vacation next week for Thanksgiving
IX. Set Next Meeting— 11:30 AM Friday, December 20, 2024
(considering Christmas & New Year's holidays)
X. Adjourn
M/S/P: Czmowski, Block to adjourn the meeting at 12:50 PM. Passed unanimously
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director