09-24-2024 EDAM Meeting
EDA Board
Hutchinson Enterprise Center
11 :30 AM Wednesday, September 24th, 2024
Members present are in bold.
MEETING MINUTES Operations
Cash Available $205,902
Members (bold = present) Reserved $56,736
Mike Block McGUnreserved raw $166 137
Jonny raw Economic Development Loan Fund
Mike Cannon Cash Available $239,205
Corey Stearns Zephyr Wind Services $37,724
Chad Czmowski FireLake Mfg. $25,441
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 $460,452
Staff Loans Receivable $260,467
Miles Seppelt, EDA Director Capital Assets 201,1 329
Matt Jaunich, City Administrator Total Assets $1,069,741
Andy Reid, Finance Director
MIFCaiatt�ur,d�
Cash Available $6,884
I. Call to Order—11:33 AM MOXY Loan Receivable $3,340
Enterprise Center Fund
Cash Available $19,363
II. Approve Agenda
SWOPKO TIF D"fstrct'(1`IF 4-5
Cash Available $3,096
No action.
Interfund Loans Receivable $434,772
III. Review previous meeting minutes
A. August 21st Finance Team
MISIP: Cannon, Daggett to accept minutes as written. Passed unanimously
B. June 26t''EDA Board
MISIP: Block, Stearns to accept minutes as written. Passed unanimously
IV. Review EDA Financial Statements
MISIP: Cannon, Block to accept the financial report as presented. Passed unanimously.
V. Director's Report
A. Marketing Plan:FB=918/0 website updates/6 FB entries
B. Business recruitment/expansions—update on prospects and ongoing conversations
C. BR&E Visits
1. Resonetics—bringing steel tube manufacturing to Hutchinson facility
2. Customer Elation—winding down the business,will close up in five years
D. Downtown Plan Update—plan scheduled for completion in mid-December
E. Jorgensen Hotel Project—Developer looking at April demolition and immediate construction
F. Franklin Project:Clinic Site—Two developers interested,worksheet developed
G. Franklin Project:Group Home Site—Development Agreement being signed,2025 construction
H. Labraaten Lot Purchase—project appears dead
I. Lot 1140 Improvements—project complete,total cost about$52K
J. Systems West Building—Possible data center might go into the building;noise concerns
K. DEED Childcare grant update—grant applications coming out at end of September
VI. Presentation: Smokey Dukes Pretzels
Mari Wildt and Lance Walter presented on their start-up food manufacturing company: Smoky
Dukes, LLC. Their products are a line of flavored, smoked pretzels.
• Company is seeking to lease 8,000 sf in the Enterprise Center.
■ They purchase pre-made pretzels and smoke them, adding various flavors in a
proprietary process.
• They've been working with Pam Lehman of the Small Business Development Center to
put together their business plan.
• Mari has substantial business experience in real estate and will head up the`front office'
side of the business. Lance works for a local automobile dealership and will be in charge
of production.
Following the presentation, Mari&Lance were excused and the Board discussed:
• Consensus that the product was very good and could be quite popular.
• Company will have to be very careful not to grow too fast—they must insure they can
actually produce and ship out what gets ordered.
• The owners will be putting in a fair amount of capital.
• Concerns were expressed about the EDA's collateral if a loan were to be provided(we'll
be on the back-end of any claims on collateral)
• The business is a true start-up,with the attendant risks.
M/S/P: Block, Daggett to offer the company a lease for 8,000 sf in the Enterprise Center. Passed
unanimously
Other potential funding partners could include Southpoint Bank, SWIF and MMDC.
A business loan for the company will be considered next month, potentially$80,000.
VII. Consider Development Proposal from GC Real Estate Partners
GC Real Estate Partners has submitted a proposal to develop the Franklin/Old Clinic site with
apartments. Construction would begin in mid-2025.
■ 60-70 apartments
■ $12-13 million project
■ Planning 2025 construction
■ Projecting 12 months to complete.
Additionally, Titanium Partners has a partial proposal submitted for a high-end CO-OP housing
project on the site.
■ 50+units
■ Could be 5-story building
■ $16-17 million project
A draft Project Worksheet for Developers to complete and submit was reviewed.
Discussion
Consensus was to send out the Project Worksheet to all interested Developers with an October
11th deadline for submission. This will allow both the Finance Team and the EDA Board to
objectively consider all proposals.
VIII. Grant&Loan Program Applications
Simon&Awning Grant Program
Main Street Antiques—Kirk Quade $1,930
122 Main Street South
Something to Crow About—Kirk Quade $1,900
140 Main Street North
M/S/P: Czmowski, Cannon to approve both grant applications. Passed unanimously
Childcare Business Develo ment Grant Pro ram
Cozy Cubbies Daycare—Michelle Holden (10 slots) $2,000
734 Merrill Street NW
M/SIP: Block, Stearns to approve the grant application. Passed unanimously
IX. Other Business—NONE
X. Set Next Meeting—11:30 AM Wednesday, October 2314, 2024
XI. Adjourn
M/S/P: Block, Cannon to adjourn the meeting at 1:04 PM. Passed unanimously
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director