01-22-2025 EDAM EDA Board Meeting
Hutchinson Enterprise Center
11 :30 AM Wednesday, January 22nd, 2025
Members present are in bold.
Economic Development Authority
MEETING MINUTES Operatd1aI Summary through December 2024
ions
Cash Available $266,843
Reserved $56,736
Members (bold = present) Unreserved $221,246
Mike McGraw Economic Development Loan Fund
Jonny Block Cash Available $95,439
Mike Cannon Smoky Dukes (restricted) $100,000
Corey Stearns Zephyr Wind Services $32,735
Chad Czmowski FireLake Mfg. $23,877
Pat May Laser Dynamics Balance (partially forgiven) $0
Jack Daggett Innovative Foam Balance (12/1/2025) $8,355
Jeremy Carter Downtown Revolving Loan Fund
Staff Cash Available $301,128
Miles Seppelt, EDA Director Loans Receivable $401,741
Matt Jaunich, City Administrator Total Assets $855,652
Andy Reid, Finance Director MIF Loan Fund,
Cash Available $7,918
I. Call to Order— 11:31 AM MOXY Loan Receivable $2,388
Enterprise Center Fund
II. Election of Officers Cash Available $16,338
SHOPKO TIF District(TIF 4-5)
M/S/P: Czmowski, Block to extend the Cash Available $3,125
current slate of officers for one month. Interfund Loans Receivable $443,915
Passed unanimously.
Election of EDA officers for 2025 will take place at the February meeting.
Ill. Approve Agenda
No action.
IV. Review previous meeting minutes
A. December 18th Finance Team
M/S/P: Daggett, Stearns to accept minutes as written. Passed unanimously
B. December 20th EDA Board
M/S/P: Block, Czmowski to accept minutes as written. Passed unanimously
V. Review EDA Financial Statements
• EDA came in with a positive budget balance of about $26,000 for the year.
• Discussion of reimbursing the Downtown Loan Fund from the Operations budget for the
new Downtown Plan at a cost of$41,414.
• Consensus that the Enterprise Center fund is strong enough to make the scheduled
payment of about $24,000 to the ED Loan Fund.
• Discussion
M/S/P: Stearns, May to accept the financial report as presented. Passed unanimously.
VI. Director's Report
A. Marketing Plan: FB=931 /3 website updates/4 FB entries
B. Business recruitment/expansions—update on prospects and ongoing conversations
C. M5 Micro Molding—potentially being sold, move into Enterprise Center now doubtful
D. Systems-West Building—sold to Miller Manufacturing of Glencoe; will be used for assembly&
warehouse operations. Three dock doors being added.
E. Cannabis ChemLab—will be applying for state testing license on February 18th
F. Smokey Dukes Pretzels—setting up shop in the Enterprise Center
G. DEED Childcare Grant—Hutchinson's grant application was approved for$40,000
H. GC Real Estate Partners, The Landing—held initial meeting with City Staff, aiming for mid-summer
construction start.
I. Franklin Redevelopment(MITGI)—finalizing purchase agreement
J. Jorgensen Hotel—haven't heard anything from Developer recently/meeting scheduled for Monday
K. State Theatre—Loan closed/theatre reopening February 1st/ Board asked to have owner invited
to a meeting/staff will arrange[NOTE: scheduled for March 26th]
L. Downtown Plan—completed/next step is identifying first projects to implement
M. TigerPath Open House—Thursday, February 6th at HHS
N. Women-to-workforce Intern—Lauren is visiting manufacturers
O. Enterprise Center Improvements—staff will bring back next month for consideration
VII. Industrial Park Pricing
Staff presented research on industrial park land pricing from neighboring and similar sized
communities. Prices ranged from $1.25 to $2.10 per square foot, with an average of
approximately $1.50 psf. Staff noted that changing the price would not affect the EDA's $1 / lot
program for manufacturers, but it would increase the reimbursement back to the City. This would
be important when it comes time to purchase additional industrial park land in the future.
Discussion.
M/S/P: May Stearns to set industrial park pricing at$1.50 per square foot. Passed unanimously.
VIII. Peace Lutheran Church Daycare Center—Guiding Light
Staff reported that the EDA's grant application for$40,000 was approved. A total of$80,000 is
needed to reopen the Peace Lutheran Daycare Center. So far, we have $19,919 from the FCF
grant and $40,000 from the DEED grant, so another$20,000 or so is needed.
Discussion of various options to bridge the gap.
Staff will work with the Chamber to identify potential sources of funding. Additionally, staff will
develop options for how the EDA might participate in filling the gap and bring these back next
month for consideration.
When it reopens, Guiding Light will create 46 childcare slots initially, ramping up to about 62 or
so.
IX. Data Center Discussion
Revolve Labs is looking for a location for their next data center and is looking for a site in
Hutchinson. Pros & Cons of data centers were discussed. A key consideration is that any data
center will have to be fairly near an electric substation due to their enormous power needs.
Consensus that the EDA should preserve its certified shovel-ready lots for projects with greater
economic impact. The EDA lot on 5th Avenue between Customer Elation and Knife River was
discussed as perhaps the most favorable location for this type of development.
Further discussion. No action taken.
X. 2025 Work Plan &Goals
Results from the 2024 Work Plan &Goals were reviewed: $205,000 in grants obtained, Childcare
Business grant program implemented, Downtown plan completed, developer for 2-acre river site
identified, new tenant for Enterprise Center, only 2 of planned 10 BR&E visits completed.
Discussion of 2025 Work Plan &Goals. BR&E, completing current downtown projects and
implementing at least one project from the new Downtown Plan will be areas of emphasis.
Further discussion next month.
XI. Grant& Loan Program Applications— NONE
XII. Other Business
Staff inquired if anyone knew of a 15,000 sf building that might be available (No)
XIII. Set Next Meeting— 11:30 AM Wednesday, February 26, 2025.
XIV. Adjourn
M/S/P: May, Block to adjourn the meeting at 1:09 PM. Passed unanimously
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director