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11-21-2025 EDAM Special Meerting EDA Board - **Special Meeting** Hutchinson City Center, 111 Hassan Street SE 8:00 AM, Friday, November 21, 2025 MEETING MINUTES Members Staff Mike McGraw Miles Seppelt, EDA Director Jonny Block Matt Jaunich, City Administrator Corey Stearns Andy Reid, Finance Director Chad Czmowski Pat May Jack Daggett (bold = present) Jeremy Carter I. Call to Order EDA Vice-President Jonny Block called the meeting to order at 8:00 AM. II. Review agenda—no action Ill. Consider revised TIF amount Staff reported that based on additional information provided by the Developer, Ehlers has updated its analysis and concluded that the full 26 years of tax increment the project would generate is needed to make the project work financially. This breaks down as $1,174,522 principal + $1,094,484 interest over 26 years = $2,269,006. If authorized, we would have to hold a business subsidies public hearing and request that the City Council revise the TIF amount at its December 9th meeting. Ehlers has expressed concerns whether this project can work even with this higher TIF amount. Discussion about adding a "look back" provision to the Development Agreement. M/S/P: Block, Stearns to recommend approval of the $2,269,006 amount and keeping the TIF Development Agreement as is. Passed 5-1. IV. Consider purchase of Kock Building Staff reported that if for some reason the existing purchase agreement is not honored, the Kocks have indicated that they plan to run their business until 2033 and then retire, giving them an even 100 years in the jewelry business. This would probably put the brakes on any other opportunity to redevelop the site until that time. The question to consider then is, does the City buy it to keep our options open? Discussion of the pros and cons of buying the property if the Developer fails to do so. M/S/P: Hanson, Daggett to recommend the City purchase the property for $310,000 + $40,000 in lieu of relocation benefits if the Developer fails to follow through on the purchase of the building. Passed 5-1. V. Adjourn M/S/P: Block, Hanson to adjourn the meeting at 8:38 AM. Passed unanimously. Respectfully Submitted Miles R. Seppelt Economic Development Director