06-18-1999 EDAMHutchinson Community Development Corporation - an EDA
Board of Commissioners
Friday, June 18, 1999
7:00 a.m. at City Center Conference Room
Minutes
Board Members present are in bold print
Don Walser Bob Windel Jeff Haag
Jim Haugen Don Erickson
Tim Ulrich Sheldon Nies
Chamber Rep: Tina Vorlicek, Hutchinson Chamber of Commerce
HCDC Staff. Christie Rock, Executive Director
1. Call to order ... Vice President Bob Windel
The meeting was called to order by Vice President Bob Windel at 7:05 a.m.
2. Approval of EDA Board of Commissioners minutes for May 21, 1999.
Don Erickson made a motion to approve the minutes, seconded by Jim Haugen. Bob
Windel asked for discussion. Don Walser noted that Bauerly was misspelled on page 2. The
error was noted and will be corrected. The motion carried unanimously.
3. One - Motion Agenda
Don Walser made a motion approve the One - Motion Agenda, seconded by Don Erickson.
Bob Windel asked for discussion. Christie Rock mentioned that there are three Downtown
Loan Fund borrowers who are delinquent at least 30 days on payments. She indicated she would
be sending reminder notices next week according to the Delinquent Commercial Loan Follow -Up
Process. The motion carried unanimously.
4. Administrative and Program
a. Staff Update —
New EDA Executive Director Christie Rock provided the Board with an update of the activities
and projects she has been working on over the past month. She highlighted the following:
working on HCDC web site, updating the DTED Community Profile, Open House, creating
marketing materials, Board packets, developing an employment survey, learning recording
process for loan payments, attending meetings and doing minutes.
b. Consideration of proposal from Richard McClure regarding the purchase of the DAV
property located in the Hutchinson Industrial Park. (The Finance Team recommends
approval of this request, as long as the guidelines in option 2 of the Land Write -Down
Incentive Policy are followed.)
The Board reviewed Mr. McClure's timeline for constructing a building on the DAV property
located on Block 1, Lot 6 in the Hutchinson Industrial Park. According to McClure's timeline, he
does not plan to construct a building on this piece of property until 2002. The Land Write -Down
Incentive Policy indicates that a building must be constructed on the property within one year of
purchase.
The Board agreed that McClure is satisfying an important need in the industrial park. Further, the
HCDC purchased the DAV property with the intention of selling it to McClure using the Land
Write -Down Incentive. However, the Board also agreed that it was important to follow the
written policy. A number of alternatives were discussed. It was finally decided that the sale of
the property should be delayed to accommodate McClure's construction timeline; however, he
must pay for this option. Essentially, the HCDC will hold the property for three years specifically
for McClure.
Don Walser offered a motion that would give McClure an option on the DAV property for
three years, to purchase at the appraised value of $16,600. The option fee, payable to the
City, would be $1,000 (approximately 6.25% on $16,600). The fee would not be applied to
the purchase price. Jim Haugen seconded the motion. The motion was approved
unanimously.
Christie will work with Don Walser to prepare a letter for Mr. McClure outlining the Board's
recommendation. If McClure approves, Christie will contact City Attorney Marc Sabora to create
the appropriate documents.
C. Consideration of request for funds from the Planning and Operations Team for the
creation of an HCDC web site. (The Finance Team recommends spending up to $2,500, as
long as the web site is used for promotional purposes only.)
Jim Haugen made a motion to approve spending up to $2,500 on the creation of an HCDC
web site. Don Erickson seconded the motion. Bob Windel asked for discussion. The motion
was approved unanimously.
D. Consideration of request for funds from Christie Rock for the purchase of Adobe
PageMaker for desktop publishing purposes. (The Finance Team recommends approving
this request on the condition the City split the cost.)
Christie explained the need for this particular software. It is used to create brochures, flyers,
newsletter, reports, etc...
Don Walser made a motion to approve the purchase of Adobe PageMaker as long as the
City split the cost with the HCDC. Jim Haugen seconded the motion. Bob Windel asked for
discussion. The motion was approved unanimously.
e. Chamber Report
Tina Vorlicek provided the Board with an update of Chamber activities. She highlighted the
following: Blandin Leadership Program application deadline, the Arts and Crafts Fair scheduled
for the fall, the Crow River Quality Council will reconvene in the fall, Music in the Park will
begin soon and the Hutchinson Leadership Development Program. Tina also mentioned that Vi
Mayer has been working with the DNR and the City to put a fountain in the Crow River.
5. Other items
a. Bauerly /Bremix relocation
Bauerly has applied for a rezoning and a conditional use permit with the Joint Planning Board in
order to relocate near Fifth Avenue and the Highway 22 bypass. The requests will go before the
Joint Planning Board in late July. A site map was available for review.
b. Update on ADC /Solitra
ADC /Solitra will begin relocating to its new location during the week of June 21. Christie has
spoken with the realtor who is marketing the building. She passed along the name of the
company that is looking to relocate from Lakeville to out state Minnesota.
c. Update on Collyard Group and Miller /McGraw 9 acres
Christie also spoke with the construction management firm that is working with the Collyard
Group. Collyard is still looking for businesses or industries interested in their concept. The
Board decided it would be a good idea to re- advertise this piece of property in the Star Tribune
and possibly other real estate papers. Christie will look for the previous ad, and check on the
budget.
6. Announcements
Open house is scheduled for Wednesday, June 23, 1999, from 4:00 p.m. to 5:00 p.m. in the City
Council chambers.
7. Next meeting is scheduled for Friday, July 16, 1999.
8. Adjournment
A motion was made and seconded to adjourn the meeting.
Respectfully submitted,
Jim Haugen
Secretary /Treasurer