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09-28-2001 EDAMHutchinson Community Development Corporation - an EDA Board of Commissioners Friday, September 28, 2001 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 Keith Fischer Duane Hoversten Tim Ulrich Chamber Rep: There was no chamber member present HCDC Staff: Christie Rock, Executive Director 1. Call to order... President Tim Ulrich Tim Ulrich called the meeting to order at 7:05 a.m. 2. Executive Director Christie Rock introduced intern Matt Jaunich. 3. Approval of EDA Board of Commissioners minutes for August 24, 2001 Duane Hoversten made a motion to approve the minutes from August 24, 2001. Bob Windel seconded the motion. Tim Ulrich asked for discussion. The motion passed. 4. Approval of financial statements for August 2001 Keith Fischer made a motion to approve the financial statements for August 2001. Jim Haugen seconded the motion. Tim Ulrich asked for discussion. The motion passed. 5. One - Motion Agenda There was nothing on the one - motion agenda. 6. Executive Director Update Christie provided an update of the projects she has been working on over the past month. Projects include the following: • Preparing newsletter for the Hutchinson Downtown Association • Planning the EDA annual meeting, preparing invitations, securing location, scheduling a speaker, etc... • Working on a brochure to promote the Economic Development loan program • Facilitating discussions on industrial park expansion • Revised guidelines for the commercial rehab loan program • Attended the Southwest Minnesota Foundation Business Advisory meeting • Did a presentation on downtown redevelopment at the Minnesota Planning Association Conference Processed loan payments Board packets, meeting notices, agendas, minutes, etc... 7. Industrial Park Developments The Industrial Park Task Force met on September 5, to review potential opportunities for industrial park expansion. In the absence of committee chair, Cary Linder, Tim Ulrich facilitated the meeting. There were four members present: Frank Fay, Bob Peterson, Jim Haugen and Diane Gordon. The committee reviewed a map that indicated the amount of acres currently used for industrial purposes within the city of Hutchinson. Christie pointed out some potential expansion areas. The most logical land to acquire is east of the existing industrial park. Marvin Hackbarth owns this property and Frank Fay is his realtor. The property has been appraised at $7,000 an acre, but Hackbarth is asking $23,000. Due to the sensitive nature of the discussion that needed to take place, Tim asked Frank to leave. Frank refused. As a result, alternative options such as annexing the property and acquiring it through eminent domain were not discussed. Christie has arranged a meeting between Tim and Cary Linder to discuss the other options, as well as some other land opportunities. Tim and Christie will update the board at the October meeting. 8. Consideration of applications to the Commercial Rehabilitation Loan Program There were two applications to the Commercial Rehabilitation Loan Program. George Quast is seeking a loan for $2,960.00 to pave the parking lots behind the old funeral home and Cindy's House of Floral. He received one bid on the project from Duminck Bros. The Finance Team recommended approval of this loan. Jeff Haag made a motion to approve the loan to George Quast. Keith Fischer seconded the motion. Tim Ulrich asked for discussion. The motion was approved. Neil Jensen is seeking a loan for $9,835.90 for a new heating and air conditioning system and other miscellaneous projects. He received bids from Rutz Plumbing and Heating, Rod Portele Electric, Inc. and Louis Dammann & Sons Construction. The application came in after the Finance Team meeting, so they have not had an opportunity to review. Mr. Jensen's financial situation is favorable. Jim Haugen made a motion to approve the loan to Neil Jensen, pending approval by the Finance Team in October. Don Walser seconded the motion. Tim Ulrich asked for discussion. The motion was approved. 9. Consideration of applications to the Storefront Revitalization Matching Grant Program There were two applications to the Storefront Revitalization Matching Grant Program. Hutch Caf6 is seeking a Storefront Revitalization Matching Grant Program for $3,747.50 to make exterior improvements. They will be removing the wood fagade and replacing it with stucco. Bids were received from Fix -It Plus, Brent Christensen Construction and Wacker Stucco. The Finance Team approved this grant. 2 Jeff Haag made a motion to approve the Storefront Revitalization Matching Grant to Hutch Cafe. Keith Fischer seconded the motion. Tim Ulrich asked for discussion. The motion was approved. Steppingstone Gallery is seeking a Storefront Revitalization Matching Grant for $3,462.50 for tuckpointing and roof repairs. Linda Poirier received a bid from Kostreba Tuckpointing and Roofing. This application came in after the Finance Team meeting, so they have not had a chance to review the request. Bob Windel made a motion to approve the Storefront Revitalization Matching Grant to Steppingstone Gallery contingent on approval by the Finance Team. Duane Hoversten seconded the motion. Tim Ulrich asked for discussion. The motion was approved. 10. Consideration of applications to the Sign and Awning Grant Program There were three applications to the Sign and Awning Grant Program. City Looks is seeking a Sign and Awning Grant for $1,451.63 for a new sign and awning. They provided bids from Identigraphics and Mankato Tent Company. The Finance Team approved this request. Jeff Haag made a motion to approve the Sign and Awning Grant to City Looks. Duane Hoversten seconded the motion. Tim Ulrich asked for discussion. The motion passed. Hutch Caf6 is seeking a Sign and Awning Grant for $2,000 for a new awning. They provided a bid from G & J Awning and Canvas. The Finance Team approved this request. Bob Windel made a motion to approve the Sign and Awning Grant to the Hutch Cafe. Jim Haugen seconded the motion. Tim Ulrich asked for discussion. The motion was approved. Robert Michael's is seeking a Sign and Awning Grant for $1,804.50 for a new sign and awning. Bids were received from Viking Signs and G & J Awning and Canvas. The Finance Team approved this request. Bob Windel made a motion to approve the Sign and Awning Grant to Robert Michael's. Jim Haugen seconded the motion. Tim Ulrich asked for discussion. The motion was approved. 11. Consideration of preliminary 2002 budget Christie reviewed the proposed 2002 budget and the budget narrative. The proposed budget was approved by the Finance Team contingent on Ken Merrill identifying funding sources adequate to meet the needs of the EDA. Board members asked for Ken Merrill to review funding sources for the 2002 budget. Ken indicated that he is proposing to transfer $110,000 from the general fund to cover the majority of the EDA expenses. TIF dollars and dollars from the two loan programs will be used to make up the difference between the proposed budget and the transfer. There was a brief discussion about using the EDA's power to levy. Ken indicated that it was too late this year to consider this option, but it should be reviewed as an option for next year. Ken also stated that he would speak with the County Auditor about establishing a special taxing district. Christie and Ken will research the levy limit for EDA's and give an update to the board in October. Bob Windel made a motion to approve the 2002 preliminary budget. Jeff Haag seconded the motion. Tim Ulrich asked for discussion. The motion was approved. There was also significant discussion regarding the use of dollars remaining in TIF District IV. Members of the EDA Board feel strongly that the dollars should be used for the acquisition of property for industrial park expansion and for projects identified during the downtown revitalization master planning process. According to Ken, the city's auditors have indicated that surplus dollars remaining in TIF District 4 can be used at the city's discretion, but in his opinion, the funds should be used for programs and activities related to downtown development and industrial park expansion. He suggested that the EDA board formally request that the money be used specifically for downtown and the industrial park. Jeff Haag made a motion stating that the EDA is formally requesting that the City Council dedicate the dollars remaining in TIF district IV to downtown development and/or industrial park expansion. Keith Fischer seconded the motion. Tim Ulrich asked for discussion. The motion was approved. Christie will prepare a memo for the council packets outlining the request. 12. Consideration of participation in the West Central Minnesota Growth Alliance Discussion on this item was tabled until the October board meeting. 13. New business There was no new business to discuss. 14. Chamber report There was no Chamber report. 15. The October Chamber Rep is Bob Windel 16. Next meeting The next meeting is October 26, 2001 17. Adjournment A motion was made to adjourn the meeting. The motion was seconded. The meeting adjourned at 8:30 a.m. Respectfully submitted, Christie Rock, Executive Director 11