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10-25-2002 EDAMHutchinson EDA Board of Directors Minutes of Meeting Friday, October 25, 2002 Members present in bold print Members: Tim Ulrich Bob Windel Jim Haugen Jeff Haag Duane Hoversten Keith Fischer Don Walser Vi Mayer Guests: Ken Merrill Marc Sebora Steve Jansick (on behalf of Vi Mayer) Staff. Lisa McClure, EDA Intern 1. Don Walser called the meeting to order at 7:05 a.m. 2. Consideration of minutes from September 27, 2002 meeting. A motion was made by Jim Haugen to approve the minutes from the September 27, 2002 meeting. Jeff Haag seconded the motion. Don Walser asked for discussion. The motion passed. 3. Review and approval of Finance Team minutes from October 16, 2002 A motion was made by Keith Fischer to approve the minutes from the October 16, 2002 meeting. Duane Hoversten seconded the motion. Don Walser asked for discussion. Motion passed. 4. Review Financial Statements Ken Merrill stated that page one of the finance report now reflects the correction made to the September statement. The correct cash balance as of September 30 is positive $45,142. He stated that on page two, the levy money has not yet been transferred, but will be done in November to cover the costs for the Downtown Master Plan and HKGi. On page three, the year -to -date shows a deficit of $127,837, but with the transfers of money should be a positive number. Ken stated that on page four, the Economic Development Loan there is $253,921 in cash. On page five, the money paid to HKGi will be taken from the Downtown Loan Fund, and that there has been $67,031 in loan repayments and $51,913 paid in grant monies. Keith Fischer asked about Plastic Specialties. Duane Hoversten said that Tim Ulrich should have an update on or around November 1. Jeff Haag asked Ken if it was correct to say that the EDA has $1,267,486 in assets and $36,135 against? Ken said yes. Jim Haugen asked about the Southwest Minnesota grant Fund money. The request of the city to give the $5,000 will go through the EDA (Marc and Ken still working on details) and that the donation to Ridgewater will go through. A motion was made by Duane Hoversten to approve the financial statements for September 2002. Jim Haugen seconded the motion. Don Walser asked for discussion. The motion passed. 5. Review Applications to Grant and Loan Programs Kraft, Walser, Hettig & Honsey have applied for a Sign and Awning Grant to replace their existing awning and put up a new sign. The request is in the amount of $1,436.19. A motion was made by Jeff Haag to approve the Sign and Awning Grant application for Kraft, Walser, Hettig & Honsey in the amount of $1,436.19. Keith Fischer seconded the motion. Don Walser abstained from voting. Don Walser asked for discussion. The motion passed. Carly's Shoes has applied for a Storefront Revitalization Matching Grant in the amount of $2,225. A motion was made by Jeff Haag to approve the application to the Storefront Revitalization Matching Grant fund for Carly's Shoes in the amount of $2,225. Keith Fischer seconded the motion. Don Walser asked for discussion. Lisa will encourage them to use the Sign and Awning Grant Program as well to replace their existing sign and awning. The motion passed. 6. Delinquent Loans Lisa McClure handed out a report to the board with the delinquent loans. At this time, there are no delinquent loans. Lisa wanted to note that she is very happy about this progress. Lisa McClure also stated that Richard Peterson has requested the EDA write a Subordination Agreement, to subordinate to Citizens Bank on his loans. Currently there is a discrepancy in his loan balance, between his records and the records of the City's accounting and the EDA's balance. Ken Merrill and Lisa McClure met with Mr. Peterson to discuss this problem. He will go through his records to see what he can find. In the meantime, he is applying for a loan from Citizens Bank. The questions was asked how much is Mr. Peterson receiving from Citizens Bank? Lisa was unsure but will call Mr. Peterson and ask him. Jeff Haag made a motion to approve the subordination agreement subject to review by Keith Fischer. Duane Hoversten seconded the motion. Don Walser asked for discussion. Motion carried. Lisa also asked the board if they would approve the signing of an amended agreement with the MCCF. Scott Martin of the MCCF called Lisa McClure earlier in the week to ask for this extension. It states that the goal of $2,500,000 will not met by the set date of October 31, 2002. The MCCF is asking that the entities that have already sent in their money and agreements to allow for a 90 day extension. The agreement now reads that the money must be in by January 31, 2003 and that the MCCF will have their goal of $2,500,000 met by that date. A motion was made by Jeff Haag to approve the extension from October 31, 2002 to January 31, 2003. Jim Haugen seconded the motion. Don Walser asked for discussion. Motion carried. 7. Manufacturers and Technology Month Lisa McClure asked the board to review a list of manufacturing companies in and around Hutchinson to be included in a Thank You ad in the Hutchinson Leader celebrating Minnesota Manufacturer and Technology Month. The board reviewed the list and made necessary changes. 8. Status of the EDA Director Position Lisa McClure stated that Miles Seppelt had been offered the position as the EDA director. He has accepted and Brenda Ewing is completing necessary background checks. When this is complete, Miles will probably be able to start November 1, 2002. 9. Downtown Master Plan Open House update Lisa McClure told the board that the Open House went very well. There were approximately 130 people in attendance. There was a suggestion to have the boards that were displayed at the Open House to be displayed in City Center. Lisa stated they were up for a week after the Open House. On December 12 from 4:00 — 6:30 the HDA Board will be reviewing, with HKGi, a draft of the plan. In January 2003, a presentation will be made to the City Council regarding the Master Plan. Special Service District is one option for paying for these initiatives. There is a good possibility that this plan will happen and support is needed from downtown business and property owners, especially for this district. 10. Structure of the EDA — Downtown Association This item has been tabled for the next meeting. Don Walser asked Lisa McClure to do some research to find out about when the HCDC was established and what the structure of the HCDC — EDA should be. Duane Hoversten suggested waiting until the new director starts to discuss this more in- depth. 11. Industrial Park update Marc Sebora told the board he is waiting for the completed legal description and survey of the property before he can move forward with the condemnation process. Ken has money for purchasing the land. Marc asked the board whether or not he should include an appraisal from the 3M property last year. He stated it could be included as evidence in the case. Marc will continue to update the board on the process. 12. Hutchinson Videotapes Lisa McClure made a list of business and organizations to distribute the remaining videos that were made by the EDA. The board made a few changes to the list. They thought it was a good idea to get them out to the public. 13. Chamber update Vi Mayer was out of town; Steve Jansick came to give the Chamber Report. November 21 is the annual retreat. January will be the annual meeting. They are still working on the 2003 budget, should be finished by December 1. The new chairperson will be Dave Westlund. The Quality Service seminar will be at the end of October at the Event Center. 14. New Business Jeff wanted to update the board on a couple of things. Southwest Minnesota is looking to purchase land on the corner of Hwy 15 and 7. They would purchase Dales Auto and the Reiter site. He asked the board members to do what they can to help Southwest Minnesota get into this site. Jeff also stated that he and Tom Daggett would like to get going on the Hotel. He has been talking with John Rodeberg on how to work in some financing for parking for the Hotel. Jeff knows without parking, this project will not happen. This is their first priority. He has asked the EDA to facilitate the downtown improvement projects proposed in the Master Plan. Jeff feels someone needs to take a leadership role on these projects and it should be the EDA. The liquor store relocation was mentioned. ShopKo will NOT let it be built in their parking lot. What is the timeline? Next year sometime it is going to be built (hopefully)? The city is working on getting appraisals for the Rick's /Quade properties. 15. Next meeting The next board meeting is November 22, 2002 at 7:00 a.m. 16. Adjourn A motion was made and seconded to adjourn. The meeting was adjourned at 8:35 a.m. Respectfully submitted, Lisa McClure, EDA Intern C!