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12-03-2004 EDAMHutchinson EDA Board of Directors Minutes of Meeting Friday, December 3rd' 2004 at 7:00 a.m. Members present in bold print: Members: Tim Ulrich Bob Windel Jim Haugen Don Walser Duane Hoversten Casey Stotts Guests: Mayor Elect Steve Cook Staff: Ken Merrill, Finance Director Miles Seppelt, EDA Executive Director Jacki Pillatzki, EDA Intern I. Tim Ulrich called the meeting to order at 7:03 a.m. II. Approve Agenda III. Review and Approve Meeting Minutes a. Review minutes of October 29th' EDA Board meeting. M/S /P: Hoversten, Stotts to approve the minutes from the October 29th' 2004 EDA Board meeting as written. b. Review minutes of October 20th' EDA Finance Team meeting. M/S /P: Haugen, Stotts to approve the minutes from the October 20th' 2004 EDA Finance Team meeting as written. c. Review minutes of October 19h' 2004 Industrial Park Team meeting. M/S /P: Windel, Hoversten to approve the minutes from the October 19th' 2004 Industrial Park Team meeting as written. IV. Review August, September, and December 2003 Final Financial Statements - Finance Director Ken Merrill noted the following items: Pg 1 is the balance sheet for EDA Operations. Ken noted that there would be a transfer into this account sometime this month. The Land Write Down Program is listed on this page. The board asked if Ken could provide a list of the years that are left until these balances are forgiven. This will be presented at the next meeting. At the end of October the EDA had a balance of $41,887.00. Pg 2 lists EDA income from the Wetherell Property. Expenditures for the EDA include salaries, supplies, and professional services. Pg 3 listed the memberships and subscriptions that were paid for the year. Miles Seppelt clarified which organizations that the EDA has membership with and subscriptions to. Pg 4 indicates that all of the loans are up -to -date. There has been no activity with the Allied Mechanical loan. Pg 5 gives the balance of the Downtown Loan Fund and the mortgages that are receivable. Cash on hand is $659,566.00. This balance includes funds that still need to be disbursed to the Hutchinson Hotel, Robert Michaels Salon, and the Hennen's building totaling about $200,000. MIS/P: Walser, Haugen to approve the October 2004 Financial Statements as presented. V. Directors Report Miles Seppelt gave the following updates: 1. Liquor Store- Miles presented the latest architecture renderings for the Liquor Store Expansion Project. Currently the architects are working on a detailed cost estimate for the project. 2. Rix Corner- Miles is currently working with a developer and financial representative to redevelop this corner. 3. State Theater- The Theater has come up with the extra dollars it needed due to some unforeseen challenges. It was noted that because the project began as a 1.3 million dollar project and now is about a 1.8 million dollar project the position of the EDA Board as a funding source has changed. Due to the EDA's change in position it was recommended that the EDA go through the necessary boards (i.e. Finance Team) to make appropriate boards aware of this change and formally approve it. 4. Hutchinson Hotel- Work is in- progress at the Hutchinson Hotel. 5. Streetscaping Project- On November 22nd there was an open house held at Park Elementary for business owners and community members to learn more about the Streetscape Project. The presentation about the project was well received by business owners and community members. There will be another open house presenting the same information on January 4th at City Center at 5:30 p.m. 6. Spec Building Project- A team has been established for this project. Miles will be distributing the business plan to team members today. 7. Cenex Consolidation Project- A team has also been established to help facilitate the Cenex Consolidation Project. Currently the team is waiting for the EDA's appraisals of the Cenex properties. 8. Business Recruitment Update- Miles has a verbal agreement from Financial Crimes Technology Systems (FCTS, a company from CVN) indicating that they will be relocating their operations to Hutchinson. Their relocation includes operations that they have sub - contracted out in California. When in Hutchinson FCTS will occupy about 2500 sq ft on the main floor of the Bretsky Building. VI. EDA Board & Team Vacancies The EDA Board reviewed all applications to fill vacancies on the EDA Board, Finance Team, and Industrial Park Team. The following individuals have been selected by the EDA Board to serve on the corresponding teams: • Jeff Grant, EDA Finance Team • Dan Steele, EDA Industrial Park Team • Josh Gehlen, EDA Industrial Park Team • Richard McClure, EDA Industrial Park Team • Andy Larson, EDA Industrial Park Team M /S /P: Stotts, Walser to recommend to the City Council that the following individuals are selected to serve as members on the EDA Board: • Steve Jansick, EDA Board • Mike McGraw, EDA Board VII. Resolution of support for the Downtown Streetscape Project Discussion took place about the proposed streetscape project for 2005 and what the EDA's role should be in that project. The Board agreed that it is important for the EDA to show support for this project. M/S /P: Hoversten, Windel to approve a resolution of support for the Downtown Streetscape Project from the EDA. VIII. Grant & Loan Applications Storefront Matching Revitalization Grant William Corby- Corby's Portrait Studio $5,000.00 M/S /P: Windel, Stotts to approve a Storefront Matching Revitalization Grant in the amount of $5,000.00 for Corby's Portrait Studio. IX. Consider adoption of Industrial Park Declarations Miles explained that the industrial park declarations would only be enforced in a particular section of the industrial park. Having a designated area for the industrial park declaration would leave available land for smaller businesses that might not be able to keep up with the higher standards of the declarations. Discussion about the proposed declarations took place. X. Downtown Loan Rule Adjustments It was discussed that future downtown loans applications that include building expansion should include other sources of funding besides the EDA. M/S /P: Walser, Haugen to approve an additional guideline to the downtown loan program stating that "For any project which includes building expansion, the downtown loan program will provide no more than 50% of the portion of the project cost attributed to the expansion. Other sources of financing (e.g. commercial bank loan, owner equity, etc.) are required for the expansion portion. " XI. Work Plan & Goals for 2005 Miles provided a list of goals for 2005 and draft work plan that can help guide EDA efforts in 2005. At the next meeting Miles will provide a list of 2004 EDA accomplishments and activities. The Board discussed the redevelopment of the Post Office as a priority in 2005 as well as focusing on the Industrial Park and assisting the Liquor Store complete its expansion. XII. Chamber Update Location Update- the Chamber is looking at acquiring the front 1/3 of the Hutchinson Hotel. Staff Update- available positions have been posted for the CVB/ Chamber President as well as for a Chamber Administrative Assistant. XIII. Other Business None XIV. Set next meeting The next meeting was set for Thursday, December 23rd° at 7:00 am. XV. Adjourn The meeting adjourned at 8:26 a.m. Respectfully submitted, Jacki Pillatzki EDA Intern C!