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03-30-2005 EDAMHutchinson EDA Board of Directors Minutes of Meeting March 30, 2005 at 7:00 a.m. *Note: Meeting rescheduled from March Members present in bold print: Memhi -m Tim Ulrich Steve Jansick Duane Hoversten Casey Stotts to March 30`° because of Good Friday being on the 25`° Jim Haugen Don Walser Mike McGraw Staff: Miles Seppelt, EDA Executive Director Crystal Foust, EDA Intern L Don Walser called the meeting to order at 7:05 a.m. II. Approve Agenda Revision to line item III d: The EDA will review and approve the Finance Team minutes of February 16th, not March 16th. No action taken. III. Review and Approve Meeting Minutes a. Review minutes of February 25, 2005 EDA Board meeting. MIS/P: Hoversten /Jansick to approve the minutes from the February 25, 2005 EDA Board meeting as written. Passed unanimously. b. Review minutes of March 14, 2005 Special EDA Board meeting. M/S /P: Haugen /Jansick to approve the minutes from the March 14, 2005 EDA Board meeting as written. Passed unanimously. c. Review minutes of March 10, 2005 Special Finance Team meeting. M/S /P: Hoversten/Haugen to approve the minutes from March 10, 2005 Special Finance Team meeting with the modifications recommended to line item 111 a, b, & c. Passed unanimously. d. Review minutes of k February 16th Finance Team meeting. M/S /P: Haugen/ Jansick to approve the minutes from February 16, 2005 Finance Team meeting as written. Passed unanimously. 1 IV. Review February Financial Statements — Miles Seppelt gave the following report: • Pg. 1 is the balance sheet for EDA Operations listing the cash available as $95,438. As a request from a previous EDA Board meeting, Mr. Merrill has included the years of forgiveness under mortgages. • Pg. 2 and 3 is the statement of February revenues and expenditures. Every line item is within the budget. Items for regular operations were the only lines items that had activity. • Pg. 4 EDA currently has a balance of $141, 910 for cash available. The cash available reflects $7,500 recovered from Allied Mechanicals. For Plastic Specialties, the EDA is in year 7 of 10 -year forgiveness. • Pg. 5 Currently for the Downtown Loan Fund, the cash available is $470,976. This number reflects the total unencumbered balance. M /S /P: Hoversten, Jansick to approve the February Financial Statements as presented. Passed unanimously V. Directors Report Miles Seppelt gave the following updates: A. Liquor Hutch: The City Council approved to seek bids for the Liquor Hutch expansion project on March 22, 2005. The bids are open until April 19th. April 26th bids will be awarded and early May construction could begin. Mr. Seppelt continues to be in discussion with Midwest Tae Kwon Do. The company will relocate to the hockey arena for the summer until September 30, 2005 to allow more time to find permanent solution. B. Rix Corner Redevelopment: The project is in progress and has an architect and builder are on staff to design the building to see how much it is going to cost. An environmental remediation plan is being prepared to send to the State. The prospective purchasers have an option to buy, but have not bought the property yet. C. State Theater: The apartments are almost completed. The kitchen cabinets have been installed and the bathrooms have been tiled. The owners will be moving into their apartment the end of May. The lobby is 99% complete. The concession stand needs to be installed and carpet needs to be laid going up to the theaters. There may be a potential prospect for the adjacent retail space to the east of the main entrance. D. Hutchinson Hotel: The project is on schedule for completion on May 1St. The owners have submitted a grant application for awnings. E. Downtown Streetscape Project: The City Council has ordered plans for design and specifications for the project. The project will be bid out the end of May and the first Council meeting in June will be the final public hearing on assessments and approval/rejection of the project by the City Council. F. Cenex consolidation project: Mr. Seppelt is waiting to hear back from Cenex on their relocation research and analysis. The Cenex board is in discussion to evaluate the numbers of their side of the relocation costs. The next step will be to set up a meeting and take it to the next level. G. New business recruitment: The meeting with the owner of a possible new business in the Industrial Park was successful. The owner and his wife were in town last Friday, March 25th to get a tour of Hutchinson and all its amenities. The owner will be in touch with Mr. Seppelt. The business would like to compare TIF with JOBZ incentives. Mr. Seppelt completed three Business Retention and Expansion visits in March: • 3D CNC • Impressions Incorporated in St. Paul: The Company was presented with an aerial photo of the Hutchinson Property and the facility. • TEK Mechanicals Services The EDA website has also been updated with aerial photos of the Industrial Park and has valuable information for people looking at property in the Industrial Park. www.hutchinsoneda.co VI. Grant & Loan Applications Sign & Awning Grant $2,000 Hutchinson Properties LLC (Hotel)- Tom Daggett M /S /P: Jansick, Haugen to approve the Sign & Awning Grant for $2,000 to Hutchinson Properties LLC. Passed unanimously. Storefront Revitalization Matching Grant $5,000 Hutchinson Properties LLC (Hotel)- Tom Daggett M /S /P: Haugen/Hoversten to approve the Storefront Revitalization Matching Grant for $5,000 to Hutchinson Properties LLC. Passed unanimously. VIL Subordination request from Wells Fargo Bank- Hennen's Building Loan M/S/P: Haugen/Hoversten to approve subordination request from Wells Fargo Bank contingent upon the appraisal over $1.02 million. Passed unanimously. Jansick abstained from vote. VIII. Subordination request from Citizens Bank- Hutchinson Hotel Loan MIS/P: Jansick/Hoversten to approve the subordination request from Citizens Bank for Hutchinson Hotel loan contingent upon the appraisal is within the guidelines. Passed unanimously. IX. Midwest Tae Kwon Do A request was proposed to the EDA for an additional $7,000, which is equivalent to 1 Storefront Matching Grant and 1 Sign Grant be allotted to Midwest Tae Kwon Do for their timely relocation. The EDA Board approved the contribution to the city for up to $7,000 in grants to facilitate the Liquor Hutch project on February 25th monthly meeting. The City of Hutchinson is already obligated to provide a relocation allowance to Midwest Tae Kwon Do. The City Attorney advised the EDA Board to directly allot the financial incentive to Midwest Tae Kwon Do. Discussion took place about concept. Mr. Seppelt had prepared a Disclaimer of Interest and Resolution. Two suggestions were made by the Board to change the Disclaimer of Interest and Resolution: Change expenditure amount to up to $7,000 and remove the amount of the financial incentive in the Disclaimer of Interest. Midwest Tae Kwon Do is looking at land to build. Mr. Moon is working with Midwest to relocate to the park and recreation facilities until September 30th There has been an agreement on the price of the adjacent property to the Liquor Hutch and currently a purchase agreement with Nash Finch is being prepared. M /S /P: Hoversten/Haugen to approve a financial incentive up to $7,000 to Midwest Tae Kwon Do contingent upon a binding purchase agreement be in place between the City of Hutchinson and Nash Finch and the modifications to the Disclaimer of Interest and Resolution. X. Chamber Update Marc Vaillancourt provided the following updates: a. Mr. Vaillancourt has been working on visiting members within the past two months since he has been employed as President of the Chamber of Commerce /CVB. b. The Chamber /CVB will be relocating to the Hutchinson Hotel. They will be moving with new equipment. The Chamber /CVB will have new furniture, cabinets, reception desk, and technology equipment. c. There is an open house scheduled for Thursday, June 9th. The Chamber /CVB is working with the building contractor to have the entire building completed by June 9th so the open house will be of the entire main level. d. The Chamber /CVB have merged as one organization. There has been a call for entries to the members to design a logo for the Chamber /CVB. Certain guidelines are enforced. XI. Other Business None XII. Next meeting April 22, 2005, 7 am. XIII. Adjourn The meeting adjourned at 8:25 am. Respectfully submitted, Crystal Foust EDA Intern 4