04-22-2005 EDAMHutchinson EDA
Board of Directors
Minutes of Meeting
Friday, April 22, 2005 at 7:00 a.m.
Members present in bold print:
Members:
Tim Ulrich Steve Jansick Jim Haugen
Duane Hoversten Casey Stotts Mike McGraw
Staff:
Miles Seppelt, EDA Executive Director
Crystal Foust, EDA Intern
L Tim Ulrich called the meeting to order at 7:05 a.m.
II. Approve Agenda
No action taken.
III. Review and Approve Meeting Minutes
a. Review minutes of March 30, 2005 EDA Board meeting.
Don Walser
MIS/P: Walser, Hoversten to approve the minutes from the March 30th EDA Board
meeting as written. Passed unanimously.
b. Review minutes of March 16, 2005 Finance Team meeting.
M/S /P: Walser / Jansick to approve the minutes from the March 16, 2005 Finance Team
meeting as written. Passed unanimously.
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 $98,349.
Interest has been allocated back in the individual funds from 2004.
• Pg. 2 and 3 is the statement of March revenues and expenditures. Every line item is within
the budget. Wages are the only activity for the expenditures. The contribution of $4,000
to Southwest Minnesota Foundation is reflected in March expenses.
• Pg. 4 EDA currently has a balance of $145,444 for cash available. The cash available
reflects $7,500 recovered from Allied Mechanicals.
• Pg. 5 Currently for the Downtown Loan Fund, the cash available is $465,098. This number
reflects the total unencumbered balance.
M /S /P: Jansick/Haugen to approve the March Financial Statements as presented. Passed
unanimously
V. Directors Report
Miles Seppelt gave the following updates:
A. Liquor Hutch: The bids closed on the liquor store project on April 19, 2005 with very favorable
results. The bids came in $230,000 below projection. Staff will present to the City Council
meeting on April 26, 2005 and seek approval to award the bid for the project. Construction will
begin in May and be completed by October 31, 2005.
B. Rix Corner Redevelopment: Mr. Seppelt met with the developers last week. The
construction developers made a list of what needs to be approved by the Planning
Commission. The bank has not yet approved the loan. The project is anticipated to start in July.
C. State Theater: The progress continues to move forward. The apartments are almost
finished. All that is left is the finishing work throughout the whole building.
D. Hutchinson Hotel: Progress continues for the project. The Chamber /CVB are scheduled to
move in on Friday, May 13tH
E. Downtown Streetscape Project: City staff has reviewed the 65% plan. Next week (April
25th), the 95% plan will be reviewed. Beginning May 2" d, the EDA will seek bids for 3
weeks. On May 20'h, bids will be received. The design elements are being finished and the
final approval by the City Council is set for the first meeting in June. A public hearing will
take place and final assessment amounts will be provided at that time. The goal is to finish
the project when the Arts and Crafts Festival begins.
F. Cenex consolidation project: Mr. Seppelt spoke with an individual at Cenex. The
relocation costs have been gathered and presented to the Cenex Board. Further
discussion will take place at this month's Cenex Board meeting.
G. New business recruitment: A company is currently in the process of assessing the benefits
of JOBZ and TIF. The EDA staff has been working to allocate JOBZ acres for the City of
Hutchinson. There have been commitments by two communities: Tracy and Marshall.
The Vice President of a company from Bloomington interested in relocating visited on April
19th. The business is a medical device company that manufactures test strips and test devices
for diabetes. They have indicated interest to lease a building long -term. Discussion took
place about involving a private developer and city involvement owning a building.
• JOBZ Acres: EDA staff has been arranging with other communities to get JOBZ
acres. Two communities have committed to donate acres: Tracy and Marshall.
Mr. Seppelt has been asked to fill the vacancy on the Minnesota Community Capital
Fund Board of Directors from now until September 2005. He has accepted the offer.
VI. Sale of Land Write -Down Property
• A 2/3 land write -down agreement was set forth 4 years ago between the EDA and
American Energy Systems. The rule is if the land is sold within 10 years, there will be a
refund to the EDA.
o Rule: If property is sold during the ten year period, a pro -rata amount of 1/10 of the
total amount per year of the remaining years would be due. Interest shall be paid at 9%
simple interest on the remaining balance, times the number of years or portion of years
loan was deferred.
• Originally calculated as a.146 acre transfer, the amount due to the EDA was $2,566.07,
however the actual amount anticipated to be transferred is .318 acres for a total due to the
EDA $5,256.25.
MIS/P: Haugen/ McGraw to support $5,256.25 for the transfer of property based on the rules
set forth within the two- thirds land write -down program. Passed unanimously.
VIL Grant & Loan Applications
Sign & Awning Grant
Salon 22- Sherry Bethke
$1,800
MIS/P: Jansick, Hoversten to approve the Sign & Awning Grant for $1,800 to Salon 22
contingent upon approval from the Physical Appearance Committee. Passed unanimously.
VIII. Chamber Update
Tina Vorlicek provided the following updates:
A. The relocation process seems to be on tract. The projected moving date is Friday, May 13tH
B. The Girls Fun Adventure is making 5 trips to Hutchinson.
C. Graduation from the Leadership program is Thursday, April 28th. Secretary of State
Mary Kiffineyer will be the guest speaker.
D. The Connection meets the 1St Tuesday of the month at the Workforce Center. It is a great
way to find information about businesses in the area.
IX. Other Business
None
X. Next meeting May 27, 2005, 7 am.
XI. Adjourn
The meeting adjourned at 7:40 am.
Respectfully submitted,
Crystal Foust
EDA Intern