10-28-2005 EDAMHutchinson EDA
Board of Directors
Minutes of Meeting
Friday, October 28, 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
Erin Eberdt, EDA Assistant
Ken Merrill, Finance Director
L Tim Ulrich called the meeting to order at 7:03a.m.
II. Approve Agenda
No action taken
III. Review and Approve Meeting Minutes
a. Review minutes from September 30th EDA Board Meeting
Don Walser
Marc Vaillancourt
M/S /P: Hoversten/Jansick to approve the minutes from the September 30th
EDA Board meeting as written. Passed unanimously.
b. Review minutes from September 28th Finance Team Meeting
M/S /P: Jansick/Haugen to approve the minutes from the September 28th
Finance Team Meeting as written. Passed unanimously.
IV. Review September Financial Statements — Ken Merrill
o On Pg 1 under operations for the EDA, there is $32,230 cash on hand. The
total fund balance as of September 30th, 2005 is $32,450. There is the
continuation of the land write down. Total Mortgages receivable is $90,238.
o Pg 2 and 3 is the statement of revenue and expenses. Total expenses for
September are $9,325. The EDA has spent down a total of $8,825 for the
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month of September. The EDA has spent down a total of $90,930 for the first
nine months of 2005.
• Pg 4 under the EDA Loan Fund, there is $147,314 as cash on hand. The
Ashwill Industries Loan was not closed on until the start of October, so this
will show up on the financial statements at the next meeting.
• Pg 5 under the EDA Downtown Loan Fund, there is $511,793 as cash on
hand. Mortgages receivable is $754,321. $93,857 has been collected this year
for loan repayments. A total of $199,382 has been paid out thus far for 2005
including loans, downtown grant program, and miscellaneous. The balance
sheet reflects spending down a total of $105,525.
M/S /P: Haugen/Jansick to approve September financial statements as presented.
Passed unanimously.
V. Director's Report
Miles Seppelt gave the following report:
A. State Theater — One of the retail spaces is open. It is a small antique shop. One
of the three apartments will most likely be rented out next week. Right now, Mr.
McMonagle is spending more time on running the theater. There is going to be a
promotion for the holidays at the Theatre and information is going out to
merchants about this. Merchants will have free tickets to give out for two movie
times every Saturday and Sunday for three weekends starting after Thanksgiving.
People have to go to merchants downtown to get these tickets. The cost to
merchants to buy into this is $35. Each business will start with 100 tickets but
they can get any many more as needed.
B. Liquor Hutch — The operations will move over to the new side over the
weekend. On Monday the new part will open and from there it will take 2 -3
weeks to get the old side renovation. The date for substantial completion is
November l ltn
C. Cornerstone Commons — Rix Corner Redevelopment — The Pawn Shop will
be moving this weekend to the other half of the Dry Cleaners building. On
Monday or Tuesday the asbestos will be cleaned out of the building and after that
it will be demolished.
D. Downtown Streetscape Project — This project is just about complete for this
year. The 16' streetlights will arrive today and start to get installed next week.
All of the lights should be installed by the second week of December. There is a
decorative fence to create a seating area by Dairy Queen that will still be put in
this year. The water fountain, the Washington Ave and Cornerstone Commons
concrete, and the planters and benches will all get done in the spring. The traffic
signal poles will also be painted black in the spring along with getting countdown
signals at the crosswalks.
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October 28, 2005
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E. Industrial Park Development —
1. Wetherell Property Site Prep — This project is done, the only cost left if
to put some covering over it for the winter. The fill will start coming in
the spring as it becomes available through city projects.
2. Industrial Park Signage — Mr. Seppelt stated that there are about 7 -8
companies interested in this project. He has the bids for the sign, but still
needs to collect bids for the concrete and electrical work. Mr. Ulrich
asked if it could ever get expanded. Mr. Seppelt said that he would look
into that. It was also discussed to put the JOBZ logo on it. Ideas about
how the maintenance and electric bill could get paid were also discussed.
3. JOBZ & Signage — These signs have been installed under the population
signs as you come into town.
F. Business Recruitment
1. Company "X" — Mr. Seppelt is closing on the sale of the land after the
meeting today.
2. Company "Y" — No report was given.
3. Ashwill Industries — The loan was closed on at the start of October. The
UCC statement was filed and it was received back already. Samples of
things that can be cut with the water jet cutting machine were passed
around.
VI. Grant and Loan Applications
Si!n and Awning Grant Program
The Glass Apple, Cheryl Labat $1,451
M/S /P: Haugen/Stotts to approve the Sign and Awning Grant for $1,451 for The
Glass Apple. Passed unanimously.
Storefront Revitalization Matching Grant Program
The Vacuum Gallery, Lee Gruenhagen $5,000
M/S /P: Stotts/Hoversten to approve the Storefront Revitalization Matching
Grant for The Vacuum Gallery for $5,000. Passed unanimously.
Titan Cleaners Building, Skip Quade $5,000
M/S /P: Jansick/Stotts to approve the Storefront Revitalization Matching Grant
for Skip Quade for the Titan Cleaners Building for $5,000. Passed unanimously.
VIL Request to defer assessments on Wetherell Property
With the sale of the north part of the property, $145,623.11 of the assessments will be
paid. If the board wants to defer the payments on the remainder of the land, a formal
request must be drafted for the city council. Mr. Seppelt said that the Finance Team's
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position was that if the EDA were to pay the assessments on the remainder of the
property, it would be hard to recoup those dollars.
Mr. Merrill said that assessments can only be deferred for seniors and disabled
persons, undeveloped land, land outside of the city limits, and over -sized city lots.
He suggested that the EDA pay the assessments over a 10 -year period. For next year,
the payment would be just a little over $11,000 and this number would go down
every year for the 10 years. This would be an option to not have to pay the whole
amount and tie up cash in assessments. It will also help to make sure that the
assessments do not get too high because of the interest accruing.
No motion was needed because the board chose the 10 -year payment plan and no
formal request is needed for that.
VIIL Proposed Downtown Redevelopment Project
Mr. Seppelt presented a proposed idea for a downtown redevelopment project. He
mentioned the possibility of getting a TIF District set up. He asked for any
discussion and suggestions.
There was discussion on the possibilities of this project. Keeping the Post Office
downtown and getting the new Post Office built was brought up. Mr. Ulrich did not
want a project to happen that could potentially alter the plans for a new post office.
Mr. Seppelt stated that he will start working with the local post office and work up
from there to try and get the post office back at the table where it was a few years
ago. It was recommended that next month this topic be brought back with more
numbers and any new information.
There is the land that the depot is on which was discussed as being a good place to
have an anchor in the downtown when the roundabout is put in. The only problem is
that this property is still owned by the McLeod County Rail Authority. Mr. Seppelt
will keep looking in to different options and get back to the board.
IX. Goebel Property Transaction
Mr. Seppelt showed a slide with the dollar amounts of the assessments that exist on
the four Goebel properties. The same background from last month was given. If the
EDA were to assume the assessments on the four properties (approximately
$143,000) the EDA would get in return the two eastern lots. The pond on the
property would be deeded to the city.
The Finance Team discussed the EDA assuming the assessments on the two lots
that Mr. Goebel would keep and in return the EDA would still get the two eastern
properties, but the assessments could be deferred until the properties sold. This
would keep some cash available incase it were needed. Mr. Merrill said it would
be better to pay off all of the assessments. The EDA would get 5.698 acres. With
paying the assessments on all four properties and getting the two lots in return, the
cost per acre comes to approximately $25,000, which is similar market rate for
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October 28, 2005
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that land. The board felt this was a good idea, but they have to wait now and see
if Mr. Goebel likes this idea or not. Mr. Seppelt will keep pursuing this and come
back to the board next month with more information.
X. Project Ideas for 2006 — Part II
Mr. Seppelt discussed a handout that had the project ideas the board generated last
month. He told the board to let him know of any ideas they had.
Mr. Hoversten suggested looking into a virtual incubator, which does not require a
physical building. It was also suggested to look into a way to get the old vet clinic
taken away. Mr. Seppelt informed the board of a grant program from DEED that
may help with this. Mr. Hoversten said that the SBDC being at the City Center is still
up in the air but that he would keep the board informed.
XI. Downtown Christmas Lights
Anthony Hanson brought up this topic at the Finance Team meeting. He discussed
that the Jaycees were looking at taking on a project to bring back the Christmas lights
on the tops of buildings. They could provide some labor and money, but they are
looking at partnering with other organizations to get it paid for. It was recommended
that the HDA should take the lead on this project. Mr. Vaillancourt said not having
the lights this year will be a catalyst to get people excited about wanting to do
something next year. Mr. Ulrich said that the Finance Team discussed the possibility
of giving one of the downtown grants as a contribution to this project.
It was stated that the EDA would support this initiative.
XIL Chamber CVB Update
Marc Vaillancourt gave the following report:
It is the second month of the leadership program. Yesterday was a Community Day
that looked at the past, present, and future. There were very good reviews. There
was also a panel session.
The Planning session for 2006 is November 15th. The Chamber CVB has also been
asked to sit at the table to discuss the public arts initiative. Member visits are also
continuing.
XIII. Other Business
The First Annual Downtown Gathering will be on November 3rd at 5:15p.m.
Everyone is welcome to attend and listen to the guest speaker talk about "Downtown
Sense of Place."
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XIV. The next meeting will be December 2, 2005 at 7:OOa.m.
XV. Adjourn
The meeting adjourned at 8:22a.m.
Respectfully submitted,
Erin Eberdt
EDA Assistant