12-02-2005 EDAMHutchinson EDA
Board of Directors
Minutes of Meeting
Friday, December 2, 2005 at 7:00 a.m.
Members present in bold print:
Members:
Tim Ulrich Steve Jansick Jim Haugen Don Walser
Duane Hoversten Casey Stotts Mike McGraw Marc Vaillancourt
Staff:
Miles Seppelt, EDA Executive Director
Erin Eberdt, EDA Assistant
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 October 28th EDA Board Meeting
M/S /P: Walser /Stotts to approve the minutes from the October 28th EDA
Board meeting as written. Passed unanimously.
b. Review minutes from October 26th Finance Team Meeting
M/S /P: Jansick/Hoversten to approve the minutes from the October 26th
Finance Team Meeting as written. Passed unanimously.
IV. Review October Financial Statements — Ken Merrill
Miles Seppelt gave the following report:
o On Pg 1 under operations for the EDA, there is $217,776 cash on hand. The
total fund balance as of October 30th, 2005 is $216,364. 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
October are $11,286. The EDA has generated a total of $183,914 for the
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December 2, 2005
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month of October. The EDA has generated a total of $93,029 for the first ten
months of 2005.
o Pg 4 under the EDA Loan Fund, there is $115,314 as cash on hand. The fund
dispersed $32,000 for the Ashwill Industries Loan.
o Pg 5 under the EDA Downtown Loan Fund, there is $526,593 as cash on
hand. Mortgages receivable is $739,835. $108,703 has been collected this
year for loan repayments. A total of $200,273 has been paid out thus far for
2005 including loans, downtown grant program, and miscellaneous. The
balance sheet reflects spending down a total of $91,570.
M/S /P: Hoversten /Jansick to approve October financial statements as presented.
Passed unanimously.
V. Director's Report
Miles Seppelt gave the following report:
A. Web -Site Update — The website has been updated. The JOBZ information has
been added. The main page, financials page, and downtown page have all been
updated.
B. Post Office — Mr. Seppelt and Ms. Eberdt met with the postmaster. Mr. Seppelt
got contact information to try and work up the line to try and see what is planned
for a new post office.
C. Liquor Hutch — The main construction is done. In about two weeks it should be
complete.
D. Cornerstone Commons — Rix Corner Redevelopment — There is a meeting
scheduled to get a structural permit for the footings and foundation. The main
construction will begin in the spring.
E. Proposed Downtown Redevelopment Project — There is no new information on
this.
F. Downtown Streetscape — The lighting company told the City that the tall lights
would be shipped on November 21St. As of yesterday, they have not been
manufactured. The Regional Vice President will be coming to the City Council
meeting on December 13th to answer questions and explain the situation. The
original plan was to get the east side completed before starting on the west side.
Now the plan is to put up the short poles up on the west side and get all the lights
that are installed turned on. This creates more work for the electrical company
because they will have to unwire everything to install the tall poles when they
arrive.
G. Industrial Park Development —
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December 2, 2005
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1. Industrial Park Signage — Mr. Seppelt is still working on this project.
There are 8 or 9 companies interested. The property has been annexed
and the city will now own it. Right now, Mr. Seppelt is working on
getting more concrete bids to be able to tell the businesses what the cost
would be to them.
2. Goebel Property — There is no new information on this.
H. Business Recruitment
1. Company "X" — Mr. Seppelt went and visited the company to go over
the Development Agreement.
2. Company "Y" & "Z" — Mr. Seppelt has been in contact with both
companies. He will be meeting with Company "Y" today.
Mr. Hoversten asked when the name of Company "X" would be released to
the public. Mr. Seppelt said that is up to the company and when is the best
time for them. As of right now, Mr. Seppelt does not know of a time when
this will happen.
VI. Business Subsidies
Mr. Seppelt stated that this subject was discussed a few months ago when the
Business Subsidy Policy had to be updated to include JOBZ. The Mayor would like
the Business Subsidy Industrial wage requirements to bet set at the poverty level for a
family of four as it is set by the U.S. Department of Health and Human Services
($9.30 /hour). Before the amount was at $9.01. When the Business Subsidy Policy
was being updated to include the JOBZ requirements, the EDA passed the amount to
be 150% of the minimum wage — making it $9.23/hour. The City Council decided to
set it instead at $9.30 /hour — which is the current poverty level for a family of four.
Mr. Seppelt showed a wage comparison for manufacturing businesses in the area. A
question was raised about what kind of jobs this would include within the
manufacturing businesses. Mr. Seppelt stated that it was for the jobs within the job
creation goals. Every year this rate will adjust. The companies that are coming to
Hutchinson are already paying more than the poverty level for a family of four, so
this should not affect what the EDA does.
M/S /P: Walser /Jansick to set the Business Subsidy wage requirement for
Industrial jobs at the U.S. Department of Health and Human Services Poverty
Level for a Family of Four that is updated each year. Passed Unanimously.
VIL Appoint New Finance Team Member (2 candidates, 1 position open)
A. John Lang Business Banker MidCountry Bank
B. Dan Carlson Plant Manager 3M
The board reviewed the applications for the new finance team member.
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December 2, 2005
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M/S /P: Hoversten /Stotts to appoint Dan Carlson, 3M Plant Manager, to the
opening on the Finance Team. Passed unanimously.
VIIL Grant and Loan Applications
Sign and Awning Grant Program
Mark Schierman, 246 Main Street $2,000
M/S /P: Stotts /Jansick to approve the Sign and Awning Grant for $2,000 for 246
Main Street subject to the approval of the Finance Team. Passed unanimously.
IX. Project Ideas for 2006 — Part III
A current proposed list was reviewed. Mr. Seppelt asked for any comments or
change. The list will be finalized at the start of the year.
X. Chamber CVB Update
Right now, they are wrapping up the year -end. There was a planning session for
2006 a couple of weeks ago. The board will be changing from the 28 members,
which was the combined boards of the Chamber and CVB, to 18 people for 2006. By
the end of 2007, the board will be will down to 15 people. There are three main areas
of focus: member services, visitors bureau function, and community
development /community leadership.
The sesquicentennial is all done. Right now the Chamber CVB is getting ready for
the new year with the annual meeting scheduled for January 26th. A projector is
getting installed in the boardroom.
XI. Other Business
Mr. Seppelt will be taking vacation December 27th -30th
XII. The next meeting will be December 23, 2005 at 7:OOa.m.
XIII. Adjourn
The meeting adjourned at 7:47a.m.
Respectfully submitted,
Erin Eberdt
EDA Assistant