11-01-2006 EDAMEDA Board of Directors
Minutes of Meeting
Wednesday, November 1, 2006
Members present in bold print:
Members:
Tim Ulrich Steve Jansick Jim Haugen
Duane Hoversten Casey Stotts Mike McGraw
Staff:
Miles Seppelt, EDA Executive Director
Dan Sexton, EDA Assistant
I. Tim Ulrich called the meeting to order at 7:05 a.m.
II. Approve Agenda- No action
III. Review and Approve Meeting Minutes
a. Review minutes from September 29`h EDA Board Meeting
Don Walser
Marc Vaillancourt
MIS/P: Jansick, Hoversten to approve the minutes from the September 29, 2006 EDA Board meeting
as written. Passed unanimously.
b. Review minutes from August 15th Finance Team Meeting
MIS/P: McGraw, Jansick to approve the minutes from the September 20, 2006 Finance Team
Meeting as written. Passed unanimously.
IV. Review May Financial Statements
Mr. Seppelt gave the following report:
o On Pg 1 under operations for the EDA, there is $192,958 cash on hand. The total fund balance as
of September 30, 2006 is $191,419. Total Mortgages Receivable is $76,608.
o Pg 2 and 3 is the statement of revenue and expenses. The EDA continues to collect $500 each
month for the Wetherell Property. The EDA has generated a total of $4,500 to date for the year of
2006. Total expenses for the month of September equal $16,446.
o Pg 4 under the EDA Loan Fund, the cash on hand is $120,964. The EDA has generated a fund
balance of $145,964 to date the year of 2006.
o Pg 5 under the EDA Downtown Loan Fund, cash on hand is $598,423. Mortgages receivable is
currently $652,446. $79,644 has been collected this year for loan repayments. A total of $22,280
has been paid out thus far in 2006 including loans, downtown grant program, and miscellaneous.
The balance sheet reflects revenues of $89,436 above expenditures.
MIS/P: Haugen, Stotts to approve the September financial statements as presented. Passed
unanimously.
V. Director's Report
Miles Seppelt gave the following report:
A. Goebel Land Transaction — The Goebel land transaction is complete.
EDA Board Meeting
September 29, 2006
Page 2 of 3
B. Cornerstone Commons — Windows are being installed on the second floor. According to the building
owners the second floor is almost completely leased and the first floor is scheduled to be turned over to
the tenants for build outs November 15th.
C. Warrior Manufacturing — For the most part the site preparations are complete, they are currently
working on pouring the footings and the foundation. The EDA also received the MCIF grant for 200K,
which will be set up as a 7 year pay back from Warrior.
D. EDA Budget / Levy — The resolution passed the city council and all paperwork has been filed with the
county. The first payment from the county should be sometime in June 2007.
E. RTA / SSSS / Third Thursday / SCSU State Theater / Farmers Market — The RTA and SSSS event
were a success attendance was around 25 individuals at both gatherings. The RTA report and the
power point presentations will become a useful tool to use in the near future with business
development. On Thursday, September 20 the Economic Development Association of Minnesota had
their Third Thursday Event here in Hutchinson, to highlight the revitalization of the downtown and the
process of creating the Downtown Master Plan. The SCSU Downtown Development class visited
Hutchinson recently to examine Hutchinson as an excellent example of how to redevelop, revitalize
and sustain a downtown. The State Theater was recently awarded a preservation award by the
Minnesota Historical Society, the theater was among eleven recognized this year. The Farmers Market
is also being recognized by the University of Minnesota Extension Service for their exemplary work in
creating and sustaining a vibrant farmers market. Information and interviews will be published in a
booklet that will be distributed to communities throughout Minnesota and the Midwest.
F. Pet Hospital Building — The Rieters have agreed upon a price and the hazardous materials inspection
has been completed on site. Staff is working on securing a company that will remove the contaminated
materials within the next few weeks. Mr. Seppelt mentioned that there is the possibility that additional
funding may be needed to cover some of the projects various cost outside the grant funding.
G. Business Recruitment
a. Nordic Components — This prospect is currently at a stand still with the interest of the
company changing with the flow of business. Staff will continue to facility their interests.
b. Alexis Systems — Mr. Seppelt has received the company's financial plans. He recently met
with board member Hoversten to formulate questions concerning some unanswered questions.
These questions pertained to the companies ability to secure and defend patients on their
product. Staff met recently with representatives from Ridge Water College to discuss the
utilization of their facility in the industrial park, the discussion was very well received.
c. Baklund Tool & Design — Staff is waiting for further information for the owners to better
understand the goals and plans of the company.
VI. Cenex Redevelopment
Mr. Seppelt mentioned that the EDA's Cenex Project team had recently met to discuss ways the acquisition
and redevelopment of the site could possible proceed. Different funding options and resources were also
discussed. The next step is to compare appraisals and complete an environmental site assessment of the
property.
VIL 2007 Projects — Part I
Mr. Seppelt explained the plans and proposals for the upcoming year of 2007:
a. BR & E — Conduct 20 site visits (report such visits to board)
b. Downtown — Secure a nice sit -down restaurant, coordinate Cenex allocation and
redevelopment
c. Industrial Park — Bio- science, complete Warrior Mfg. development, develop business
incubator
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September 29, 2006
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d. General — Support businesses during Phase II of Hwy. 15 /Hwy. 7 construction
e. Purposed Projects
— Facilitate & establish McLeod County EDA to further expand and strengthen the
economic base of Hutchinson and McLeod County.
— Further examine and facilitate downtown housing.
VIIL Joint Meeting w/ City Council
Mr. Seppelt mentioned the prospects of organizing a joint meeting between the City Council and the
EDA Board. The intent of this meeting would be to inform the City Council of the EDA's current
goals, objectives and plans. Members of the board discussed whether a meeting at the first of the year
would work better so the vision of the EDA for 2007 could be better defined.
IX. Grant & Loan Applications
None
X. Other Business
None
XI. Chamber CVB Update
Mr. Vaillancourt gave the reported the following:
• The Chamber /CVB will be hosting a Regional Tourism discussion during the week of
November 6tH
• The Chamber /CVB will be doing their annual planning on November 15tH
• In cooperation with City Staff and MnDot, the Chambers /CVB is organizing a ribbon cutting
event for the road opening. The date has yet to be finalized.
XII. The next meeting will be Friday, December 1, 2006 at 7:00 a.m.
XIII. Adjourn
The meeting adjourned at 8:05 a.m.
Respectfully submitted,
Dan Sexton
EDA Assistant