12-29-2006 EDAMEDA Board of Directors
Minutes of Meeting
Friday, December 29, 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
Brian Warzecha, EDA Assistant
Ken Merrill, Finance Director
Marc Vaillancourt, Chamber /CVB
I. Tim Ulrich called the meeting to order at 7:07 a.m.
II. Approve Agenda- No action
III. Review and Approve Meeting Minutes
a. Review minutes from December 1st EDA Board Meeting
Don Walser
M/S /P: Walser, Haugen to approve the minutes from the December 1, 2006 EDA Board meeting as
written. Passed unanimously.
b. Review minutes from December 20 Finance Team Meeting
M/S /P: Walser, Haugen to approve the minutes from the December 20, 2006 Finance Team Meeting
as written. Passed unanimously.
IV. Review December Financial Statements
Mr. Merrill gave the following report:
o On Pg 1 under operations for the EDA, there is $144,693 cash on hand. The total fund balance
as of November 30, 2006 is $142,978. 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 $5,500 to date for the year
of 2006. Total expenses for the month of November equal $17,616.
o Pg 4 under the EDA Loan Fund, the cash on hand is $122,099. The EDA has generated a fund
balance of $147099 to date the year of 2006.
o Pg 5 under the EDA Downtown Loan Fund, cash on hand is $599,730. Mortgages receivable
is currently $638,839. $102,757 has been collected this year for loan repayments. A total of
$44,249 has been paid out thus far in 2006 including loans, downtown grant program, transfers,
and miscellaneous. The balance sheet reflects revenues of $58,463 above expenditures.
MIS/P: Walser, Haugen to approve the September financial statements as presented.
Passed unanimously.
V. Director's Report
Miles Seppelt gave the following report:
EDA Board Meeting
December 29, 2006
Page 2 of 4
A. Cornerstone Commons — Quizno's , Marine Corp., and Snap Fitness are currently open for business.
It is projected that Dunn Bros Coffee will open on February 1St' Second floor construction is
nearly complete and almost all units have been occupied or rented out.
Pet Hospital Building — The pet hospital demolition was completed earlier this month and the final
grant paper work with DEED is in the process of being filed.
B. Warrior Manufacturing — Warrior manufacturing building is moving right along. The steel skeleton
has been erected and the shell of the building should be on soon. Their revenues have been up 60 %, so
they are need of this new building. The projected opening date was April 15; however, this was pushed
back to sometime in May.
C. Cenex— The Hutchinson Cenex recently met with Cenex representatives to recognize the importance
cleanup. Mr. Seppelt mentioned that he was currently in the process of gathering estimates for a
Phase I & II environmental analysis. Most of the contamination on the current has been caused by oil -
leakage and fertilizer deposits. Ag -Vic program, which specializes in land and building cleanup, may
fund up to $270,000 of the cleanup costs.
D. Business Recruitment — Mr. Seppelt visited several businesses within Hutchison and its surrounding
townships. C and C Machine is a company located 4 miles west of Hutchison and they have some
interest of moving into the industrial park
VI. 2007 EDA Budget Update
The Wetherells still want to rent from the EDA. The monthly rent would be $500 a month, which in
turn would generate $6,000 for the 2007 fiscal year.
Mr. Seppelt indicated his salary was included in the 2007 budget.
M/S /P: Walser, Haugen motioned to recommend approve the EDA Budget as presented.
Passed unanimously.
State Theatre requested to maintain a interest only payment structure on their loan
M/S /P: Haugen, Walser motioned to keep the Downtown Loan for the State Theatre on an
interest only basis through all of 2007. Ulrich abstained
VII 2007 Goals
Seppelt explained the following goals:
o Farmers Market Pavilion - To keep the flow of redevelopment downtown and to continue the
utilization of the Main Street Master Plan Mr. Seppelt recommended the EDA evaluate the
development of a Farmer's Market Pavilion. The Pavilion would be located on the corners of
Hassan and 1St Ave. E. The estimated cost could amount to 150 -175 K. Potentially, the funding
could be allocated through the downtown grant program. It was discussed that the HDA
should contribute funds to offset the design or the construction costs of the project. The next
step for this project is a feasibility study.
o Industrial Spec Building - A 30,000 sq ft. industrial building was proposed to entice new
businesses to the community and to provide a facility for growing businesses to expand to.
This type of facility could be utilized as a business incubator. The project could be funded
through an EDA revenue bond which would equate to $4.00 a sq ft triple net. Potential profit
for this structure could annually return $30,000. The utilization of an Economic TIF district
could be used to offset the overall development cost. Mr. Ulrich thought this strategy would be
EDA Board Meeting
December 29, 2006
Page 3 of 4
good for the Stratesky property because it would be self efficient and it would eventually take
off.
o Industrial Park Access Road -To gain access and to further the development of the southern
Wetherell property it was proposed a certain size facility be located on the property with TIF.
The TIF revenues would go towards the cost of the infrastructure (road, sewer, water, etc). The
estimated cost of this project is 300,000 K.
VIII Grant & Loan Applications
Sign & Awning Grant
Snap Fitness— Christina Clark $2,000.00
M/S /P: Haugen, Walser motioned for approval of the Sign and Awning Gant as presented for
Snap Fitness. Passed unanimously.
The Little Country Store— Lee Grunhagen $830.98
M/S /P: Haugen, Walser motioned for approval of the Sign and Awning Gant as presented for
The Little Country Store. Passed unanimously.
Maria's Hair Salon— Maria Haack
$1,500.00
M/S /P: Haugen, Walser motioned for approval of the Sign and Awning Gant as presented for
The Little Country Store. Passed unanimously.
Storefront Revitalization Matching grant
Venus Salon & Spa— Doug Dobratz
$4,150.00
M/S /P: Haugen, Walser motioned for approval of the Storefront Revitalization Grant as
presented for Venus Salon & Spa. Passed unanimously.
IX. Other Business
- Next meeting elections have to be held for EDA board positions
- December 29a' was Intern Dan Sextons last day with the Hutchinson EDA
X. Chamber CVB Update
Mr. Vaillancourt reported the following:
• Chamber has just hired a part time Marketing Specialist and they are downsizing to
three full time staff members
• The Chamber is exploring the options of a possible Internship position in the future
• Their annual meeting will be held on January 25a'
XI. The next meeting will be Friday, January, 26 2007 at 7:00 a.m.
XII. Adjourn
The meeting adjourned at 8:13 a.m.
Respectfully submitted,
Brian Warzecha
EDA Assistant