02-23-2007 EDAMEDA Board Meeting
Minutes of Meeting
Friday, February 23rd 2007
Members present in bold print:
Members:
Tim Ulrich Steve Jansick
Duane Hoversten Casey Stotts
Staff:
Miles Seppelt, EDA Director
Ken Merrill, City Finance Director
I. Call to Order
Jim Haugen Diane Gordon
Mike McGraw
EDA President Tim Ulrich called the meeting to order at 7:04 AM.
II. Approve Agenda
No action.
III. Review & Approve Meeting Minutes
A. January 26th EDA Board meeting
M /S /P: McGraw, Stotts to approve the minutes of the January 26th, 2007 meeting of
the EDA Board as written. Passed unanimously.
B. February 7th joint meeting with City Council
These minutes were not available for review and will be considered at the next
meeting of the EDA Board.
C. January 17th Finance Team Meeting
The EDA Finance Team did not meet in February and so did not have an opportunity
to review their own minutes. These minutes will be considered at the next meeting of
the EDA Board.
IV. Review of EDA January Financial Statements — Ken Merrill
City Finance Director Ken Merrill reviewed the EDA's financial statements for the
benefit of the Board of Directors. Highlights included:
• There is a total of $255,799 in cash available in the operations budget.
• We've received $500 in rental revenue for the month from the Wetherell
Property.
• Expenditures for the month are just the typical items. Salaries for EDA staff
are the largest component.
We have a total of $126,479 in cash available in the Economic Development
Loan Fund. There is one loan outstanding with a balance of $26,569 and this
loan is performing as required.
In the Downtown Loan Fund we have $606,513 in cash available with
$625,619 in mortgages held. All loans are performing satisfactorily.
Board member Haugen inquired if downtown loans become due and payable
immediately if the property is transferred. Mr. Merrill indicated that this is indeed the
case.
M /S /P: Haugen, McGraw to accept the January Financial report as presented. The
motion carried unanimously.
V. Director's Report
EDA staff made the following report:
• Dunn Brothers coffee will be opening on Thursday, March 1St
• It appears that the partners involved in Cornerstone Commons will be
providing the funding for the leasehold improvements for the American
Pastime Sports Bar. Bruce Marcus will oversee this part of the project, so we
should see some action shortly.
• It looks as though Column Financial will be providing the permanent financing
for the Cornerstone Commons project. In talking with their loan officer, he
indicated that they do not want to see any other loans against the property —
so the EDA's downtown loan for $130,000 may not be necessary.
• A new business, "Family Video," will be constructing a 6,000 square foot
building just north of Ace Hardware downtown.
• Construction on Warrior Manufacturing's new facility is moving ahead quickly
— most of the building is now enclosed. They are looking to be open for
business by June 1St, which is about 2 weeks later than they originally
planned.
• The EDA has now received the final reimbursement from the Redevelopment
Grant that funded the acquisition and demolition of the old Pet Hospital
building downtown. The final out -of- pocket cost to the EDA was $2,810.65.
• The Phase I environmental work on the Cenex site is now completed. We'll
be applying to the AgVIC program immediately and moving on to the Phase II
environmental work as quickly as possible.
• During the past month we've made BR & E visits to the following businesses:
Econo Foods, Impressions, Target & Wal -Mart. EDA President Tim Ulrich
suggested that we visit "Rath Racing."
• Extra copies of the EDA 2006 Annual Report are available if anyone wants
them.
• The planned expansion of American Energy Systems is on hold at least for
the time being while they reassess their needs.
• EDA staff is currently working with a number of business prospects:
• Nordic Components is looking to build their own facility in the
industrial park — this would be about 12,000 square feet in size.
• A warehouse -type operation is looking for an existing 10,000 square
foot building. They may consider building a new facility.
• Another warehouse -type operation is considering various locations for
a 20,000 tip -up concrete facility.
• A call- center is looking for 15,000 — 20,000 square feet in which to
establish a facility. At present they are looking for an existing building.
• Another call center is looking for 5,000 — 7,000 square feet of space to
lease.
• A medical device company is looking for a location on which to build a
50,000 square foot facility.
The Nordic Components expansion looks pretty solid, but anything could
happen with the rest of these possibilities. There are a lot of variables.
City staff is looking at the Hutch Iron & Metal property to see what can be
done to improve the aesthetics of the area. There have been numerous
complaints over the years. EDA staff will visit the business in the near future
to see if we can arrive at a "win -win" solution.
VI. Farmer's Market Pavilion
Over the last month EDA re- crafted the RFP for the proposed Farmers Market
Pavilion and has obtained new proposals based on a phased approach to the
project.
Phase I design work will include:
• Develop schematic design (site & floor plans / exterior elevations)
• Create menu of design features for cost control
• Research preliminary probable costs for construction
This initial work will provide enough information to bring the EDA to a GO / NO GO
decision point for the project. In addition, enough information should be provided to
allow the EDA to seek bids on a "design- build" basis, if it so chooses.
If, on the other hand, the EDA decides to seek a general contractor, then we would
implement Phase II:
■ Create construction design drawings so project can be bid
We would then secure bids, the results of which will bring the EDA to a final GO / NO
GO decision point.
If the project can be done on a budget the EDA is comfortable with, construction
could begin in May and be completed hopefully by the time of the Jaycee's Water
Carnival in mid -June.
The Hutchinson Downtown Association has contributed $2,000 towards the design
work.
General Discussion ensued.
Once we have the Phase I results, the City Council will be updated on the project.
M /S /P: Haugen, Stotts to approve the hiring of Wold Architects to implement Phase I
of the design process for $3,500. Passed unanimously.
VII. Grant & Loan Applications
Three grant applications were reviewed. These were:
Sign & Awning Grants
Hutch Sport Shop Building — George Quast $2,000
M /S /P: Haugen, McGraw to approve the grant. Passed unanimously.
Curves — Dawn Berry $2,000
M /S /P: Stotts, Gordon to approve the grant. Passed unanimously.
Storefront Revitalization Matching Grant
Lighthouse Bookstore — Tammy Lauer $5,000
M /S /P: Haugen, Stotts to approve the grant. Passed unanimously.
These will be added to the agenda of the Finance Team for their review.
VIII. Other Business
A local business is looking at purchasing the 2nd floor of the Jorgensen Hotel (the
property would be condominiumized). The question that arises then, is if this
property would be eligible for a loan from the downtown loan fund.
Discussion ensued. It was noted that it is in our interest to promote the continued
redevelopment of the Jorgensen Hotel and that by getting the second floor done,
renovation of the third floor would become a virtual certainty.
It was also noted that the project fits within the "spirit" of the guidelines of the
downtown loan program if not the letter of the guidelines — which makes loans
available on a "per lot" basis. It may be necessary to tweak the language of the
program to make this project eligible.
The Board directed EDA staff to look at the downtown loan program rules and
propose amendments to address this possibility.
IX. Chamber Update
Miles Seppelt gave a brief update: Ben McConnell will be in town giving a talk on
"Citizen Marketers" at 11:30 AM on Wednesday, March 14t ". People that sign up
early get a complimentary copy of Mr. McConnell's book. People can sign up by
calling the office of the Chamber of Commerce.
X. Set Next Meeting
Due to various board members traveling, the next meeting of the EDA Board of
Directors was set for 7 AM, Friday, April 6t"
XI. Adjourn
The meeting adjourned at 8:15 AM.
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director