11-02-2007 EDAMEDA Board of Directors
Meeting Minutes
7 AM Friday, November 2, 2007
Members present in bold print:
Members
Tim Ulrich Diane Gordon
Casey Stotts Jim Haugen
Staff
Miles Seppelt, EDA Director
Shan Ghimire, EDA Assistant
Guests
Bill Corby
Steve Jansick Duane Hoversten
Mike McGraw
I. Mr. Ulrich called the meeting to order at 7:03 AM.
II. Approve Agenda: No action.
III. Review and Approve Meeting Minutes
a. Minutes of September 28th Board of Directors
M /S /P: Gordon, Haugen to approve the minutes from September Board of Director's
meeting. Approved unanimously.
b. September 19th Finance Team Meeting
M /S /P: Gordon, Stotts to approve the September 19th Finance Team meeting
minutes. Approved unanimously.
IV. Review September 2007 Financial Statements
Mr. Seppelt presented the following report:
• As of the end of September, the EDA has a negative $19,302 balance
due to payment released to the architect. However, we are being
reimbursed from Customer Elation which will be reflected in next month's
statements.
• The EDA received $500 in rental revenues for the Wetherell property.
• Professional services for the month totaled $63,475 reflecting largely a
payment made to ZRT architects for their work customer elation.
• The Economic Development (Industrial Park) loan fund has $86,052 in
cash available. Another, $50,000 needs to be added in the notes
receivable item from Warrior Manufacturing.
• The loan to Ashwill industries is performing as required, with an
outstanding balance of $23,436.
• The EDA is maintaining the outstanding loan balance of $21,560 on the
books for the time being from the Allied Mechanical loan.
• The EDA continues to have $25,000 on deposit with MCCF.
• In the Downtown Loan Fund, the EDA has $548,885 in cash available
and holds mortgagees totaling $695,821. All loans are performing as
required.
• For the first 8 months of the year the EDA has received $87,242 in loan
repayments and disbursed $35,326 in downtown grants.
• In the MIF Loan Fund, first payment of $2,600 was received from Warrior
manufacturing with total assets being $200,055.
M /S /P: Haugen, Stotts to approve financials for September. Passed Unanimously.
V. Director's Report
CENEX Project
All the documents have been signed and $200,000 has been handed over to CENEX.
Another $99,999 will be disbursed in January once the buildings are demolished.
Phase II environmental study is being finished soon; next step is to remove the dirt.
Customer Elation
Customer Elation reimbursed a total of $161,787 that the EDA had spent for architect
and soil work on the lot. They are planning to start footing and foundation on the week
of November 5th and are planning to have the building enclosed by mid January.
Warrior Manufacturing
They are moving with the production; 15 people have been hired so far. They met their
employment goal. They are in a process to close the loan with the state so we do not
have to report.
Business Recruitment
Recent BR & E visits included SHOPKO, Hilliard Floor Care, Hutchinson Technology
and Stearnswood. Also, there is a prospective company called Global Dlscware,
coming for tour on Monday. They will have a presentation for us about their plans.
EDA Website
There are plans for updating the EDA website with new look and more information.
More information will follow in the next meetings.
VI. Services for Goebel Property
There was discussion about water and sewer services needed for the Goebel property.
It was mentioned that the Charter School is under construction and working on their
water /sewer services. So, it would be easier to put services on Goebel lot at the same
time while they will be on site. It would also save our cost if we share it with the
Charter School. Estimated cost that we would have to pay would be about $18,540,
which includes survey work, legal expenses and other required expenses.
M /S /P: Stotts, Gordon to approve sharing necessary costs with Charter School to
provide water and sewer services on Goebel Lot. Passed Unanimously. Mr. Ulrich
abstained.
VII. Wetherell Buildings — Demolish?
Mr. Seppelt inquired about Board's thought on Wetherell buildings in the industrial park
area whether or not to demolish them. Consensus was that we should fist ask
Customer Elation what they would prefer since they have the exclusive right on the
property. If the buildings do not bother them at all, it would be a source of revenue for
EDA since we get monthly payments on rent. The Board thought that if we were to do
the demolition, the expenses should be added to the cost of the lot.
VIII. Industrial Park Design
Mr. Seppelt provided an update on Industrial Park Design. He mentioned that we got
the final report yesterday and staffs are working with ACH on the design layout. There
were three different options and option B looks like the most feasible to have low
impact design. Plan B economizes the infrastructure costs as wetland has been
proposed instead of storm water. This design gives the most lots that vary by size.
The design incorporates a future connection to the west. He also mentioned that there
is an infrastructure grant program available from the state. We have possibility to apply
for the grant so that we could put basic infrastructures in the park.
IX. Pending Board Members Vacancies (3 ?)
There was discussion about possible vacancies on the Board of Directors. Mr.
Hoversten is intending to resign from the board at the end of the year. We also have to
look at board members whose term is expiring. Mr. Seppelt mentioned that he would
have more information on the next meeting.
X. Recognition Event
Mr. Seppelt noted that it would be a good idea to organize a recognition event for
founding fathers and outgoing members of the board. We will have a plan next month.
XI. Grants & Loan Applications
Sign and Awning Grant
A. Sherry Eddy, Dog Training Center, 126 Main Street South $600.00
M /S /P: Stotts, Gordon to approve sign grant of amount $600 in addition to $1,400 that
was approved last month. Passed unanimously.
B. Jo Piehl, McLeod Alliance for Victims of Domestic Violence $1,010.00
M /S /P: Gordon, Haugen to approve a sign grant of $1,010.00 to McLeod Alliance for
Victims of Domestic Violence. Passed Unanimously.
C. Jim Corson, Corson's Store, 40 Main St. South $2,000.00
M /S /P: Haugen, Stotts to approve a sign grant of $2,000 to Corson's Store. Passed
Unanimously.
XII. Other Business
• Family Video is shooting to open for business by mid December.
XIII. Chamber Update
Mr. Corby updated the Board on the following events:
■ There is a Board Meeting planned for November 20tH
■ January 31 s'— Annual Banquet.
■ Passport to Hutchinson — starting tonight; 40 plus women are attending the
event.
XIV. Set next meeting
The next meeting will be Friday, November 30, 2007 at 7:00 am in the City Center
Main Conference Room.
XV. Adjourn
The meeting adjourned at 8:09 a.m.
Respectfully submitted,
Shan Ghimire,
EDA Assistant