02-25-2009 EDAMEDA Board Meeting
Main Conference Room — City Center
12 PM Wednesday February 25th, 2009
Meeting Minutes
Members present in bold print.
Members
Tim Ulrich Diane Gordon
Chad Czmowski Jim Haugen
Staff
Miles Seppelt, EDA Director
Melissa Reichl, EDA Assistant
Steve Jansick Marc Vaillancourt
Mike McGraw
Liaison
Bill Corby, Chamber President
Call to Order
Mr. Ulrich called the meeting to order at 12:04 PM.
II. Approve Agenda / Introductions
No action.
III. Review Meeting Minutes
A. January 28 Board of Directors
M /S /P: McGraw, Vaillancourt to approve the January 28th EDA Minutes as written. Passed
unanimously.
B. January 21St Finance Team
M /S /P: Jansick, McGraw to approve the January 21St Finance Team minutes. Passed
unanimously.
IV. Review of Financial Statements — Finance Director
A. December / 2008 year -end
• Cash available for operations is $109,796 as of December 31, 2008.
• Year to date taxes received are $134,496.
• Cash available in the Economic Development Loan Fund is $109,349.
• The Downtown Loan Fund has $324,140 in cash available and holds mortgages at
$713,067.
• The MIF Loan Fund has $67,003 in cash available and has assets totaling $707,337.
M /S /P: Vaillancourt, Jansick to approve as presented. Passed unanimously.
B. January
■ Cash available for operations is $101,124 as of January 31, 2009.
■ $500 in rental income was received from the Wetherell property.
■ The Economic Development Loan Fund has $98,426 in cash available.
■ $11,603 was expended in January in a loan to Ashwill Industries.
■ The Downtown Loan Fund has $333,478 in cash available and holds mortgages at
$713,067.
■ $9,337 in Commercial Loan repayments were received in the month of January.
■ The MIF Loan Fund has $75,556 in cash available.
M /S /P: McGraw, Czmowski to approve as presented. Passed unanimously.
V. Director's Report
A. Cenex project
Mr. Seppelt reported that the clean -up portion of the project is complete. He is waiting for official
letters of non - association before ownership of the land can be transferred to the city.
B. County EDA
Staff is working on scheduling a meeting time for the "Exploratory Committee."
C. BR & E project
The EDA is working in collaboration with the Chamber of Commerce and Ridgewater College to
put together an in -depth business census that will be distributed to approximately 40 local
businesses.
D. Incubator feasibility
A study was conducted by several MBA students to determine the feasibility of an incubator in
the Hutchinson area. They reported their findings on Wednesday February 25th. Staff is currently
evaluating the findings
E. BDIA grant application
Mr. Seppelt completed the grant application and is still waiting to hear back. He should hear
back by Friday.
F. Federal grant application
Mr. Seppelt completed the Federal grant application and plans on hearing back in 4 -5 weeks.
VI. Administrative Items
A. Election of Officers
President:
Tim Ulrich
Vice President:
Mike McGraw
Treasurer:
Steve Jansick
Secretary:
HCDC Intern
Assistant Treasurer:
Jeremy Carter
M /S /P: Vaillancourt, Haugen to elect the slate of officers as nominated. Passed unanimously.
B. Board member pay
Mr. Seppelt paid each Director $1 for their service in 2008.
VII. Company Prospects (update)
Mr. Seppelt gave the Board an update on two prospective companies.
Tom Daggett is moving forward with a project on the lot between Hutchinson Manufacturing and
the Victorian Inn. Discussion ensued.
M /S /P: Jansick, McGraw to authorize the use of JOBZ and the Minnesota Investment Fund
(MIF) to provide financial assistance for Tom Daggett's project. Passes unanimously.
VIII. Industrial Park Infrastructure
A. Scope
Mr. Seppelt reported that the annexation process is more -or -less complete and the project
overall is on track. SEH, Inc. is doing some of the engineering work for the project. Mr. Seppelt
also presented a tentative project time line.
B. Project financing
The board discussed the financing options for the project.
IX. Sale of Industrial Park Property to Warrior Mfg. — 8.6 acres
Warrior Mfg. has expressed an interest in purchasing 8.6 acres of the new industrial park. This
is comprised of a 1.6 acre lot immediately to the north of their existing property and 7 acres
directly to the east.
M /S /P: Vaillancourt, Haugen to authorize the sale of land to Warrior Mfg. for $22,000 an acre,
but not less than $20,000 an acre, plus assessments. Passed unanimously.
Fla
XII.
XIII.
XIV.
XV.
Cenex CO -OP Site Redevelopment
Staff updated the Board on an inquiry that was received for the site. No action was taken at this
time.
EDA Annual Report — Draft Report
Staff is still working to complete the 2008 annual report
Loan Subordination for Citizens Bank — Main Street Pizza
M /S /P: Haugen, Jansick to approve subordination of Main Street Pizza loan.
Passed unanimously, with Tim Ulrich abstaining.
Disposition of Allied Mechanical Loan
Staff reported that all legal means to collect on the loan have been exhausted.
M /S /P: Vaillancourt, McGraw to write -off the Allied Mechanical loan as uncollectable.. Passed
unanimously.
Grant & Loan Applications — Melissa
Downtown Loan Program
Richard Peterson —116 Main Street South
$8,300 @ 3.25% for 15 yrs.
M /S /P: McGraw, Haugen to approve Richard Peterson's loan request of $8,300 @ 3.25% for 15
years. Passed unanimously.
Julie Elder— 18 Main Street South
$18,563.26
M /S /P: Jansick, Haugen to approve Julie Elder's loan request of $18,563.26 subject to all
program requirements being met. Passed unanimously, with Mr. Vaillancourt abstaining.
Other Business
Staff inquired about changing the monthly meeting time of the EDA Board to 11:30 AM. It was
agreed that 11:30 AM worked better with everyone's schedules.
XVI. Chamber Update
Mr. Corby gave the Board a brief update on Chamber activities:
• "How to Generate Immediate Income"
• New MN Chamber website — mnbizconnect.com,
• McLeod County Food Drive.
XVII. Set Next Meeting
The next meeting of the EDA Board of Directors was set for March 25th at 11:30 AM.
XVIII. Adjourn
The meeting adjourned at 1:33 pm.
Respectfully submitted,
Melissa Reichl
EDA Assistant