06-24-2009 EDAMEDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, June 24, 2009
Meeting Minutes
Members present in bold.
Members
Tim Ulrich Diane Gordon Steve Jansick Marc Vaillancourt
Chad Czmowski Jim Haugen Mike McGraw
Staff
Miles Seppelt, EDA Director
Ryan Miller, EDA Assistant
Jeremy Carter, Financial Director
Liaison
Bill Corby, Chamber President
Call to Order
Mr. McGraw called the meeting to order at 11:36 AM.
Approve Agenda
No action.
III. Review Meeting Minutes
A. May 27th Board of Directors
M /S /P: Vaillancourt, Haugen to approve May 27th Board of Directors' Minutes. Passed
unanimously.
B. May 20th Finance Team
M /S /P: Vaillancourt, Czmowski to approve May 20th Finance Team Minutes. Passed
unanimously.
IV. Review of May Financial Statements — Finance Director
• Cash available for operations is $44,690.
• The EDA has current liabilities totaling $1,241 and total fund balance of $43,449.
• In May, the EDA had $9,207 in rent revenues and $45,096 in expenditures.
• The Economic Development Loan Fund had $76,187 in cash available, liabilities totaling
$125,902, and a total fund balance of $76,187.
• In May, the Economic Development Loan Fund had $680 in loan repayments.
• The Energy Loan Fund had $357,090 in cash available and $732,901 in Loans
Receivable.
• The Energy Loan Fund had $7,635 in Commercial Loan Repayments in May.
• The MIF Loan Fund had $109,768 in cash available and $599,288 in total liabilities.
V. Director's Report
A. Industrial Park
Mr. Seppelt stated that the Industrial Park project is in a holding pattern until the results are
back from the federal grant application. Mr. Seppelt has heard back from the Army Corps of
Engineers which is the last step before the application goes to Washington. The contractor
providing the low bid will hold that number until September 15.
B. Atomic Crane Co.
Mr. Seppelt informed the board that Mr. Daggett is close to finalizing agreements.
C. County EDA
Mr. Seppelt reported that the County EDA Exploratory Committee had its third meeting which
focused on funding. The next step will be a meeting with the county board. A workshop with
the county commissioners is scheduled for Tuesday July 7 t
D. BR & E Census Update
Mr. Corby reported that 14 of the 37 target visits have been completed and all 14 have
returned their survey census. Second calls will start going out in order to complete the
census.
E. Ashwill Industries Update.
Mr. Seppelt confirmed that Ashwill Industries' loan is now current through June.
VI. Cenex Site Redevelopment
The two lots of the Wright property have been purchased and demolitions will begin soon.
Quotes are in for the site survey, cleanup, house demolition and tree removal and these
steps would start in early July. Final site preparation will include bringing soil to the site from
the industrial park and then grading and re- platting the lots into one lot approximately 3.02
acres.
Quotes
Site Survey $2,900 Pellinan Land Surveying
Hazardous Materials Inspection $510 (approx) Assessco Environmental Services
Tree & Brush removal $2,700 Sargent's Tree Service
House Demolition $1,200 Luedtke Contracting
Hazardous Materials Removal variable (depends on findings)
TOTAL $7,310+/-
It was proposed that the funding for this work come out of the Downtown Revolving Loan
fund, to be repaid once the lot(s) are sold for redevelopment.
M /S /P: McGraw, Vaillancourt to approve the plan for the Cenex site redevelopment as
presented. Passed unanimously.
VII. Wetherell Property Redevelopment
The septic system on the Wetherell property is dysfunctional. The septic tank was pumped
out once already but failed to improve the situation. Cost of the repairs could total $5,900 to
connect to the city sewer system. The city has the option to pull the lease from the current
tenants and have the property vacant within 90 days or ask the tenants to pay the cost of
repairs.
M /S /P: Gordon, Haugen to give the Wetherell's 90 days notice that their lease will be
terminated; giving the Wetherell's the option of repairing the septic system on their own and
continuing to rent the property if they wish. Passed unanimously.
VIII. Request for Loan Subordination (Land Write -down — Dick McClure)
Citizen's Bank has refinanced a loan for Mr. Dick McClure. Because of this we need to re-
subordinate its loan to that of the bank.
M /S /P: Gordon, McGraw to approve re- subordination of the McClure loan for Citizen's Bank.
Tim Ulrich abstained. Passed unanimously.
IX. Customer Elation Claim — $1,608.27
During the course of the Customer Elation building project, the need for some additional soil
corrections in the parking lot came to light. Customer Elation has paid for these corrections
and is requesting that the City of Hutchinson pay the invoice for the related soils testing by
Braun Intertec. Customer Elation feels that city is partly responsible and should accept some
of the cost.
M /S /P: Vaillancourt, Gordon to request that Braun Intertec write -off the invoice; if that cannot
be done, to attempt to negotiate a reduced amount to be split between Braun Intertec and the
EDA — with the EDA covering up to 100% of the invoice amount if absolutely necessary;
purely as a "good will" gesture to Customer Elation, as the EDA denies all responsibility.
Passed unanimously.
X. Support for Southwest Initiative Foundation - $5,000
The Southwest Initiative Foundation is seeking confirmation of the EDA's annual support for
purposes of their fiscal planning. The EDA has been providing support of $5,000 annually.
M /S /P: Gordon, Czmowski authorize $5,000 in support of the Southwest Initiative Foundation
for the 2010 budget year. Passed unanimously. Mr. Vaillancourt abstained.
XI. Grant and Loan Applications
Bob Schleuter was originally approved for $8,536 for a commercial rehab loan. Project
invoices totaled $9,226.09 and Mr. Schleuter is requesting the loan amount be adjusted
accordingly. The Finance Team recommended approving the loan for the new total of the
estimates, an increase of $690.09.
M /S /P: Czmowski, Vaillancourt to approve loan adjustment. Passed unanimously.
XII. Other Business
None.
XIII. Chamber Update
■ Pohlad / MN Chamber Grant and Loan Program will be complete soon.
■ The Minnesota Wild Road Tour will be in Library Square Wednesday June 24th, from 4 -5 PM.
■ The Mankato Area Community Band will be performing at Music in the Park on June 29tH
■ Business after Hours will be held at Oakdale Golf Club on Wednesday July 8th
■ Oakdale Golf Club will also be hosting the Hometown Golf Challenge this year on Monday,
July 27tH
■ RiverSong Music Festival will be July 13 -19 in West River Park.
XIV. Set Next Meeting — July 22nd
XV. Adjourn
The meeting was adjourned at 12:44PM.
Respectfully Submitted,
Ryan Miller
EDA Intern