10-27-2009 EDAMEDA Board Meeting
Main Conference Room — City Center
11:30 AM Tuesday, October 27th, 2009
Meeting Minutes
Members present in bold.
Members
Tim Ulrich Diane Gordon Steve Jansick
Chad Czmowski Jim Haugen Mike McGraw
Staff
Miles Seppelt, EDA Director
Ryan Miller, EDA Assistant
Jeremy Carter, Finance Director
Liaison
Bill Corby, Chamber President
Call to Order
Mr. Ulrich called the meeting to order at 11:34 AM.
Approve Agenda
No action.
III. Review Meeting Minutes
A. September 29th Board of Directors
Marc Vaillancourt
M /S /P: Haugen, Vaillancourt to approve September 29th Board of Directors' Minutes as
written. Passed unanimously.
B. September 23`d Finance Team
M /S /P: Jansick, Czmowski to approve September 23 d Finance Team Minutes as written.
Passed unanimously.
IV. Review of September Financial Statements — Finance Director
• In operations the EDA has $69,367 in cash available, $22,736 is reserved (proceeds
of Warrior land sale)
• Year to date property tax revenue totals $71,924.
• In the Economic Development Loan Fund we have $83,023 in cash available.
• In addition we have a receivable of $32,461 for work done of the Stritesky Property.
• Notes receivable total $89,551 and all loans are performing as required.
• For the month we've had $1,206 in loan prepayments.
• In the Downtown Revolving Loan Fund we have $367,547 in cash, $708,872 in loans
receivable and $150,000 invested in Capital Assets — 3 d Avenue lots.
• Loan repayments for the month totaled $9,087.
• In the MIF Loan Fund we have $145,429 in cash available and outstanding loans
totaling $566,261.
■ For the month we have received $8,553 in loan repayments.
M /S /P: Gordon, McGraw to approve the September financial statements as presented.
Passed unanimously.
V. Director's Report
A. Cenex Redevelopment update
■ Monitoring wells have now been installed by Braun Intertec. These wells will be
in place for approximately six months, but could be in as long as twelve months.
The site has already been given an "all clear" environmentally; these wells will
just be in place to track the movement of any remaining underground
contaminants. Black dirt from the Industrial Park will be arriving as soon as the
weather allows.
B. Industrial Park
■ The Industrial Park is now moving full steam ahead. The grant money and notice
to proceed have cleared the final hurdle and the only obstacle now is the
weather. Once the land is dry enough to move dirt around, work will begin and
continue into the winter, again weather permitting.
C. NuCrane
■ A sticking point has come up with the JOBZ status at NuCrane Manufacturing
due to job creation numbers being significantly lower than what was originally
thought. Staff is working with the company, DEED and the Department of
Revenue to arrive at a solution.
D. Customer Elation
■ Customer Elation has been doing very well and may be adding another 50 jobs in
the first half of 2010. If so, Customer Elation may be looking for an equipment
loan of about $100,000.
E. County EDA
■ The McLeod County EDA Exploratory Committee met with the County Board on
October 6th for a second workshop. Items discussed at this workshop included:
enabling legislation, an "opt -out" clause and also funding. The County Board
asked the Committee to consider another workshop in December.
F. Stritesky Property
■ Staff has been receiving inquiries about leasing out the Stritesky Property for
2010.
VI. Consider Appointment of Additional Finance Team Members
Following an invitation from staff, Jeff Grant of First Minnesota Bank and Josh Gehlen of
Home State Bank have both expressed an interest in joining the EDA Finance Team. The
Finance Team is recommending them for appointment.
M /S /P: Vaillancourt, Haugen to appoint Jeff Grant and Josh Gehlen to the EDA Finance
Team. Passed unanimously.
VII
VIII.
X.
Industrial Park Land Sale
A. Warrior Manufacturing —11.6 acres
Warrior Manufacturing will be purchasing 11.6 acres of land just north of their existing
facility.
B. Hutchinson Utilities Commission — 3.09 acres
Staff has visited with members of the Hutchinson Utilities Commission to see if they might
be interested in purchasing the 3.09 acre parcel immediately to the east of their existing
property. HUC is interested in purchasing the property; however they are unwilling to
consider paying assessments.
Staff has also visited with McLeod County Solid Waste and they may be interested in
purchasing the property as well. Discussion followed. It was agreed to wait and see
what McLeod County Solid Waste wanted to do.
Industrial Park Land Purchase — Hackbarth Property (5.65 acres)
There is a need for storm water drainage from the southeast corner of Energy Park to the
County Ditch which lies several hundred feet to the south, across 5th Avenue. Initially it had
been planned to acquire a drainage easement from Marvin Hackbarth along the east edge of
his 5.65 acre lot. Discussions were underway; however he passed away in mid - summer.
The heirs to the property do not which to have a drainage easement across it, although they
are willing to sell the property. Options for locating the drainage easement on the Knife Rive
side of the property were discussed, as was the purchase of the remaining Hackbarth
Property. Funding could come from the sale of land to Warrior.
M /S /P: Jansick, to authorize up to $30,000 per acre for the purchase of the
property, on the condition that an immediate drainage easement be granted, and contingent
upon City Council approval. Passed Unanimously.
Grant & Loan Applications
Downtown Loan Program $14,720.00 10 years at 1.25%
Maria Oman (Dana's Dog Spa / All That Dance)
130 Main Street South — Roof Replacement
M /S /P: Gordon, Haugen to approve loan. Passed unanimously.
Other Business
■ Charter School
The Charter School on 5th Avenue had wanted to put in an ice rink on EDA property.
Due to legal issues this is not feasible.
■ Marc Vaillancourt
Mr. Vaillancourt has taken a new job and will be resigning from the EDA Board.
Similarly, Diane Gordon may be relocating, as also submitted her resignation.
The Board thanked both Ms. Gordon and Mr. Vaillancourt for their years of service to
the community.
Discussion of possible nominees to fill the two vacancies ensued. Staff noted that it
is necessary to publicly advertise any vacancies.
M /S /P: Jansick, Gordon to direct staff to visit with Daron VanderHeiden and Mike
Retterath to see if they have an interest in serving on the EDA Board of Directors.
Approved unanimously.
Nominations will be considered at the next regularly scheduled meeting of the EDA
Board.
XI. Chamber Update
• November 10 — Chamber Link Luncheon — Kathy Schwantes, at Ridgewater College
• Holiday Sampler — November 12, 5:00 - 7:00 P.M. at the Hutch Event Center
• The third annual Passport to Hutchinson will be held November 6 -7.
• Business Compass will be held on November 4th & 18tH
XII. Set Next Meeting — November 25th
XIII. Adjourn
The meeting was adjourned at 12:50 PM.
Respectfully Submitted,
Ryan Miller
EDA Assistant