08-25-2010 EDAMEDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, August 25th, 2010
Members present in bold.
MEETING MINUTES
Members
Tim Ulrich Steve Jansick Mike Retterath Daron Vanderheiden
Chad Czmowski Jim Haugen Mike McGraw
Staff
Miles Seppelt, EDA Director
Eric Browne, EDA Assistant
David Blumberg, Assistant Finance Director
Liaison
Bill Corby, Chamber President
I. Call to order
Tim Ulrich called the meeting to order at 11:35 AM
II. Introductions — Eric Browne, new intern
III. Approve Agenda — No Action
IV. Review meeting minutes
A. June 30th Board of Directors
BR & E Visits
• Hutchinson COOP / Cenex
• Ohly
• Lynn Card Company
• Hutchinson Technology, Inc.
M /S /P: Vanderheiden, Ulrich to approve the minutes as written. Passed unanimously.
B. June 23rd Finance Team
M /S /P: McGraw, Czmowski to approve Finance Team minutes as written. Passed
unanimously
V. Review of June financial statements — Finance director
■ Cash available in operations is $144,856
■ $56,736 is reserved (proceeds from Warrior land sale) and $82,183 is unreserved.
■ Tax levy funds of $77,326 were received (1St half taxes)
■ $500 in rental income was received in for the Wetherell property.
■ The Economic Development Loan fund has $119,986 in cash available.
■ The Warrior and Ashwill Industries loans are performing as required.
■ Total assets in the Economic Development Loan fund total $207,559.
■ Downtown revolving loan fund has $364,680 in cash available, loans totaling
$675,792 and $201,329 in capital assets (Cenex & Wright property)
■ Loan repayments totaled $9,474 for the month.
• MIF Loan fund has $231,810 in cash available and loans receivable of $983,506.
• A total of $8,553 in loan repayments came in during the month.
M /S /P: McGraw, Retterath to approve the financial report as presented. Passed
unanimously.
VI. Director's Report
A. Industrial Park
1. MCSW land sale — Currently in holding pattern
2. Ribbon Cutting Event — Set for Tuesday September, 7t" at 4:00 PM
3. Chips Holding Company — Building on site is approved and set to begin as soon as land
sale is finalized.
4. Customer Elation Business Subsidies — Looking into extending their time window for
creating 100 jobs (currently 85) by one year.
B. County Project
■ Company hopes to get site work done this fall and plan to start building next spring.
C. Buffalo Wild Wings
■ Moving ahead with the project and have begun building. Looking to finish by the end
of November.
VII. Wetherell Property Final Disposition
Staff reported that the Wetherell's are on track to move out on September 1St. Went over
demolition cost estimates and discussed Customer Elation's possible future plans with
purchasing the site.
Cleaning up the site would also remove any liability concerns.
M /S /P: McGraw, Vanderheiden to approve demolition of property with 1/3 of cost being
added to sale price of the lot. Passed unanimously.
VIII. Update on MIF Revolving Loan Fund
Staff updated the EDA Board on the status of the MIF revolving loan fund. DEED will want
the EDA to use the MIF dollars it already has before applying for additional grants.
A key policy question is whether to use the existing MIF balance to make new loans or to wait
until all dollars are repaid so that all remaining federal government requirements for the use
of the money can be removed.
The EDA Board directed the staff to conduct further research on what conditions need to be
met before the Federal rules can be dispensed with. Discussion will continue next month.
IX. Upcoming Projects (update on items in the pipeline)
A. Gus Wurdell project — Establishing a small company, initially start with 3 employees and
grow to 8 within five years. Possible equipment loan.
B. Jorgenson Hotel Project — Owners are looking at renovating the top two floors and may
look into purchasing the Leader Building.
C. Small Business Development Center project — Looking to establish SBDC sub - center
here in Hutchinson, which might involve financial support from the EDA.
D. DEED "Shovel Ready" certification for Energy Park — Staff presented information about
DEED's "Shovel Ready" certification program for the industrial park.
The EDA Board requested more exact cost information before making a decision
(Geotechnical Evaluation, Phase 1 Environmental Test, Land Surveying, etc.). Staff also
plans to contact current "Shovel Ready" certified cities to research costs and challenges
of the program. Discussion set to continue next month.
X. Grant & loan applications - None
XI. Other business - None
XII. Chamber update
• Hutchinson Leadership Institute — Accepting applications for 2010 -2011 session
• Hunger Free McLeod — meeting August, 26 h, Hutch Event Center 6:00 — 7:30 PM
• Arts and Crafts Festival — September 17th and 18th
XIII. Set next meeting — September 22 "d
XIV. Adjourn
Mr. Ulrich adjourned the meeting at 12:37 PM
Respectfully Submitted,
Eric Browne
EDA Assistant