10-27-2010 EDAMEDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, October 27th, 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
Dave Blumberg, Assistant Finance Director
Liaison
Bill Corby, Chamber President
I. Call to order
EDA President Tim Ulrich called the meeting to order at 11:33 AM
II. Approve Agenda — No Action
III. Review meeting minutes
A. September 22nd Board of Directors
M /S /P: McGraw, Retterath to approve the minutes as written. Passed unanimously.
B. September 15th Finance Team
M /S /P: Ulrich, Haugen to approve Finance Team minutes as written. Passed
unanimously
IV. Review of June financial statements — Finance director
• Cash available in operations is $104,488
• $56,736 is reserved (proceeds from Warrior land sale) and $40,208 is unreserved.
• The Economic Development Loan fund has $122,825 in cash available.
• Total assets in the Economic Development Loan fund are $207,756.
• Downtown revolving loan fund has $377,418 in cash available, loans totaling
$656,655 and $201,329 in capital assets (Cenex & Wright properties)
• Loan repayments totaled $11,631 for the month.
• MIF Loan fund has $266,640 in cash available and loans receivable of $952,452.
• A total of $14,193 in MIF loan repayments came in during the month.
Staff reported that two downtown loan were behind in their payments. Efforts were being
made to get the up -to -date.
M /S /P: Haugen, Vanderheiden to approve the financial report as amended. Passed
unanimously.
V. Director's Report
A. Industrial Park
1. Ribbon Cutting event was successful and resulted in some good media coverage.
2. Chips Holding Company— In the process of putting up steel framing.
B. County Project — Company X is ironing out final legal items before construction begins.
C. SBDC Grant — Hutchinson has been awarded a grant in the amount of $37,500 was for
the establishment of a Small Business Development Sub - Center.
D. BDIA Grant (state grant for industrial park) — A payment request has been submitted
to the state for the final $10,000 of the grant.
E. Wetherell Property Update — Demolition is expected to start in approximately two weeks
(November 15t ) .
F. Midwest Industrial Tool Grinding, Inc — The company seems to be moving ahead with
their project at the building they leased from HTI. They appear to have discontinued the
process of applying for an EDA loan.
G. Comprehensive Plan Update — The City of Hutchinson is in the process of updating its
comprehensive plan. The updated plan will have a section specifically for economic
development.
H. Mayor Cook initiatives — Staff updated the Board on some ideas the Mayor had
regarding a small business incubator and marketing the new industrial park.
VI. Warrior Mfg. Land Sale / Purchase
Staff reported that Warrior Manufacturing is looking to sell back their previously purchased Energy Park
lot (10.5 acres) to the north of their current location and instead purchase the lot to the east (3.18
acres).
The east lot will better fit their long -term expansion needs.
Discussion followed.
M IS /P: McGraw, Haugen to approve purchase of the north lot for $30,000 per acre and sale of the east
lot to Warrior for $40,000 per acre. Passed unanimously.
VII. Stritesky Property
A. Minor tile work needed —In process of getting quotes.
B. Authorization to lease — Move ahead
Staff reported that the renter has identified another persistent wet spot on the property and
inquired about having some additional tile work done to remedy the situation.
M /S /P: Retterath, Czmowski to obtain bids for the necessary tile work and accept the lowest
qualified bid. Passed unanimously.
M /S /P: McGraw, Retterath to approve leasing the 77 -acre Stritesky property for the 2011
crop year. Passed unanimously.
VIII. DEED "Shovel Ready" certification for the new industrial park
Staff presented information about the Shovel Ready program and an overview of the costs
involved in obtaining "Shovel Ready" site certification for the new industrial park. Key points:
• This is a new DEED program.
• Through this program, DEED is certifying to site selection professionals that "shovel
ready" sites are at the highest state of readiness for immediate development.
• Site selectors like this program because it provides a lot of information up front and
removes uncertainty from the site selection process.
• Detailed information about the Hutchinson industrial park will be featured on the
DEED website.
• Thus far 13 cities across Minnesota have obtained "shovel ready" site certification.
• This certification appears to be the new standard when it comes to promoting an
industrial park.
• Costs involved are as follows:
Item
Cost
Program fee to DEED
$2,950
Phase I Environmental Braun Intertec
$1,700
Geotechnical evaluation Landmark Enviormental
$2,220
Title Commitment Crow River Title
$500
ALTA Surve Pellnan Land Surveying)
$1,6Q0
Contingency
$1,000
Total
$9,970
Discussion followed.
The Board agreed that the EDA marketing strategy will be comprised of the following:
1) Existing EDA website
2) DEED "Shovel ready" program
3) MNPRO (DEED's property listing service)
The key is to place information where site selectors and business owners will be looking for it.
M /S /P: Haugen, McGraw to approve obtaining "Shovel Ready" site certification for the
industrial park. Passed unanimously.
IX. Grant & Loan Applications
Sign and Awning Grants
Catherine Libor — 35 Main Street North $1,842
Robert Powell — 28 1 st Ave NE $2,000
Rena Hall — 228 Main Street S. $2,000
Ann McMahon — 246 Main Street, Suite 3 $975
M /S /P: McGraw, Haugen to approve all four Sign & Awning Grants. Passed unanimously.
X. Other Business
■ The Warrior Mfg. and Customer Elation MIF funds are in the process of being De-
federalized and will shortly be transferred into the EDA's Economic Development Loan
Fund.
XI. Set Next Meeting — November 24th
XII. Adjourn
Mr. Ulrich adjourned the meeting at 12:24 PM
Respectfully Submitted,
Eric Browne
EDA Assistant