02-22-2012 EDAMEDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, February 22, 2012
Members present in bold.
MEETING MINUTES
Members
Tim Ulrich Steve Jansick Mike Retterath Daron Vanderheiden
Chad Czmowski Mary Christensen Mike McGraw
Staff
Miles Seppelt, EDA Director
Joe Lang, EDA Assistant
Andy Reid, City Controller
Liaison
Bill Corby, Chamber President
I. Call to order
a. EDA President Tim Ulrich called the meeting to order at 11:30 AM
II. Approve Agenda — No Action
III. Review meeting minutes:
a. January 22nd , 2012 Board of Directors
M /S /P: Czmowski, Retterath to approve the minutes as written; passed unanimously.
b. January 18th, 2012 Finance Team
M /S /P: Ulrich, McGraw to approve the Finance Team minutes as written; passed
unanimously.
IV. Review November EDA Financial Statements — Andy Reid
• Cash available in operations is $140,496
• $56,736 is reserved (proceeds from Warrior land sale) and $79,840 is unreserved.
• The Economic Development Loan fund has $515,495 in cash available.
• Loan payments for the month were $9,759
• Total assets in the Economic Development Loan fund are $918,286.
• Downtown revolving loan fund has $522,060 in cash available, loans totaling
$516,375 and $201,329 in capital assets (Cenex & Wright property).
• Loan repayments totaled $7,439 for the month.
• MIF Loan fund has $106,669 in cash available and loans receivable of $412,235
(NuCrane).
• NuCrane had prepaid their January payment in December, so no MIF income this
month.
M /S /P: Christensen, Vanderheiden to approve the financial report as presented; passed
unanimously.
V. Director's Report
a. Federal Grant Status (Industrial Park): $238,995 Remaining — Staff informed the
board that more information needs to be sent out and reviewed before the check can be
issued.
Marketing Plan Update — Staff updated the board on the progress of development on
the marketing plan.
c. Business Retention & Expansion Program — Staff visited HTI, Ashwill Industries, and
Warrior Manufacturing. HTI claims to be stable, they have completed their layoffs, and
plan to maintain production at all three of their major locations. Ashwill Industries is busy,
doing well, and sales have increased in 2011. Warrior Manufacturing is very busy, 2011
sales increased 30% over 2010, and they plan to add more employees.
d. Depot / Farmer's Market Update — Staff updated the board on the site plan approval
and plans to re -plat the lot should be done at the end of the month. Environmental Phase
One is on the verge of being complete and Phase Two will soon proceed. Staff will also
begin to getting quotes with a contractor to relocate the depot building. Project appears to
be on schedule thus far.
VI. Minnesota Angel Network Update — Staff informed the board about the MNAN meetings
attended, and shared an information packet on prospect companies. Eventually a company
from MNAN will be brought to Hutchinson — there are a number of good prospects.
VII. Consider Appointment of Colin Clark to Finance Team — Staff informed the board about
Colin Clark's interest to be part of the finance team. Followed by a brief background about
Colin and his work thus far with the Hutchinson EDA. Positive comments were made and a
final decision was made to approve his appointment as a member of the finance team.
M /S /P: McGraw, Czmowski to approve the appointment of Colin Clark as member of the EDA
Finance Team; passed unanimously.
VIII. Business Recruitment Update
a. Company "X" — This prospect is probably dead. We had them to Hutchinson and it was
a good visit overall. However funding for the company would be very challenging
because, at present, they are in a "negative equity" situation and are essentially out of
cash.
b. Company "Y" — Company is in the process of locating space in Hutchinson. Needs top
quality office type space for software development operations.
c. Company "Y" — Staff updated the board on the current needs of the company. Good
prospect, discussion followed. Company has met with officials from HTI about obtaining
production space and the potential for some sub - contracting work.
IX. Strategic Planning 2012
a. Tweak Mission Statement — Staff suggested a minor change to the newly proposed
mission statement. Positive feedback followed.
The revised mission statement reads:
"The mission of the Hutchinson Economic Development Authority is to promote
job creation, redevelopment, and business development."
b. Discuss Proposed EDA Goals — Staff reviewed a list of the proposed goals with the
Board. Discussion followed.
X. Consideration of EDA Spec. Building /Business Incubator Project — Staff informed the
board that some spec building /incubator space has been found, with great potential, but it
depends on the desire of the owner to do something with it. Discussion followed. More
information will be presented next meeting.
XI. Grant & Loan Applications
Sign & Awning Grant Program
Delores Brunner — Hutchinson Auxiliary Thrift Shop $400
25 Main Street North
M /S /P: McGraw, Christensen to approve grant; passed unanimously.
Tina Erikson — Integrity Salon & Spa $2,000
3 Main Street North
M /S /P: Czmowski, Retterath to approve grant; passed unanimously.
Robert McCarthy — Robert Michael's Hair Salon originally $1559.19
140 Main Street North
(Grant approved in November. Mr. McCarthy is requesting a grant adjustment of $40.3 4 for additional
project related charges from the contractor)
M /S /P: Czmowski, Christensen to approve the grant adjustment; passed unanimously.
XII. Other Business — None
XIII. Chamber / CVB Update — Staff updated the board on upcoming chamber events.
a. Business After Hours: - Thursday, March 8, 4:00 -6:00 pm, The Eagles Club
b. Hutchinson Leadership Institute — Projects underway — Projects include a website for
organizations, revitalizing Miller Woods entrance and Traverse Rock Wall at Rec Center, an
outdoor classroom at Westwood Elementary near pond.
c. Who Let The Girls Out — Ladies weekend April 27 -28
d. Changes — New logo, electronic newsletter has new look, new organization name and web page
coming soon.
XIV. Set Next Meeting — March 28th
XV. Adjourn — With no further business to attend to, the meeting was adjourned at 12:30 pm.
Respectfully Submitted,
Joe Lang
EDA Assistant