07-25-2012 EDAMEDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, July 25th, 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
Aaron Othoudt, EDA Assistant
Andy Reid, City Controller
Liaison
Bill Corby, Chamber President
Call to order
EDA President Tim Ulrich called the meeting to order at 11:34 AM
Approve Agenda — No Action
III. Review meeting minutes:
June 27th, 2012 Board of Directors
M /S /P: McGraw, Czmowski to approve the Board minutes as written; passed unanimously.
June 20th, 2012 Finance Team
M /S /P: Ulrich, McGraw to approve the Finance Team minutes as written; passed
unanimously.
Iv. Review May EDA Financial Statements — Andy Reid
■ Cash available in operations is $158,715
■ $56,736 is reserved (proceeds from Warrior land sale) and $99,557 is unreserved.
■ The Economic Development Loan fund has $566,718 in cash available.
■ Loan payments for the month were $9,233.
■ Downtown revolving loan fund has $243,919 in cash available and loans totaling
$767,840.
■ $201,329 is in capital assets (Cenex & Wright property).
■ Loan repayments totaled $8,121 for the month.
■ MIF Loan fund has $141,055 in cash available and loans receivable of $382,391
(NuCrane).
■ Total equity in the fund is $523,781 and loan payments for the month were $5,640.
Other key notes —
■ The Minnesota Angel Network membership has been paid in full
• The one Downtown Loan that was delinquent has been brought more up to date; not
current yet but much better.
The one Economic Development Loan fund loan that was late has been brought
current.
M /S /P: Retterath, Christensen to approve the June financials as presented; passed
unanimously.
V. Director's Report
• Federal Grant Status (Industrial Park): $238,955 Remaining — Federal EDA staff are
working to close out the grant. Hopefully by the end of July.
• Marketing Plan Update — Staff updated the EDA Board on the progress of the EDA
marketing plan. The goal is to wrap up the marketing plan within the next 30 days.
• Downtown Revitalization Master Plan: Phase II — Staff informed the EDA Board that
the Steering Committee met to kickoff the Downtown Revitalization Master Plan: Phase
II. The Steering Committee would like to have a focus group that involves both the EDA
Finance Team and the EDA Board. There will be a focus group meeting August 22nd
2012 at 10:30 before the monthly EDA Board meeting.
• NuCrane Manufacturing update — NuCrane has completed all grant requirements.
DEED will check with Staff to make sure all paperwork is in order. After which it is a 2 -3
month process to close out the grant and de- federalize the funds.
• BR &E visits: American Energy Systems — Generally subcontracting production.
• Depot Marketplace Project Update /Discussion — Staff updated the EDA Board on
results of the Phase II environmental report. Next step is to get the "Response Action
Plan," (RAP) which should be done around August 10th. The RAP will indicate what
specific actions are needed to correct environmental conditions on the site, along with the
associated costs. Discussion followed.
• Les Kouba Pkwy: September / October construction — Staff informed the EDA Board
that the stretch between the Sanctuary and the Cenex site will be paved.
Vi. Finance Team Resignations
• Nathan Matti
• Colin Clark
M /S /P: Czmowski, McGraw to accept the two resignations; passed unanimously.
Vu. Proposal for Downtown Business Plan Contest — Discussion
There was a discussion on the concept of sponsoring a business plan contest to fill one of the
vacant buildings downtown. Staff is to draft up a proposal that will outline the contest and
possible partnerships. Will be discussed further next month.
Vui. Proposal for "Virtual" Spec Building — Staff reported on finance team questions from June:
Do the architectural plans have a "shelf life ?"
Because building codes change slightly every 3 years or so, plans may require minor
updates, depending on what the building code changes are.
If we decide to wait 1 -5 years to execute the building plan, are there additional costs at
that time?
Only to update the plans to reflect the current building codes. Beyond that there are no
additional costs. Architectural & engineering services for the construction phase of the
project are included in the original bid price.
How long is the bid good for?
6 months.
Staff also reported that there were 90 applications for DEED's Capital Projects Grant
Program. DEED has indicated that winning grant proposals will be announced by the end of
August. Staff informed the EDA Board that if the grant from DEED is awarded the EDA would
need to come up with a match. Discussion followed. It was agreed that we should await the
results of the grant proposal before taking any additional action with regard to the proposed
spec building / business incubator.
IX. Grant & Loan Applications
Commercial Rehabilitation Loan Program
Center for the Arts — Jeff Haag
Franklin Street
$65,000
M /S /P: McGraw, Czmowski to approve the loan, subject to all program rules and criteria
being adhered to; passed unanimously. Ulrich abstained.
Storefront Revitalization Matching Grant Program
Center for the Arts — Jeff Haag
Franklin Street
$5,000
M /S /P: Czmowski, Christensen to approve the grant request; passed unanimously.
Ulrich abstained.
Sign & Awning Grant Program
101 Park Place —Joseph Ludwig
101 Main Street
$1,300
M /S /P: Czmowski, Retterath to approve the grant request; passed unanimously.
X. Other Business — NONE
XI. Chamber/ CVB Update — Bill Corby updated the board on upcoming chamber events:
• Business After Hours — No Business after Hours in August
• 5th Annual Hometown Golf Challenge - Monday, July 30, CRGC, 90 players have registered.
Theme this year is "Playin' in Plaid."
• Farm Fatigue Project - Agri- Business committee now working on this, 9th year of recognizing
famers during harvest.
Hutchinson Leadership Institute — now accepting applications for 2012/13 sessions.
Applications can be found at
http : / /www.explorehutchinson.com /documents /AppIication12 13Final.pdf or contact Bill Corby.
XII. Set Next Meeting — August 22nd there will be 2 meetings 10:30AM (focus group with EDA Finance
Team) and 11:30 AM (regular EDA Board meeting).
XIII. Adjourn — With no further business to attend to, the meeting was adjourned at 12:20 pm.
Respectfully Submitted,
Aaron Othoudt, EDA Assistant