05-27-2015 EDAM-EDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, May 27th, 2015
Members present in bold.
MEETING MINUTES
Members
Steve Jansick Corey Stearns
Mary Christensen Mike McGraw
Staff
Miles Seppelt, EDA Director
Andy Reid, City Controller
Matt Jaunich, City Administrator
Jeffrey Page, EDA Assistant
Daron Vanderheiden Chad Czmowski
Jonny Block
Call to Order - Jansick called the meeting to order at 11:34 AM.
II. Approve Agenda
III. Review Minutes of April 15th, 2015 Finance Team Meeting
M/S/P: Stearns, Christensen to approve the April Finance Team meeting minutes; passed
unanimously
Review Minutes of April 2nd Special EDA Board Meeting
M/S/P: Czmowski, Vanderheiden to approve the April 2nd Special EDA Board Meeting minutes;
passed unanimously.
Review Minutes of April 22nd EDA Board Meeting
M/S/P: Vanderheiden, Stearns to approve the April EDA Board meeting minutes; passed
unanimously.
IV. Review April EDA Financial Statements — Miles Seppelt
A. Format of financials has been revised to bring them in line with the most recent
accounting practices. The key change is that interest is shown as income while loan
principal is not.
B. Cash available in operations is $143,187.
C. $56,736 is reserved (proceeds from Warrior land sale) and $85,249 is unreserved.
D. The Economic Development Loan fund has $418,630 in cash available.
E. Loan repayments totaled $0 for the month.
F. Downtown revolving loan fund has $242,847 in cash available; $168,847 is unreserved;
loans receivable total $699,125 and $201,329 in capital assets (Cenex & Wright
properties).
G. Loan repayments totaled $9,258 for the month, of which $1,267 was interest income.
H. MIF Loan fund has $1,010,324 in cash available and loans receivable of $253,067
($223,354 NuCrane and $29,713 Customer Elation).
M/S/P: Block, Christensen to approve the March financials as presented; passed unanimously.
V. Director's Report
A. BR & E Visits: Visits were made to Goebel Fixture Company, Customer Elation, and
Innovative Foam.
B. Marketing Plan Report; Director presented marketing metrics from social media efforts.
C. JumpStart Manufacturing Update: Director reported that many media outlets from Local
to National have picked up our press release and are reporting on it. We have received
the first entry.
D. Hutchinson Way -Finding & Signage Plan: Director reported on the public open house and
the updated the Board on the next steps: one more workshop withcommittee , then the
City Council.
E. McLeod County Solid Waste & Energy Park: The Director updated the Board on
conversation with McLeod County Solid Waste Board.
F. Ohly Update: Director updated the Board on the most recent information from Ohly.
G. Formstack: The Director updated the Board on progress toward the launch of online
program applications.
H. 7,000 sq ft office space: The Director updated the Board on an entity seeking a new
office in Hutchinson.
I. The Director updated the Board on activities in pursuit of a grocer locating to the
Econofoods building.
J. The Director and Board discussed the opportunity for an EDA Board / City Council joint
meeting in July. A time and date will be selected for approval.
K. The Director updated the Board on the connecting trail between the Luce Line Trail and
the Depot.
VI. How to utilize $763,750 DEED Grant — Discussion
A. Originally we obtained this grant for the proposed small business incubator -spec building.
B. Another proposed use is for the CTE Academy at the High School to help train workers
for local manufactures.
M/S/P: Block, Stearns to explore the concept of moving forward on the workforce incubator at
the High School; passed unanimously, Vanderheiden abstained.
VII. Downtown Redevelopment
A. Consider further revision Development District #4 Boundaries.
B. Consider recommendation to proceed with TIF District Modification.
MSP: Block, Stearns to approve the Finance Teams recommended boundaries including entire
ISD lot and to continue the modification process.
C. Consider recommendation to pursue a 2 -year option on the old medical clinic site.
MSP: Block, Stearns to approve the pursuit of a purchase option on the clinic property utilizing
up to 1 % of purchase price.
VIII. Annual Manufacturer's Dinner during Manufacturing Week — Discussion
The Director presented the event budget and discussed its scope.
MSP: Block, Vanderheiden to continue the planning process and to approve the $1750 budget
as presented; passed unanimously.
IX. Fagade Improvement Program / Storefront Revitalization Matching Grant
MSP: Christensen, Vanderheiden to table this item until a later; passed unanimously.
X. Grant and Loan Applications
Facade Improvement Program
LTC Properties, 235 3 raAve. SE (Landy Lodge) $2,500
MSP: Czmowski, Jansick to approve the application contingent upon its meeting program
guidelines; passed unanimously.
Downtown Commercial Rehabilitation Loan Program
BARTCO Properties, Steve Barton, 24 Main Street S. $22,000
10yr @ 3.25%
MSP: Czmowski, Block to approve the lower bid amount of $19,939 for 10 years at 3.25%
contingent upon the project meeting program guidelines; passed unanimously.
XI. Other Business: None.
XII. Set Next Meeting — 11:30 AM Wednesday, June 24th, 2015.
XIII. Adjourn - With no further business to attend to, the meeting was adjourned at 1:30 PM.
Respectfully Submitted,
Jeffrey Page
EDA Program Assistant