02-23-2016 CCM WORKSHOPHUTCHINSON CITY COUNCIL
HUTCHINSON ENTERPRISE CENTER WORKSHIP
MEETING MINUTES
TUESDAY, FEBRUARY 23, 2016 AT 4:00 PM
CITY CENTER — COUNCIL CHAMBERS
1. Call to Order
Mayor Forcier called the workshop to order at 4:00 p.m. Members present included Mary
Christensen, Chad Czmowski and John Lofdahl. Others present were: Matt Jaunich, City
Administrator, Marc Sebora, City Attorney and Kent Exner, City Engineer
DISCUSSION/REVIEW ITEMS
Matt Jaunich, City Administrator, explained that the discussion item before the Council today is
to review details of the enterprise center being proposed by the Hutchinson Economic
Development Authority.
1. Hutchinson Enterprise Center
Miles Seppelt, EDA Director, presented before the Council. Mr. Seppelt explained the theory
behind business incubation and why it is important to the City of Hutchinson. Business
incubation, along with business attraction and retention/expansion, are the top three economic
development strategies. Mr. Seppelt provided an enterprise center model that the EDA is
proposing to follow. The center itself is proposed to be 20,000 square feet that would allow for
five bays of enterprise. The center will be located in the industrial park to the south of the Frito
Lay building on Benjamin Avenue.
Council Member Bill Arndt arrived at 4:18 p.m.
Mr. Seppelt explained that funding sources for the project include a capital projects grant in the
amount of $763,750; City contribution of $250,000; EDA match from MIF dollars of $624,911;
and an economic development TIF district of $137,500. Should the project proceed as planned,
construction would begin in September 2016 with completion in March 2017. Mr. Seppelt
explained that in order for businesses to be included in the enterprise center, the criteria will be
very selective. Criteria will include being a manufacturing company that exports out and will
require physical growth of the company. Mr. Seppelt explained that the enterprise center is not
simply a facility renting space but rather solely there to grow companies and get them on their
own. Each tenant/company in the enterprise center will be required to have a small business
development coach/mentor with monthly check -ins with staff.
Bill Arndt asked if it would be beneficial to use the vacant building on the HTI campus as an
incubator space. Mr. Seppelt noted that the building is currently for sale and currently has
interested parties looking at the building.
Mr. Seppelt spoke about how the enterprise center will be marketed, such as by networking,
website, free media, DEED/SWIF/SBDC, print advertising and the JumpStart Manufacturing
program. Mr. Seppelt noted that an enterprise center business plan has been prepared and
provided.
Mr. Seppelt noted that the EDA is mainly looking for the City Council's blessing on this project
as the facility will become inventory of the city. General discussion was held regarding gaining a
work force to support these technical companies.
If the Council is comfortable with the project, the EDA is proposing to put the item on the March
Stn Council agenda for their consideration. If the grant money is not used by May 2017, the grant
money will not be available.
2. Adj ournment
Motion by Czmowski, second by Christensen, to adjourn at 5:15 p.m. Motion carried
unanimously.
ATTEST:
Gary T. Forcier
Mayor
Matthew Jaunich
City Administrator