07-27-2016 EDAMMembers present in bold.
EDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, July 27th, 2016
MEETING MINUTES
Members
Mike Cannon Corey Stearns
Mary Christensen Mike McGraw
Staff
Miles Seppelt, EDA Director
Andy Reid, Finance Director
Matt Jaunich, City Administrator
Jeffrey Page, Program Assistant
Daron Vanderheiden Chad Czmowski
Jonny Block
Call to Order — The meeting was called to order at 11:34 AM.
II. Approve Agenda — no action
III. Review Minutes
a. June 15th Finance Team Meeting
M/S/P Cannon, Block to approve the Finance Team minutes as presented. Passed unanimously.
b. June 22"d, 2016 EDA Board Meeting
Minutes were unavailable for review — no action.
IV. Review of June EDA Financial Statements — Andy Reid, Finance Director
■ Cash available in operations is $163,928.
■ $56,736 is reserved (proceeds from Warrior land sale) and $105,455 is unreserved.
■ In the Statement of Revenues & Expenditures, under expenses, staff reported that the $1,500 on 'other
professional services" was for updates to the EDA webpage.
■ The Economic Development Loan fund has $431,393 cash available and two loans receivable, Redline
Systems and Ashwill industries, with balances of $16,291 and $16,509 respectively.
■ Downtown revolving loan fund has $362,276 in cash available, an increase of $8,224 over last month.
■ Loan Interest income for the month was $963 and loans receivable totaling $586,008 and $201,329 in
capital assets (Cenex & Wright properties). $30,000 is reserved for the EDA contribution to the Signage &
Wayfinding project.
■ MIF Loan fund has $950,220 in cash available and one loan receivable in the amount of $138,001 (from
NuCrane).
■ $300,000 is reserved for the CTE Equipment Purchase initiative.
■ Unreserved fund balance is $788,221.
■ Shopko Development District #4-5 has $217,212 in cash available and an Interfund receivable from TIF
District 4-16 of $270,600.
■ TIF District 4-16 had accounts payable to Development District 4-5 of $270,600.
M/S/P: Vanderheiden, Christensen to approve the financial report as presented; passed unanimously.
V. Director's Report
a. Marketing Plan Report: Website updates = 1, Facebook updates = 18, Twitter activity = 18
Social media effort has 146 followers on Facebook and 48 on Twitter.
b. Business recruitment / expansions: Staff provided an update on recent prospects and ongoing conversations.
c. Downtown Signage project: Staff reviewed project financing, current timeline and expected completion date.
d. Hotel Project Update: The Ehlers financial analysis ended up costing $1,720 instead of the $1,000 anticipated.
VI. Hutchinson Enterprise Center
a. Project Update
■ Staff is working with architects to get through the pre -design process vis-a-vis the State.
b. Incubator Development Agreement with NWRPC
■ The Northwest Regional Planning Commission is claiming their incubator design is an intellectual
property that the Hutchinson EDA would have to license in order to use.
■ Staff noted that our planned facility, while similar, is not a copy. For example, ours will have offices
while theirs does not; ours will be highly energy efficient — utilizing only 30% of the energy of the
conventional building of its type. Our proposed incubator is an original design developed by ZRT
Architects with input from EDA Staff. Staff will continue to monitor the situation.
■ Discussion followed about entering into a consulting agreement with NWRPC to gain the benefit of
their knowledge and experience and we initiate incubator operations. Proposed cost would be
$2,500.
c. Project Funding
Staff reviewed the proposed incubator Sources & Uses in detail. Discussion followed.
Incubator Project Funding
Capital Projects Grant
$763,750
City of Hutchinson
$250,000
Hutchinson EDA
$624,911
Economic Development TIF
$137,500
TOTAL
The EDA's funding would come from:
Federalized MIF dollars $222,000 (cash on hand)
NuCrane Loan Receivable $138,000
Defederalized MIF dollars $265,000
TOTAL $625,000
To front the $137,500 for the incubator TIF District funds will be borrowed from the downtown SHOPKO TIF
District and repaid over the course of 9 years at 4% interest.
M/S/P: Block, Stearns to approve the incubator project funding plan as presented. Passed unanimously.
VII. Consider revision of EDA Downtown Program Boundaries
Discussion of a proposal to expand the boundaries of the EDA's downtown grant and loan programs.
M/S/P: Cannon, Block to expand the downtown program boundaries as follows: the North boundary would be
amended to include north facing properties along 15 Ave NE; the east boundary between 15t Ave NE and 3 d Ave SE
would be shifted eastward to include west facing properties on Monroe St. SE and south facing properties on 3rd Ave
SE. Passed unanimously
VIII. Workforce Development Plan
a. Project update
Staff provided an update on fundraising efforts. A total of $1,177,350 has been raised for the project. 3M
contributed a grant of $600,000 which will be split with 1/3 going to Ridgewater College and 2/3 to the high
school in support of this initiative.
Authorization to accept SWIF Grant
The Southwest Initiative Foundation provided a grant in the amount of $10,000 to the EDA for the
TigerPath/Tiger Manufacturing initiative.
M/S/P: Block, Christensen to authorize acceptance of the funds.
c. Authorization to release funds
M/S/P: Cannon, Stearns to authorize the release of funds for the project to ISD 423. Passed unanimously.
Staff will get a check requested from Finance.
IX. Old Medical Clinic Proposals
Staff reported that one very preliminary proposal has been received. Following discussion it was agreed to extend
the deadline to September 16th to receive proposals. No board action was taken.
X. Grant & Loan Program Applications
Commercial Rehabilitation Loan Program
Marc & Michelle Max — 134 Main Street South $30,000
10 years @3.5%
M/S/P: Vanderheiden, Block to approve the loan request as presented. Passed unanimously.
XI. Other Business
ISD 423 Superintendent Daron Vanderheiden provided a brief update on the high school renovations.
XII. Set Next Meeting — 11:30 AM Wednesday, August 24th, 2016.
XIII. Adjourn
M/S/P: Cannon, Block to adjourn the meeting at 1:02 PM. Passed unanimously.
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director