06-22-2016 EDAMMembers present in bold.
EDA Board Meeting
Main Conference Room — City Center
11:30 AM Wednesday, June 22nd, 2016
MEETING MINUTES
Members
Mike Cannon Corey Stearns Daron Vanderheiden Chad Czmowski
Mary Christensen Mike McGraw Jonny Block
Staff
Miles Seppelt, EDA Director
Andy Reid, Finance Director
Matt Jaunich, City Administrator
Jeffrey Page, Program Assistant
Call to Order — The meeting was called to order at 11:32 AM.
II. Approve Agenda — no action
III. Review Minutes
a. May 18th, 2016 Finance Team Meeting
M/S/P: Stearns, Cannon to approve the Finance Team minutes as presented; passed unanimously.
b. May 251h, 2016 EDA Board Meeting
M/S/P: Block, Czmowski to approve the EDA Board minutes as presented; passed unanimously.
IV. Review of May EDA Financial Statements — Andy Reid, Finance Director
Cash available in operations is $98,598.
• $56,736 is reserved (proceeds from Warrior land sale) and $41,862 is unreserved.
• The Economic Development Loan fund has $429,379 cash available and two loans receivable, Redline Systems
and Ashwill industries, with balances of $16,939 each.
Downtown revolving loan fund has $354,052 in cash available; loan Interest income for the month was $1,253
and loans receivable totaling $592,788 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 $943,303 in cash available and one loan receivable in the amount of $143,402 (from
NuCrane).
• $300,000 is reserved for the CTE Equipment Purchase initiative.
• Unreserved fund balance is $786,705
Shopko Development District #4-5
$145,517 in cash and an interfund receivable from TIF District 4-16 of $270,236.
TIF District 4-16
Accounts payable to Development District 4-5 of $270,236.
Expenditure of $23,331 for the demolition of the old medical clinic
M/S/P: Cannon, Christensen to approve the financial report as presented; passed unanimously.
V. Director's Report
a. Marketing Plan Report: Website updates = 10, Facebook updates = 17, Twitter activity = 16
Social media effort has 143 followers on Facebook and 45 on Twitter.
b. EDA Website Update: Staff toured the EDA website with the Board, highlighting recent features and
improvements.
c. Business recruitment / expansions: Staff provided an update on recent prospects and ongoing conversations.
d. Old Medical Clinic: Proposals are due July 15th
e. Downtown Signage project: Staff reviewed the project financing, current timeline estimates and expected
completion date.
f. Workforce Development Plan: the CTE has received substantial support from the manufacturing community.
Staff has received 9 pledge forms to date totaling $165,000. Staff also briefly reviewed the CTE internship
program and the Welding Camp.
g. Industrial Park light pole damage: Staff and the Board discussed how the 2017 agricultural lease agreement
of Energy Park lots could be affected by experiences in 2016.
h. Staff reported on his recent visit to Redwood Falls.
VI. Draft EDA 2017 Budget
MSP: Stearns, Cannon to adopt the 2017 draft budget as presented; passed unanimously.
VII. Revenue Opportunity
Staff and the Board discussed an opportunity for the Hutchinson EDA to act as a consultant on a downtown
redevelopment project. The Board expressed concern that staff is already fully engaged in the CTE, the HEC
and as yet unknown projects that would directly benefit the City of Hutchinson, the EDA staffs' primary obligation.
VIII. Hotel Project
a. Staff updated the Board on project progress
b. Environmental work (Braun Intertec) $ 23,450
MSP: Christensen, Czmowski to approve the payment for the environmental work from the Downtown TIF Fund;
passed unanimously. Cannon abstained.
IX. Hutchinson Enterprise Center
a. Staff updated the Board on progress of the HEC development.
b. Project funding
i. EDA Contribution $624,911
ii. Fronting TIF Dollars $137,500
The Board discussed project funding; no action was taken at this time.
X. Update on High School Renovations — no presentation
XI. Grant & Loan Program Applications - None
XII. Other Business
a. The Board considered Resolution 2016-05; Resolution Calling for Special Legislative Session and
Restoration of Funding for Minnesota Investment Fund and Job Creation Fund.
M/S/P: Cannon, Stearns to approve the resolution of support as presented by staff; passed unanimously.
b. The annual City Council and EDA Joint Meeting will be held in the Council Chambers at 12:00 p.m. on
Tuesday, July 19th
XIII. Set Next Meeting — 11:30 AM Wednesday, July 27th, 2016.
XIV. Adjourn
M/S/P: Block, Christensen to adjourn the meeting at 12:56 PM. Passed unanimously.
Respectfully Submitted,
Jeffrey Page
Economic Development Program Assistant