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06-27-2017 CCM EDA-COUNCIL JOINT MTGJoint City Council / EDA Board Meeting City Council Chambers —City Center 12:00 PM, Tuesday, June 27, 2017 MINUTES Call to Order The joint meeting was called to order at 11:30 a.m. by Mayor Forcier and President Mike McGraw. Members present were: Mayor Gary Forcier, Council Member Chad Czmowski, Council Member Mary Christensen, Council Member John Lofdahl, Council Member Steve Cook, EDA Board Member Mike Cannon, EDA Board Member Corey Stearns, EDA Board President Mike McGraw and EDA Board Member Jonny Block. Others present were Matt Jaunich, City Administrator and Miles Seppelt, EDA Director. Approve Agenda III. Summary & Update of Current EDA Projects A. Marketing Update 1. DEED Marketing Initiative 2. EDA Website/Social Media 3. Manufacturer's Summit (February) Miles Seppelt, EDA Director, presented before the group. Mr. Seppelt reviewed the EDA's marketing initiative which includes Business Climate Minnesota which was launched 18 months ago. This includes print material that is distributed throughout the state as well as an on-line magazine. Mr. Seppelt also spoke about the EDA's web site and the social media avenues that the EDA uses to get information out. Lastly, Mr. Seppelt talked about the Manufacturer's Summit that was held last February with local manufacturing companies. This Summit is also planned for next year with the hopes of having it at the new high school. B. Business Recruitment Update Mr. Seppelt noted that there is an interested party in the building for sale on the HT property. In addition, another outside prospect is looking at a manufacturing facility in the industrial park possibly in 2018. He also noted that four local companies are considering expansions. C. Downtown Redevelopment 1. Hotel Project 2. Old Medical Clinic Site Mr. Seppelt explained that the hotel project at the intersection of Hwy 15/Hwy 7 is moving ahead. The City has gone out for bids to build the access road and retaining wall. The developer is looking at having his items on the August Planning Commission agenda with the intention of construction beginning this Fall and completed by April 2018. Next steps for the project are to close on the property, complete a City forgivable loan and create a soils condition TIF district. The old medical clinic site on Franklin Street is on the list to do. A developer from the Twin Cities had shown interest at one time, but has not been in contact recently. Mr. Seppelt will begin working on this project again in the near future. D. Hutchinson Enterprise Center Update Miles Seppelt noted that the footings and foundation are in. The shell of the building will be put up over the next two weeks. Inside finishing will take place after that. Two client companies are lined up to move in this Fall. The project should be complete in October. Mr. Seppelt noted that key points of the enterprise center are that it is not simply space for rent, but rather to grow companies; it takes time to grow companies; and vacant space is intentionally being left open in the hopes that the current companies will expand. One of the clients is in the medical device industry. They are taking 8000 sq. ft. and will employ three full-time employees and two part-time. The other client is in the signage business and will be taking 5000 sq. ft. They too have three full-time employees and two part-time employees. Mr. Seppelt reviewed the incubator strategy and the admission criteria — which is that the companies are in the manufacturing field, they export and that physical growth is required. Key features of the enterprise center are that the rents are low, education is provided and resources are available. Mr. Seppelt also reviewed the potential gains for the companies and what is provided to them as being in the enterprise center. E. Skilled Workforce Development Update Because of the shortage of the skilled workforce, the EDA has partnered with the school district, Ridgewater College and local industry to help with this shortage challenge. The goal of the program is to build a talent pipeline from school to industry. Currently, certain skilled courses have peaked in areas such as welding, woods and drafting. A program called TigerPath has been developed. Mr. Seppelt provided an update on the TigerPath Initiative Status: a steering committee has been created; a web site is being developed (HutchTigerPath.com); an application for a 3M grant is being submitted; equipment is being ordered this summer with the CTE Center opening in September; Mr. Seppelt will be presenting at the EDAM conference on the TigerPath project. Over $1.2 million has been pledged for the project with 69% of it being collected and the remainder coming in over the next year to year and a half. 22 partners are contributing to this project. Hutchinson High School has implemented Tiger Path Academies which emphasize students carefully considering a career path, students being informed of major or training program and create a skills -based education plan. Another area being worked on is creating seamless pathways for students to earn college credit and industry credentials prior to high school graduation. Mr. Seppelt reviewed the marketing initiative for TigerPath academies and Tiger Manufacturing. Mr. Seppelt reviewed next steps for developing Tiger Manufacturing through TigerPath academy. IV. Business Climate in Hutchinson/City Council Items for EDA Board to Consider Matt Jaunich asked of the EDA Board if there are policy considerations that the Council should be focusing on. Mayor Forcier commented on the property taxes, however the level of service is worth the value of the taxes. V. City Council Items for EDA Board to Consider Council Member Cook noted that he attended a Main Street Minnesota seminar and the focus was on supporting historical downtown districts. Main Street Minnesota can help with marketing and setting up events for downtown areas. Council Member Cook suggested having discussions on being a part of Main Street Minnesota. The group seemed agreeable. Enterprise Minnesota helps local manufacturers. Matching grant program to help local industries improve. Enterprise Minnesota has focused areas that manufacturers could take advantage of. Enterprise Minnesota seemed interested a few years ago in speaking with the EDA in what they have to offer. Council Member Cook asked the EDA Board and business owners about broad band services for internet services. Providers in Hutchinson are able to provide the services for whatever companies desire, for a cost obviously. Mayor Forcier asked Mr. Seppelt if he is aware of things Hutchinson is lacking that companies desire. Other than workers available at this time, programs are in place to have skilled workers available in the near future. Another wish would be that a four lane highway would come right to Hutchinson to the industrial park. General discussion was held on how to attract people to Hutchinson and keep them here with the amenities that are offered. Discussion was also held about the Hwy 15/Main Street improvement project scheduled in 2020 and the opportunities it will provide to the city. Discussion was also held about a more diversified work force and Hutchinson being a welcoming community. VI. Other Business Mr. Seppelt thanked both the EDA Board and the City Council for their support on all of the EDA's initiatives. The group spoke of all of the wonderful things going on in Hutchinson. VII. Adjourn Motion by Czmowski, second by Cook, to adjourn the meeting at 1:00 p.m. Motion carried unanimously.