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08-16-2018 CCM Special Meeting (EDA Joint Meeting) Joint City Council / EDA Board Meeting Hutchinson Enterprise Center 12:00 PM, Thursday, August 16, 2018 ___________________________________________________________________________________ MINUTES I. Call to Order The joint meeting was called to order at 12:00 p.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, and EDA Board President Mike McGraw. Others present were Matt Jaunich, City Administrator and Miles Seppelt, EDA Director. II. Approve Agenda III. EDA Financial Report Miles Seppelt reviewed the EDA financial report which included the balance sheet, revenues/expenditures, economic development loan fund, energy loan fund, downtown loan fund, Minnesota investment loan fund, Hutchinson Enterprise Center, TIF #4-5 - Shopko Redevelopment and TIF #4-16 – 126 Franklin Street NW IV. Summary & Update of Current EDA Projects A. Marketing Update 1. Consul-General Visit Mr. Seppelt noted that the Japanese Consul-General is visiting Hutchinson on August 20, 2018. He is touring 3M, taking part in a roundtable discussion at SWIF, touring the Hutchinson High School Center for Technical Excellence, touring Ridgewater College along with lunch and a reception. 2. Cobblestone Inn Mr. Seppelt explained that the developer of Cobblestone Inn will be in Hutchinson this Friday to go through the final punch list. They will be training employees for two weeks and would like to open on September 1, 2018. A grand opening will be held in October. 3. Uponor Uponor is up and running with 30+ jobs. They are putting loading docks in now. The EDA is finalizing their loan agreement for MIF funds. Uponor made a very healthy contribution to TigerPath Academy. Mr. Seppelt is working on a roadway project on the east side of the property for 2019. 4. Enterprise Center The 14,000 sq. ft. Enterprise Center facility is currently fully occupied. The Small Business Development Center is housed in the Enterprise Center along with RD Machine. Warrior Manufacturing may rent space while they are going through construction. A monument sign for the center is being constructed. 5. Skilled Workforce Development 28 partners are part of this TigerPath initiative. The Center for Technical Excellence is up and running and the TigerPath Coordinator has been hired. An applied engineering lab is the next phase of the project. A web site has been created and presentations are being given. A regional workforce summit is scheduled in November at the high school. V. Warrior Manufacturing Expansion Mr. Seppelt explained that Warrior Manufacturing opened up in 2007 with a MIF grant. A 92,000 sq. ft. building was built and the company employs 75-80 people. The company will be adding a 25,000 sq. ft. facility as a receiving/warehouse area. Speculation is that this expansion will add 5-10 jobs. Remodeling office area is also part of the project. Due to bad soils in the area, the company qualifies for public assistance. Mr. Seppelt explained all the variables that make up the rationale for providing Warrior Manufacturing with public assistance which includes tax base, jobs, capital investment, etc., annual spending, support for TigerPath. The assistance would include creating a TIF District and a job creation fund. VI. Development Opportunity at Old Medical Clinic Site Brian Forcier, developer of Cobblestone, is proposing a development at the Old Medical Clinic site. Forcier is proposing a 4-5 story rental housing building with the first floor having parking and a restaurant with outdoor seating. He also has a larger option which would include 70 units with a bigger footprint, however he would have to purchase neighboring properties for this larger scale option. This development fits into the Downtown Master Plan. Forcier is asking that the City construct the trail segment and take care of property acquisition to assist with this development. Forcier is to be submitting a formal proposal to the EDA in September. 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. VII. Other Business Mr. Seppelt spoke of his business retention efforts on an annual basis, as well as business expansion efforts. General updates were given on City development such as happenings at the mall, Hutch Hotel, old KFC site. Cook inquired about programs that can be utilized by businesses such as PAC for energy efficiency and Enterprise Minnesota. Mr. Seppelt noted he could do mailings to businesses about these programs so that businesses are aware of the resources they provide. Cook also asked about an Arts & Culture Plan being developed similar to the Parks Master Plan or Downtown Plan. Cook asked if the EDA has interest in putting a representative on a steering committee and noted that Planning funds could be used for this development. Cook will continue looking into this further. Lofdahl commented that the Mid-Minnesota Development Commission loans money to businesses if they have a gap to fill. VIII. Adjourn Motion by Cook, second by Lofdahl, to adjourn the meeting at 1:20 p.m. Motion carried unanimously.