01-25-2017 EDAM
EDA Board Meeting
Main Conference Room – City Center
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11:30 AM Wednesday, January 25, 2017
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Members present in bold.
MEETING MINUTES
Members
Mike Cannon Corey Stearns Daron Vanderheiden Chad Czmowski
Mary Christensen Mike McGraw Jonny Block
Staff
Miles Seppelt, EDA Director
Matt Jaunich, City Administrator
Andy Reid, Finance Director
Jeff Page, EDA Program Assistant
I. Call to Order
EDA Treasurer Chad Czmowski called the meeting to order at 11:44 AM.
II. Elections of EDA Board Officers
The following were nominated:
Mike McGraw Board President
Jonny Block Vice-president
Chad Czmowski Treasurer
Andy Reid Assistant Treasurer
Miles Seppelt Secretary
M/S/P: Vanderheiden, Stearns to elect the nominated slate as officers of the Hutchinson EDA for 2017.
Passed unanimously.
III. Approve Agenda
M/S/P: Christensen, Vanderheiden to approve the meeting agenda as presented. Passed unanimously.
IV. Review Minutes
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A. December 21 Finance Team Meeting
M/S/P: Stearns, Vanderheiden to approve the minutes as written. Passed unanimously.
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B. December 28 EDA Board Meeting
M/S/P: Czmowski, Stearns to approve the minutes as written. Passed unanimously.
V. Review of November EDA Financial Statements
Economic Development Authority
Financial Summary
Operations
Cash Available $166,664
Reserved $56,736
Unreserved $104,232
Economic Development Loan Fund
Cash Available $436,119
Loan 1 Balance $15,195
Loan 2 Balance $15,195
Downtown Revolving Loan Fund
Cash Available $346,151
Loans Receivable $575,216
Capital Assets $201,329
Total Assets $1,106,518
MIF Loan Fund
Cash Available $192,591
Loan Receivable $99,938
Enterprise Center Fund
Cash Available $708,994
Expenditures (architect) $0
SHOPKO TIF District (TIF 4-5)
Cash Available $253,837
Interfund Loan Receivable $282,648
Expenditures $1,878
MEDICAL CLINIC TIF District (TIF 4-16)
Interfund Loan Payable $282,648
Mr. Reid presented a brief summary of the status of all EDA loans.
M/S/P: Vanderheiden, Stearns to approve the financial report as presented. Passed unanimously.
VI. Director’s Report
A. Marketing Plan Report: Facebook updates = 11, Twitter activity = 11, Website updates = 0
B. Social media effort has 152 likes on Facebook and 59 followers on Twitter.
C. Business recruitment / expansions: Staff provided an update on recent prospects and ongoing
conversations.
D. Old Medical Clinic Redevelopment – staff has been in contact with a developer and they are doing
an informal study get a sense of rental housing needs in Hutchinson.
E. Workforce Development Plan
Along with representatives of the High School & Ridgewater College, staff met with the leadership
of FESTO Didactic at the 3M headquarters in Maplewood. Potential FESTO participation in
Hutchinson’s Skilled Workforce Development initiative was discussed. FESTO indicated that
they would be making a proposal shortly.
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Skilled Workforce Summit is coming up on February 6 at Zella’s.
Staff joined high school staff in attending a seminar about Cardinal Manufacturing in Wisconsin
(the model for the proposed Tiger Manufacturing). Very impressive, much learned.
F. Hutchinson Enterprise Center
Staff is researching the use of a geo-grid material to help reduce excavation costs in the parking
lots.
G. Meetings
A planned meeting with Mr. Lee Shirey, Department of Commerce, Economic Development
Administration was cancelled due to inclement weather. Staff will extend an invitation to Mr.
Shirey to visit Hutchison sometime in the future.
VII. Hotel Project
Staff met with the developer to work out a way to move the project forward:
A. Purchase Agreement & Development Agreement language was reviewed paragraph by
paragraph and verbal agreement was reached on all outstanding points.
B. Developer agreed we need to get documents signed as soon as possible.
C. Developer is projecting an August ground breaking for the project. This would allow the Hotel to
open just in time for the start of the tourist season in 2018.
The City can utilize a “Soils Condition” TIF District to take care of the environmental remediation
needed on the lot.
The City can set the length of the district and/or the dollar amount of assistance provided. Once that
limit is reached the district would be decertified and the property taxes generated by the project would
be distributed to the various taxing jurisdictions.
Staff calculated Return on Investment (ROI) for the project: at a minimum it would be $3.29 return for
each $1 invested. If one removes the TIF (since it’s actually fronted by the developer) then the ROI
would be $5.79 for every $1 invested.
ROI for all taxing jurisdictions would be $12.26 for every $1 invested.
The use of TIF for the project was discussed.
M/S/P: Stearns, Christensen to request that the City Council call for a public hearing on the proposed
modification to the Development Program for Development District No. 4 and the proposed
establishment of Tax Increment Financing District No. 4-19 (together the “Program and Plan”),
contingent upon the City receiving a signed Purchase Agreement and Development Agreement from
the Developer. Passed unanimously.
VIII. Grant & Loan Program Applications
Sign & Awning Grant Program
Metro PCS – Main Street South $1,000
M/S/P: Vanderheiden, Stearns to approve the grant application. Passed unanimously.
IX. Other Business
A. Support for EDAM Foundation
Staff noted that the Hutchinson EDA has received two or three $1,000 grants from the EDAM
Foundation over the years to help defray the costs of having an intern.
M/S/P: Stearns, Vanderheiden to authorize a $500 donation to the EDAM Foundation. Passed
unanimously.
B. Accept EDA Annual Report for 2015
The slightly overdue 2015 EDA Annual Report was presented by staff.
M/S/P: Vanderheiden, Christensen to accept the report. Passed unanimously.
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X. Set Next Meeting – 11:30 AM Wednesday, February 22, 2017.
XI. Input for Staff Evaluation
EDA staff left the room and the City Administrator visited with EDA Board members to get input for the
annual performance evaluation of Mr. Seppelt.
XII. Adjourn
M/S/P: Christensen, Vanderheiden to adjourn the meeting at 1:02 PM. Passed unanimously.
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director