Loading...
05-24-2017 EDAM EDA Board Meeting Main Conference Room – City Center th 11:30 AM Wednesday, May 24, 2017 ____________________________________________________________________________ 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 Economic Development Authority I. Call to Order Financial Summary as of April 30, 2017 Operations Cash Available $107,513 Vice-President Block called the meeting to Reserved $56,736 order at 11:34 AM. Unreserved $50,045 Economic Development Loan Fund II. Approve Agenda Cash Available $438,121 Loan 1 Balance $14,071 III. Review Minutes Loan 2 Balance $14,522 th Downtown Revolving Loan Fund A. April 19 Finance Team Meeting Cash Available $412,601 Loans Receivable $511,919 M/S/P: Stearns, Cannon to Capital Assets $201,329 approve the minutes as written. Total Assets $1,109,671 Passed unanimously. MIF Loan Fund th Cash Available $214,396 B. April 26 EDA Board Meeting Loan Receivable $77,988 Enterprise Center Fund M/S/P: Czmowski, Block to Cash Available $700,715 approve the minutes as written. Expenditures (Architect & Ebert Construction) $0 Passed unanimously. SHOPKO TIF District (TIF 4-5) Cash Available $247,298 Interfund Loan Receivables $297,103 IV. Review of April EDA Financial Expenditures $0 Statements MEDICAL CLINIC TIF District (TIF 4-16) Interfund Loan Payable $288,958 Finance Director reviewed the EDA financials for the benefit of the Board. M/S/P: Christensen, Cannon to approve the financial report as presented. Passed unanimously. V. Director’s Report A. Marketing Plan Report: o Facebook updates = 11, Twitter activity = 11, Website updates = 1 o Social media effort has 203 likes on Facebook and 63 followers on Twitter. B. Business recruitment / expansions: Staff provided an update on recent prospects and ongoing conversations. C. Old Medical Clinic Redevelopment – waiting for a callback from Inland Development Partners D. Skilled Workforce Development Plan o A steering committee is being formed to bring more structure to the project o Work is beginning on developing the HutchTigerPath.com website o Staff made a second visit to Raider Grafix at Roseville Area High School (student run automated screen printing business) with school superintendent Daron Vanderheiden and two representatives from 3M to learn how a similar operation can be established as part of Tiger Manufacturing. o Hutchinson has won the 2017 “City of Excellence Award” from the League of Minnesota Cities for our work on the TigerPath Initiative. VI. Economic Development Incentives  Discussion of economic development incentives in general.  Discussion as to whether we should establish a written policy to govern the use of Tax Abatement as an economic development tool. o Staff will obtain information from other cities to see what they are doing in this regard.  Discussion of a land incentive for the industrial park. VII. Hotel Project  Staff provided an update on the Hotel Project o Developer has not submitted materials for the June meeting of the Planning Commission, as hoped. o Design work is complete on the access road / retaining wall / storm water feature. o The updated Engineer’s estimate is about $500,000 – higher than the $365,000 initially estimated. Retaining wall was more expensive than initially thought. o Bids may well come in lower. th o The city will advertise the project shortly, with bids due on June 16  Consideration was given to allocating $100,000 from the SHOPKO TIF District to offset city project costs relating to the Hotel development site. o This had been discussed in August of 2016 but no formal action was taken. M/S/P: Cannon, Stearns to authorize up to $100,000 from the SHOPKO TIF District to offset qualifying costs at the Hotel development site. Passed unanimously. VIII. Hutchinson Enterprise Center  Staff provided an update on the parking lot excavation and why there was no savings to realized by not excavating and utilizing the existing soils.  Most the site work is completed.  Soil corrections for the building pad have been completed.  Rain has slowed things down for the last week.  Next step will be building footings & foundations, once things dry out.  Discussion of Incubator Project Team role / function /authority. M/S/P: Cannon, Stearns to authorize the City Administrator & Economic Development Director (working jointly) to approve change orders up to $50,000 as long as all project expenses remain within original project budget. Passed unanimously. 12:53 PM – EDA Vice-President Block left the meeting. Mr. Cannon took over as chair for the remainder of the meeting.  Discussion of Laser Dynamics leasehold improvements o Company will be investing upwards of $60,000 - $70,000 to make leasehold improvements in their space at the Enterprise Center. o Per the lease agreement, at the option of the City, those improvements become City property when the tenant moves out of the building. o Company is poised to grow very rapidly – projecting 10 employees in 2 years and 15 employees by Year 3. o The company has asked the EDA if they would consider putting in the epoxy flooring they need, at a cost of $22,656. Pro Maintenance of Hutchinson provided the lowest quote. o Discussion followed. o Options available to the EDA: o 0% loan with back-loaded payments (i.e. higher payments towards the end of the loan) o Forgivable loan, contingent upon job creation o Could fund the improvement from any remaining project contingency dollars o Staff noted that our goal is to help the company save as much money as possible so that in 3-5 years or so the company can build its own building in the industrial park. VII. Marketing Plan (Minnesota Thriving in the North)  Staff reported there was only minimal cost savings to be realized from purchasing a half- page advert compared to the full-page advert. o Full page ad = $5,995 ($400 more than last year) o ½ page ad = $4,915  It was noted that the EDA has budgeted for the full-page ad. M/S/P: Christensen, Vanderheiden to proceed with the full-page advertisement at $5,995. Passed unanimously. VIII. Grant & Loan Program Applications Commercial Rehabilitation Loan Program $30,000 Casey Clark / Premier Investments LLC 10 yrs @ 4% 31 Main Street North (Janosek’s Café building) M/S/P: Czmowski, Stearns to authorize the loan. Passed unanimously. IX. Other Business – None th M/S/P: Vanderheiden, Cannon to set a special meeting of the EDA Board for Tuesday, June 27 at 11:30 AM for the annual joint meeting with the City Council. th X. Set Next Meeting – 11:30 AM Wednesday, June 28, 2017. XI. Adjourn M/S/P: Czmowski, Cannon to adjourn the meeting at 1:17 PM. Passed unanimously. Respectfully Submitted, Miles R. Seppelt Economic Development Director