08-23-2017 EDAM
EDA Board Meeting
Main Conference Room – City Center
rd
11:30 AM Wednesday, August 23, 2017
____________________________________________________________________________
Members present in bold.
MEETING MINUTES
EDA Board 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
Economic Development Authority
Financial Summary as of July 31, 2017
Operations
I. Call to Order
Cash Available $152,235
Reserved $56,736
EDA Vice President Block called the
Unreserved $95,137
Board to order at 11:33 AM.
Economic Development Loan Fund
Cash Available $441,973
II. Approve Agenda – no action.
Loan 1 Balance $12,697
Loan 2 Balance $13,845
Downtown Revolving Loan Fund
III. Review Minutes
Cash Available $433,350
Loans Receivable $493,781
A. July 25, 2017 joint EDA Board /
Capital Assets $201,329
Finance Team meeting minutes.
Total Assets $1,112,282
MIF Loan Fund
M/S/P: Block, Czmowski to
Cash Available $226,324
approve the minutes as written.
Loan Receivable $66,958
Passed unanimously.
Enterprise Center Fund
Cash Available $513,555
Expenditures $0
IV. Review of July EDA Financial
SHOPKO TIF District (TIF 4-5)
Statements
Cash Available $320,761
Interfund Loan Receivables $288,958
Finance Director Andy Reid reviewed the
Expenditures $0
EDA financials.
MEDICAL CLINIC TIF District (TIF 4-16)
Interfund Loan Payable $288,958
EDA Statement of Revenues &
Expenditures: Operating Supplies line item – most of the $1,691 amount listed was for the
Manufacturer’s event at Zella’s in February.
Downtown Loan Fund – The $16,178 Allowance for Doubtful Accounts will be written off. The
bankruptcy process on 101 Park Place has concluded.
M/S/P: Vanderheiden, Christensen to approve the financial report as presented. Passed
unanimously.
V. Director’s Report
A. Report on visit to UPONOR – EDA Board members attending the UPONOR visit shared their
impressions of the company.
B. Marketing Plan Report:
Facebook updates = 12, Twitter activity = 12, Website updates = 0
Social media effort has 236 likes on Facebook and 65 followers on Twitter.
C. Business Recruitment / Expansions – staff updated the board on recent contacts and
conversations.
D. Old Medical Clinic Redevelopment – Brian Forcier might have a contact for a brew pub.
Discussion of a local investor who is working on a similar project.
E. Hotel Project
City Council has given its approval for the site plan.
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City Council will consider a Soils Condition TIF District on September 12
F. Hutchinson Enterprise Center
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Cement floor is scheduled to be poured soon. Project on schedule for October 15
completion.
G. Incubator Grant Reimbursement = $210,341 (27.5%) $152,937 reimbursement request has
been submitted to DEED.
H. Skilled Workforce Development Plan: Funds collected = $851,150 (70.1%)
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High School CTE Center will be open for classes on September 5.
Steering Committee is meeting monthly.
HutchTigerPath.com website is under development.
VI. Commissioner Paul Wright
Commissioner Wright had previously asked for time to visit with the EDA Board but was unable to
attend today. No action.
VII. Soils Condition TIF District for Hotel Project
A. Resolution calling for City Council action
Staff updated the Board on the proposed use of a Soils Condition Tax Increment Financing
District for the Hotel project:
To Qualify
Presence of hazardous substances
Cost of removal exceeds fair market value of parcel (or $2 psf)
Proposed removal specified in RAP
Maximum Duration
Up to 20 years
Can be capped at a certain dollar amount or length of time
We’ll decertify once eligible expenses are reimbursed (4-5 years?)
Use of Dollars
Cost of removal or remedial action
Administrative costs
Costs to prepare RAP
Discussion followed.
M/S/P: Cannon, Stearns to adopt EDA Resolution 2017-01 calling for the City Council to
adopt a modification for Development District Number 4 and establishment of TIF District 4-
19 and Tax Increment Financing Plan therefor. Passed unanimously.
B. Consider 20% allocation
Staff reported that per State Statute, up to 20% of the Tax Increment generated by a TIF
District can be “pooled” for future use on qualifying expenses.
Qualifying expenses include administrative expenses, property acquisition, clearing land, soil
corrections, hazardous waste removal, installing utilities and public / private improvements.
Discussion followed.
M/S/P: Stearns, Cannon to retain 20% of tax increment generated by the Hotel Soils
Condition TIF District as permitted by Minnesota Statute, for future qualifying expenses.
Passed unanimously.
VIII. Grant & Loan Program Applications – none.
IX. Other Business
Popcorn Wagon
Discussion of potential ways to replace the downtown popcorn wagon. The existing popcorn
wagon is beyond repair.
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X. Set Next Meeting – 11:30 AM Wednesday, September 27, 2017
XI. Adjourn
M/S/P: Block, Christensen to adjourn the meeting at 12:37 PM. Passed unanimously.
Respectfully Submitted,
Miles R. Seppelt
Economic Development Director