05-23-2018 EDAM
EDA Board Meeting
Main Conference Room – Enterprise Center
rd
11:30 AM Wednesday, May 23, 2018
____________________________________________________________________________
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 Andy Reid, Finance Director
Matt Jaunich, City Administrator Meagan Donahue, EDA Program Manager
I. Call to Order
Vice-President Jonny Block called the
Economic Development Authority
meeting to order at 11:33 AM.
Financial Summary as of May 2018
Operations
II. Approve Agenda – no action.
Cash Available $101,389
Reserved $56,736
III. Review Minutes
Unreserved $41,154
th
April 18 Finance Team
Economic Development Loan Fund
meeting.
Cash Available $100,361
th
April 25 EDA Board meeting.
Redline Systems Balance $11,044
Ashwill Industries Balance $11,757
M/S/P: Czmowski, Stearns to approve
Laser Dynamics Balance (forgivable) $23,000
both sets of minutes as written. Passed
Innovative Foam Balance (forgivable) $14,355
unanimously.
Downtown Revolving Loan Fund
Cash Available $460,071
IV. Review of May EDA Financial
Loans Receivable $456,363
Statements
Capital Assets $201,329
Total Assets $1,117,763
Financial Update
MIF Loan Fund
Economic Development Director
Cash Available $16,584
Miles Seppelt provided an
NuCrane Loan Receivable $16,865
update on the EDA financials.
Enterprise Center Fund
(see table at right)
Cash Available $7,660
Expenditures (Ebert Construction) $28,558
M/S/P: Stearns, Cannon to
SHOPKO TIF District (TIF 4-5)
approve the financial report as
Cash Available $1,436
presented. Passed
Interfund Loan Receivables $480,497
unanimously.
Expenditures $
MEDICAL CLINIC TIF District (TIF 4-16)
V. Director’s Report
Interfund Loan Payable $300,257
A. Marketing Plan Report:
Facebook updates = 7
Twitter activity = 7, Website updates = 0
Social media effort has
281 likes on Facebook and 76 followers on Twitter.
B. Business Recruitment / Expansions – staff updated the board on recent contacts and
conversations.
C. UPONOR – building renovation is underway.
D. Hotel Project -- With late winter weather causing setbacks, they are hoping to open the doors in
August.
E. Skilled Workforce Development Plan
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YST grant application has been submitted, should hear back on June 8.
If the grant application is approved the TigerPath Coordinator would be hired this
summer.
HutchTigerPath website is done.
F. IEDC Judging Panel – EDA Staff to go to Washington for economic development project award
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judging on June 18.
G. DEED MN Magazine Advert – New advertisement is in the works.
H. Japanese Consul-General visit – August 2nd!
VI. Warrior Manufacturing
Proposed expansion project was discussed.
Potentially 5-10 new jobs would be created within two years.
It was noted that the company has exceeded all expectations since coming to Hutchinson,
with more than 75 jobs created thus far.
Use of Economic Development TIF District and Job Creation Fund to provide economic
development assistance was discussed.
M/S/P: Block, Czmowski moved to authorize proposed economic development assistance.
Passed unanimously.
VII. Fortiori Design/Roger Schmitz
Sales by the company have been slowly increasing over the 2+ years since receiving the
JumpStart Manufacturing award, but no breakthrough has yet occurred.
The $20,000 award was set up as a forgivable loan, to be forgiven if 1 FTE job is created
within two years.
Company has not met its job creation goal of 1 FTE.
Repayment of the loan would be at $238/ month for 84 months with no interest.
M/S/P: Czmowski, Christensen to call the loan on the basis that the JumpStart Manufacturing
goals were not met by the company. Passed unanimously.
VIII. Enterprise Center
Discussion of RD Machine to renting out the 2,000 sf space east of the EDA offices.
Rent would be $640 / month.
M/S/P: Czmowski, Stearns to authorize leasing the space to RD Machine. Passed unanimously.
Cannon abstained.
Discussion of adding SBDC Satellite Office to the Enterprise Center.
M/S/P: Cannon, Christensen authorize lease of an office to the SBDC on a pro-bono basis and to
further authorize EDA Staff to spend up to $1,250 to purchase furniture for that office. Passed
unanimously.
Adding a monument sign to the Hutchinson Enterprise Center was discussed.
Staff will research options & costs and report back next month.
IX. EDA Strategic Planning
Hutchinson Enterprise Center – the following items were briefly discussed:
Establishing a 40kW solar array to power the building
Creating a “Local Development Organization” (LDO) to facilitate the de-federalization
of future MIF grants.
Creating a stand-alone revolving loan fund specifically for the incubator.
Industrial Park(s) – further development of the industrial park was briefly discussed.
X. Grant & Loan Program Applications – none.
XI. Other Business
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XII. Set Next Meeting – 11:30 AM Wednesday, June 27, 2018
XIII. Adjourn
M/S/P: Czmowski, Stearns to adjourn the meeting at 12:47 PM. Passed unanimously.
Respectfully Submitted,
Meagan Donahue
Economic Development Manager