07-22-2020 EDAM
EDA Board Meeting
Video / Conference Call
nd
11:30 AM Wednesday, July 22, 2020
____________________________________________________________________________
MEETING MINUTES
Economic Development Authority
Financial Summary as of June 2020
Members present in bold.
Operations
Cash Available $148,866
EDA Board Members
Reserved $56,736
Unreserved $91,239
Mike McGraw
Economic Development Loan Fund
Jonny Block
Mike Cannon Cash Available $70,554
Corey Stearns
Ashwill Industries Balance $6,050
Daron Vanderheiden
Zephyr Wind Services $94,798
Chad Czmowski
Laser Dynamics Balance (forgivable) $23,000
Mary Christensen
Innovative Foam Balance (forgivable) $14,355
Jeremy Carter
Advances to other funds (Enterprise $283,146
Center)
Downtown Revolving Loan Fund
Cash Available $579,111
Staff
Loans Receivable $335,849
Miles Seppelt, EDA Director
Capital Assets $201,329
Matt Jaunich, City Administrator
Total Assets $1,116,289
Andy Reid, Finance Director
Maddie Newcomb, EDA Program Manager MIF Loan Fund
Cash Available $3,145
MOXY Loan Receivable $15,240
I. Call to Order
Enterprise Center Fund
Meeting called to order at 11:31 AM.
Cash Available $25,059
SHOPKO TIF District (TIF 4-5)
II. Review Agenda
Cash Available $185,137
Interfund Loans Receivable $480,906
III. Review Minutes
MEDICAL CLINIC TIF District (TIF 4-16)
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Interfund Loan Payable $322,661
a. June 17 Finance Team meeting
M/S/P: Stearns, Czmowski to approve the minutes as written. Passed unanimously.
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b. June 24 EDA Board Meeting
M/S/P: Block, Cannon to approve the minutes as written. Passed unanimously
IV. Review of EDA Financial Statements
Finance Director Andy Reid provided an update on the EDA financials. (Please refer to table)
M/S/P: Block, Czmowski to approve the financial report as presented. Passed unanimously.
V.
A. Marketing Plan: FB = 372, T = 94, Facebook updates = 8, Twitter updates = 8, Website updates = 4.
B. Business recruitment / expansions Staff provided an update on recent prospects and ongoing
conversations.
C. Solar Project HUC will bring to their Board meeting next week, looking at a 600-700kw system, self-
funded as opposed to a PPA. Could add a smaller scale system in the future for residential use. If the
HUC board gives approval, project will move forward with an RFP and design process. Project will be
able to fit on one site, (most likely the EDAs 3-acre lot) which will eliminate some infrastructure costs
associated with multiple locations. More updates next month.
D. EDA Website hoping to have finished by the end of July.
E. County Economic Development meeting to be held in August to discuss possibility of bringing in a
consultant for strategic planning / roadmap creation.
VI. Crow River Area Redevelopment Status & Plan
A. Overview & Updates on status of EDA Redevelopment activities
Discussion on EDA/City investment into the former Cenex site, and Medical Clinic site. Recap of
redevelopment options and additions to Franklin Avenue block, which includes HUC electric vehicle
charging station, potential trail extension to Cedar Park, and using FEMA grant to remove three
houses. Currently talking with developers for both sites.
A. Consider acquisition of Franklin Avenue House
County is consolidating their group homes.
EMV is $180,000, 6 bed 3 bath home built in 1900 on .332 acres.
Possible redevelopment options include row houses or small commercial building.
Rationale to purchase:
o Eliminate blight
o Control how the site gets redeveloped.
o Identified in our downtown plan.
o Supports surrounding redevelopment activities.
Funding:
o Redevelopment TIF (25 years, captures new property taxes from redevelopment, need to
o Downtown RLF
o Partner with City, 50/50
o Combination of above.
Committee formed to oversee negotiations
M/S/P: Cannon, Stearns to approve proceeding with negotiations for the acquisition of the Franklin Avenue House.
Passed unanimously.
VII. Recommendation to City Council on Job Creation Fund for 3M
(DEED) Job Creation Fund.
Project would include renovations, site improvements & new machinery. Expansion of existing
building by 10,000 square feet also a possibility.
Will produce 10 new jobs in the next 3 years, paying $20 - $29 / hour.
Job Creation Fund application requires a resolution of support from the community.
This comes at no cost to the City of Hutchinson, just strictly to show support of the project.
M/S/P: McGraw, Vanderheiden to approve the recommendation of the resolution of support for 3M. Passed
unanimously.
VIII. CARES Act Business Assistance Program
Federally funded business assistance program
Proposed $750k allocated to the EDA for a small business assistance program.
A draft concept has been brought forward, still need to refine it and bring to the City Council meeting
next week.
IX. Grant & Loan Program Applications
Sign & Awning Grant Program
Junk-N-Treasures Scott Jaster $920
37 Main Street North
M/S/P: Czmowski, Block to approve the sign and awning grant application. Passed unanimously.
X. Other Business NONE
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XI. Set Next Meeting 11:30 AM Wednesday, August 26, 2020.
XII. Adjourn With no further business, the meeting was adjourned at 12:32 pm.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager