04-28-2021 EDAM
EDA Board Meeting
Hutchinson Event Center
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11:30 AM Wednesday, April 28, 2021
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MEETING MINUTES
Economic Development Authority
Financial Summary as of March 2021
Members present in bold.
Operations
Cash Available $99,962
EDA Board Members
Reserved $56,736
Unreserved $36,987
Mike McGraw
Jonny Block Economic Development Loan Fund
Mike Cannon Cash Available $112,508
Corey Stearns
Ashwill Industries Balance $2,844
Daron Vanderheiden
Zephyr Wind Services $85,213
Chad Czmowski
Laser Dynamics Balance (forgivable) $23,000
Mary Christensen
Innovative Foam Balance (forgivable) $14,355
Jeremy Carter
Advances to other funds (Enterprise $264,794
Center)
Downtown Revolving Loan Fund
Cash Available $562,486
Staff
Loans Receivable $236,192
Miles Seppelt, EDA Director
Capital Assets $201,329
Matt Jaunich, City Administrator
Total Assets $1,122,355
Andy Reid, Finance Director
Maddie Newcomb, EDA Program Manager MIF Loan Fund
Cash Available $5,391
MOXY Loan Receivable $13,098
I. Call to Order
Enterprise Center Fund
Meeting called to order at 11:30 AM.
Cash Available $16,869
SHOPKO TIF District (TIF 4-5)
II. Review Agenda
Cash Available $194,844
Interfund Loans Receivable $483,475
III. Review Minutes
MEDICAL CLINIC TIF District (TIF 4-16)
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Interfund Loan Payable $333,863
a. March 17 Finance Team meeting
M/S/P: Stearns, Czmowski to approve the minutes as written. Passed unanimously.
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b. March 24 EDA Board Meeting
M/S/P: Block, Christensen 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: Stearns, Vanderheiden to approve the financial report as presented. Passed unanimously.
V.
A. Marketing Plan: FB = 555, T = 98, Facebook updates = 21, Twitter updates = 21, Website updates = 3
B. Business recruitment / expansions Staff provided an update on recent prospects and ongoing
conversations.
C. Enterprise Center Update still working out insurance, Innovative Foam is up and running. Laser
Dynamics is busy.
D. Franklin House update Hazardous Materials assessment is complete, next step is to get quotes for the
removal of the hazardous material.
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E. Franklin & 3 Avenue Redevelopment Project updates developer plans to finish up his current project in
town and then move on to these. Franklin St project is looking at being a 2022 project, hopefully we hear
back from FEMA on grant application in September. Purchase agreement and development agreement are
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drafted. Need a development agreement signed by August 31 to meet requirements for the TIF district. 3
Avenue redevelopment will potentially take place in 2023.
F. Hay Land Improvements 5th Avenue lot has been planted with hay, North Benjamin Ave lots were tilled
and seeded due to ruts and low yield. Should increase hay land revenue going forward.
G. Solar Project Approved by HUC and City Council, construction could start mid-late summer.
H. Employment Trends / Employer Census / Bobcat Expansion labor force numbers are down 3.4% in
Hutchinson, 3.7% in McLeod County. Unemployment as of January of 2021 sits at 5.2% in Hutchinson and
5.7% in McLeod County. Discussion on the employment census taken in 2018 and 2021. 85-94 workers
are needed right now for those manufacturers. The Bobcat expansion in Litchfield is done, they are looking
for 160 workers. Discussion on a conference likely to be held this summer with HR Directors from
manufacturers in town to leverage TigerPath.
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I. McLeod County Economic Development Strategic Planning Process complete on June 8. EDA staff job
description is done, looking to hire someone mid-summer.
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J. HWY 212 Project Groundbreaking on May 4 (Carver to Cologne) new 4-lane HWY to break ground on
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May 4. Construction complete in October 2022.
K. NE Development Study / Industrial Park Phasing The City is contracting with SEH and discussing layout
options for utilities and streets at the corner of HWY 7 & 22. EDA to start conversations on expanding the
industrial park.
L. Jump-Start Downtown 13 entries, selection committee narrowed it down to 6 for round 2. Business plans
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are due May 21.
M. Civil Air Patrol Project Site plan shown for Civil Air Patrol, they are working through the planning process,
looking like late summer/early fall for start of construction.
N. MNSCU & Ridgewater College Enrollment Trends Discussion on the projected decline in enrollment for
both entities and what that means for those schools.
O. Veterans Business Outreach Center (VBOC) an organization funded by SBA, currently there is no office
in Minnesota for VBOC, they help veterans start their own businesses. Plan is to coordinate office time for
them in the same office as the SBDC at the Enterprise Center, with Hutchinson being the only such
location in Minnesota.
P. Shopko Building purchased by a developer, there are plans lined up for the property. Right now, they are
in the feasibility phase to determine if their ideas will work.
VI. Consider Revision of HutchCobble LLC Job Goals
When this project was taking place, a soil conditions TIF district was established with a job creation
goal of 11.5 FTE.
They will not reach that goal in the timeframe they have.
Suggestion is to revise the job creation goal to 7 FTE, rationale is that when this project was taking
place the main focus was adding tax base to the community and redeveloping that area. Employment
was not a big driver of this project.
Staff to go back to the developer for a formal request and financials.
Will bring back next month
VII. Enterprise Center Landscaping Project $2,000
The area west of the parking lot is a big weed patch, it was never landscaped after construction of the
Enterprise Center.
Plan is to add topsoil, grade the area, and plant grass.
Funding to come from the MIF loan fund.
M/S/P: Block, Vanderheiden to approve funds for the landscaping project, not to exceed $2,000. Passed
unanimously.
VIII. Grant & Loan Program Applications
Sign & Awning Grant Program
Flank Steakhouse Vincent Maertz $2,000
14 Main Street South
M/S/P: Czmowski, Stearns to recommend approval for the sign & awning grant in the amount of $2,000.
Passed unanimously.
Façade Improvement Matching Grant
Olita Gifts & Goods Jill Haas $2,075
3 Main Street North
M/S/P: Christensen, Block to recommend approval for the façade improvement grant in the amount of $2,075.
Passed unanimously.
IX. Other Business NONE
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X. Set Next Meeting 11:30 AM Wednesday, May 26, 2021
XI. Adjourn With no further business to attend to the meeting adjourned at 12:40pm.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager