01-26-2022 EDAM
EDA Board Meeting
Hutchinson Enterprise Center
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11:30 AM Wednesday, January 26, 2022
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MEETING MINUTES
Economic Development Authority
Members present in bold.
Financial Summary as of December 2021
Operations
EDA Board Members
Cash Available $156,152
Reserved $56,736
Mike McGraw
Unreserved $91,332
Jonny Block
Mike Cannon Economic Development Loan Fund
Corey Stearns Cash Available $152,564
Chad Czmowski
Zephyr Wind Services $76,448
Mary Christensen
Laser Dynamics Balance (forgivable) $23,000
Jeremy Carter
Innovative Foam Balance (forgivable) $14,355
Advances to other funds (Enterprise $246,052
Center)
Staff
Miles Seppelt, EDA Director
Downtown Revolving Loan Fund
Matt Jaunich, City Administrator
Cash Available $414,862
Andy Reid, Finance Director
Loans Receivable $338,344
Maddie Newcomb, EDA Program Manager Capital Assets $201,329
Total Assets $1,091,447
MIF Loan Fund
I. Call to Order
Cash Available $6,396
Meeting called to order at 11:37 AM.
MOXY Loan Receivable $10,956
Enterprise Center Fund
II. Review Agenda
Cash Available $31,967
SHOPKO TIF District (TIF 4-5)
III. Election of Officers
Cash Available $206,249
A. President (1-year term) Mike M.
Interfund Loans Receivable $482,422
B. Vice-President Jonny B.
MEDICAL CLINIC TIF District (TIF 4-16)
C. Treasurer (1-year term) Chad C.
D. Assistant Treasurer (1-year term) Andy R.
Interfund Loan Payable $345,065
E. Secretary (1-year term) Maddie N.
M/S/P: Cannon, Stearns to approve the slate of officers as written. Passed unanimously.
IV. Review Minutes
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a. December 15 Finance Team meeting
M/S/P: Cannon, Stearns to approve the minutes as written. Passed unanimously.
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b. January 5 (December) EDA Board Meeting
M/S/P: Block, Christensen to approve the minutes as written. Passed unanimously
V. Review of EDA Financial Statements
Finance Director, Andy Reid provided an update on the EDA financials. (Please refer to table)
EDA operating budget will finish in the black for the year.
$18,743 was paid from the Enterprise Center fund to the Economic Development loan fund.
Enterprise Center budget will finish the year in the black, with a net positive cash flow of $5,402 (although
there may be some small year-end adjustments yet)
SHOPKO TIF District has $206,249 available; earmarked as the local match for the FEMA grant.
Downtown loan fund saw two major loan payoffs at the end of the year: $50,378 for the Werowinski loan
and $21,711 for the Clark loan. Total cash available is $414,862.
Ashwill loan has also been paid off.
M/S/P: Stearns, Block to approve the financial report as presented. Passed unanimously.
VI.
A. Marketing Plan: FB = 618, T = 99, Facebook updates = 12, Twitter updates = 12, Website updates = 2
B. Business recruitment / expansions Staff provided an update on recent prospects and ongoing
conversations.
C. BR & E Visits Staff provided an overview of the visit with Resonetics. They grew 20% last year and have
155 employees looking to add 20 more this year. Concerns of theirs include utility and water rates.
D. FEMA Grant / Uptown Commons / Franklin House update has been
approved, this was the last impediment to grant approval. Waiting on grant confirmation from FEMA.
Original 3-story plan is out due to rising construction costs project will look more like the new Century
Court West buildings. EDA Board would like to see cost breakdowns for both the original and newly
proposed projects. Will bring back next month.
E. Jorgenson Hotel Developer is gathering cost estimates to rationalize the need for a TIF District. Public
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Hearing to be held on February 8.
F. JumpStart Downtown Updates Gold Coin is waiting on architectural drawings to proceed with
construction, inside of building has been demolished.
G. McLeod County Economic Development Liz Danielson has been hired as the McLeod County Economic
Development Coordinator.
H. Systems West Concerns about inspections and permitting for addition.
I. Bonding project at Ridgewater Governor released his recommendations on bonding projects, he has
recommended $14 million towards Ridgewater College in Hutchinson to improve classrooms and labs.
Waiting to see if this will come to fruition as Staff was surprised it made the list this year.
J. Enterprise Center Solar The Enterprise Center will get $2,846 from Hutchinson Utilities. This is prorated
share of solar energy land rental proceeds for 2021.
K. Central Hydraulics Looking to build an 8,000 sq. ft. building, will bring back next month.
L. Annual Report Staff currently working on annual report, will have ready next month.
M. TigerPath Staff met with school district personnel to brainstorm ideas/practices to bring more
intentionality to TigerPath. Additional meetings planned.
N. Superintendent Search School District is holding a focus group for Community Members to participate in
the search for a new superintendent.
O. Splash Pad Briefly on hold due to the Civic Arena needing a new roof. Possibly a 2023 project now.
P. 2022 Employment Census Currently gathering updated employment numbers, will present when finished.
VII. Laser Dynamics
Staff reported that Laser Dynamics was unhappy with the proposed 1-year lease extension (this would
make their total time 6 years in the Enterprise Center)
They requested an extension of 5 years or more.
Laser Dynamics made considerable leasehold improvements to make the Enterprise Center space usable
for their needs (clean room, enhanced HVAC system, electrical drops, etc.) at a cost of about $150K
It was noted that Laser Dynamics would have had to make these improvements no matter where it would
have been located.
Laser Dynamics has a verbal offer from an Indiana company to purchase the company, but that would go
away if they were forced to move out of the Enterprise Center in the near future.
o This is a medical device company, looking to establish a presence in Minnesota
o Their goal is to grow in Minnesota.
Staff suggested that since it was a new company, perhaps it would merit a new lease and it would be a way
to recruit the new company to Hutchinson.
It was also noted that the Enterprise Center has provided significantly below market rate rent for 6 years,
which, when taken into consideration, could offset their improvement costs substantially.
Discussion followed.
Consensus of the EDA Board is to keep the lease with the approved 1-year extension, however if a sale
would occur further discussion would take place on offering an incubating space for the new company.
VIII. EDA Board Vacancy
Given the importance of TigerPath to our skilled workforce development efforts, perhaps it would be
worthwhile to see who the new ISD 423 Superintendent is.
No pressing need to fill the EDA Board vacancy immediately.
Board will discuss further next month.
IX. Grant & Loan Program Applications NONE
X. Other Business NONE.
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XI. Set Next Meeting 11:30 AM Wednesday, February 23, 2022
XII. Adjourn M/S/P: Christensen, Block to adjourn the meeting at 12:49pm. Passed unanimously.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager