02-23-2022 EDAM
EDA Board Meeting
Hutchinson Enterprise Center
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11:30 AM Wednesday, February 23, 2022
____________________________________________________________________________
MEETING MINUTES
Economic Development Authority
Members present in bold.
Financial Summary as of January 2022
Operations
EDA Board Members
Cash Available $141,385
Reserved $56,736
Mike McGraw
Unreserved $78,360
Jonny Block
Mike Cannon Economic Development Loan Fund
Corey Stearns Cash Available $153,910
Chad Czmowski
Zephyr Wind Services $74,220
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 $418,718
Andy Reid, Finance Director
Loans Receivable $335,413
Maddie Newcomb, EDA Program Manager
Capital Assets $201,329
Total Assets $1,092,373
I. Call to Order
MIF Loan Fund
Meeting called to order at 11:33 AM.
Cash Available $6,638
MOXY Loan Receivable $10,718
II. Review Agenda
Enterprise Center Fund
Cash Available $31,967
III. Review Minutes
SHOPKO TIF District (TIF 4-5)
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Cash Available $206,221
a. January 19 Finance Team meeting
Interfund Loans Receivable $482,422
b. M/S/P: Cannon, Stearns to approve the
minutes as written. Passed
MEDICAL CLINIC TIF District (TIF 4-16)
unanimously.
Interfund Loan Payable $345,065
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c. January 26 EDA Board Meeting
M/S/P: Block, Christensen to approve the minutes as written. Passed unanimously
IV. Review of EDA Financial Statements
Staff provided an update on the EDA financials. (Please refer to table)
A. Year end 2021
B. January 2022
M/S/P: Czmowski, Stearns to approve the financial reports for Year-End 2021 and January 2022 as presented.
Passed unanimously.
V. Director’s Report
A. Marketing Plan: FB = 721, T = 97, Facebook updates = 13, Twitter updates = 13, Website updates = 3
B. Business recruitment / expansions – Staff provided an update on recent prospects and ongoing
conversations.
C. BR & E Visits – will pick back up, about 11 visits to do.
D. FEMA Grant / Uptown Commons / Franklin House update – Franklin House has been moved, Hjerpe
Contracting to remove foundation and fill in basement next week. The EDA will receive the final clearance
and approval letter for the FEMA grant after all cities within McLeod County adopt the new hazard
mitigation plan. Developer will submit a new rendition and site plan in the near future. Garages will be on
the ground level due to the floodplain. Starting discussions with City staff. Property owners on the west side
of the block are still open to discuss sale.
E. Jorgenson Hotel – City Council approved the Redevelopment TIF District, developer is currently working
with architects. EDA will receive Downtown Program applications for consideration soon.
F. Employee Retention Workshop – to happen in the next couple weeks. This will be similar to the TigerPath
Workshop that was held in July last year, but will focus on retaining current employees.
G. Dunn Bros – sold to new owners, plan to reopen in April.
H. Report on Enterprise Center Companies – reviewed financials and discussed.
I. UPONOR – 107 employees, average wage of $26.47/hour. Received $1.35 million in assistance, estimated
$27 million in investments to the building/equipment. Doing very well.
J. EDA Board Vacancy – waiting to see who the new superintendent is as it is important to keep a connection
with the school.
K. County Economic Development – Staff talked with the County Administrator and will put together a list of
items that the Hutchinson EDA can help with to orient the new county economic development staff.
VI. Report on Employment Survey & Labor Force Trends
Using data from the last 4 years, currently we have 18 companies growing (employment up 5% or more), 11
companies staying the status quo (mostly due to lack of employees to hire), and 3 companies that are
declining (employment down 60% or more).
Among 31 manufacturing companies surveyed, there are 155 positions that need to be filled
Reviewed McLeod County demographics, population statistics, labor force projections, and workforce
commuting patterns.
Discussed TigerPath CTE class enrollment, which has almost doubled.
Due to the high number of workers that live in Hutchinson but commute east for work, Staff suggested a
marketing campaign idea to see if Hutchinson and its manufacturers could retain some of those commuters.
The goal: to get 155 of roughly 2130 commuters to take jobs in Hutchinson.
Staff met with Vivid Image to discuss potential tools which include: print advertising, social media, direct
mailings, and radio. A big-ticket item would be to create a landing page with jobs in Hutchinson that direct
jobseekers to a company’s website.
Would seek to partner with local companies.
Staff to come back with a proposal next month.
VII. Enterprise Center Budget 2022
Reviewed the proposed 2022 budget
M/S/P: Cannon, Block to approve the proposed 2022 Enterprise Center budget as presented. Passed
unanimously.
VIII. EDA 2021 Annual Report
Reviewed 2021 EDA Annual Report
M/S/P: Christensen, Stearns to approve the 2021 Annual Report as presented. Passed unanimously.
IX. Franklin Redevelopment Project $2,000
Consider authorizing updated appraisals on five properties
Haven’t received the official notification from FEMA on grant, but updating these appraisals now can
save some time during the redevelopment of this area.
This will be funded through the SHOPKO TIF District.
M/S/P: Czmowski, Cannon to authorize updating appraisals on five properties in the amount of $2,000. Passed
unanimously.
X. Grant & Loan Program Applications – NONE
XI. Other Business –
Hutchinson Utilities was contacted by a data mining company to possibly put up a small building in Hutchinson.
This would house about 1600 computers to mine cryptocurrencies. For a short time, they would use about 5
megawatts worth of energy and then increase to 20 megawatts once an HUC system upgrade was complete.
The company would have minimal employment. Proposed lot would be a remnant of Rite Way Conveyor’s
parcel as it is close to one of HUC’s substations. The lot would sell for $1 per sq. ft, which would go back to the
City’s Community Investment Fund. Staff to do some research and bring back with more information.
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XII. Set Next Meeting – 11:30 AM Wednesday, March 23, 2022
XIII. Adjourn – M/S/P: Block, McGraw to adjourn the meeting at 1:00pm. Passed unanimously.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager