06-01-2022 EDAM (May Mtg)
EDA Board Meeting
Hutchinson Enterprise Center
st
11:30 AM Wednesday, June 1, 2022
____________________________________________________________________________
MEETING MINUTES
Economic Development Authority
Members present in bold.
Financial Summary as of April 2022
Operations
EDA Board Members
Cash Available $94,644
Reserved $56,736
Mike McGraw
Unreserved $33,215
Jonny Block
Mike Cannon Economic Development Loan Fund
Corey Stearns Cash Available $157,193
Chad Czmowski
Zephyr Wind Services $70,851
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 $440,414
Andy Reid, Finance Director
Loans Receivable $306,005
Maddie Newcomb, EDA Program Manager Capital Assets $201,329
Total Assets $1,084,661
Guests
MIF Loan Fund
Kirk Quade
Cash Available $7,316
Dan Morris
MOXY Loan Receivable $10,004
Enterprise Center Fund
I. Call to Order
Cash Available $45,859
Meeting called to order at 11:34 AM.
SHOPKO TIF District (TIF 4-5)
Cash Available $289,537
II. Review Agenda
Interfund Loans Receivable $397,785
MEDICAL CLINIC TIF District (TIF 4-16)
III. Review Minutes
Interfund Loan Payable $260,412
th
a. April 20 Finance Team meeting
M/S/P: Stearns, Cannon to approve the minutes as written. Passed unanimously.
th
b. April 27 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)
M/S/P: Czmowski, Stearns to approve the financial report as presented. Passed unanimously.
V.
A. Marketing Plan: FB = 750, T = 98, Facebook updates = 6, Twitter updates = 8, Website updates = 2
B. Business Retention & Expansion one BR&E visit in April with Goebel Fixture Company, they are
diversifying projects and doing well. They would hire 10 people right now if they could.
C. River House new tentative opening is the end of July.
D. Central Hydraulics project is on hold due to high construction costs. Kirk Quade remarked they just
renewed a 1-year lease with him.
E. Hutch Uptown Commons (requested grant adjustment of $157,500) staff submitted the request to add the
inflation adjustment amount to the FEMA grant and will alert the board with any replies or decisions from
FEMA. Staff met with property owners and the relocation consultant to discuss the full compensation
the property owners this week.
VI. Kirk Quade Project
Consider sale of lot for a 30,000-sf building project
Kirk Quade currently rents to a seed genetics company in need of more space. The existing lot this
building is on is not an option.
The company has 15 FT employees and about 15 seasonal/part-time employees, they are projecting
another 10-15 jobs over the next two years, a mix of part-time and full-time.
Quade would like to do a 30,000 sf post-frame building for warehouse/office space.
Kirk Quade spoke about his project and noted that there is no visual difference between a post-frame
or steel-frame structure. He also said that this project is moving forward once a lot has been approved
and contractors are lined up. He noted that 1150 Benjamin Ave is his number one choice but would
consider other lots as long as they could have southern exposure.
codes
and even exceed some, he mentioned insulation as an example. No colors have been picked for the
Discussion on building costs, layout and design.
Kirk Quade and Dan Morris left the meeting at 12:18pm.
Discussion on the mission of the industrial park and past projects.
Mike Cannon left the meeting at 12:30pm prior to the vote.
Discussion on project considerations and public assistance.
th
M/S/P: Stearns, Block to offer lot 1020 5 Ave SE for $1 per sq. ft. to Kirk Quade for a total of $248,531 (no
public assistance). Passed unanimously.
VII. FireLake Manufacturing Loan $35,000
Consider leasehold improvement loan from Economic Development Loan Fund
Hutchinson EDA, SWIF & MMDC would each do $35k
SWIF & MMDC must be in shared first position on the loan as they are using Federal dollars
nd
have to be 2 lain position.
Propose 7-year term at 5%
Leasehold Improvement include utilities, offices/bathrooms, and electrical work
Collateral would include: UCC on all inventory/fixtures, personal guarantee from Kent Wischmann, and
a life insurance assignment.
It was noted that a subordinate collateral position was fairly standard for the EDA.
Loan Committee met to review financials. Company financial rations are healthy, credit check on
company principal was good.
M/S/P: Block, Stearns to approve the loan for FireLake Manufacturing in the amount of $35,000 for a 7-year
term at 5% interest. Passed unanimously.
VIII. Hay Land Rental
Scott Lang had the highest bid at $75 / acre for a total of $1,735.84 for 22.84 acres
M/S/P: Czmowski, Christensen to award Scott Lang rental of the EDA Hay Land for 2022 at $76 per acre.
Passed unanimously.
IX. Grant & Loan Program Applications none.
X. Other Business none.
nd
XI. Set Next Meeting 11:30 AM Wednesday, June 22, 2022
XII. Adjourn M/S/P: With no further business to attend to, the meeting adjourned at 12:52pm.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager