07-27-2022 EDAM
EDA Board Meeting
Hutchinson Enterprise Center
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11:30 AM Wednesday, July 27, 2022
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MEETING MINUTES
Economic Development Authority
Members present in bold.
Financial Summary as of June 2022
Operations
EDA Board Members
Cash Available $170,871
Reserved $56,736
Mike McGraw
Unreserved $110,508
Jonny Block
Mike Cannon Economic Development Loan Fund
Corey Stearns Cash Available $137,482
Chad Czmowski
Zephyr Wind Services $68,586
Mary Christensen
Laser Dynamics Balance (forgivable) $23,000
Jack Daggett
Innovative Foam Balance (forgivable) $14,355
Jeremy Carter
Advances to other funds (Enterprise $236,488
Center)
Staff
Downtown Revolving Loan Fund
Miles Seppelt, EDA Director
Cash Available $439,062
Matt Jaunich, City Administrator
Loans Receivable $299,792
Andy Reid, Finance Director Capital Assets $201,329
Maddie Newcomb, EDA Program Manager Total Assets $1,077,095
MIF Loan Fund
Cash Available $7,804
I. Call to Order
MOXY Loan Receivable $9,528
Meeting called to order at 11:32 AM.
Enterprise Center Fund
Cash Available $35,161
II. Review Agenda
SHOPKO TIF District (TIF 4-5)
Cash Available $288,824
III. Review Minutes
Interfund Loans Receivable $384,685
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MEDICAL CLINIC TIF District (TIF 4-16)
a. June 15 Finance Team meeting
Interfund Loan Payable $260,412
M/S/P: Stearns, Czmowski to approve
the minutes as written. Passed
unanimously.
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b. June 22 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: Cannon, Stearns to approve the financial reports as presented. Passed unanimously.
V.
A. Marketing Plan: FB = 753, T = 98, Facebook updates = 12, Twitter updates = 2, Website updates = 5
B. Business Recruitment / Expansions staff gave an overview of projects.
C. Update on local manufacturer expansions Stearnswood is going well, working on sewer system. They are
are going up currently. They are hoping to be in that space in October.
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D. River House opening August 1, soft opening this week.
E. Hutch Uptown Commons Relocation specialist is working through their process.
F. FEMA Grant adjusted to $676,425.75 EDA received an inflation adjustment of about $162k.
G. 3M grant approved (about $30K) this will be used to purchase a large format printer, a screen printer, and
a laser engraver.
H. Quade Project still waiting on documents needed to do the gap analysis to justify the need for public
assistance.
I. Firelake Loan ACH set up / UCC filed.
J. renewed.
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K. Hutchinson Property tax trends Hutchinson has the 2 lowest tax rate in McLeod County, we are ranked
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15 overall in Regional Center Cities, but still lower than the state avg.
L. Superintendent Miles had lunch with new superintendent Dan Dietz
M. Gold Coin reached out to owners, will hopefully meet with them next week to discuss their project.
VI. Consider 2023 EDA Budget & Levy Request
Proposing stepped up marketing / CVN / SBDC
Discussion on market value changes over the next year.
Discussion on the maximum levy increase the EDA can request (about $35k)
Finance Team recommended asking for $21,465 a 9.8% increase over last year.
That levy request would go to pay for the increase in health insurance costs, advertising/marketing
expenses, and contributions to civic organizations.
M/S/P: Cannon, Stearns to request a 9.8% increase in our levy, in the amount of $21,465, and to also inquire if
the City Council would consider granting the full levy increase amount of $35,352. Passed unanimously.
VII. Workforce Marketing Initiative Further Discussion
Discussion on workforce changes, Hutchinson has had a 4.9% decline in workforce over the last 7
years.
Minnesota currently has a 1.8% unemployment rate, the lowest in the U.S.
Reviewed labor force projections for 2033, and reviewed workforce commuting patterns.
3-step marketing initiative proposal overview, the EDA would partner with the City. Project is expected
to cost around $60-70k and be a minimum one-year effort.
Discussion on sources/uses for the project.
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Next step is to meet with HR Professionals on August 9.
VIII. RFP for Franklin Street .33-acre lot
Developer does not want the .33-acre lot across from Uptown Commons site, proposal is to develop
an RFP for this lot and present to developers.
Consensus is to develop the RFP and send it out.
Reviewed the updated sources/uses for the Uptown Commons project.
Developer is ready to start this project, still waiting on the relocation consultant to finalize numbers for
the housing differential that has to be paid to the homeowners.
Will bring back next month to approve the offers to the homeowners, hoping to have purchase
agreements in place by September.
IX. Grant & Loan Program Applications
Commercial Rehabilitation Loan Program
Pawn Shop Building Kirk Quade $60,000
140 Main St N
M/S/P: Block, Christensen to approve the Commercial Rehabilitation Loan in the amount of $60,000 for 10
years at 3.75% interest. Passed unanimously.
X. Other Business Updates on the Jorgenson Hotel and Flank Steakhouse.
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XI. Set Next Meeting 11:30 AM Wednesday, August 24, 2022
XII. Adjourn With no further business to attend to, the meeting adjourned at 12:54pm.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager