09-28-2022 EDAM
EDA Board Meeting
Hutchinson Enterprise Center
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11:30 AM Wednesday, September 28, 2022
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MEETING MINUTES
Economic Development Authority
Members present in bold.
Financial Summary as of August 2022
Operations
EDA Board Members
Cash Available $131,509
Reserved $56,736
Mike McGraw
Unreserved $70,797
Jonny Block
Mike Cannon Economic Development Loan Fund
Corey Stearns Cash Available $141,382
Chad Czmowski
Zephyr Wind Services $66,305
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 $379,581
Matt Jaunich, City Administrator
Loans Receivable $353,703
Andy Reid, Finance Director Capital Assets $201,329
Maddie Newcomb, EDA Program Manager Total Assets $1,071,526
MIF Loan Fund
Guest
Cash Available $8,290
Liz Danielson, McLeod County
MOXY Loan Receivable $9,052
Enterprise Center Fund
I. Call to Order
Cash Available $42,702
Meeting called to order at 11:34 AM.
SHOPKO TIF District (TIF 4-5)
Cash Available $288,113
II. Review Agenda
Interfund Loans Receivable $384,685
MEDICAL CLINIC TIF District (TIF 4-16)
III. Review Minutes
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Interfund Loan Payable $260,412
a. August 17 Finance Team meeting
M/S/P: Daggett, Cannon to approve the minutes as written. Passed unanimously.
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b. August 24 EDA Board Meeting
M/S/P: Czmowski, Block 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: Stearns, Cannon to approve the financial reports as presented. Passed unanimously.
V.
A. Marketing Plan: FB = 767, T = 98, Facebook updates = 14, Twitter updates = 1, Website updates = 4
B. Business Recruitment / Expansions staff gave an overview of projects.
C. Data Center sent in a preliminary site plan, looking at a private lot next to the bus garage. Currently
working through City processes.
D. Jorgenson Hotel staff met with developer, project to start in the spring. 27 room boutique hotel
E. Uptown Commons inspections to confirm each property meets the criteria for a redevelopment TIF district
are done, this is so we can pool money from the neighboring TIF district as a funding source. Next step is
to have a builder cost out the improvements to ensure they meet the threshold required. Homeowners are
actively seeking new homes. Hoping to have a purchase agreement in place by the end of the year, demo
in the spring. Developer is ready to start.
F. Gold Coin Staff will be checking in every month.
G. RFP
that we will receive proposals for both projects by the end of the year.
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H. Central Hydraulics interested in the lot on 5 Ave, waiting to hear more from them.
I. EDA Levy: $239,819 or $258,169 City Council gave preliminary approval of the full levy amount of
$258,169.
J. Growth Area Planning reviewed a concept site plan for future industrial/commercial growth, discussion.
K. 8,000 Workers campaign forming up staff will have a conversation with the Rochester Chamber as they
implemented a similar initiative - then will engage businesses.
L. Downtown Programs overview of program usage over the last 20 years, 194 sign & awning grants, 87
façade improvement grants, and 53 downtown loans for a total downtown investment of $2,836,690.
VI. Prospect Enterprise Center Client
Staff briefed the Board on a potential new Enterprise Center client
They specialize in engineering, prototyping, contract manufacturing, and medical devices.
Company started in 2018, has 6 employees and has done $2 million in sales this year.
Planning on giving a presentation to the EDA Board next month.
VII. RD Machine
Discussion of expansion project and options for public assistance.
VIII. ISD 423 Levy
Staff updated the Board on the upcoming school district operating referendum.
Reviewed a comparison of the operating levy amount per pupil for Hutchinson and surrounding school
districts; Hutchinson is on the lower end of this at $311 per pupil.
The state has not kept up with inflation. The school has been proactive by reducing their budget by
$2.9 million over the last 6 years due to declining enrollment.
Discussion on the operating referendum, if passed it would increase the Districts operating revenue by
about $998,000 per year.
IX. Grant & Loan Program Applications
Façade Improvement Matching Grant Program
101 Park Place Fahey Equities, LLC $7,500
M/S/P: Block, Stearns to approve the façade improvement grant in the amount of $7,500. Passed unanimously.
X. Other Business None
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XI. Set Next Meeting 11:30 AM Wednesday, October 26, 2022
XII. Adjourn M/S/P: Cannon, Daggett to adjourn the meeting at 12:45pm. Passed unanimously.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager