11-30-2022 EDAM
EDA Board Meeting
Hutchinson Enterprise Center
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11:30 AM Wednesday, November 30, 2022
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MEETING MINUTES
Economic Development Authority
Members present in bold.
Financial Summary through October 2022
Operations
EDA Board Members
Cash Available $99,288
Reserved $56,736
Mike McGraw
Unreserved $38,923
Jonny Block
Mike Cannon Economic Development Loan Fund
Corey Stearns Cash Available $145,780
Chad Czmowski
Zephyr Wind Services $64,010
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 $384,657
Matt Jaunich, City Administrator
Loans Receivable $342,753
Andy Reid, Finance Director Capital Assets $201,329
Maddie Newcomb, EDA Program Manager Total Assets $1,065,653
MIF Loan Fund
Guest
Cash Available $8,807
Liz Danielson
MOXY Loan Receivable $8,576
Enterprise Center Fund
I. Call to Order
Cash Available $43,715
Meeting called to order at 11:31 AM.
SHOPKO TIF District (TIF 4-5)
Cash Available $289,411
II. Review Agenda
Interfund Loans Receivable $384,685
MEDICAL CLINIC TIF District (TIF 4-16)
III. Review Minutes
Interfund Loan Payable $260,412
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a. October 19 Finance Team meeting
M/S/P: Daggett, Stearns to approve the minutes as written. Passed unanimously.
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b. October 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)
M/S/P: Block, Stearns to approve the financial reports as presented. Passed unanimously.
V.
A. Marketing Plan: FB = 774, T = 98, Facebook updates = 11, Twitter updates = 0, Website updates = 4
B. Business Recruitment / Expansions staff gave an overview of projects.
C. Jorgenson Hotel moving forward, still need to finalize Development Agreement, construction to start in
the spring.
D. Uptown Grand received the signed purchase agreement from Rannow, closing scheduled for Dec. 14.
Olson has their purchase agreement, expecting to receive that back shortly and close in early January. Witt
is working with the relocation consultant on details for compensation for his daughter residing in one of his
rentals. City closed on the clinic site with the developer. SEH is finalizing pond design, reviewed site plan.
Discussion on whether we should still pursue the full trail segment or if the trail should stop right at the new
apartments. Consensus is to forego the full trail segment and look at other options
portion of this project. The plan would still be to clean up the shoreline and stabilize the bank with riprap.
Reviewed new project renderings.
E. Gold Coin staff waiting on an update from the builder.
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F. Human Resources Roundtable next date is December 21.
G. First Minnesota Child Care Initiative
information on the impact the child care crisis is having on the community. Currently there is a need for
about 450 spots. Committee will meet again in the next couple weeks to talk next steps and figure out the
most important action items to pursue.
H. 8,000 9,500 workers campaign 9500 is the updated number from DEED of people leaving McLeod
County to work. 3M is on board for the campaign, next step is to line up more companies to partner with.
Once that is figured out, staff can finalize the budget and move forward.
I. TigerPath Update working with school officials on how to ramp up TigerPath and Tiger Mfg. Small
committee working on planning the next workforce conference being held in the Spring in Hutchinson.
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J. RD Machine TIF moving forward, public hearing on January 10 to establish TIF District.
K. CVN next meeting is on Friday, will hopefully have some new prospects to market Hutchinson to.
L. EDA Levy City Council will finalize the levy at the end of December.
VI. Spec Building Project
Staff reported there currently is zero square feet of manufacturing space available in Hutchinson.
Significant interest from at least two area builders in putting up a Spec building. Staff will reach out to
a third builder as well.
Anticipating the building to be about 30,000 sf.
Discussion on lease rate and other building specs.
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Proposals are due on Dec. 30, EDA Board will review in January.
Staff is also expecting a couple proposals for the small triangular lot where the Franklin House sat
downtown.
VII. Consideration of TIF 90/20 policy
Should we make it a policy that the City retain the maximum allowed to help fund other qualifying economic
development projects?
Per state statute the City can retain up to 20% of Tax Increment for admin & other qualifying expenses
such as property acquisition, infrastructure, parking lots/sidewalks, and lighting.
Use of dollars generated has to follow the original TIF District rules.
Discussion.
Consensus is to generally offer a maximum of 80% of the tax increment for future projects, with the
City retaining 20% for qualifying expenditures, but to keep flexibility and not adopt a formal policy.
VIII. Innovative Foam Project
Discuss Options to assist Innovative Foam they need 8,000 sf
Lease at the Enterprise Center ends December 2023.
Not much interest from developers to put up a building and lease to Innovative Foam; company
currently doesnt have the ability to build their own building. Currently there are no other local building
options.
Further discussion.
Will bring back at a later time.
IX. 2023 Goals & Objectives
Will bring back next month. Staff will send out info from the current Downtown plan.
X. RD Machine Lease
Consider extension of RD Machine lease until their new building is completed. Discussion.
M/S/P: Block, Daggett to approve a month to month lease for RD Machine until their expansion is
complete. Passed unanimously.
XI. Grant & Loan Program Applications none.
XII. Other Business
Discussion on recommending a new City Council representative to the Mayor for the EDA Board. Mary
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XIII. Set Next Meeting 11:30 AM Thursday, December 22, 2022 (adjusted due to Christmas Holidays)
XIV. Adjourn M/S/P: Block, Daggett to adjourn the meeting at 12:58pm. Passed unanimously.
Respectfully Submitted,
Madison Newcomb
EDA Program Manager