06-22-2000 EDAMHutchinson Community Development Corporation - an EDA
Board of Commissioners
Friday, June 22, 2000
7:00 a.m. at City Center Conference Room
Minutes
Board Members present are in bold print
Don Walser Bob Windel Jeff Haag
Jim Haugen Keith Fischer Duane Hoversten
Tim Ulrich
Chamber Rep: Mike Cannon, Hutchinson Chamber of Commerce
HCDC Staff. Christie Rock, Executive Director
1. Call to order... President Tim Ulrich
The meeting was called to order by President Tim Ulrich at 7:05 a.m.
2. Approval of EDA Board of Commissioners minutes for May 26, 2000
A motion was made by Don Walser to approve the minutes. Jim Haugen seconded the motion.
Tim Ulrich asked for discussion. The motion was approved.
3. Approval of May financial statements
A motion was made by Keith Fischer to approve the April financial statements. Bob Windel
seconded the motion. Tim Ulrich asked for discussion. The motion passed.
4. One - Motion Agenda
Christie suggested the Board make a separate motion for the subordination request from Citizens
Bank and Trust. The request is being made on behalf of Dale and Linda Poirier owners of
Steppingstone Gallery. The loan to value ratio does not exceed 100 %. A motion was make by Jim
Haugen to approve the request. Keith Fischer seconded the motion. Tim Ulrich asked for
discussion. The motion passed.
A motion was made by Bob Windel to approve the One - Motion agenda. Jim Haugen seconded
the motion. Tim Ulrich asked for discussion. The motion passed.
5. Executive Director Update
Christie provided an update of the projects she has been working on over the past month. Projects
include the following:
• Post Office relocation
• Highway 7 Coalition
• Revision of Downtown Loan Fund guidelines
• Recording loan payments
• Application to Economic Development Loan
• Business Subsidy Policy
• Follow up on Entronix visit
• Administrative work
6. Post Office Relocation update
Tim Ulrich updated the Board on last week's meeting with Postal Service officials. Tim explained
that the Postal Service has identified four sites for serious consideration. The sites include Dale's
Auto, Citizens Bank and Trust South, the former Cub Foods building, vacant land south of Target,
and the downtown location.
Based on the conversation that took place at the meeting, it is pretty clear the Citizens Bank location
is a poor site at best due to traffic congestion and accessibility issues. Both the Mayor and Council
member Duane Hoversten stated that they would not support this location.
After a brief recess, Christie and Julie offered four options for the two blocks north of City Center as
potential locations for the new post office. Christie presented information on site acquisition costs.
Estimated costs are between $1 million and $1.2 million.
Postal Service officials agreed that if a value comparison needed to be made, they would look at the
site south of Target. The city would not be able to compete with the $350,000 asking price for
Citizens Bank.
Following the conclusion of the meeting, the group had a walking tour of the city's preferred site.
Postal Service officials liked the access to Washington Avenue and Adams Street. They also liked
the visibility with adjacent businesses such as the hardware store, Econo Foods and Shoko.
7. Revision of Downtown Loan Fund guidelines
The Finance Team Subcommittee met once again to discuss the revision of the Downtown Loan Fund
guidelines. Christie provided the Board with revised guidelines for the three new programs the
subcommittee would like to create using the recaptured funds from the Downtown Loan Fund. The
Board identified several new issues for the Finance Team subcommittee to address. Christie will call
a meeting of the subcommittee for early July.
No action will be taken on the revised guidelines until more information regarding the post office
project received.
8. Hillyard Update
Steel is being erected. There has been some delay due to bad weather. Hillyard still hopes to take
possession of the building in August.
9. Business Subsidy Policy
Legislation enacted during the 1999 Legislative Session requires an agency that awards business subsidies
or qualifying financial assistance to develop and adopt a business subsidy policy. The policy should outline
general criteria for awarding a business subsidy. The criteria must address wages paid for jobs created. The
city of Hutchinson does not have such a policy at the present date.
Financial assistance must exceed $25,000 to qualify as a business subsidy. A "business subsidy" or
"subsidy" could be anyone of the following:
• A state or local government agency grant;
• Contribution of personal property, real property, or infrastructure;
• The principal amount of a loan at rates below those commercially available to the recipient;
• Reduction or deferral of any tax or any fee;
• Guarantee of any payment under any loan, lease or other obligation; or
• Preferential use of government facilities given to a business.
The Minnesota Department of Trade and Economic Development has reviewed and approved the policy
presented to you. Other municipalities such as Meeker County, Swift County and the city of Bensen have
approved similar policies.
A motion was made by Bob Windel to approve the Business Subsidy Policy and to forward it to
the City Council for its approval. Jim Haugen seconded the motion. Tim Ulrich asked for
discussion. The motion passed.
10. Prospects
A site visit with the CEO of Entronix International, Inc., is scheduled for June 29. Christie, Tim and
Vi will be giving a car tour of the community and a meeting with city officials, business leaders, a
Ridgewater College representatives is scheduled to follow. Entronix is currently located in Plymouth
and Eveleth. Sites visits are planned with Windon, Albert Lea, Bemidji and another city.
Information about Hutchinson was sent to Control Products, Inc., a company located in the west
metro area. Christie followed up with a phone call, but the company is still gathering information.
11. New business
Christie updated the Board on the status of the Menards project. There have been some complications
with the availability of natural gas. Menards has not closed on the property as of yet and a final site
plan has not been submitted to the city.
An update on the status of the city's TIF districts will be given at either the July or August Finance
Team meeting.
12. Chamber of Commerce Report
Vi Mayer updated the group on the activities of the Chamber of Commerce. He highlighted the
following:
• Dairy Days
• WCCO Days
• Arts and Crafts Festival
• Music in the Park
• DTED negotiation
• Non- harassment policy
13. Adjournment
A motion was made and seconded to adjourn the meeting. The meeting adjourned at 8:10 a.m.
Respectfully submitted,
Jim Haugen, Secretary /Treasurer