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02-22-2002 EDAMHutchinson EDA Board of Directors Minutes of Meeting Friday, February 22, 2002 Members present in bold print Members: Tim Ulrich Bob Windel Jim Haugen Don Walser Jeff Haag Duane Hoversten Keith Fischer Chamber Rep. Dave Westlund Staff. Christie Rock, EDA Executive Director and Matt Jaunich, EDA Program Specialist 1. Tim Ulrich called the meeting to order at 7:05 a.m. 2. Consideration of minutes from January 25, 2002 meeting Don Walser made a motion to approve the minutes from the January 25, 2002 meeting. Jim Haugen seconded the motion. Tim Ulrich asked for discussion. The motion passed. 3. Consideration of financial statements from January 2002 Duane Hoversten made a motion to approve the financial statements from January 2002. Jeff Haag seconded the motion. Tim Ulrich asked for discussion. The motion passed. 4. Consideration of one - motion agenda Jeff Haag made the motion to approve the one - motion agenda. Don Walser seconded the motion. Tim Ulrich asked for discussion. The motion passed. 5. Executive Director's report Christie Rock gave the Executive Director's report. Christie mentioned that she went to a Loan Grant Workshop on land clean up. Christie mentioned that she is spending a lot of her time now working on transferring the loans to the new computer software system. Christie also spent some time going over the progress of the downtown study. Christie also introduced the Minnesota Community Capital Fund. Christie mentioned that the Minnesota Community Capital Fund is a large revolving loan. With funding leveraged on a ten to one basis. Christie suggest that the Board read up on the material she handed out that dealt with the Minnesota Community Capital Fund. Christie also mentioned that someone will be coming out at the next Finance Committee meeting to discuss the Minnesota Community Capital Fund. 6. Update on the Downtown Revitalization Master Plan Christie Rock gave the update on the Downtown Revitalization Master Plan. Christie went over the workshop that took place on February 13`h. Christie mentioned that the meeting went very well, but she wished more people had attended. (About 20 showed up) Christie mentioned that the workshop presented ideas about what the downtown area could look like. Hoisington Koegler presented ideas and pictures to show improvements that could take place in the downtown. Hoisington mentioned opening up the river so the downtown area could be seen from Highway 7. The also presented ideas for the old train depot, the State Theater and the Hutch Hotel. Tim Ulrich mentioned that he added the workshop and he pointed out that it went very well, and he encouraged people to attend the future workshops. 7. Consideration of applications to the Downtown Commercial Rehabilitation Loan Program There were two applications to the Downtown Commercial Rehabilitation Loan Program. Bob Schlueter, the owner of Salon Montage, is seeking $27,494 for general remodeling and roof work. Mr. Schlueter presented several bids. Jeff Haag made a motion to approve the Loan to Mr. Schlueter. Jim Haugen seconded the motion. Tim Ulrich asked for discussion. The motion passed. Richard Peterson, the owner of Peterson Law Office, is seeking $3,000 for a new furnace. Mr. Peterson presented a bid from Rutz Plumbing and Heating. Keith Fischer made a motion to approve the Loan to Mr. Petersen. Jeff Haag seconded the motion. Tim Ulrich asked for discussion. The motion passed. 8. Consideration of application to the Storefront Revitalization Matching Grant Program There was one application to the Storefront Revitalization Matching Grant Program. Bob Schlueter, the owner of Salon Montage, is seeking $5,000 for exterior work on his building. Mr. Schlueter provided a bid from Simonson's Lumber. Jeff Haag made a motion to approve the Grant to Mr. Schlueter. Keith Fischer seconded the motion. Tim Ulrich asked for discussion. The motion passed. 9. Consideration of applications to the Sign and Awning Grant Program There was one application to the Sign and Awning Grant Program. Richard Peterson, the owner of Peterson Law Office, is seeking $2,000 to recover the awnings on his building. Mr. Peterson provided a bid from G & J Awning and Canvas. Jim Haugen made a motion to approve the Grant to Mr. Peterson. Don Walser seconded the motion. Tim Ulrich asked for discussion. The motion passed. 10. Consideration of subordination request for Robert and Jean Elliott Appraised value of the Elliot Building is $275,000. $210,000 is what is being subordinated. Keith Fischer made a motion to subordinate. Jim Haugen seconded the motion. Tim Ulrich asked for discussion. The motion passed with Jeff Haag and Tim Ulrich abstaining. 11. Consideration of option agreement for land acquisition for industrial park expansion City Planner Julie Wischnack, City Engineer John Rodeberg, City Finance Director Ken Merrill, and Ron McGraw joined the meeting to discuss the potential of putting an option out on the Stritesky property. Ron McGraw mentioned that it would be a $5,000 non - refundable option applied to the purchase of land if we were to do so. Ron mentioned that the Stritesky's are looking to sell 78 acres for $520,000 ($6,600 an acre) The option is good for three months. John Rodeberg gave out a handout of issues and estimated costs related to the Stritesky property and the Hackbarth property. John mentioned that it would costs between $325 and $400 per linear foot for sewer and water for both properties. Costs for rough grading the right -of -way and completing soil corrections are not included. John also said that sewer ponding would be required in both the properties. Below is a comparison of the Hackbarth and Stritesky parcel: Hackbarth • Trunk sanitary sewer improvements are proposed to be extended to the edge of the property in 2002. • Assume about $25,000430,000 to extend sanitary sewer through lot to street. • Development of this parcel allows sewer access to Wetherell property. Stritesky • Sanitary sewer line must be extended from the south, and street and watermain from the north. • Sanitary sewer trunk construction estimated at $225,000 - $270,000 to extend from current location to edge of parcel. If only the north �/z were purchased, the cost to extend the sanitary sewer to the center of the parcel would be an additional $100,000- 120,000. • Watermain/storm/street construction estimated at $210,0004250,000. This does not include the potential need for a bridge at the Dakota Rail line, which could add $150,0004700,000. • Layout of this parcel may be a little more problematic due to sanitary location, potential street locations and wetlands, but it also has better access to the county ditch. The Board took time to discuss both proposals and the possibilities for both parcels. Don Walser made a motion to set up a committee that consists of Christie Rock, Tim Ulrich, Jim Haugen and Duane Hoversten. The goal of this committee would be to discuss time and money constraints with Ken and his financing plan. Keith Fischer seconded the motion. Tim asked for discussion. The motion passed. 12. Chamber of Commerce Report Dave Westlund gave the Chamber report. Dave mentioned that they have been having problems with employees getting hurt or sick over the past month. Dave mentioned that next March's business after hours will be held at HTI. Dave also pointed out that the Agri Talk Show broadcast will be held in Hutchinson on March 22 d. 13. Other Business There was no other business to talk about 14. Next meeting date The next meeting date is scheduled for March 22, 2002 at 7:00 a.m. 15. Adjournment Tim made a motion to adjourn. Duane seconded the motion. The meeting adjourned at 8:40 a.m. Respectfully Submitted, Matt Jaunich EDA Program Specialist