01-24-2003 EDAMHutchinson EDA
Board of Directors
Minutes of Meeting
Friday, January 24, 2003
Members present in bold print
Members:
Tim Ulrich Bob Windel Jim Haugen Don Walser
Jeff Haag Duane Hoversten Keith Fischer
Guests:
Ken Merrill, Finance Director Matt McMillan Vi Mayer
Marc Sebora, City Attorney
Staff:
Amanda Alfson, EDA Intern
Lisa McClure, EDA Intern
Miles Seppelt, EDA Director
1. Tim Ulrich called the meeting to order at 7:05 a.m.
2. Introduction of new EDA Intern
Amanda Alfson introduced herself and stated that she would be starting full -time on January 24th. Lisa's
last day will be January 31st. The EDA Board went around the table and introduced themselves.
3. Consideration of minutes from the December 20, 2002 meeting.
M /S /P: Windel, Hoversten to approve the minutes from December 20, 2002.
4. Review and approval of Finance Team minutes from January 22, 2003.
M /S /P: Walser, Haugen to approve the minutes from the January 22, 2003.
5. Review Financial Statements
Ken Merrill went over the December financial statements. He stated that on page one the balance sheet
shows $217,864 in cash. Page two identified that $93,771 was transferred for the HKGi study. The year
to date income was listed as $222,182. There is a surplus in salaries and supplies. Page three; year to
date services was $18,577. Year to date available balance is $50,245. The Economic Development Loan
information on page four shows cash as $162,651. An error was found in the Crow River Press account
and $854 will be taken off. Ken will reconcile this. Fund balance was $189, 531. Two transfers are
listed totaling $98,777. Page five, Downtown Loan, listed cash as $526,334. Prince of Peace payment
was received in January 2003. They are considering rewriting their loans. Revenue was $96,982.
Expenses totaled $166,578.
M /S /P: Windel, Haugen to approve transferring of money into operations.
Pages 8, 9 & 10 identified loan balances as of 12/31/02, storefront matching grant recipients as well as
sign and awning grant program recipients.
The financial statements were approved by the board.
6. M /S /P: Hoversten, Walser to approve request by Miles Seppelt to attend Public Finance Seminar.
7. Directors Report
Miles Seppelt gave his report
A) Business visits
• Miles is planning on continuing to visit the Industrial Park. He has met with Hutch
Manufacturing, Hillyard and Goebel.
B) Business Recruitment
On January 22, Miles and Amanda met with a small company in Glencoe about relocating
to Hutchinson. Micronics Technology and Medtech Systems make up this small
company. Micronics is a design lab for circuit boards while Medtech Systems has created
a "Sharps Box ". They may add manufacturing in the future. A 4,000 sq. ft. location is
desired at this time. They have expressed interest in having a location near the river,
possibly on Hwy. 7. They like the look of Caspers building. Three to four employees will
be added to their current staff of six upon moving to Hutchinson. The company is looking
at $150- 200,000 in financing (SBA Low Doc ?). Southwest MN Foundation may help.
C) State Theatre
• There is a serious prospect for the State Theatre. They are evaluating the feasibility of the
location at this time. Their plans are to use one theatre as stage for community theatre
groups while using the rest of the building for retail, office space and apartments. The
finance team recommended not sharing the financial responsibility with the private
developers for the feasibility study.
D) Liquor Store
Currently we are looking at three possible locations. City Council members have asked
for more information.
E) Hutch Hotel
• Miles has met with Tom Daggett and Jeff Haag. They are interested in moving forward
this summer.
F) County EDA Project
• Miles has met with Alison Papke from the Glencoe Chamber to discuss getting a group
together to brainstorm how to promote this idea.
• Miles has visited with County Administrator Nan Crary.
• Miles may be asking area cities to pass resolutions of support.
• Tax abatement should be kept at the top of priority list.
G) Post Office
• Miles has met with the Post Master. Currently there is a freeze on putting up any new
buildings due to budget issues.
• Tim Ulrich mentioned that the Post Office, Hutch Hotel, Liquor Store and State Theatre
are the key to downtown study.
• It was suggested that letters be sent from Marlin representing the EDA to Senator Norm
Coleman, Senator Mark Dayton, and Congressman Colin Peterson regarding Post Office.
H) Nook & Cranny
• Nancy Murphy is looking into purchasing Country Embroidery as another source of
revenue. EDA is facilitating this process.
8. Delinquent Loans
No delinquent loans at this time.
9. Loan Status as of 12 -31 -02
A list of loan balances as of 12 -31 -03 was included in the packet. As of 12- 31 -02, loans are totaling
$464,120.14.
10. Current grant fund status
The Storefront matching grant program has a balance of $68,055.24. The balance of the sign and
awning grant program is $5,650.54.
11. Review of Storefront Matching Grant Applications
A) Aquaria Pets — requesting payment of $515.80 for storefront revitalization grant.
B) BARTCO — requesting payment of $138.05 for storefront revitalization grant.
M /S /P: Haugen, Windel ratifying finance team action.
12. Industrial Park update
Marc Sebora gave the board an update on the condemnation process. On February 13, 2003 there will
be a hearing to appoint condemnation commissioners. The other attorney is interested in negotiating.
There is a fear that negotiation will not work. The property was appraised at $7,000 and they are asking
$25,000. The board posted the question of if a bid of $13,000 was presented, would the other party
come down in price? Jim Haugen asked what the cost of industrial park property with services goes for.
Tim responded about $10,000 /per acre. 3M paid between $8 -9,000 for their property. The board
recommended Marc obtain a written offer to the EDA to negotiate. Marc should also go back to the
other party and see about offer in the low teens. Timetable for this project could be months and months.
13. Chamber report
Vi had a conference call meeting during this portion of the meeting and was unable to give his report.
14. New Business
There was no new business to discuss.
15. Set next meeting
The next board meeting is scheduled for February 28, 2003 at 7:00 — 8:00 a.m.
16. Adjourn
Board meeting was adjourned at 8:10 a.m.
Respectfully submitted,
Amanda Alfson, EDA Intern