04-25-2003 EDAMHutchinson HCDC — An EDA
Board of Directors
Minutes of Meeting
Friday, April 25, 2003
Members present in bold print
Members:
Tim Ulrich Bob Windel Jim Haugen Don Walser
Jeff Haag Duane Hoversten Keith Fischer
Guests:
Matt McMillan
Staff:
Amanda Alfson, EDA Intern
Miles Seppelt, EDA Director
1. Tim Ulrich called the meeting to order at 7:05 a.m.
2. Review minutes of March 26, 2003 Industrial Park Team Meeting
M /S /P: Fischer, Windel to approve the Industrial Park Team Meeting minutes from March 26, 2003.
3. Review minutes of March 28, 2003 HCDC Board Meeting
On page one, Cary Linder should be added as a guest. Line one on number eleven should read "Selected
HCDC members" rather than "The EDA ". Duane Hoversten also needs to be added to the list of SSD team
in number 11.
M /S /P: Walser, Haugen to approve the minutes from March 28, 2003 with the above corrections.
4. Review and approval of Finance Team minutes from April 16, 2003.
M /S /P: Windel, Haugen to approve the minutes from April 16, 2003.
5. Review Financial Statements
Ken Merrill was unable to attend the meeting. Miles Seppelt summarized the included statements. As of
March 31, 2003 the Operations budget on page one listed $140,892 as cash. On page two, income is listed
as $128,000. Miles mentioned that this number will change to approximately $108,000 as a result of the
city budget changes. Under professional services YTD, listed $23,351 for the downtown plan. Numbers
look skewed because only $5,000 was originally allocated for professional services. Page three shows
$3,950 as Dues and Subscriptions which was the membership fee for joining Community Venture Network.
Cash available on page four is listed as $165,585. Allied Mechanical is performing as required. Page five
shows cash in the amount of $558,279.
M /S /P: Hoversten, Haag to approve the March 31, 2003 financial statements.
6. Directors Report
Miles Seppelt gave his report
A) State Theatre
• Miles handed out a tentative funding source outline to the Board. He is currently researching
historic tax credits to see if the project would be eligible. Tim Ulrich pointed out that they
might have to be out of compliance until new owner liquidates his additional assets.
B) Liquor Store
• The Board questioned whether or not there has been any dialog with Nash Finch regarding
their interest in the current Liquor Hutch space. The City of Hutchinson is still undecided
about what will happen with the space. It was mentioned that Ken Merrill will be sending a
letter to Nash Finch stating that we will be vacating the property and that they will have the
first opportunity to purchase the building.
• Duane Hoversten thanked Matt McMillan for writing the letter of support from the HDA to
the City Council members.
C) Industrial Park Team
• The team will be meeting again on Wednesday, April 30. A sketch plan of the new addition
to the industrial park has been prepared. Miles has been talking with John Rodeberg, City
Engineer, about infrastructure alignments. The team wants to look at historical materials to
move forward. Utilities have purchased the Consolidated Freight building but they may not
need all of the land. Tim added that the bank owns the Browns lot north of Consolidated
Freight and that it may be an option for expansion. Miles will talk to Tim about possibilities
and will follow up with Utilities.
• The condemnation process is moving forward. Don Walser mentioned that there are not any
set timelines for this type of process, but that it would continue at its own pace.
• Miles informed the Board that he has spoken with Dave Kirkpatrick about farming the new
industrial park land until development begins. Mr. Kirkpatrick said that he would be planting
something, possibly oats and then alfalfa next year. The Board discussed charging zero rent
with the understanding that utilities would be running through at a later date.
• The team is continuing to work to develop a plan for the recently acquired land. The thought
is to allow for a variety of lot sizes. The team has not yet determined what types of
businesses they hope to attract.
D) CVN
• The next meeting will be Friday, May 16, 2003 in Brooklyn Center from 9:30 A.M. — 2:30
P.M. Any Board members interested in joining Miles at the meeting are more than welcome.
E) National Guard
• Miles informed the Board that there is high probability that he will be getting a draft card by
the end of the month and will be sent to Bosnia for peace keeping. If this occurs, Miles may
be absent for 9 -12 months.
7. Recommendation / Authorization for use of TIF for State Theater Project
As part of the proposed package for the State Theater Miles has been looking into a 25 -year Redevelopment
TIF District for that lot. The TIF district would generate approximately $165,000 and help to fill the gap in
the $1.3 million project. Tim recommended a proposal should go to the Finance Team and then on to the
HCDC Board for approval. Discussion followed. The Board requested to see more numbers at the next
meeting to better understand the scope of the project.
8. Grant & Loan Applications
A. Grants -Storefront Matching
1. Lorraine Meyer $97.08
Jim Haugen abstained from the vote.
M /S /P: Walser, Haag to approve the overage grant to Lorraine Meyer in the amount of $97.08.
B. Grants - Sign & Awning
1. Maria & Brett Oman (141 Main Street) $2,000
M /S /P: Windel, Fischer to approve the grant to Maria & Brett Oman in the amount of $2,000.
2. Maria & Brett Oman (25 Washington Ave E) $985.00
M /S /P: Hoversten, Walser to approve the grant to Maria & Brett Oman in the amount of $985.00
B. Loans
2. George Quast $65,000.00 @ 2% for 10 years
M /S /P: Haugen, Hoversten to approve the Quast loan request in the amount of $65,000.
Matt McMillan questioned the Board if the Sign and Awning criteria was going to be adjusted to reflect the
suggestions made by HKGi in the Downtown Revitalization Master Plan. HKGi listed general guidelines,
which seemed to focus less on the number of colors and more on the type of materials used. Miles will
check with Julie Wischnack when she returns from maternity leave about whether or not the sign ordinance
will be changed to match HKGi recommendations.
9. Industrial Park Team Update
Miles covered this in his Director's Report.
10. Special Services District Update
The Special Services District team has created a package (see handout) based on. 19 / sq.ft. commercial
property assessment, which will provide approximately $107,000 annually. The district may run as long as
15 years. The Petition needs to be compiled in early summer and have City Council approval by August 1
to be on 2004 tax roles. Money would then be available in June 2004.
The Downtown Manager position may work as a shared position with the HCDC. The proposal does not
list many specific projects because changes may occur. The HDA will not be eliminating their dues but
may be changing the structure. Miles mentioned that a worksheet will be included in each packet for each
person visited which will list their current estimated market value, HDA dues (if they are a member) and
their SSD assessment. The HCDC Board would like to see more details but they agreed that the general
concept is o.k.
Duane mentioned that the HCDC Board should consider moving the current downtown boundaries to
match the boundaries of the SSD. Miles will bring maps to the next meeting to compare boundaries.
M /S /P: Hoversten, Haag to accept concepts and support SSD upon seeing a detailed project plan and
to move the project forward.
11. Request to City Council revise its 5 -year capital improvement plan to focus improvements into the
downtown area.
John Rodeberg, City Engineer, and Miles have been in discussed this plan. Miles explained that John
expressed interest in the concept and offered to present it to the City Council. We would be requesting that
the City Council reallocate existing money from the 30 -year street replacement plan to the downtown area
for one year.
M /S /P: Haag, Walser to approve Resolution 2003 -01
13. Other Business
Don Walser shared with the Board that Mike Jorgenson informed him about his difficulties with his
expansion project and the City of Hutchinson. Miles shared with the Board that when the group meeting in
November, their plans were incomplete. When they met again in February, additional plans were brought
but they did not comply with fire codes and other issues. Impressions did not agree with the city decisions
and later determined to cancel the entire project.
Amanda Alfson requested clarification on the Sign and Awning Grant application after being contacted by
Brad Lowenberg from Rexall Drug. As the property owner, Mr. Lowenberg was requesting funds for each
of the three businesses on his property. The Board confirmed that Mr. Lowenberg was eligible for a
maximum of $6,000 in Sign and Awning grants.
14. Set Next Meeting
The next board meeting is scheduled for May 30, 2003 at 7:00 a.m.
16. Adjourn
M /S /P: Hoversten, Haugen to adjourn the Board meeting at 9:00 a.m.
Respectfully submitted,
Amanda Alfson, EDA Intern