11-21-2003 EDAMHutchinson HCDC — An EDA
Board of Directors
Minutes of Meeting
Friday, November 21, 2003
Members present in bold print:
Members:
Tim Ulrich Bob Windel Jim Haugen Don Walser
Jeff Haag Duane Hoversten Keith Fischer
Guests:
Vi Mayer Matt McMillan Ken Merrill Candice Woods
Staff:
Lisa McClure, Interim EDA Director
Jake Wegner, EDA Intern
1. Tim Ulrich called the meeting to order at 7:03 AM
2. Review minutes of October 31, 2003 EDA Board meeting.
M/S /P: Hoversten, Haugen to approve the EDA Board minutes of October 31, 2003 as written.
3. Review Minutes of November 19, 2003 Finance Team meeting.
M/S /P: Haugen, Hoversten to approve the minutes from the November 19, 2003 meeting as
written.
4. Review Financial Statements
M/S /P: Ulrich, Hoversten to approve the financial statements.
5. Liquor Store project
Candice Woods, Liquor Hutch manager, stated that the City has hired a consultant to perform a new
market analysis to consider the possibility of Hutchinson running a two -store operation. She stated
that the current store has 6,642 square feet of space. The options are to renovate and remodel the
existing store and also open a second store on Highway 15 South, or to continue operating just the
current store with modifications. If the market analysis indicates a positive report regarding the
opening of a second store on Hwy. 15 South, then the size of that store will be determined by the
recommendations contained in the market analysis report. Candice will be invited to the December
EDA Board Meeting to update the Board on the outcome of the study.
6. 2004 Budget review
Ken Merrill reviewed the 2004 budget for the Board, and stated that the City has received the
remaining payments from the Prince of Peace. This money will be put back into the Downtown Loan
Fund.
7. Directors Report
Lisa McClure gave the following report:
A. State Theater
Red & Linda McMonagle closed on the State Theater on Friday, November 14`''. He has begun
demolition of the apartments, roof work, and demolition of the lobby; and hopes to have the
theater open for business by late spring /early summer 2004.
B. Business Incubator
Lisa stated that she and Jake Wegner met with Elk River's EDA on Thursday, November 13`h
and with their business incubator expert, Harlan Jacobs. Lisa presented copies of the PowerPoint
presentation that she and Jake were shown. She also stated that Mr. Jacobs and some tenants are
willing to come to Hutchinson and give a presentation of how incubators work and their personal
stories.
C. Letter to Jeff Haag, Tom Daggett
Lisa presented a copy of a letter that she wrote to the owners of the Hutch Hotel, Jeff Haag and
Tom Daggett. The letter informed the owners that it may be possible for them to receive a 20%
tax credit. It would require the building to be submitted for approval on the National Register of
Historic Buildings. In the letter, Lisa offered to help get them started on this registration if it is
something that interests them. She also restated that a TIF District can be established as a means
of financial aid to redevelop the building.
D. CVN
Jake represented the EDA at the CVN meeting on Friday, November 14`''. He stated that three
companies were particularly attractive as potential recruitments to Hutchinson. They are: Spinal
Designs Intl., MR Instruments, and Aqua Innovations. The Board stated that it would like to see
Spinal Designs come to Hutchinson and work in conjunction with the Hutchinson Hospital. Jake
also presented a spreadsheet displaying companies that have made presentations at previous CVN
meetings along with their financing requirements, and the square footage of space requested. The
Board stated that the Lisa should request a business plan from Spinal Designs.
8. Board Member Terms
Tim stated that Bob Windel's term as an a Board member is up at the end of this year. Jeff Haag has
accepted a position out of town and will not be able to continue on as an EDA Board member. He
also stated that Duane Hoversten did not run for re- election to the City Council, creating an opening
for a new City Council - appointed member. Bob Windel has informed Tim that he is interested in
serving one more term.
M/S /P: Walser, Haugen to recommend Duane Hoversten to fill Jeff Haag's vacant Board
position, and to recommend re- appointing Bob Windel to another full term.
9. Micronics Technologies, Inc. & Med -Tech Systems
Lisa stated that she, Tim Ulrich, Duane Hoversten, and Jim Haugen met with Gary Miller, owner of
Micronics and Med -Tech Systems on November 18th to discuss Mr. Miller's companies and products.
Micronics produces printed circuit boards, while Med -Tech Systems manufactures machines that
safely dispose of syringes in hospitals, clinics, and for home use for those with diabetes. Tim
suggested a low interest loan and a possible land write -down. Tim stated that a special Finance Team
meeting should be held on Wednesday, November 26th at 11 a.m. to discuss putting a financial
package.
10. State Theater
Already discussed in the Director's Report.
11. Industrial Park Team Update
Tim stated that Diane Gordon will be replacing Cary Linder as the Industrial Park Team Chairperson.
12. Chamber Update
Vi stated that the Chamber had their retreat on Wednesday, November 19th. The annual
meeting will be in January.
13. Other Business
Tim stated that he and Lisa met with Gary Plotz earlier in the week to discuss rental of the Stritesky
property. The City would like to rent about 15 acres for composting activities. Lisa is working on a
lease for the remaining acres with Kurt Reiner.
14. Set next meeting
There will be a special Finance Team meeting at 11 am. on Wednesday, November 26th in the
Main Conference Room. The next board meeting is scheduled for December 19th at 7:00 a.m.
15. Adjourn
The meeting adjourned at 8:45 a.m.
Respectfully submitted,
Jake Wegner
EDA Intern