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08-27-2004 EDAMHutchinson EDA Board of Directors Minutes of Meeting Friday, August 27th' 2004 at 7:00 a.m. Members present in bold print: Members: Tim Ulrich Bob Windel Jim Haugen Don Walser Duane Hoversten Keith Fischer Casey Stotts Guests: Tina Vorlicek Staff: Miles Seppelt, EDA Executive Director Jacki Pillatzki, EDA Intern 1. Tim Ulrich called the meeting to order at 7:02 a.m. 2. Approve Agenda 3. Review and Approve Meeting Minutes a. Review minutes of July 23rd' 2004 EDA Board meeting. M/S /P: Windel, Haugen to approve the minutes of July 23rd° 2004 EDA Board meeting as written. b. Review Minutes of July 21St' 2004 Finance Team meeting. M/S /P: Walser, Fischer to approve the minutes from the July 21st, 2004 Finance Team meeting as written. c. Review Minutes of July 27th, 2004 Industrial Park Team M/S /P: Windel, Hoversten to approve the minutes from the July 27th' 2004 Industrial Park Team meeting as written. 4. Review July Financial Statement Miles gave an overview of the July Financial Statements. He noted that on page one of Operations there is $77,667.00 cash on hand. Pages two and three list revenue and expenditures with the only category higher than usual being the Professional Service Fees due to current project expenses. Page four notes that there is $140,000.00 cash on hand for the Economic Development Loan Fund. On page five Miles noted that there was $638,003.00 cash on hand for the Downtown Loan Fund with Mortgages totaling $678,000.00. M/S /P: Fischer, Hoversten to approve July Financial Statements as written. 5. Directors Report Miles Seppelt gave the following updates: Streetscaping Project- SEH will complete the feasibility study and costs estimates within the next week. The study will include an estimate of what the assessments will be for each property on Main Street. The assessment is the minimum amount (20 %) that the City is required to assess for the project. The assessment is based on the Main Street footage of each property. The project is planned for next summer and will coordinate with summer activities around the 100 -year City Anniversary celebration. Liquor Store- The Liquor Store Committee will be meeting a 9 am this morning. Miles showed the Board a sketch of the proposed expansion of the existing Liquor Store. He noted that the Liquor Store Committee would like to bring the proposal to the City Council on September 14th Rix Corner- Miles has a proposed business plan for the site. Potentially the redevelopment would consist of a building of similar nature as to buildings that are already located on Main Street. It is possible that the main floor would be retail and the second floor would be used for professional offices. State Theater- Miles stated that the project is about 90% done. The main theater is almost complete with the seats and the drapes left to finish. The balcony theater is waiting for the ceiling and the seats to go in. The long theater has multiple items left to finish including readjusting the entry to make it more accessible. The next step with the apartments will be to have them sheet rocked. The plumbing and electrical are complete and approved. The marquee is currently being installed and the elevator will be installed this week sometime. In the next couple of weeks the sidewalk in front of the theater will be replaced. Potential businesses for the theaters retail spaces include a Tuxedo /Costume Shop and a take out pizza and pasta restaurant. Everything should be up and running around mid - October. Hutchinson Hotel- Potentially a restaurant was going to be going in on the main floor of the Hotel, but that may not be anymore. Mariachi Restaurant- 101 Main Street will now be a Mexican Restaurant that is scheduled to open around September l't. Business Retention and Expansion Visits Miles stated that he has been around town making visits to numerous companies getting to know them, how they operate, their needs, and ways that the EDA can possibly be of assistance to them. Miles gave brief overviews of each of the companies he has visited thus far. The companies that have been visited include: • Marshall Concrete Products • Hands, Inc. • New Dimension Plating • Haugen Furniture Company 6. Business Recruitment Update The companies listed below are all looking for new communities to expand business in. Miles has either met with or has plans to meet with each of these companies to find out more about them. a. QuestStar Medical, Inc. b. InterRAD Medical, Inc. c. Wadia Moses Engineering Company d. Financial Crimes Technology Services e. Gray Technologies 7. Grant & Loan Application Sign & Awnin2 Grant Kamrath Chiropractic- Keith Kamrath $2,000.00 M/S /P: Hoversten, Fischer to approve Sign & Awning Grant in the amount of $2,000.00 for Kamrath Chiropractic. Storefront Revitalization Matching Grant Family Rexall Drug- Brad Lueneburg $4,905.00 M/S /P: Windel, Haugen to approve Storefront Revitalization Grant in the amount of $4905.00 for Family Rexall Drug. Downtown Loan Program Robert Michael Salon- Robert McCarthy $65,000.00 MIS /P: Walser, Hoversten to approve a Downtown Loan in the amount of $65,000.00 for Robert Michael Salon, with the approval contingent on the outcome of the O & E Report and that the work to be done on the interior of the building does not exceed 30% of the loan making the project compliant with the loan program guidelines. 8. Industrial Park Update a. Stritesky: There seems to be an agreement in place that will allow the city to annex this property. The township will drop their objection. b. Spec Building Project: Miles Seppelt reported that the original plan to develop an industrial spec building on the southeast corner of the property (Block 2 Lot 2) might not be feasible because of extremely high site work costs. The estimates that Miles has received so far suggest that it cost somewhere in $200,000 range to do the site work. This high cost is due to a significant amount of fill that would be needed before we would be able to build on the land. 9. Chamber update Tina Vorlicek gave the following report: o Music in the Park- This is done with for this year. It went well and overall it had good attendance and participation of sponsors. o Upcoming Events- The Arts and Crafts Festival will be on September 17th and 18th. The Taste of Hutch has only one spot remaining. o The United Way Campaign will be kicking off this fall with a goal of $209,000. o The Agri - business committee is working on putting together 250 Fatigue for Farmers bags. They have received national attention for this program through an Agri - business radio talk show. o The Chamber is now offering a Dental Plan to members authorized to sell dental insurance. o The Chamber is working on establishing a formal networking group to greet new businesses. Tina noted that Willmar is currently working on a countywide approach this networking idea. o The Convention and Visitor's Bureau is currently looking for someone to fill a temporary position in the office. It is an internship that will approximately be 6 months. The CVB along with the City has advertised for this position and are accepting applications. 10. Land Write Down Program Miles Seppelt brought forward a request from Dick McClure for implementation of the land write -down program. The program began when a number of acres were donated to the HCDC. Dick Lennes originated the Land Write -Down Program as a way to market the land. Companies that benefited from the Land Write Down Program included 3 -D CNC, Solitra, Linder Bus Company, Plastic Specialties and, later — utilizing land donated by Ron McGraw — American Energy Systems. The program has expanded to include the EDA actually purchasing land and then writing it down to promote economic development. Dick McClure utilized this program years ago and acquired two of the parcels that he currently has buildings on. Dick McClure has requested that the EDA utilize the Land Write Down Program again to purchase one of two possible properties and sell it back to him written down by 2/3. The question arose of where the EDA would get the funds to purchase additional land to be written down and it was observed that funds were limited. 11. Proposed Sale of Land Write Down Property from American Energy Systems to John Detell to square off lot on 185 Arch Street Miles Seppelt reviewed the Land Write -Down Program rule relating to the sale of land acquired under the program. The Board agreed that if the proposed sale of the Land Write Down Property were to be sold the amount due to the EDA would be $2,566.07. Miles will continue to monitor the sale of this land. C! 12. Other business City Attorney Marc Sebora provided some updated information on Allied Mechanical Systems. Allied Mechanical Systems will be having an auction in September or October. The Board asked Mr. Sebora to continue efforts to recapture the funds lost on the loan that Allied Mechanical had with the EDA. 13. Set next meeting The next meeting was set for Friday, September 24th' at 7:00 am. 14. Adjourn The meeting adjourned at 8:33 a.m. Respectfully submitted, Jacki Pillatzki EDA Intern