12-23-2004 EDAMHutchinson EDA
Board of Directors
Minutes of Meeting
Thursday, December 23, 2004 at 7:00 a.m.
Members present in bold print:
Members:
Tim Ulrich Steve Jansick
Duane Hoversten Casey Stotts
Guests:
Tina Vorlicek, Chamber President
Staff:
Miles Seppelt, EDA Executive Director
Jacki Pillatzki, EDA Intern
Crystal Foust, EDA Intern
Jim Haugen Don Walser
Mike McGraw
I. Tim Ulrich called the meeting to order at 7:01 a.m.
II. Welcome Steve, Mike, and Crystal!
III. Approve Agenda
IV. Review and Approve Meeting Minutes
a. Review minutes of December 3rd, EDA Board meeting.
M/S /P: Hoversten, Haugen to approve the minutes from the December 3rd, 2004 EDA
Board meeting as written.
b. Review minutes of November 17th, EDA Finance Team meeting.
M/S /P: Walser, Jansick to approve the minutes from the November 17th, 2004 EDA
Finance Team meeting as written.
c. Review minutes of November 23rd, 2004 Industrial Park Team meeting.
M/S /P: Haugen, Hoversten to approve the minutes from the November 23rd' 2004
Industrial Park Team meeting as written.
V. Review December Final Financial Statements — Miles Seppelt gave the following report:
• Pg. 1 is the balance sheet for EDA Operations listing the cash available as $132, 679.
• Pg. 2, it was noted that the EDA had received a transfer from the city's general fund
for $90,000. EDA is over budget in the professional services category due to
appraisals, site plans, etc. for various projects.
• Pg. 4 EDA currently has a balance of $137,943 for cash available.
• Pg. 5 Currently for the downtown loan fund the cash available is $659,566. This
balance does not reflect recently approved funds for multiple loans totally about
$200,000. The actual cash available is closer to $450,000.
M /S /P: Jansick, Haugen to approve the December Financial Statements as presented.
VI. Directors Report
Miles Seppelt gave the following updates:
1. Liquor Store- The Liquor Store Project Team will be bringing their proposal to
expand at their current location to the city council sometime in January.
2. Rix Corner- Miles met with the developer's banker and together they came up
with a list that will make the project more favorable. The developer has potential
tenants for the first floor. The developer is asking the EDA for recommendations
to build either a 2 or 3- story building. The EDA Board agreed to see sketches
and proformas to assist in making the recommendations.
3. State Theater- A group from Owatonna came to see the state theater and
downtown and was very impressed. They hope to implement some of the same
projects in their community.
4. Hutchinson Hotel- The project is progressing. The Chamber has completed the
layout for their offices in the front one- third of the building.
5. Streetscaping Project- Miles attended a Resource Allocation meeting where
projects for 2005 were reviewed. Currently the streetscape project is scheduled to
start after the sesquicentennial celebration. The information that has been
presented to the community about the project has been well received. There will
be another open house presenting the same information on January 4th at City
Center at 5:30 p.m.
6. Spec Building Project- The recently established project team met early this week
to determine a meeting schedule and go over the business plan.
7. Cenex Consolidation Project- The city has the appraisals back for the Cenex
properties. The project team will be meeting soon to review these appraisals.
8. Business Recruitment Update- Financial Crimes Technology Systems (FCTS)
have decided not to relocate to Hutchinson. Miles and Jacki met with a company
called Intradyn who may potentially be interested in relocating their facility to
Hutchinson. The company produces computer hardware for back -up files for
small to medium size companies.
9. Industrial Park- The cost on the Stritesky property is $300.
10. New Member Orientation- New member orientation took place on Wednesday,
December 22"d. It was well received.
VII. Grant and Loan Applications
Storefront Revitalization Matching Grant $5,000
Mark Schierman- 246 Main Street (just south of Hennen's Bldg.)
M/S /P: Hoversten, Jansick to approve $5,000 Storefront Revitalization Matching Grant for
246 Main Street.
VIII. State Theater- Change in Funding Package
• Citizens Bank, SWMF, and Minnesota Business Finance have provided
additional funding for this project. The Board recognized that the EDA's position
as a lender has changed due to the additional financing. The EDA is still within
its lending guidelines with this modified financial plan.
A RESOLUTION PERTAINING TO THE FUNDING PACKAGE
OF THE HISTORIC STATE THEATER
WHEREAS the historic State Theater is a priority project for the City and the Economic
Development Authority, and;
WHEREAS an open and operating State Theater will contribute greatly to the economic vitality
of the downtown, and;
WHEREAS the State Theater has been appraised at $1,532,300 as of December 7, 2004 while
the total of all loans for the project is $1,207,000, and;
WHEREAS the Economic Development Authority's loan is therefore still within 100% of the
projects loan -to -value ratio, as required by it's lending rules, and;
IN RECOGNITION OF the fact that total project financing has been revised as follows:
Source
Original Amount
Revised Amount
Owner Equity
$474,000
$576,000+
Citizens Bank
$470,000
$670,000
MBFC
$282,000
$282,000
Southwest Minnesota Foundation
$75,000
$125,000
City of Hutchinson
$130,000
$130,000
THEREFORE BE IT RESOLVED that the Hutchinson Community Development
Commission, an EDA, hereby recognizes it's subordinated collateral position and approves this
modified funding package.
M /S /P: Jansick, Haugen and unanimously passed by the Economic Development
Authority Board of Directors.
IX. Chamber Update
• Tina stated that the position of Administrative Assistant has been filled by Dennis
Heckes. The Crow River Quality Council will be hosting a presenter from 3M in
January. On January 27th the Chamber will have their annual meeting with Jim
Fahey as the host speaker. The Chamber has partnered with the HDA and the
mall to promote shopping local with ads in the Hutchinson Leader.
X. Other Business
• There has been a request for EDA to continue to subordinate their loan to First
Minnesota Bank as the McCarthy's refinance their current loan. The Board
recognized that the EDA's loan will be continue to be subordinate to the loan at
First Minnesota Bank. There was no action taken.
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XI. Next meeting January 28th, 2005, 7 am.
XII. Adjourn
The meeting adjourned at 8:00 am.
Respectfully submitted,
Crystal Foust
EDA Intern