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08-26-2005 EDAMHutchinson EDA Board of Directors Minutes of Meeting Friday, August 26, 2005 at 7:00 a.m. Members present in bold print: Members: Tim Ulrich Steve Jansick Jim Haugen Duane Hoversten Casey Stotts Mike McGraw Staff: Miles Seppelt, EDA Executive Director Erin Eberdt, EDA Assistant L Tim Ulrich called the meeting to order at 7:02am. II. Approve Agenda No action taken III. Review and Approve Meeting Minutes a. Review minutes from June 24th EDA Board Meeting Don Walser Marc Vaillancourt M/S /P: Jansick/Hoversten to approve the minutes from the July 22nd EDA Board meeting as written. Passed unanimously. b. Review minutes from July 21St Finance Team Meeting M/S /P: Jansick/Haugen to approve the minutes from the July 21sT Finance Team Meeting as written. Passed unanimously. IV. Review July Financial Statements — Ken Merrill Miles Seppelt gave the following report: o On Pg 1 under operations for the EDA, there is $60,105 cash on hand. The total fund balance as of July 31St, 2005 is $60,415. There is the continuation of the land write down. Total Mortgages receivable is $90,238. o Pg 2 and 3 is the statement of revenue and expenses. Total expenses for July are $8,029. The EDA has spent down a total of $7,529 for the month of July. The EDA has spent down a total of $63,122 for the first seven months of 2005. EDA Board Meeting August 26, 2005 Page 2 of 4 • Pg 4 under the EDA Loan Fund, there is $147,314 as cash on hand. • Pg 5 under the EDA Downtown Loan Fund, there is $491,889 as cash on hand. Mortgages receivable is $773,827. $69,951 has been collected this year for loan repayments. A total of $195,380 has been paid out thus far for 2005 including loans, downtown grant program, and miscellaneous. The balance sheet reflects spending down a total of $125,429. M/S /P: Haugen/McGraw to approve July financial statements as presented. Passed unanimously. V. Director's Report Miles Seppelt gave the following report: A. State Theater — The Gala put on by Historic Hutch is on Wednesday, September 7`'' The opening to the public is on September 10th. M/S /P: Haugen/ McGraw to authorize the purchase of two tickets at $100 each to the Historic Hutch Gala for Mr. Seppelt and Ms. Eberdt to attend the event as a work function. Passed unanimously. B. Liquor Hutch — The construction is on schedule. The roof decking was being put up on Thursday. By the end of next week the new addition should be weather tight. The floor will then be poured. The new addition should be done by the end of September, and at that time, the store will move everything to the new side and start renovating the old side. C. Rix Corner Redevelopment — The Redevelopment TIF district was approved on Tuesday night. The next thing is for the developer to close on the bank loan. The Pawnshop needs to get moved before demolition will begin. D. Downtown Streetscape Project — Everything is on schedule. Every Thursday at 11:30am there will be a meeting for anyone to attend and get an update on the project. The streetlights are the biggest delay. They take 10 -12 weeks from the time they are ordered before they arrive. E. Wetherell Industrial Park — The topsoil is just about done being removed. Everything is on budget from the bid. JOBZ was approved at the City Council on Tuesday night. There will be a total of 51.9 acres. The final details are being finished up and it will be submitted to DEED shortly. F. Business Recruitment 1. Company "X" — They are doing their final review on the purchase agreement. The closing date will probably be September 1st or 2nd. They will purchase the 10.85 acres to the North. 2. Ashwell Industries — Mr. Ashwell will be closing on his loan shortly. He wanted to wait until the equipment he ordered came in. 3. Company "Y" — Mr. Seppelt talked with them on Thursday. They are getting things prepared and will be in contact with Mr. Seppelt soon. EDA Board Meeting August 26, 2005 Page 3 of 4 VI. Grant and Loan Applications Sign and Awning Grant Program A. Law Offices of Lenore L. Flinn $2,000 M/S /P: Jansick/Haugen to approve the Sign and Awning Grant for $2,000 for the Law Offices of Lenore L. Flinn. Passed unanimously. B. Crow River Chiropractic (Dr. Randy Jurgenson) $1,500 M/S /P: Hoversten/McGraw to approve the Sign and Awning Grant for $1,500 for Crow River Chiropractic. Passed unanimously. C. Hutchinson Area Chamber of Commerce CVB $2,000 M/S /P: Jansick/Hoversten to approve the Sign and Awning Grant for $2,000 for the Hutchinson Chamber CVB. Passed unanimously. VII. Business Subsidy Criteria — Wage Adjustment Mr. Seppelt stated that last month after the Board approved the changes to include the necessary JOBZ language, the state raised its minimum wage by $1.00 /hour. At the City Council meeting, instead of approving the Finance Team suggestion of 150% of the State or Federal minimum wage, they set it at $9.30 to have it be equivalent to the poverty level for a family of four. Mr. Seppelt will investigate if the wage can be set to correspond with the poverty level for a family of four. He believes that is has to be set at an actual number and that each time that number changes, there must be a public hearing. No action was taken and no motion was made because the City Council already took action on this. VIIL Small Business Development Center Last month the Board requested a pro forma to show how the EDA would make the money back if they were to take on the duties of the SBDC. Initially the SBDC proposed that the counselors would run through the city. This would have caused complication with the Finance Department because the counselors are not city employees. So instead of the EDA being reimbursed $35/hour for any time spent on this work, they will be reimbursed $42/hour to cover the money that would have otherwise been received back from the counselor time. This keeps everything easier with the finance side. The extra costs for the hourly rate will also cover a separate phone line and postage costs. Everything will need to be set up by the end of the year so as to correspond with the school year at the Regional SBDC office in Marshall. M/S /P: McGraw /Haugen to approve the contribution of $5,000 to the SBDC for a one year trial period beginning on January 1St, 2006 and ending December 31St, 2006. Passed unanimously. EDA Board Meeting August 26, 2005 Page 4 of 4 IX. Chamber CVB Update Marc Vaillancourt gave the following report: Thursday was the deadline for the Leadership Program. He mentioned the changes to the program for this year. There were more applications received than spots available. The kick -off is in mid - September. Music in the Park is all done. They are in the process of talking with the sponsors to see how things went. Arts and Crafts is in the final stages of getting everything ready. Currently, the Chamber CVB is working on the 2006 budget. When the Highway 7 construction begins, they hope to be involved with it just like they are with the Streetscape Project. X. Other Business Mr. Ulrich asked about the status of the mural project. Mr. Seppelt stated that the biggest thing right now is finding the funding. The biggest concern with the Veterans is what other cities will think of the project. Mr. Haugen asked about SWMF. Mr. Ulrich stated that it looks like it will be going forward shortly. The building has been made simpler. SWMF has called for a special meeting of the Planning Commission. Mr. Seppelt stated that next month the Board should start brainstorming for 2006 projects. XI. The next meeting will be September 30r", at 7:OOam. The meeting was going to be September 23rd, but Mr. Ulrich may not have been able to attend and Mr. Vaillancourt would also not be able to be there. XII. Adjourn The meeting adjourned at 7:51 am. Respectfully submitted, Erin Eberdt EDA Assistant