01-27-2006 EDAMHutchinson EDA
Board of Directors
Minutes of Meeting
Friday, January 27, 2006 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
Jessica Evans, EDA Assistant
L Tim Ulrich called the meeting to order at 7:02a.m.
II. Approve Agenda
No action taken
III. Review and Approve Meeting Minutes
a. Review minutes from December 23rd EDA Board Meeting
Don Walser
Marc Vaillancourt
M/S /P: Hoversten/McGraw to approve the minutes from the December 23,
2005 EDA Board meeting as written. Passed unanimously.
b. Review minutes from December 21St Finance Team Meeting
M/S /P: McGraw / Haugen to approve the minutes from the December 21, 2005
Finance Team Meeting as written. Passed unanimously.
IV. Review December Financial Statements — Ken Merrill
Miles Seppelt gave the following report:
o On Pg 1 under operations for the EDA, there is $315,517 cash on hand. The
total fund balance as of December 31, 2005 is $315,870. Total Mortgages
receivable is $90,238.
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January 27, 2006
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• Pg 2 and 3 is the statement of revenue and expenses. The EDA continues to
collect $500 each month for the Wetherell Property. The EDA has generated
a total of $102,294 for the month of December. This is due to the $100,000
that was transferred from the general fund. The EDA has generated a total of
$191,521 for the year of 2005.
• Pg 4 under the EDA Loan Fund, there is $116,444 as cash on hand.
• Pg 5 under the EDA Downtown Loan Fund, there is $529,646 as cash on
hand. Mortgages receivable is $706,776. $126,870 has been collected
this year for loan repayments. A total of $214,589 has been paid out thus
far for 2005 including loans, downtown grant program, and miscellaneous.
The balance sheet reflects spending down a total of $87,719.
M/S /P: Stotts/Hoversten to approve December financial statements as presented.
Passed unanimously.
V. Director's Report
Miles Seppelt gave the following report:
A. Liquor Hutch — The final punch list was completed on Monday, January 23.
This project is more or less complete. The signage and banners for the exterior of
the building are still needed and there is a small amount of tile work that is left.
A Grand Re- Opening has been scheduled for Friday, February 17, 2006 at 4p.m.
B. Cornerstone Commons — Rix Corner Redevelopment — The footings have
been installed. The steel should go up at the end of February.
C. Downtown Streetscape Project — Everything that was to be done during the
winter months has been completed. Construction will pick up again in May with
Washington Avenue and the area in front of Cornerstone Commons. The traffic
poles will also be painted black at that time.
D. Industrial Park Development —
1. Goebel Property — Mr. Goebel came in with a counter - proposal to the
EDA's September proposal on Wednesday. Mr. Goebel proposed that the
EDA pay for all assessments and he would deed the pond to the city and
the eastern most lot to the EDA. If the EDA were to only receive this one
lot, the cost per acre would be approximately $47,000. If the EDA were
to receive two lots as initially proposed, the cost per acre would have
been approximately $25,000 per acre. Mr. Ulrich stated that the EDA
does not need this land so the EDA's answer to the counter - proposal
should be that the EDA is not interested. The rest of the board agreed
with this.
2. Cenex — Mr. Seppelt has been in contact with Cenex, and they are
interested in possibly doing something with the fertilizer plant. He will
keep the board informed.
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January 27, 2006
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E. Business Recruitment –Mr. Seppelt said that everything is in order with
Company X. A public hearing will need to be held in order to fulfill the business
subsidy criteria.
Mr. Seppelt submitted a grant to DEED and should hear back in February about
whether or not it was awarded.
VI. Election of Officers for 2006 (required by statute M.S. 469.096)
A. President 1 -year term
B. Vice President
C. Treasurer 1 -year term
D. Secretary 1 -year term (can be non - Commissioner)
E. Assistant Treasurer (can be non - Commissioner)
Mr. Ulrich talked about the history of the officer positions and how they used to be
on a 2 -year rotation. He felt that council appointees should not serve as officers on
the board. Mr. Hoversten will be leaving the board at some point this year so this
leaves Mr. Ulrich, Mr. McGraw, and Mr. Jansick as potential officers.
Mr. Ulrich proposed the following slate of candidates:
President — Mr. Ulrich- 1 -year term
Vice - President— Mr. McGraw- 1 -year term
Treasurer — Mr. Jansick- 1 -year term
Secretary— EDA Intern
Assistant Treasurer— Mr. Merrill
M/S /P: Stotts / Hoversten to approve the slate of candidates as listed above for the
officer positions for 2006. Passed unanimously.
VII. 2005 Annual Report & 2006 Work Program
Mr. Seppelt handed out a copy of the final report and summarized its contents.
M/S /P: Haugen/McGraw to approve the 2005 Annual Report as written and
pass on to City Council for final approval. Passed unanimously.
VIIL Grant & Loan Applications
Si!n & Awning Grant Program
Venus Salon & Spa (47 Main Street North) $975
Heidi Pulkrabek
M/S /P: Stotts /Haugen to approve the sign and awning grant of $975 for Venus
Salon & Spa. Passed unanimously.
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January 27, 2006
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Glass Apple (Grant Adjustment) $300
M/S /P: Haugen/Stotts to approve the sign and awning grant adjustment of $300
for Glass Apple. Passed unanimously.
IX. Eminent Domain
Mr. Seppelt discussed eminent domain and how a Supreme Court ruling made last
year is beginning to affect legislative motions in Minnesota. A bill is being proposed
by a group of car dealers that would virtually eliminate eminent domain use by
EDA's. The Economic Development Association of Minnesota (EDAM) has asked
that resolutions be passed by local EDA's to support the efforts to preserve the use of
eminent domain. Mr. Seppelt discussed the importance of having eminent domain as
an economic tool and how little it is actually used in the state compared to the
number of land transactions.
M/S /P: Hoversten/McGraw to approve the resolution in support of efforts to
preserve the ability of EDA's to use eminent domain to further economic
development and redevelopment in their communities. Passed unanimously.
X. Chamber CVB Update
Mr. Vaillancourt talked about how the Chamber CVB is working with the Luce Line
Coalition in order to have the trail paved from Hutchinson to Winsted. Hopefully the
request will be in the bonding bill and if needed Mr. Vaillancourt and the owner of
the bike shop will testify at the state.
Mr. Vaillancourt said that the Chamber CVB now has the rights to the tagline
"Minnesota's Hometown ". He said that it is available for all groups in Hutchinson to
use.
Last night at the Annual Meeting the Chamber CVB unveiled the community banner
project. There will be 120 spots available. The banners will be on a 3 -month rotation
and is a 3 -year program.
XI. Other Business
Mr. Seppelt discussed that at the Finance Team meeting there was discussion about
transferring the revenue generated from the sale of property in the industrial park of
$199,956 to the reserved fund for future land purchase. The board discussed this and
felt that it would be better to make a new category in the reserve called "Future
Development" to transfer these funds to. Mr. Seppelt said he would ask Mr. Merrill
to take care of this.
Mr. Seppelt discussed possibility of tightening the rules of both grant programs. He
will present something to the Finance Team and Board next month.
Mr. Seppelt got a response back from the city's financial advisor about being able to
fund the EDA through its own tax. He showed some examples of the revenue that
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January 27, 2006
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could possibly be generated. The board felt that he should continue researching this.
Mr. Hoversten talked about how the HRA has been successful in doing this. The
board directed Mr. Seppelt to research the procedure and then talk to each City
Council member individually.
XIL The next meeting will be February 24, 2006 at 7:00a.m.
XIII. Adjourn
The meeting adjourned at 8:1 la.m.
Respectfully submitted,
Jessica Evans
EDA Assistant