02-24-2006 EDAMHutchinson EDA
Board of Directors
Minutes of Meeting
Friday, February 24th, 2006 at 7:00 a.m.
Members present in bold print:
Members:
Tim Ulrich Steve Jansick Jim Haugen Don Walser
Duane Hoversten Casey Stotts Mike McGraw
Guests Present:
Marc Vaillancourt, Chamber of Commerce
Ken Merrill, Finance Director
Staff:
Miles Seppelt, EDA Executive Director
I. Tim Ulrich called the meeting to order at 7:02 a.m.
II. Approve Agenda
An updated agenda was distributed.
III. Review and Approve Meeting Minutes
a. Review minutes from January 27th EDA Board Meeting
M /S /P: McGraw, Stotts to approve the minutes of January 27, 2006 as written.
Passed unanimously.
b. Review minutes from the January 18th Finance Team Meeting
M /S /P: Walser, Jansick to approve the minutes of the Finance Team from
January 18, 2006 as written. Passed unanimously.
IV. Review January Financial Statements
Mr. Merrill gave the financial report:
➢ Cash available for operations is $301,322
➢ All mortgages held as part of the land write -down program have been
advanced one year to reflect their progress through the forgiveness period.
➢ Of the cash available, $199,956 is shown as "reserved — land," as these are
the proceeds from our recent land sale to Company "X."
➢ Pages two and three show January revenues & expenditures. These pages
have been reformatted and obsolete object codes have been deleted.
➢ For the month, the EDA collected $500 in rental income, and the primary
expenditures were for salaries and benefits. Nothing unusual.
➢ Annual support for the Southwest Minnesota Foundation was erroneously
shown under "Dues & Subscriptions;" this will be moved to its own object
code for next months report.
➢ The Economic Development Loan Fund has $116,444 in cash available. The
loan to Ashwill Industries is performing as required. Marc Sebora is still
working to collect additional dollars from Allied Mechanical.
➢ The Downtown Loan Fund has a total of $556,021 in cash available of which
$130,000 is earmarked for the Cornerstone Commons project. Loans
outstanding total $700,173.
M /S /P: Walser, Stotts to approve the January Financial statements. Passed
unanimously.
V. Director's Report
Miles Seppelt gave the following report:
A. The newly expanded Liquor Hutch held their grand opening celebration on
February 17th. It was a successful and well- attended event. Sales were up
12% in January.
B. The steel frame of Cornerstone Commons should be going up within the next
2 -3 weeks.
C. Met with the owner of Company "X" to review the development agreement,
etc. Very good meeting. They are starting the planning process this month
and should be under construction by July. The facility will be in excess of
50,000 square feet.
D. The Highway 7 and Main Street Bridge projects are on schedule. Some
demolition should take place in April with road construction starting in May.
The bridge is scheduled for closure in June.
E. The City Council passed a companion resolution in support of the EDA
resolution calling for the preservation of eminent domain as a tool for
economic development & redevelopment.
F. One grant has been written and submitted to the Department of Employment
and Economic Development and we should hear back from them by the end
of the month. Staff is in the process of writing two other grants.
G. A downtown business is planning to build a new store this summer.
H. A Hutchinson company would like to expand. It plans to build a 15,000
square foot building in the industrial park. EDA staff is working with them on
financing and site options.
VI. Grant & Loan Applications
None.
ViU- Request for Loan Subordination
Citizens Bank has provided 8 line Of credit to Bob & Charlene Schlueter that is
secured bv8 real estate mortgage On property they own On Main Street. Citizens
Bank has requested that the E[}/\subordinate its |O8n b3 that OfCitizens Bank.
The property iS valued 8t$140.00O and the total Of all debt against itiS$88.00O.
M/S/P: Walser, McGraw tO approve the subordination of the EDA's|O8n. Tim
Ulrich abstained from the vote. The measure passed unanimously.
ViUU- EDA Funding Levy
The idea Of the EDA requesting its Own levy from the City Council was
discussed. EDA staff reviewed the levy procedure and its advantages for the
ED/\and the City —8 key advantage being that it would nernOwe ED/\funding
from the Cih/'S general fund. City Council members appear to be supportive Of
the idea.
The Board discussed the advantages of the levy, the amount that should be
requested and the timing of the request.
K was agreed that any request would wait until after the School District's bonding
IX. Goebel Property
The ED/\ Director updated the Board On the status Of negotiations xvith K8c Virgil
Goebel. He has requested ED/\ assistance with the 8SSeSSrnentS On four |OtS he
OxvnS in the industrial park and the ED/\ has made 8 pn]pOS8| that would benefit
both Mr. Goebel and the City. Mr. Goebel has made 8 new COuntepOffer.
The ED/\ Finance Team will take up the matter at its next regularly scheduled
meeting.
Marc X. Chamber Update
\/8i|k8nCOurt, President of the Chamber Of COnlnlerCe, gave the fO|k]xvng
The Bk3ndin Foundation is putting On 8 leadership prOgn8rn here in
Hutchinson.
The Chamber is facilitating 8 project to COOrdin8te Sign8ge for the Hwy 7
project.
The Chamber iS also assisting On8 project fordOxvntOxvnChhStnl8S|ightS.
There is an initiative underway to secure State bonding dollars to pave the
Luce Line Trail between Hutchinson and VVinSted. Although popular idea,
the paving project may have b3 wait until the next bonding SeSSiOn. as 8
regional park has greater priority this year.
There will be an Open house On dOxvntOxvn design at the Jorgensen Hotel On
nu
March
�� The Chamber's COrnrnunitv banner project is going very well.
XI. Other Business
It was noted that two houses in the area of the projected downtown post office
project are currently for sale. Staff was directed to find out what the asking
prices were.
XII. Set next meeting
To accommodate schedules, it was agreed to set the next meeting of the
Hutchinson EDA for Wednesday. March 29t"
XII. Adjourn
The meeting was adjourned at 8:12 AM.
Respectfully Submitted,
Miles R. Seppelt
EDA Director