03-29-2006 EDAMHutchinson EDA
Board of Directors
Minutes of Meeting
Wednesday, March 29, 2006
Members present in bold print:
Members:
Tim Ulrich Steve Jansick Jim Haugen
Duane Hoversten Casey Stotts Mike McGraw
Staff:
Miles Seppelt, EDA Executive Director
Jessica Evans, EDA Assistant
Ken Merrill, Finance Director
L Tim Ulrich called the meeting to order at 7:01 a.m.
II. Approve Agenda
No action taken
III. Review and Approve Meeting Minutes
a. Review minutes from February 24th EDA Board Meeting
Don Walser
Marc Vaillancourt
M/S /P: Walser /McGraw to approve the minutes from the February 24, 2006 EDA Board
meeting as written. Passed unanimously.
b. Review minutes from February 15th Finance Team Meeting
M/S /P: Jansick/Ulrich to approve the minutes from the February 15, 2006 Finance Team
Meeting as written. Passed unanimously.
IV. Review February Financial Statements
Ken Merrill gave the following report:
o On Pg 1 under operations for the EDA, there is $291,856 cash on hand. The total fund
balance as of February 28, 2006 is $291,794. Total Mortgages receivable is $76,608.
o 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 $1000 in the first
two months of 2006. Total expenses for the month of February total $8,508.
o Pg 4 under the EDA Loan Fund, there cash on hand is $117,009.
o Pg 5 under the EDA Downtown Loan Fund, cash on hand is $558,376. Mortgages
receivable is $700,173. $34,651 has been collected this year for loan repayments. A
total of $5,920 has been paid out thus far in 2006 including loans, downtown grant
program, and miscellaneous. The balance sheet reflects revenues of $28,731 above
expenditures.
EDA Board Meeting
March 29, 2006
Page 2 of 3
M/S /P: McGraw/Hoversten to approve February financial statements as presented. Passed
unanimously.
V. Director's Report
Miles Seppelt gave the following report:
A. Cornerstone Commons —The exterior should be done by mid -July. The project expenses are
higher than originally planned due to increased material prices.
B. Company "X" —The project continues to move forward. Contract language is being worked
out.
C. Nordic Components — Currently this business is located outside of city limits but is interested
in moving into the industrial park this year. They will require a 15,000 square foot facility.
D. G.R. Creations —This company is also looking for more space and is interested in moving into
the industrial park as well.
E. Industrial Park Sign —The project is going out for bids this week. When the bids are all
submitted the project will be placed on the Finance Team agenda and then on the EDA Board
agenda.
F. Grant Writing —Mr. Seppelt is currently working on a DEED grant to obtain funding to have
an environmental study completed on Block 5 (McLeod County Rail Authority, Schmaeling Oil
Company, Roger Dummer) property. A grant is also being written to aid Company "X" in
purchasing needed equipment.
G. Downtown Streetscape Project Streetscape will be finished on the north side of Washington
Avenue in May. The area in front of Cornerstone Commons will be done later.
H. Highway 7— Demolition of buildings should begin in April. Construction will begin in June.
Southwest Minnesota Foundation should be completed June 1.
VI. DEED Redevelopment Grant /Appraisal
An appraisal was done on the old pet clinic building. The property appraised at $70,000. The
owners are asking for $147,000, which is the amount the Rix gas station property was
purchased for. City Attorney Mark Sebora has stated that the EDA Board is not constrained by
the regular guidelines used by the city when purchasing property because the money is coming
from a grant outside of the city. Traditionally, the city would be limited to offering the
appraisal price plus 10 -15 %. Mr. Seppelt will have an estimate done to see how much it will be
to have the building demolished.
M/S /P: Walser /Jansick to authorize the payment for the appraisal. Passed unanimously.
VII. Goebel Property
Nothing new to report.
VIIL Post Office- Project Status
Mr. Seppelt further researched the possibility of the post office authorizing a construction
project this year. Currently, the Postal Service has a 2 to 4 year "hold" on new projects. Mr.
Seppelt will revisit the possibility of the project in one year.
EDA Board Meeting
March 29, 2006
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IX. EDA Funding Levy
Mr. Seppelt provided a list of possible EDA levy levels for the Boards information. This item
will be placed on June's agenda, as the Board would like to see what will happen with the
school referendum that is to be done in May.
X. Grant & Loan Applications
Sign & Awning Grant Program
Security Coin & Pawn
140 North Main Street, Suite B
$1660
M/S /P: Jansick/McGraw to approve the sign and awning grant up to $2000 for Security Coin
& Pawn provided the electrical conduit comes through the wall or the conduit is of minimal
length. Passed unanimously.
Name Your Frame & Photography (Tamela Schultz) $2000
M/S /P: Jansick/Walser to approve the sign and awning grant of $2000 for Name Your Frame
& Photography. Passed unanimously.
Commercial Rehabilitation Loan Program
The Glass Apple (Cheryl Labat) $4000
132 Main Street South
M/S /P: McGraw /Walser to approve the Commercial Rehabilitation Loan to The Glass Apple
for $4000 less any reimbursement from the total cost if a rebate is issued from Hutchinson
Utilities through the Commercial Energy Rebate program. Passed unanimously.
XI. Chamber CVB Update
Mr. Vaillancourt reported that the Chamber CVB is wrapping up its last three sessions of the
leadership program, and beginning to prepare for its regular summer programs. Chamber members
will be receiving updates regarding the streetscape project. The Chamber CVB will be updating all
businesses about the Highway 7 construction and detours. There will be a meeting called with
KDUZ, the Leader, Hutchinson Downtown Association to make sure everyone is on the same page
and that efforts are not needlessly duplicated.
XII. Other Business
Mr. Ulrich received a letter of resignation from Mr. Hoversten effective March 31.
M/S /P: Walser /Jansick to table the decision about Mr. Hoversten's letter of resignation until
July 2006. Passed unanimously.
XIIL The next meeting will be Friday, April 28, 2006 at 7:00 a.m.
XIV. Adjourn
The meeting adjourned at 8:02 a.m.
Respectfully submitted,
Jessica Evans
EDA Assistant