04-28-2006 EDAMEDA Board of Directors
Minutes of Meeting
Friday, April 28, 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
I. Mike McGraw called the meeting to order at 7:03 a.m.
II. Approve Agenda- No action
III. Review and Approve Meeting Minutes
a. Review minutes from March 29th EDA Board Meeting
Don Walser
Marc Vaillancourt
MIS/P: Jansick/Walser to approve the minutes from the March 29, 2006 EDA Board meeting as
written. Passed unanimously.
b. Review minutes from March 15th Finance Team Meeting
MIS/P: Walser / Haugen to approve the minutes from the March 15, 2006 Finance Team Meeting as
written. Passed unanimously.
IV. Review March Financial Statements
Miles Seppelt gave the following report:
o On Pg 1 under operations for the EDA, there is $282,307 cash on hand. The total fund balance as
of March 31, 2006 is $282,817. 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 $1500 in the first three
months of 2006. Total expenses for the month of March equal $10,632.
o Pg 4 under the EDA Loan Fund, there cash on hand is $117,574.
o Pg 5 under the EDA Downtown Loan Fund, cash on hand is $566,059. Mortgages receivable is
$686,932. $42,380 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 $36,460 above expenditures.
MIS/P: Jansick/Haugen to approve March financial statements as presented. Passed unanimously.
V. Director's Report
Miles Seppelt gave the following report:
A. Cornerstone Commons —The project is on schedule, and the exterior should be done in July.
B. Downtown Streetscape Project — Streetscape work and needed utility work is progressing on
Washington Avenue. The area in front of Cornerstone Commons will be completed in July.
C. Highway 7 —The project began this week. Mr. Seppelt completed business retention and expansion
visits to four companies directly affected this week.
March EDA Board Meeting
Page 2 of 2
D. Company "X "— Groundbreaking is anticipated in July.
E. Nordic Components — Currently this precision- machining 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.
F. G.R. Creations —This company is also looking for more space and is interested in renting space in the
industrial park.
G. Medisyn Technologies —This high -tech start-up medical research company is considering setting up a
2000 square foot facility in Hutchinson.
H. Industrial Park Sign —The project bid deadline has been extended to May 2, 2006. It will require
approximately $20 /month to provide electricity to the sign.
I. Goebel Property —There has been no update concerning the Boards last offer to Mr. Goebel.
VI. Minnesota Investment Network - Hutchinson RAIN fund
Mr. Seppelt explained the components of the Minnesota Investment Network. This is a newer economic
tool and is a community -based equity investment group. Members of a local investment group make all
decisions. The company funds local /regional investments. Member investment is $25,000 - 100,000. RAIN
Source Capital provides capital and support during formation and management. There are currently nine
RAIN funds in Minnesota. Mr. Seppelt inquired whether a local group could possibly be formed in
Hutchinson. The investors could be either individuals or institutions. Mr. Jansick reported that some
members of the Finance Team called bankers working with RAIN fund investors and a couple of RAIN
fund investors in other cities to see what their experiences have been with RAIN funds. The Board
suggested that Mr. Seppelt also call individual investors in other cities.
VII. Update on acquisition of former Pet Hospital building
The owners of the former Pet Hospital building are unwilling to negotiate regarding a purchase price. The
grant money that was received to acquire and demolish the building has a one -year time limit. The options
at this point include sending the grant money back to DEED or considering the use of eminent domain and
having the building condemned. The board once again validated the money spent to have the appraisal
completed.
VIII. Grant & Loan Applications
Sign & Awning Grant Program
Venus Salon & Spa (47 Main Street North) $350 adjustment
MIS/P: Jansick/Haugen to approve the sign and awning grant adjustment of $350 for Venus Salon &
Spa to cover the unanticipated expenses. Passed unanimously.
IX. Performance Review of EDA Director- 2005 (Gary Plotz)
This item will be tabled until May 2006.
X. Chamber CVB Update- None
XI. Other Business- None
XII. The next meeting will be Friday, May 26, 2006 at 7:00 a.m.
XIII. Adjourn
The meeting adjourned at 8:07 a.m.
Respectfully submitted,
Jessica Evans
EDA Assistant