05-26-2006 EDAMEDA Board of Directors
Minutes of Meeting
Friday, May 26, 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
Gary Plotz, City Administrator
I. Tim Ulrich called the meeting to order at 7:00 a.m.
II. Approve Agenda- No action
III. Review and Approve Meeting Minutes
a. Review minutes from April 28th EDA Board Meeting
Don Walser
Marc Vaillancourt
MIS/P: Jansick/Haugen to approve the minutes from the April 28, 2006 EDA Board meeting as
written. Passed unanimously.
b. Review minutes from April 19th Finance Team Meeting
MIS/P: Haugen /McGraw to approve the minutes from the April 19, 2006 Finance Team Meeting as
written. Passed unanimously.
IV. Review April Financial Statements
Ken Merrill gave the following report:
o On Pg 1 under operations for the EDA, there is $273,905 cash on hand. The total fund balance as
of April 30, 2006 is $268,470. 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 $2000 in the first four months
of 2006. Total expenses for the month of April equal $15,031.
o Pg 4 under the EDA Loan Fund, there cash on hand is $118,139.
o Pg 5 under the EDA Downtown Loan Fund, cash on hand is $570,204. Mortgages receivable is
$678,867. $48,850 has been collected this year for loan repayments. A total of $9,874 has been
paid out thus far in 2006 including loans, downtown grant program, and miscellaneous. The
balance sheet reflects revenues of $38,930 above expenditures.
o A payment of $5,928 has been paid for the special assessments on the Wetherell property for water
and sewer improvements.
MIS/P: Stotts / Jansick to approve the April financial statements as presented. Passed unanimously.
V. Director's Report
Miles Seppelt gave the following report:
A. Cornerstone Commons —The cement on the second floor has been poured. The outside architectural
elements are beginning to take shape.
May EDA Board Meeting
Page 2 of 3
B. Pet Hospital Building —There has been no change since last month. A meeting will be scheduled with
the building owners, their attorney, Mr. Sebora, the new planning director, and Mr. Seppelt late next
month. The building cannot be occupied until it is flood proofed, but it cannot be flood proofed under
current law.
C. Streetscape & Hwy 7 —The streetscape is done until Cornerstone Commons is completed later this
summer. Buildings are still being demolished as part of the Hwy 7 project.
D. Highway 7 —The project began this week. Mr. Seppelt completed business retention and expansion
visits to four companies directly affected this week.
E. Business Recruitment
a. Company "X" —The Development Agreement was signed on Thursday, May 18, 2006. A
press release will occur mid -June announcing the company's arrival to Hutchinson. There will
be a groundbreaking that the Board will be asked to be involved with.
b. Nordic Components— Nothing new to report.
A Retail Roundtable is being planned for June with participants from the Chamber CVB, downtown
businesses, and south -end businesses as well as the EDA, Mayor Cook, and possibly a couple of City
Council members. Brainstorming will be done to identify what should /should not be done to help
businesses.
VI. Goebel Property
Mr. Goebel has accepted the EDA's offer to purchase his land in the industrial park. The $151,483 in
assessments on all four lots will be paid by the EDA. The pond will be deeded to the City. The EDA will
get the eastern two lots. The land acquisition will need City Council approval.
MIS/P: Stotts /McGraw to move ahead with the purchase of the Goebel property. Passed
unanimously.
VII. Minnesota Investment Network - Hutchinson RAIN fund
Four of the nine RAIN funds previously established in Minnesota were started by EDA's. A joint meeting
with the Finance Team and the EDA Board to listen to a formal presentation before deciding whether or not
to move forward will be scheduled in July or August.
VIII. Industrial Park Sign Project
Mid - Central Builders submitted the low bid for the project. The cost submitted by Hutch Utilities to
provide electricity to the sign is very high. McLeod Co -op is being contacted to see if it can be done for a
more reasonable price. Mr. Seppelt will find out what the actual price to have electrical service to the sign
will be. The Board asked whether the costs to the companies could be spread out over three years to help
defray a large initial cost.
IX. Industrial Park Improvements (Block 2, Lot 2- Wetherell Property)
The fill dirt used on the site was free, but the EDA is responsible for paying the costs to turn, dry, disk, and
grade the lot. The initial estimate from City engineers was $2000 -3000. A grading bill for $15,935 was
received from Juul Contracting. Another $15,000 may be needed to finish the improvements to the land.
The contractor is reluctant to provide a written estimate due to the fact that the soil wetness may change.
These land improvement costs will be re- cooped when the land is sold, and the land improvements will
make the lot more marketable.
MIS/P: Haugen /Stotts to approve a maximum expenditure of up to $30,000 to complete the
improvements to Block 2, Lot 2. Passed unanimously.
X. Grant & Loan Applications
Storefront Revitalization Matching Grant
Thimbleberries (Lynette Jensen)
$5000
May EDA Board Meeting
Page 3 of 3
M/S /P: Jansick/Stotts to approve the Storefront Revitalization Matching Grant in the amount of
$5000 for Thimbleberries. Passed unanimously.
XI. Chamber CVB Update
Marc Vaillancourt gave the following report:
• The Chamber CVB Executive Board approved up to $500 to co- sponsor the Retail Trade
Analysis and Small Business Success Strategies presentations /reports offered by the U of M
Extension Services.
• The Workforce Readiness Program will begin June 28.
• Dairy Days is scheduled for June 9. The Music in the Park concert series will begin June 12.
• A joint effort between the Leader and the Chamber CVB to print and distribute 5000 maps
depicting construction routes to deliver to businesses will be accomplished by June 15.
XII. Other Business
Mr. Seppelt reported that Steve Barton is refinancing his outstanding loans. U.S. Bank has requested that
subordination agreements for the two loans he has through the EDA be subordinated.
M/S /P: Stotts /McGraw to approve the two loan subordination agreements with U.S. Bank for Mr.
Steven Barton. Passed unanimously.
XIII. The next meeting will be Friday, June 23 , 2006 at 7:00 a.m.
XIV. Performance Review of EDA Director —Mr. Gary Plotz
Mr. Seppelt, EDA Director, and Ms. Evans, EDA Assistant, were not present for the yearly review.
XV. Adjourn
The meeting adjourned at 8:07 a.m.
Respectfully submitted,
Jessica Evans
EDA Assistant