09-28-2007 EDAMEDA Board of Directors
Meeting Minutes
7 AM Friday, September 28th 2007
Members present in bold print:
Members
Tim Ulrich Steve Jansick
Casey Stotts Duane Hoversten
Staff
Miles Seppelt, EDA Director
Shan Ghimire, EDA Assistant
Guests
Bill Corby
Jim Haugen Diane Gordon
Mike McGraw
I. Mr. Ulrich called the meeting to order at 7:04 AM.
II. Approve Agenda: No action.
III. Review and Approve Meeting Minutes
a. Minutes of August 14th Finance Team Meeting.
M /S /P: McGraw, Ulrich to approve the August 14th Finance Team minutes as written.
Approved unanimously.
b. September 7th EDA Board Meeting
M /S /P: McGraw, Haugen to approve the September 7th EDA Board minutes with the
corrections noted. Approved unanimously.
c. September 11th EDA Board Special Meeting
M /S /P: Stotts, Haugen to approve the September 11th EDA Board Special Meeting
minutes with the corrections noted. Approved unanimously.
IV. Review August 2007 Financial Statements
Mr. Seppelt presented the following report:
■ At of the end of August, the EDA has $84,394 available for operations.
■ The EDA received $500 in rental revenues for the Wetherell property and an
additional $630 in reimbursements.
■ Professional services for the month totaled $25,675, reflecting largely a payment
made to ZRT architects for their work on the planned EDA spec building.
■ The Improvements to Land line -item is $5,158 for the month, reflecting dirt work
done on the Wetherell lot where the call center is to be located. This will be
reimbursed to the EDA when the lot is sold.
■ The Economic Development (Industrial Park) loan fund has $83,082 in cash
available.
■ A $50,000 loan has been made to Warrior Manufacturing for equipment.
■ The loan to Ashwill industries is performing as required, with an outstanding
balance of $23,837.
■ The EDA is maintaining the outstanding loan balance of $21,560 on the books for
the time being from the Allied Mechanical loan, in hopes that collection efforts
may yet bear fruit.
■ The EDA continues to have $25,000 on deposit with MCCF.
■ In the Downtown Loan Fund, the EDA has $533,138 in cash available and holds
mortgagees totaling $701,978. All loans are performing as required.
■ For the first 8 months of the year the EDA has received $79,322 in loan
repayments and disbursed $35,326 in downtown grants.
■ A new page has been added to the monthly financial report for loans made with
Minnesota Investment Fund (MIF) grant dollars. A $200,000 loan to Warrior
Manufacturing has been disbursed and the EDA will start receiving monthly
payments immediately.
M /S /P: McGraw, Stotts to approve financials for August 2007 with the changes on
page 1 for receivable from Warrior Manufacturing and page 6 to change the title to
MIF Loan Fund. Passed Unanimously.
V. Director's Report
CENEX Project
We will hopefully be able to sign documents on September 28th; just waiting for review
of the documents by the CENEX attorney.
Warrior Manufacturing
They are going good with their production; not sure whether they are done with the
office space.
Industrial Park Design
The preliminary reports have been finished; working on project cost estimates.
EDA Levy
Council gave preliminary approval for $146,000.
There was a discussion about board's thought on the package with CENEX. It was
mentioned that the agreement sounds fair since we are getting the land required for
access to industrial park. There was also discussion about possible funding for clean
up from MN Department of Agriculture, MN Pollution Control Agency and DEED.
VI. EDA 2008 Budget
Mr. Seppelt presented a draft of 2008 EDA Budget to the board. It shows a
comparison of budgets from 2006 to 2008. Under revenue, the levy is $146,000
keeping the tax rate same, which has already been approved by the city council.
Under expenditure, professional services seem higher reflecting additional activity.
Communications and conferences expenditure have been increased reflecting actual
expenditure. Taxes on Stritesky property has been added as a new item. There was
discussion on this issue if the city owned property would be exempt from taxes. Staff
will provide more information on the next meeting.
M /S /P: Haugen, McGraw to approve to approve preliminary budget as presented.
Passed Unanimously.
VII. Customer Elation Project Update
Mr. Seppelt presented an update on the Customer Elation Project. It was mentioned
that we might be able to sign documents by next week. The company has been
working on finalizing the numbers; they are looking at financing from Western Bank.
Discussions are underway between the builder and the company to move ahead with
the project. Since we are going to be out of the project once the documents are
signed, the company is going to reimburse the expenses for dirt work and architect
fees.
VIII. Business Recruitment Update
Mr. Seppelt provided an update on recent meeting at Community Venture Network. It
was mentioned that two companies — Global Discware and TranCentral, Inc seem to fit
the nature of business that we aim to recruit in Hutchinson. Global Discware is a
CD /DVD producer while TranCentral specializes in factoring for trucking and logistic
companies. He mentioned that a letter of interest has been sent and we are waiting to
hear back from them.
IX. Grants & Loan Applications
Sign and Awning Grant
A. George Quast, 137 Main St. S
$2,000.00
M /S /P: Haugen, Stotts to approve awning grant of amount $2,000 for the property at
137 Main St. S. Passed Unanimously.
B. Hutch Sport Shop, Mark Mittelsteadt, 137 Main St. S $1,360.94
M /S /P: Mcgraw, Haugen to approve a sign grant of $1,360.94 to Hutch Sport Shop.
Passed Unanimously.
C. The Shoe Inn, George Moehring, 137 Main St. S $1,360.94
M /S /P: Haugen, Stotts to approve a sign grant of $1,360.94 to The Shoe Inn. Passed
Unanimously.
D. Lighthouse Counseling, Larry Bengtson, 101 Main St. S $1,290.00
M /S /P: Ulrich, McGraw to approve a sign grant of $1,290 to Lighthouse Counseling.
Passed Unanimously.
X. Other Business
• There was discussion about development of the new industrial park. It was
mentioned that it is included as part of the City's capital improvement plan for
2009. We could also look into Infrastructure Development grant from DEED.
• There is a ribbon - cutting ceremony for Hwy -7 at 10 AM on September 281H
XI. Chamber Update
Mr. Corby updated the Board on the following events:
■ Arts and Crafts has been wrapped up successfully.
■ Dynamic sales training has been scheduled for October 9th.
■ The Hutchinson Area Chamber of Commerce, has joined forces with the Glencoe
Chamber, the Winsted Chamber, Ridgewater College and the MN Workforce
Center to form the MBC - McLeod Business Collaborative.
XII. Set next meeting
The next meeting will be Friday, November 2, 2007 at 7:00 am in the City Center
Main Conference Room.
XIII. Adjourn
The meeting adjourned at 8:02 a.m.
Respectfully submitted,
Shan Ghimire, EDA Assistant