01-04-2008 EDAMEDA Board of Directors
Meeting Minutes
7 AM Friday, January 4, 2008
Members present in bold print:
Members
Tim Ulrich Duane Hoversten
Casey Stotts Jim Haugen
Staff
Miles Seppelt, EDA Director
Lee Miller, EDA Assistant
Ken Merrill, Finance Director
Guests
Bill Corby, Chamber of Commerce
Steve Jansick Diane Gordon
Mike McGraw
I. Mr. Ulrich called the meeting to order at 7:02 AM.
II. Approve Agenda: Added Goals for 2008 under Other Business
III. Review and Approve Meeting Minutes
a. Minutes of November 30th, Board of Directors
M /S /P: Hoversten, Stotts to approve the minutes from November 30th Board of
Director's meeting. Approved unanimously.
b. Minutes of November 19th Finance Team Meeting
M /S /P: Jansick, Haugen to approve the November 19th Finance Team meeting
minutes. Approved unanimously.
c. Minutes of December 27th Board of Directors Special Meeting
M /S /P: Haugen, Stotts to approve the minutes from December 27th Special Meeting
of the Board of Directors. Change `Bacon' Bank to Beacon Bank. Approved
unanimously.
IV. Review of November 2007 Financial Statements
Finance Director Ken Merrill gave the following report:
• As of the end of November, the EDA has $107,829 cash on hand and
total fund balance equal to $99,789.
• The EDA received $8,622 in rental revenues, total income for year to date
being equal to $230,656.
• Professional services for the month totaled $7,500, payment to Ehlers &
Associates for Customer Elation Project. Regular salaries and fringe
benefits totaled $8,516, total expenses being equal to $17,392.
• The Economic Development (Industrial Park) loan fund has $89,093 in
cash available.
• The loan to Ashwill industries is performing as required, with an
outstanding balance of $22,625.
• The EDA is maintaining the outstanding loan balance of $21,560 on the
books for the time being from the Allied Mechanical loan.
• The EDA continues to have $25,000 on deposit with MCCF, with total
assets being equal to $215,177.
• In the Downtown Loan Fund, the EDA has $468,524 in cash available
and holds mortgagees totaling $678,597. All loans are performing as
required (with the exception of Cornerstone Commons).
• For the first 11 months of the year the EDA has received $110,883 in loan
repayments and disbursed $41,158 in downtown grants.
• In the MIF Loan Fund, year to date payment of $7,800 were received
from Warrior manufacturing with total assets in the fund being equal to
$200,873.
M /S /P: Gordon, Stotts to approve the November Financial Statements. Passed
unanimously.
V. Director's Report
Mr. Seppelt reported the following:
A. Introduced spring intern, Lee Miller. Started December 10th and will be with
us through May 30tH
B. Cenex project
• Close to completing new building on Adams Street
• Planning on occupying building by end of January
• Will be recycling materials from old site (will reduce demo costs)
C. Customer Elation Call Center
• Steel frame is standing, they hope to have it enclosed within the next
two weeks
• On target for April opening
D. Warrior Manufacturing
• The company is up to 22 employees
• Offices completed, will be hiring a receptionist soon
E. Corner Stone Commons
■ Refinancing loan with Beacon Bank
F. Business Recruitment
■ Mr. Seppelt reported to the EDA Board about his visit with Recon
Robotics at the CVN meeting. The company is looking for a
production site with at least 7,500 sq. feet for assembly, testing, repair
and office space. This technology based business would be an ideal
fit into our spec building. The company has been awarded an 8 million
dollar grant from the Defense Department for research and
development.
■ Mr. Seppelt reported that Global Discware has narrowed its list of
potential sites down to three. Hutchinson is included on the list.
G. Industrial Park Design
■ Mr. Seppelt has conducted preliminary research for possible funding
sources for infrastructure for the industrial park. It was reported that
no application for infrastructure grants have been made available at
this time. It was mentioned that they would be available after the next
bonding session. The EDA has set a goal of 1 million dollars from the
grant.
H. County EDA
• Mr. Seppelt will be attending the Glencoe City Council meeting next
week to gauge their support.
• Silver Lake has passed the resolution for support of a county EDA.
• Mr. Seppelt will also be meeting with McLeod County Commissioners
soon.
VI. State Theatre
• The EDA received a request from Red and Linda McMonagle for the
continuation of their interest only payment for their loan with the EDA.
• It was recommended by the Finance Team to continue with interest
only payments for the theatre.
M /S /P: Jansick, Haugen to continue interest only payments with the State
Theatre thru 2008. Passed unanimously. Mr. Ulrich abstained.
VII. Agricultural Lease
• The EDA received 7 bids to rent the Stritesky property which consists
of 78 acres.
• The winning bid went to Randy Luthens at $203.80 /acre. Lease will be
good for one year.
• There was discussion about providing a lease provision to reimburse
the lessee for documented inputs (seed, fertilizer, etc.) if development
were to take place during the lease period. This would be on a per
acre basis.
M /S /P: Gordon, Stotts to accept Mr. Luthen's bid of $203.80 /acre with a lease
provision regarding reimbursing lessee for documented costs of inputs on
a per acre basis. Passed unanimously.
VIII. Pending Board Members Vacancies
Mr. Seppelt has received only one application, but was contacted by
an interested party the evening prior to this meeting.
It was discussed about the possibility of contacting persons who have
an application on file and see if they are still interested.
It was decided to table this until the next meeting.
IX. Recognition Event
■ EDA will complete a budget for this event and will present it to the
Board at the next meeting.
X. Grant and Loan Applications
Sign & Awning Grant Program
None
Storefront Revitalization Matching Grant
None
XI. Other Business
Letter of appreciation from George Quast for the sign and awning
grant he received.
Goals for 2008 were discussed.
They included the following:
• 15 BR & E visits
• Finish Cenex removal and site cleanup
• Discussion of Power Plant face lift, they have been in contact with
Landform
• Downtown housing /HRA — potential site is the Cenex property
• Pursue development of McLeod County EDA
• Evaluate the feasibility of building a spec building in the industrial
park
• Discussion of expanding parameters of the downtown loan fund
• Find use for old Cub Foods building
• Pursue development opportunities for commercial development at
the corner of HWYs 15 and 7
There was also discussion about the Church at the south end of
downtown and their redevelopment plans.
Discussion about Hackbarth property. The son and daughter are now
handling affairs.
XII. Chamber update
• Mr. Corby gave an overview of the SBDC meeting.
• Annual Chamber banquet is set for January 31 st
• January 18th there will be a presentation at the Event Center
sponsored by the Chamber about healthcare.
• Mr. Corby also invited interested persons to the state Chamber
meeting in Litchfield. State legislators will be present to hear input
from business owners for the next legislative session.
XIII. Set Next Meeting
■ The next meeting will take place Friday January 25th, at 7:00 am in the
City Center Main Conference room.
XIV. Adjourn
The meeting adjourned at 7:54 a.m.
Respectfully submitted,
Lee Miller
EDA Assistant