01-25-2008 EDAMEDA Board of Directors
Meeting Minutes
7 AM Friday, January 25th, 2008
Members present in bold print:
Updated: February, 5th
Members
Tim Ulrich Steve Jansick Diane Gordon Duane Hoversten
Casey Stotts Jim Haugen Mike McGraw
Staff
Miles Seppelt, EDA Director
Lee Miller, EDA Assistant
Ken Merrill, Finance Director
Guests
Bill Corby, Chamber of Commerce
I. Mr. Ulrich called the meeting to order at 7:01 AM.
II. Approve Agenda: No action
III. Review and Approve Meeting Minutes
a. Minutes of January 4th, Board of Directors
M /S /P: Jansick, Haugen to approve the minutes from January 4th Board of Director's
meeting. Approved unanimously.
b. Minutes of December 19th Finance Team Meeting
M /S /P: Jansick, McGraw to approve the December 19th Finance Team meeting
minutes. Approved unanimously.
IV. Review of December 2007 Financial Statements
Finance Director Ken Merrill gave the following report:
• As of the end of December, the EDA has $157,841 cash on hand and
total fund balance equal to $157,161.
• The EDA received $500 in rental revenues, total income for year from all
sources being equal to $299,209.
• Professional services for the month totaled $910. Regular salaries and
fringe benefits totaled $9,706, total expenses being equal to $11,177.
• The Economic Development (Industrial Park) loan fund has $90,338 in
cash available.
• 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 in the Economic Development loan fund being equal to $215,496.
• In the Downtown Loan Fund, the EDA has $463,826 in cash available
and holds mortgagees totaling $674,256. All loans are performing as
required (with the exception of Cornerstone Commons).
• For the year the EDA has received $118,246 in loan repayments and
disbursed $51,118 in downtown grants.
M /S /P: Haugen, McGraw to approve the December Financial Statements.
Passed unanimously.
V. Director's Report
Mr. Seppelt reported the following:
A. Cenex project
• Close to completing new building on Adams Street
• Should be about a month when they are ready to move in
• Will be recycling materials from old site (will reduce demo costs)
• They have completed site examination
• EDA will be paying 2nd installment for fertilizer site
B. Customer Elation Call Center
• About a week ahead of schedule
• On target for April opening
• Most of the walls are up, but no roof yet
C. Warrior Manufacturing
• The company has 24 employees currently
• Passed state audit to finalize grant
D. Cornerstone Commons
• Refinancing loan with Beacon Bank
• They are negotiating with contractors to remove mechanic liens
E. Business Recruitment
■ RKadia is looking to acquire Haugen Furniture. RKadia makes TV
stands, bookcases, end tables, etc. They have 1 -1.5 million in sales
annually. They could potentially add 7 -8 new jobs over the next two
years.
F. County EDA
■ Mr. Seppelt reported that his campaign for a county level EDA is
going great. Every group he has visited so far has unanimously
passed a resolution of support. Mr. Seppelt is planning on meeting
with the county commissioners one on one to explain in detail the
benefits of a county EDA.
VI. Election of 2008 Officers
President- Tim Ulrich
Vice President- Mike McGraw
Treasurer- Steve Jansick
Assistant Treasurer- Ken Merrill, staff
Secretary- Economic Development Assistant, staff
M /S /P: McGraw, Haugen to approve slate of officers for 2008. Passed
unanimously.
VII. Nominate new EDA Board Member
The Board received and reviewed two applications: Marc Vaillancourt and
Randy Redman.
M /S /P: McGraw, Jansick to nominate of Marc Vaillancourt to replace Mr.
Hoversten on the EDA Board of Directors. Passed unanimously.
The City Council will formally act on the nomination at their regular
scheduled meeting on February 12tH
VIII. Business Incubator
• Mr. Hoversten presented to the board the possibility of partnering with
Ridgewater College to create a business incubator at the college's
vacant east campus.
• The site is 6.15 acres, with 18,OOOsf (12,OOOsf for production, 6,OOOsf
of office space).
• Mr. Hoversten stated that there are some grant funds available for
projects like this.
• The Board discussed the proposal and expressed their support.
IX. Hutch Iron & Metal
• Staff has been in preliminary discussions about constructing a fence
alongside the west and north boundaries of the site.
• The fence would be about 8 -10' high and would sit on about a 2 -3'
berm.
• As part of the deal, the EDA would trade a triangular piece of land
located to the southwest of the scrap yard and offer a low interest loan
in exchange for HI &M to pay for the project.
• Discussion followed about requiring the fence to be extended to
include the southern boundary of the property
X. Recognition Event
• Staff presented the Board with a preliminary budget for the event
• Finance Team recommended a $1500 budget for the event
• Tentative date is during the 2nd week in March
M /S /P: Jansick, McGraw to approve a budget of $1,500 for the recognition event.
Passed unanimously.
XI. Grant and Loan Applications
Sign & Awning Grant Program
Home Sweet Home Quilt Design — Amy Albrecht $600.00
M /S /P: Ulrich, Jansick to approve grant request for $600 to Home Sweet Home Quilt
Design. Passed Unanimously.
Lang's Meat Market — Randy Lang $1980.34
*Contingent to Finance Team approval
M /S /P: McGraw, Jansick to approve grant request of $1980.34 to Lang's Meat Market,
contingent to Finance Team approval. Passed unanimously.
Pearson School of Music — Catherine Pearson $2,000.00
*Contingent to Finance Team approval
M /S /P: Jansick, McGraw to approve grant request of $2000 to Pearson School of Music,
contingent to Finance Team approval. Passed unanimously.
XII. Other Business
None
XIII. Chamber update
Mr. Corby updated the Board on the following events:
• Bridal Fair January 27th 11- 4:00 PM
• Annual Banquet will be held January 31St at the Hutchinson Event Center,
doors open at 5:30 PM.
• Community Connection Nonprofit Open House February 21s' at the
Hutchinson Event Center 3:00 PM start time
• Ladies Escape Weekend: Feb. 291h Spa & Glam Party 7 -9pm, March 1s'
HAHC Ladies Day Retreat 8:30am- 2:OOpm, Wine Tasting 7 -9pm at the
Victorian Inn
• Mr. Corby also announced that the Chamber is bringing speaker Rick Segel
to Hutchinson March 12th. Mr. Segel will be speaking in two sessions. The
first session is titled "Surviving in a slowing economy" and the afternoon
session will focus on customer service.
XIV. Set Next Meeting
The next meeting will take place Friday February 22nd, at 7:00 am in
the City Center Main Conference room.
XV. Adjourn
The meeting adjourned at 8:17 a.m.
Respectfully submitted,
Lee Miller
EDA Assistant